USA · India Entry · Ex-Big 4

🇺🇸 US Company
Setting Up in India

Over 30 US companies have used our platform to incorporate in India. Here is exactly what US companies face — Delaware vs India structure, Section 482 transfer pricing, and DTAA planning.

India entry snapshot for US Companies

30+
US companies advised
$0
FEMA penalties
22 days
Avg. incorporation
100%
FDI permitted (most sectors)

Why US Companies choose India

💰
Cost arbitrage without quality compromise

Senior engineering and finance talent at 20–30% of US equivalent cost. India's talent pool for SaaS, fintech, and analytics is among the deepest globally.

🕐
Time zone advantage for global operations

IST (UTC+5:30) gives US companies a near-24-hour development cycle when combined with US East and West Coast teams.

📈
India as a growth market, not just a cost centre

India is the world's fastest-growing major economy. Many US companies start with a GCC and expand into full commercial operations serving the Indian market.

⚖️
DTAA reduces double taxation

The India-US DTAA reduces withholding tax on dividends, royalties, and fees. Properly structured, most US companies pay 10–15% WHT instead of 20%.

How US Companies incorporate in India

01
Structure decision & DTAA analysisDay 1

We assess your sector, FDI route, and applicable DTAA to recommend the right entity type. For USA & Canada companies, this includes reviewing intercompany pricing implications from day one.

02
Document preparationDays 2–5

Parent company documents need apostilling or equivalent authentication in USA & Canada. For foreign director KYC, this adds 3–5 days. We advise on exactly which documents are needed.

03
MCA incorporationDays 6–19

SPICe+ filing — company name, directors, registered office, PAN, TAN, GSTIN. Certificate of Incorporation typically in 7–12 working days after document submission.

04
RBI FCGPR filingWithin 30 days

Foreign Currency Gross Provisional Return — mandatory FEMA filing after share allotment. For USA & Canada companies, the valuation methodology and exchange rate documentation must align with your home jurisdiction requirements.

05
Post-incorporation setupWeeks 4–6

Bank account, GST registration, TDS, payroll, transfer pricing policy, and compliance calendar. Full operational readiness.

Key tax points for US Companies in India

✓

India-US DTAA: dividends taxed at 15–25% (vs 20% domestic), royalties at 10–15%

✓

Transfer pricing under Section 92 (India) mirrors US Section 482 — same arm's length standard

✓

Form 3CEB (India TP certificate) equivalent to US Form 5471 disclosure

✓

US GILTI considerations apply to India subsidiary income — structure early to minimise exposure

✓

Delaware parent + India subsidiary is the most common structure — we set both sides up

How it works in practice

USA & Canada

US SaaS platform incorporated in India in 19 days

The Challenge

Series B company needed an India entity before their first Bangalore engineering hire. Delaware parent, India subsidiary, intercompany service agreement, and TP documentation all required simultaneously.

What We Delivered

Private limited company incorporated, FCGPR filed, TP policy aligned with US Section 482 arm's length standard, and first payroll run — all within 30 days.

Clean TP documentation from day one. No FEMA notices. Passed first India transfer pricing scrutiny with zero adjustment.

Common questions from US Companies

Yes. 100% FDI is permitted under the Automatic Route in most sectors. A Delaware C-Corp can hold 100% of an Indian Private Limited Company. RBI FCGPR must be filed within 30 days of share allotment.

Yes. The India-US DTAA reduces withholding tax on dividends from 20% to 15–25%, royalties from 10% to 10–15%, and technical services from 10% to 10–15% depending on the structure. Proper DTAA planning should be done before the first intercompany payment.

Yes. Any intercompany transaction — management fees, IP licences, service charges, cost recharges — must be at arm's length and documented in a formal transfer pricing study. India follows OECD guidelines, similar to US Section 482.

Standard incorporation takes 14–22 working days. If the sector requires Government Route FDI approval, add 8–12 weeks. Full operational setup (bank account, GST, payroll) takes 4–6 weeks total.

The US parent will need to file Form 5471 (Information Return for US Persons with Respect to Certain Foreign Corporations) annually for the India subsidiary. We coordinate with your US CPA on the Indian side of the disclosure.

Ready to set up your US company in India?

Apostille guidance to Certificate of Incorporation — we handle everything.

Book a Free Consultation →
Arya — India Entry Advisor
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