What is specific to US companies
US groups usually reach India after they have a product and paying customers, and want engineering or support capacity at lower cost. That makes the Indian company a cost centre billing the parent, so transfer pricing and the permanent establishment boundary matter from the first hire.
The US tax side is unusually involved: Form 5471, the CFC regime and the choice of how the Indian company is classified for US purposes all need a US CPA alongside us.
What is specific to US investors
- Press Note 3 is not triggered, provided no ultimate owner sits in one of India's land-neighbour countries.
- India–US tax treaty: dividends 15% (10%+ voting power), 25% otherwise, interest 10% (banks) to 15%, royalties 15% (10% for equipment).
- There is no India–US totalization agreement, so a US national can face Indian provident fund and US Social Security together.
- The US is not on India's reciprocating-territory list, so its court decrees cannot be executed in India as they stand; the winning party has to sue again in India on the foreign judgment.
- There is no comprehensive India–US trade agreement in force.
- The parent usually closes its year on 31 December; Indian companies close on 31 March.
Our services
How SU and Company helps
For US companies we act as the Indian firm of Chartered Accountants from the first board decision onwards.
- Entity and FDI route advice
- Incorporation of the subsidiary, or branch, liaison or project office approvals
- FEMA and RBI reporting for every inflow and outflow
- Accounting, tax, GST and transfer pricing
- Payroll and expatriate tax
- Company secretarial and annual filings
Questions
May a US company hold all the shares of its Indian company?
Yes. Full foreign ownership is allowed without prior approval in most sectors, subject to any sector cap.
How long does it take a US company to set up in India?
Allow 1–3 weeks for US documents, then about two to three weeks for incorporation, with the bank account usually the slowest step. Most groups are operating within two to three months.
General information as at 5 November 2026, not advice for a particular case. Indian and US rules change often; confirm the current position before acting. US law points should be confirmed with a US adviser.