Step 1: Choose registered agent / address
Selecting a registered agent/address is mandatory when forming a US entity.
They receive legal and official documents on behalf of the business, ensuring compliance and communication with authorities.
Step 2: Have mailing address
Mailing address is where a business receives its mail.
Having one is crucial for official and business communications and maintaining privacy.
The ideal way is a physical US address or a professional mailbox service (Virtual Office).
Step 3: Filing of form with state
Registering a US entity involves filing required forms with the state where the business is established.
These forms provide essential information about the business and its structure to the state authorities.
Step 4: EIN (Tax identification number)
EIN, a nine-digit IRS identifier, is mandatory for foreign businesses registering entities in the US.
It facilitates tax reporting and identification, with processing timelines varying based on US officer/ representative availability for the entity.
Step 5: Bank account
For businesses with a US-based Officer/Representative having an SSN, bank account can be opened in any traditional bank.
For entities without one, new-age online banks (like Mercury) provide convenient options for easy account setup and streamlined cross-border operations.
Step 6: ODI (Overseas Direct Investment) regulations
For Indian businesses opening an entity in the USA, ODI regulations by the Reserve Bank of India govern such investments.
They mandate reporting and compliance requirements, including submission of annual performance reports and adherence to sector-specific limits and conditions.
Step 7: Prepare corporate documents
This involves creating legal paperwork, such as articles of incorporation, bylaws, and shareholder agreements, which define the entity's structure, governance, and ownership rights during the US registration process.
Step 8: Prepare stock certificates and ledger
Preparing stock certificates involves issuing shares to shareholders, documenting ownership. A stock ledger tracks these transactions, ensuring accurate record-keeping and compliance during entity registration in the US.