Are you considering forming a U.S. corporation from India to raise venture capital, operate a SaaS platform, or establish a globally trusted business entity? You're in good company.
Many Indian entrepreneurs have successfully formed U.S. C Corporations—especially in Delaware—to tap into the U.S. startup ecosystem, attract American investors, and expand internationally. Forming a U.S. C-Corp can open the door to better funding, faster Stripe setup, and greater credibility with partners and customers.
Can an Indian Citizen Form a U.S. C Corporation?
Yes, Indian citizens can legally form and own shares in a U.S. C Corporation. There's no requirement to be a U.S. citizen or resident. The process is 100% remote and commonly done online. Delaware is the most popular state due to its business-friendly laws and reputation among global investors.
Other states like Wyoming or Nevada may offer low-cost alternatives but are less common for venture-backed startups.
Step-by-Step: How to Form a U.S. C-Corp from India
- Choose a State - Delaware is the gold standard for startups, especially if you plan to raise money from U.S. investors. It offers predictable corporate law, investor familiarity, and access to the Court of Chancery. If you're not looking for funding, Wyoming or Nevada could be options for lower fees.
- Pick a Corporate Name - Your name must be unique and comply with your chosen state’s naming rules. Check for name availability through the state’s database and consider whether matching domain names and trademarks are available.
- Designate a Registered Agent - Every C-Corp must have a registered agent with a physical address in the state of incorporation. They receive legal and official documents on your behalf. Formation services typically include this.
- File a Certificate of Incorporation - This document establishes your corporation. You'll file it with the Secretary of State and include key details like your business name, share structure, and registered agent. Delaware charges a filing fee (around $89+ depending on stock structure).
- Get an EIN (Employer Identification Number) - You'll need an EIN to open a business bank account, pay employees, and file taxes. Even if you don't have an SSN or ITIN, you can still apply by faxing Form SS-4 to the IRS. Many use a third-party to help expedite this.
- Create Bylaws and Hold an Organizational Meeting - Bylaws define how your C-Corp will operate. The initial meeting should formally appoint directors, issue shares, and adopt the bylaws.
- Issue Stock and Maintain a Cap Table - You’ll need to issue shares to founders and early team members. Keep detailed records in a cap table—often managed through tools like Carta or Pulley.
Many founders choose services like Firstbase, Doola, or Clerky to streamline the incorporation process, generate bylaws, and handle EIN applications efficiently.
Do You Need an ITIN to Form a C Corporation?
No, an ITIN is not required to form a C-Corp or get an EIN. However, if you’re receiving salary or dividends from your corporation, or if you personally owe U.S. tax, you may need one. ITINs are obtained by filing IRS Form W-7.
How to Open a U.S. Business Bank Account from India
Opening a U.S. corporate bank account can be challenging without visiting the U.S., but it's not impossible. Traditional banks usually require an in-person visit. However, fintech platforms like Mercury, Relay, and Wise Business offer remote account setup for Delaware-incorporated C-Corps.
These platforms typically require your EIN, Certificate of Incorporation, passport, and sometimes a U.S. address.
Common Business Types for Indian-Owned C-Corps
Indian founders usually choose C-Corps when their goal is to build high-growth startups—especially in the tech, SaaS, fintech, or biotech sectors. U.S. investors typically require a Delaware C-Corp for venture capital funding.
Many product-led and IP-heavy companies prefer the C-Corp structure because it allows for scalable equity structures, preferred shares, and stock option plans.
A C-Corp also separates ownership and liability more cleanly than an LLC and makes it easier to onboard co-founders, employees, or future investors.
Tax Obligations for Foreign-Owned C-Corps
C-Corps are separate taxpaying entities. They must file Form 1120 annually and pay a flat 21% federal corporate tax on U.S.-source income. Dividends distributed to foreign shareholders are generally subject to 30% withholding, though the U.S.-India tax treaty may reduce this to 15%.
State-level corporate taxes and franchise taxes may also apply depending on where your C-Corp is incorporated or doing business. For example, Delaware has a franchise tax based on authorized shares, which can range from $225 to thousands of dollars. Wyoming charges an annual report fee based on assets located in the state.
If you or your corporation are generating income from U.S. clients or operations, you must ensure proper tax compliance. Missteps here can lead to steep penalties, especially around withholding and information reporting.
Final Tips and Reminders
Forming a U.S. C-Corp is a strategic move—but staying compliant with tax and corporate rules is critical. Keep proper records, maintain your cap table, and file required reports on time.
Bookmate can assist with your federal tax filings (like Form 1120) and guide you on dividend withholding or other U.S. tax questions you may have. Book a free consultation to get tailored guidance on how to stay compliant. Learn more at trybookmate.co
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Each tax situation is unique. Please consult Bookmate or a qualified advisor.
