US–India corridor
India entry from the USA — for US companies, founders and NRIs
Setting up a company in India from the USA follows one of three paths: a US company building an India subsidiary, a US founder registering a company personally, or a US-based NRI investing back home. Each has different FEMA, tax and US-reporting checkpoints.
Last reviewed: October 2026 · Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates.
A) US companies setting up in India
A US company wholly owned subsidiary in India is the usual vehicle for an American company that wants to register a company in India, hire, invoice in rupees and hold local contracts. Alternatives are a branch, liaison or project office under the FEMA (Establishment in India of a Branch Office or a Liaison Office or a Project Office or any other place of business) Regulations, or a joint venture with an Indian partner. Compare them in subsidiary vs branch vs liaison vs project office and wholly owned subsidiary in India.
FDI route
Most sectors allow 100% FDI under the automatic route; restricted sectors need government approval. See FDI entry routes.
Apostille, not consularisation
The USA is a Hague Apostille Convention country, so the parent's certificate of incorporation, resolution and director KYC are apostilled by the relevant US state authority.
Resident director
At least one director must have stayed in India for 182 days or more in the financial year (Section 149(3)).
Transfer pricing
Intra-group service fees, royalties and cost recharges need arm's-length pricing and an annual accountant's report in Form 3CEB.
- 1
Confirm sector and vehicle
Check the FDI cap and route for your activity, and choose subsidiary, branch, liaison/project office or JV.
- 2
Apostille US documents
Board resolution, certificate of incorporation and director identity/address proofs are notarised and apostilled in the US.
- 3
Incorporate via SPICe+
Name reservation, DIN, PAN and TAN in one integrated MCA filing — about 7–15 working days once documents are complete.
- 4
Capitalise and report
Remit share capital through banking channels, allot shares, and file FC-GPR on the RBI FIRMS portal within 30 days; FLA is filed annually by 15 July.
- 5
Repatriate correctly
Dividends attract Section 195 withholding, commonly reduced to 15% under the US-India DTAA for a US corporate shareholder holding the requisite stake, with a US Tax Residency Certificate and Form 10F.
Detail on dividends, buybacks and Forms 15CA/15CB is in profit repatriation from India and withholding tax on foreign remittance.
Raise with your US CPA (high level only): Form 5471 reporting on the Indian subsidiary, GILTI / Subpart F inclusion, and aligning transfer pricing on both sides of the US-India charge.
B) US-based founders & foreign nationals
Yes — a US citizen or other foreign national can own up to 100% of an Indian company where the sector allows. Each foreign director needs a Director Identification Number (DIN) and a Class 3 digital signature certificate, supported by an apostilled passport and address proof. The company must still have at least one resident-Indian director under Section 149(3). The whole setup can be completed remotely. See company formation for foreign nationals and cost and timeline to set up.
Estimate your India setup cost & timeline →
C) US-based NRIs & OCIs
NRIs and OCI cardholders can invest on a repatriable basis through NRE accounts or inward remittance under Schedule I of the FEMA (NDI) Rules, 2019, or on a non-repatriable basis through NRO funds under Schedule IV. Dividends and sale proceeds on repatriable investments can be remitted after applicable tax; NRO balances move within the USD 1 million per financial year facility. Read NRI business setup in India and NRI investment & FEMA compliance; for personal NRI taxation, see NRI taxation at NRI Blueprint.
Raise with your US advisor (high level only): Form 5471 if you own 10% or more of the Indian company, FBAR (FinCEN 114) and FATCA Form 8938.
US company vs US founder vs US-based NRI
| Dimension | US company | US founder / foreign national | US-based NRI / OCI |
|---|---|---|---|
| Who it suits | US corporations and LLCs building an India operation | US citizens or other foreign nationals starting an Indian company personally | Indian-origin residents of the US (NRIs, OCIs) investing back home |
| Ownership / FDI | Up to 100% under the automatic route in most sectors (FEMA NDI Rules, 2019) | Up to 100% where the sector allows; counted as FDI | Repatriable (Schedule I, NRE/inward remittance) or non-repatriable (Schedule IV, NRO) |
| Key India filings | SPICe+, FC-GPR within 30 days, annual FLA, AOC-4/MGT-7, Form 3CEB | DIN, Class 3 DSC, SPICe+, FC-GPR, FLA, annual ROC returns | FC-GPR for repatriable investment, ROC returns, Indian income-tax return where applicable |
| US-side items for your CPA | Form 5471, GILTI / Subpart F, transfer pricing on both sides | Form 5471 where thresholds are met, foreign tax credit, FBAR | Form 5471 (≥10% holding), FBAR / FinCEN 114, FATCA Form 8938 |
| Repatriation | Dividends with Section 195 TDS at the treaty rate (commonly 15%), with TRC and Form 10F | Dividends and sale proceeds after Section 195 TDS and Forms 15CA/15CB | Repatriable basis: freely after tax; NRO basis: within USD 1 million per financial year |
US-side items are listed for discussion with your US CPA only; this page does not give US tax advice.
Frequently asked questions
How does a US company set up a subsidiary in India?
Can a US citizen own 100% of an Indian company?
What tax does a US parent pay on Indian profits, and what is the US-India treaty dividend rate?
How long does it take and how much does it cost to set up in India from the USA?
As a US-based NRI, can I repatriate profits, and what must I report in the US?
Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates. Last reviewed: October 2026. General guidance as of October 2026, not tax or legal advice on your facts; coordinate all US tax and reporting matters with your US CPA.
Setting up in India from the USA?
We structure the India side and work alongside your US CPA on the cross-border points.