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USA Company Registration

Section 8 Company

Company Registration in the USA

The USA is considered to be a world-class economy and first business hub. The US economy is nearly 20 trillion dollars which is nearly 14 times the size of the Indian economy. Hence, setting up a company in the USA gives global class benefit. Further being a developed nation, rules and regulations for Company Registration in USA are much regularized, and corporate tax rates are much lower. The United States of America has a multicultural population and a sizable English-speaking population. It is generally friendly to foreign firms due to its diversity. The US market is open for business options from all over the world.

It is very simple to establish a US corporation for your business as it has an economy fourteen times larger than India's and offers one of the most hospitable environments for Indian enterprises to readily thrive. As a result, a non-resident seeking US incorporation must follow all standard US business procedures in the same way as a resident, plus a few additional legalities There are two types of companies that Indians may register in the USA. One is C- Corporation and the other is LLC.

Business structure for forming a company

C- Corporation (closely held corporation):
  • C-Corporations are an independent legal entity separate from the people who own, control and manage it.
  • Due to this recognition as an individual entity, it is viewed as a legal “person” in the view of tax laws.
  • It can be engaged in business and contracts, can initiate lawsuits and itself be sued.
LLC (Limited Liability Corporation):
  • LLC is a type of entity that has features of both a Corporation and a Partnership.
  • LLC provides the owners with limited liability protection in case of a lawsuit or bankruptcy.
  • LLCs are also operationally flexible and the compliance requirements for a LLC are simple.
Type of business:

Considering the most options, companies are set up in America to address three situations of business opportunities:

  • The company would be set up in the USA, but the operation would be carried out in India.
  • The company is set up in the USA for marketing and brand building exercise and the rest of operation is carried out in India.
  • The company would be a subsidiary of an Indian business firm, but would conduct full -fledged operations in the USA.

Benefits of Starting a Company in the USA

Points to make your decision easy

New Markets

All 50 states in the USA are interested in increasing the business environment and many cities encourage them to invest in their communities. Hence you can have virtually unlimited choices for where to set up your business and can choose a geographical and climate zone that suits you.

Law and Regulations

Businesses in the USA are treated the same, whether foreign or domestically owned. This gives you the benefit of all the laws relevant to acquiring a business or transferring capital. It puts you on an equal standing with your opponent if there is ever a business dispute. The laws & regulations are the same for all businesses.

Low Corporate Tax

Many states and some cities in the USA offer financial incentives to foreign investors who will establish their business in a specific location. Some incentives are in the form of tax credits and the country has recently lowered commercial real estate taxes for foreign investors. Also, corporate tax rates are much lower.

Skilled Man Power

No matter what your business in the USA is, you will find hundreds of skilled workers just waiting for the opportunity you can offer them when you begin hiring workers for your new business. As there are community colleges and technical schools all committed to training students to enter the workforce at all levels.

Business Hub

The USA is worldwide known as a great business hub. Every day foreign nationals are willing to set up US business from larger enterprises to a small startup. The effective way to enlarge business all over the world is to register in the US marketplace key success factors for businesses around the world.

Techno Friendly

Access to advanced technology, which the U.S. is known for, increases the desirability of the U.S. as a place to do business. Many foreign investors are starting companies in the U.S. just to have access to advanced technological innovations which will enhance their business production and world -wide communication.

Information and Documents Required for Company Registration in US
  • Company name
  • Type of business
  • Physical US address for a registered business
  • (Y/N) Registered agent (in case of having another address it is mandatory to provide under the section)
  • Business partner's name (s)
  • Addresses of partners in business (s)
  • Possession: (%)
Documents Required for Company Registration In USA
  • PAN Card
  • Passport
  • Aadhaar card
  • Company incorporation details
  • Other crucial information

Types for Company Registration in USA from India

The United States of America has different laws and rules governing the creation and upkeep of businesses. In the USA, there are five different kinds of companies that are typically registered.

  • S Corporations
  • Corporate entities (C-corp)
  • nonprofit organisations
  • Limited Liability Businesses (LLCs)
  • Single-person businesses
Difference between LLC and C Corp

The following documents, in either Dutch, English, German, or French, must be supplied.

LLC C Corp
The owners also act as the partners in the business The owners play the role of Shareholders
This is apt for small scale companies that has a restriction on total number of shareholders Mid size sustainable businesses with multiple shareholders can choose this type of corporation
Partners enjoy the right to set up the configuration based on their choice and supervise the whole process In this type the shareholders have the power to choose the directors and manage the whole business
The partners do not stand liable in case of any issues In this type shareholders are not liable
Banking on the restrictions of the operating treaty and transferability is scheduled In this business model the stocks and shares can be transferred easily
In common, stakeholders from outside don’t want an LLC because they are structured to regulate as co-operations mostly Foreign investors like C corp because they include stocks, which is allocated among the shareholders