How to Start a Company in India from the USA Detailed Guide for US Businesses

Are you a US‑based entrepreneur thinking about expanding your business to India—from states like Delaware, California, Texas, New York, or Florida—but not sure where to begin?

You’re not alone. Many American founders and business owners ask the same questions: What kind of Company can I set up in India? How long will it take? What are the legal steps, and how different is it from forming an LLC or corporation back home in the US?

This guide is written specifically for US businesses—whether you’re a Delaware C‑Corp startup, a California‑based SaaS company, a Texas manufacturing firm, or a Florida online retailer—who want a clear, practical roadmap to setting up and running a company in India in 2026. We’ll walk you through the process in simple, everyday language so you can understand the options, timelines, and key compliance steps without needing a law degree.

Table of Contents

Overview: How US Companies Can Set Up in India

In India, companies are governed by the Companies Act, 2013. Under this law, a U.S.-registered business can establish a presence in India in the following ways:

For setting up a new company: by incorporating a wholly owned subsidiary as a Private Limited Company (similar in many ways to a closely held corporation in the US), a Public Limited Company, or an LLP.

For expanding an existing US company, i.e., a foreign company*: by operating through a Branch Office, Project Office, or Liaison Office.

 A “foreign company” under Indian law is any company incorporated outside India that has a place of business or business activity in India. So if your Company is legally registered in a US state like Delaware or Wyoming and you start operating in India—through an office, long‑term project, or ongoing contracts—it is treated as a foreign company under Section 2(42) of the Companies Act, 2013.

Benefits of Setting up a Company in India from the USA (Why India is the Perfect Destination?)

India is among the top destinations for US businesses looking to expand or explore global markets. It is an ideal option for companies from almost every state in the United States. Business owners, especially from Florida and California, find it a cost-friendly and attractive choice. In fact, 2 out of 5 businesses are interested in expanding into India

Let’s understand the key advantages: Large and growing consumer market
India has over 1.4 billion people, with a rapidly rising middle class and strong digital adoption. This is ideal for SaaS, e‑commerce, EdTech, fintech, and service‑based businesses.

Cost‑efficient operations and talent
Salaries for engineers, designers, accountants, and support staff are significantly lower than in the USA, while English language skills and technical education remain strong.

This clearly means: in India, you can hire skilled people at a lower cost compared to the USA. At the same time, they are well-educated and good in English, so you save money without compromising on quality.

High Young Population
Out of the total population, more than 60% are young. They are willing to work at competitive costs and are actively part of the workforce. This is a big advantage for a country like India, where human resources are affordable, and there is strong adoption of technology.

Strong FDI policy for US investors
The US is one of the top sources of Foreign Direct Investment in India. Many sectors allow up to 100% foreign ownership under the Automatic Route, meaning no prior government approval is needed.

  • Time zone and language alignment
    India’s time zone overlaps with US business hours, and English is widely used in business, legal, and banking environments, making remote management smoother.
  • Scalable and investor‑friendly ecosystem
    India has a mature startup ecosystem with venture capital, incubators, and supportive regulations for tech and innovation‑driven businesses

Type of Companies—A US Citizen Can Set Up in India

As a US citizen or US‑based business, you can choose from several structures. The most common options are:

Type Meaning Best for
1. Private Limited Company (as wholly owned Subsidiary) A Private Limited Company is fully owned by a foreign parent (100% shares held by the US company or US citizens). It is the most common, secure, and flexible structure and is treated as an Indian (domestic) company for tax and legal purposes. US startups, SaaS, IT, e‑commerce, product companies, and businesses planning to raise external funding.
2. Public Limited Company A larger company that can offer shares to the public and can be listed on Indian stock exchanges.

It has stricter rules, higher disclosure requirements, and more shareholders.

 It is ideal for large-scale operations or for listing on Indian stock exchanges.
3. Branch Office (as a subsidiary of a foreign company)  

An extension of a foreign (US) company in India, not a separate legal entity. It can carry out certain business activities like consulting, research, or services, but is restricted by RBI rules and taxed as a foreign company.

 Foreign companies wanting to conduct limited business, such as export/import, consultancy, or research, without full incorporation.
4. Project Office A temporary office set up in India for a specific project, usually tied to a contract (for example, construction, installation, or turnkey projects). It exists only for the duration of that project. Foreign companies executing specific contracts like construction, engineering, or infrastructure projects.
5. Liaison Office A representative office that cannot do business or earn income in India. It is allowed only to act as a communication channel, promote the parent company, and collect market information. Market research, networking, and promotion before full entry, without commercial activities

Other than the types of companies under the Companies Act, 2013, there is another structure called an LLP (Limited Liability Partnership), which combines features of both a partnership firm and a company in India.

LLP

LLP refers to a Limited Liability Partnership. It is a legal business structure in India where two or more people run a business together as partners, but their personal liability is limited. This means the partners are generally responsible only for the amount they have invested in the LLP, and their personal assets are protected from the liabilities of the business.

  • Best for: Consulting firms, professional services (legal, tax, design), agencies, and small‑scale operations.
  • Features:
    • Limited liability for partners.
    • Simpler compliance in many cases compared to Pvt Ltd.
    • It also allows foreign investment under the automatic route, subject to sector rules.

Understanding this distinction helps US entrepreneurs choose the right structure—whether to incorporate a fresh Indian company (like a Pvt Ltd) or use their existing US company as a foreign parent with a branch or Subsidiary in India.

Eligibility Requirements for Setting up a Company in India from the USA

The eligibility requirements for setting up your Company in India differ from Company to Company. Here are the general requirements, which are major:

Type of Company Key Requirements
1. Private Limited Companies
  • Minimum Directors: 2
  • Maximum Directors: 15
  • Minimum Shareholders: 2 (can be the same as directors)
  • One director must be an Indian resident (not necessarily an Indian citizen)
2. Public Limited Companies
  • Minimum Directors: 3
  • Maximum Directors: 15 (can be increased with approval)
  • Minimum Shareholders: 7 (no maximum limit)
  • At least one director must be an Indian resident
3. Branch office To set up a branch office in India from almost any state in the USA, your entity must have:

  • It must have a profitable track record of at least five years
  • The Company should show a net worth of at least USD 100,000
  • It must be in an industry or activity that’s allowed under Indian laws and RBI guidelines
4. Project Office

 

 To set up a project office in India from almost any state in the USA, your entity must have:

  • Must have a contract from an Indian company
  • Funding should come from inward remittance or approved sources
  • No separate registration if conditions are met (RBI compliance required)
5. Liaison Office To set up a liaison office in India from almost any state  in the USA, your entity must have:

  • Net Worth: $> 50,000 USD or its equivalent
  • Profit Track Record: Profit-making record for the immediately preceding 3 financial years.

Requirements/Key Checklist to set up a company in India from the USA

Many companies and businesses from the USA planning to set up a company in India have an important question in mind—they often ask what is required before incorporation.

So, before incorporating, you should understand the basic legal and document requirements. Here is a detailed checklist of what you need to gather to set up your Company in India.

Basic Requirements:

  • Indian Resident Director
  • A registered office address in India (can be a commercial office, virtual office, or co‑working space).

Documents for US‑based directors and shareholders

  • For a US director (non‑resident):
    • Notarized and apostilled passport copy.
    • Overseas address proof (bank statement/utility bill).
    • Passport‑size photograph (for DSC and MCA filings).
    • Digital Signature Certificate (DSC) (you can obtain this DSC with the help of a CA and CS in India).
    • Director Identification Number (DIN) (Applied through SPICe+Form)
  • For a US‑based shareholder (individual or Company):
    • Individual: Passport, address proof, self‑declaration.
    • US company: Certificate of incorporation, board resolution approving investment in India.

Additional Requirement (may vary from case to case)

  • PAN (Permanent Account Number) – for tax identification.
  • TAN (Tax Deduction and Collection Account Number) – if deducting TDS.
  • GST registration – if turnover exceeds ₹40 lakh (₹20 lakh for services) or you choose to register voluntarily.

Online Portal to Register your Company in India from the USA

India has an online system that allows people in the USA to easily register their Company without being physically present.

  • For a Private Limited Company (Wholly Owned Subsidiary):
    The registration is done through the online portal of the Ministry of Corporate Affairs using the SPICe+ form.
  • For an LLP (Limited Liability Partnership):
    You need to file these forms:
  • RUN-LLP (to reserve the company name)
  • FiLLiP (to register the LLP)
  • For Branch Office / Project Office / Liaison Office:
    You need to file Form FC-1 through an authorized bank (AD Bank), along with other required filings under FEMA (Foreign Exchange Management Act), 1999, and guidelines from the Reserve Bank of India.

After the application is submitted and approved, the Registrar of Companies (ROC) issues the Certificate of Incorporation for the LLP.

Steps to Register your Company in India from the USA

Here is a simplified, step‑by‑step process for a US founder:

Step 1: Choose a business structure and state

  • Decide whether you want a Private Limited Company, LLP, or branch office, or any other structure.
  • Select a state (e.g., Delhi, Mumbai, Bengaluru, Hyderabad) based on your business needs and talent pool.

Step 2: Reserve your company name

  • File RUN (Reserve Unique Name) on the MCA portal.
  • Propose 1–2 names (e.g., “Xyz India Pvt Ltd”) matching your brand but avoiding existing names and government‑style wording.

Step 3: Prepare documents and get DSC/DIN

Step 4: Draft MOA and AOA

  • Prepare the Memorandum of Association (MOA) (objects/clauses, share capital) and Articles of Association (AOA) (governance rules).
  • Ensure alignment with FDI rules and your business model.

Step 5: Incorporate via SPICe+

  • File SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) on the MCA portal.
  • Upload signed MOA/AOA, address proof, affidavits, and KYC documents.

Within 3–7 working days, the Registrar of Companies usually issues the Certificate of Incorporation, legally creating your Indian Company.

Step 6: Obtain PAN, TAN, and GST

  • Apply for PAN and TAN (online or via CA).
  • Register for GST if your turnover crosses the threshold or if you want to invoice GST‑registered clients.

Step 7: Open a business bank account

  • Submit: Certificate of Incorporation, PAN, MOA/AOA, board resolution, and KYC of directors.
  • Many Indian banks support video KYC for remote US directors, making onboarding easier.

Step 8: Ensure FDI and FEMA compliance

  • If investing from the USA, comply with the Automatic Route / Government Route FDI rules depending on your sector.
  • File Form FC‑GPR with the RBI within 30 days of receiving share subscription money.

Step 9: Begin operations and ongoing compliance

  • Apply for EPFO, ESIC, and Professional Tax registrations if hiring employees.
  • File periodic GST returns, income‑tax returns, and annual filings with the MCA.

Government Authorities Governing Company Setup in India

Several government bodies regulate company setup and compliance in India:

  • Ministry of Corporate Affairs (MCA) – Oversees company incorporation, annual filings, and corporate governance under the Companies Act, 2013.
  • Reserve Bank of India (RBI) – Manages foreign‑exchange rules, FDI approval routes, and FEMA‑related reporting.
  • Income Tax Department – Manages PAN, TAN, income‑tax returns, and TDS compliance.
  • GST Network (GSTN) – Manages Goods and Services Tax registrations and returns.
  • State Labour / PF Departments – Oversee EPFO, ESIC, and Professional Tax registrations.

Understanding which authority handles what helps you plan your compliance roadmap as a US‑based founder.

How can Mercurius help in setting up your Company in India from the USA?

At Mercurius, we help US‑based founders and companies enter and operate in India smoothly and legally. Our experience in corporate law, taxation, and US‑India cross‑border transactions makes us a trusted partner for foreign entrepreneurs.

We can assist you with:

  • Entity selection and structuring: Advising whether a Private Limited Company, LLP, or branch/project office best fits your US business model.
  • End‑to‑end incorporation: Handling DIN, DSC, name‑reservation, MCA filings (SPICe+), and coordination with the MCA and banks.
  • FDI and FEMA compliance: Designing shareholding structure, pricing policy, and FEMA filings so your investment from the USA is fully compliant.
  • Tax and GST setup: Arranging PAN, TAN, GST registration, and advising on cross‑border tax and transfer‑pricing issues.
  • Bank account opening: Coordinating with Indian banks to complete KYC and open a business current account for your Indian entity.
  • Ongoing compliance management: Handling annual MCA filings, GST returns, payroll, PF/ESI, and statutory audits so you can focus on growth rather than paperwork.

If you are a US founder or a US business considering setting up a company in India in 2026, MAS LLP can design a customized India‑entry roadmap for your specific model (SaaS, IT services, consulting, e‑commerce, or product‑based).

Why choose Mercurius for your company setup journey in India?

At Mercurius, we provide end-to-end support for entrepreneurs and businesses looking to set up operations in India.

We serve clients in over 60 countries and have a team of 400+ professionals, Partners with 17+ years of experience, including backgrounds in Big 4 firms. We work continuously to ensure businesses remain fully compliant and positioned for long-term success. 

If you are planning to explore business opportunities or establish in India, our team can guide you through each step of the process and help you expand into the UAE with confidence. For more details, do contact us!