2. PRINCIPAL QUESTIONS for Indian/Non U.S.
companies doing business in the USA
• Registrations with the Government; No
Approvals
• Regulation of products is less stringent in many
areas. This laxity varies greatly depending on
the type of products and whether they are for
sale to consumers or businesses
• Distribution of products, even across and into a
vast market
• Taxes, unemployment insurance
3. Entry into the US, Initial Advice
• A Delaware Corporation is not necessary
• For example, Procter & Gamble, large oil
companies and other U.S. large companies are
Ohio corporations. The vast majority of public
corporations are not Delaware corporations
• Do not double your expenses and
administrative burden
4. First steps
• Hire an Accountant/Tax advisor, register patents and
trademarks and fulfill immigration formalities
• Create an Indian or offshore subsidiary to make U.S.
sales or to own the U.S. entities, isolate the mother
company from liability from the USA
• Insist that all contracts be complete and signed.
Avoid verbal contracts or those on “scrap
paper”/“cocktail napkins”
• Conclusion: Freedom of contract is the rule in the
U.S. You should use this freedom to your advantage
5. Entities
• Corporation
• Limited Liability Company (LLC)
• General Partnership (Partnership)
• Branch office of foreign entity (Branch)
6. Articles of a Company filed with State Government
• All forms of entity are granted/governed on receipt by states. No
application process, approvals, financial statements, feasibility
studies, etc. In INDIANA, this happens on same day service.
• No extra form(s), reporting or approvals for foreign ownership
• US state laws in general are more liberal, less regulatory and less
rigid, especially the LLC (you can almost do anything from a
governance standpoint
• Little or no required capitalization. No approval of dividends.
• No requirement for an annual audit or filing of financial statements
• The identity of officers and directors is secret
• Financial results are secret
7. Conclusion
• In general, it is more simple, fast, easy, less regulated
and cheaper to do business in the USA
• If you need assistance in the USA, please call us early
in the process to use us to your maximum advantage.
Mehnaz Qureshi
317-248-0770
www.indytaxservice.com
indytax@indytaxservice.com
