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US LLC From India: LRS, ODI, Tax and Banking (2026)
Indian founders form US LLCs to sell to American clients, use Stripe and work with US marketplaces. Forming the LLC is the easy part. This guide also covers the India-side rules most formation services skip: FEMA, the Liberalised Remittance Scheme, ODI reporting and Indian tax.
Yes, an Indian resident can form a US LLC online with no SSN, visa or US visit. The US side is simple: a state filing, a registered agent and an EIN. The India side matters too: funding the LLC is an overseas investment under FEMA, sent through your bank under the Liberalised Remittance Scheme (up to USD 250,000 a year) with ODI reporting, and the LLC must be declared in your Indian tax return.
Can an Indian Resident Own a US LLC?
Yes. No US state limits LLC ownership by nationality. Indian founders in Bengaluru, Mumbai, Delhi or anywhere else can own 100% of a US LLC. You need your passport, proof of your Indian address and a registered agent in your chosen state.
The India-Side Rules: FEMA, LRS and ODI
| Rule | What it means for your US LLC | Who handles it |
|---|---|---|
| FEMA (Overseas Investment Rules, 2022) | Owning a foreign company is an overseas investment | Your authorised dealer (AD) bank |
| Liberalised Remittance Scheme (LRS) | You can send up to USD 250,000 per financial year in total | Your bank, with Form A2 |
| ODI reporting | A controlling stake is Overseas Direct Investment; your bank reports it on Form ODI | AD bank |
| Annual Performance Report (APR) | A yearly report on the overseas investment | You, through your AD bank |
| TCS on remittances | Tax collected at source may apply above the yearly threshold | Deducted by the bank |
These rules apply when you send money into the LLC as an investment. Get a chartered accountant or your bank’s forex desk to confirm the exact steps for your case before you fund the LLC.
Indian Tax on a US LLC
- Worldwide income: as an Indian tax resident, you are taxed on worldwide income, and a single-member LLC’s profits may be treated as yours.
- Double tax relief: the India-US tax treaty can give credit for US tax paid, claimed with Form 67.
- Schedule FA: your foreign company interest must be declared in the foreign assets schedule of your Indian income tax return.
- US side: a single-member LLC with a foreign owner files Form 5472 with a pro forma 1120 every year, handled by our tax team, including M. Hassan, CPA.
Banking and Stripe From India
India is not on Mercury’s prohibited-countries list, and many Indian founders open US accounts remotely. Providers still review each application, so details must match exactly. Stripe US then needs your LLC, its EIN, a US bank account and a US business address. See our bank account guide and Stripe guide.
How to Form a US LLC From India
- Choose a state: Wyoming or New Mexico for most, Delaware for US investors
- We check the name and file with the state
- We get your EIN as a foreign applicant, without an SSN
- You receive your documents and open a US bank account
- Before funding the LLC from India, complete LRS and ODI steps with your bank
- Each year: Form 5472 in the US, APR and your Indian tax return in India
Common Mistakes Indian Founders Make
- Sending money to the LLC without ODI reporting. Your bank can block later remittances.
- Forgetting Schedule FA in the Indian tax return.
- Skipping Form 5472 because the LLC had no income.
- Mismatched names between PAN, passport, LLC documents and bank applications.
Need Stripe? Read our step-by-step guide: How to open a Stripe account in India. It covers what Stripe checks, banking options for India founders and the mistakes that get accounts closed.
US LLC From India: FAQs
Can an Indian resident own a US LLC?
Yes. An Indian citizen living in India can own 100% of a US LLC. Under FEMA, owning a foreign company is an overseas investment, so funding it goes through your Indian bank under the Overseas Investment rules and the Liberalised Remittance Scheme.
How much money can I send to my US LLC from India?
Resident individuals can remit up to USD 250,000 per financial year (April to March) under the Liberalised Remittance Scheme, across all permitted purposes combined. Tax collected at source (TCS) may apply above the yearly threshold; your bank will confirm the current rate.
Do I need ODI approval to form a US LLC?
Holding a controlling stake in a foreign entity counts as Overseas Direct Investment. For most individuals it falls under the automatic route, so no prior RBI approval is needed, but your authorised dealer bank must report it (Form ODI) and you file an Annual Performance Report afterwards. Confirm the details with a chartered accountant or your bank.
Is US LLC income taxed in India?
Generally yes. As an Indian tax resident you are taxed on worldwide income, and a single-member LLC’s profits may be treated as your income. The India-US tax treaty can give credit for any US tax paid, claimed with Form 67. You must also report the LLC in Schedule FA of your Indian income tax return.
Can Indians open a US bank account for their LLC?
Often yes. India is not on Mercury’s prohibited-countries list, and several US fintechs accept Indian-resident owners. Each provider reviews applications individually and can decline.
Can I use Stripe with a US LLC from India?
Yes. Stripe US accepts US-registered businesses owned from India. It needs the LLC, its EIN, a US bank account and a US business address.
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