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I am from India and we are planning to set up software company which will have majority of clients from US. We wont be having any company representative over there and we will operate from India. I am thinking of registering LLC company in US so that we can put our US address on our website. I have few questions:

  1. We are planning to set in Delaware. I have heard that there are some online companies which does this. Can anyone recommend some reliable sites for LLC registration?

  2. My major concern is tax. Will we have to pay tax in both US and India. or there is no tax in Delaware? I have gone through many forums, but I cant figure out conclusion. or Are there other states in which tax is not applicable in such cases. It will be really helpful if someone can explain on taxation, because I dont want to go for double taxation :)

  3. We are 2 partners. If we register as a single owner company, are there any benefits of that?

Thank You.

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1 Answer

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If the company is registered in USA, has business outside India, the income will not be taxed in India.

However, the money you put into the company will have to comply with necessary RBI Compliance, which probably depend upon the amount of money you wish to invest.

In case your new LLC pays you any dividend or any income, such income will be chargeable to Tax in India in your personal return.

In case you have any more questions on this, please feel free to ask.

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Good answer. Can you also elaborate on process of resgistering LLC in the US or recommend a good site for that. Thanks. – Ali Dec 23 '11 at 10:26

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