What is specific to US companies
For US tax, an Indian private limited company can be treated either as a corporation or as a disregarded entity by filing Form 8832, which affects how its results show up in the US return. An Indian public company has no such choice. Branches and liaison offices flow straight into the US company's own return, which many US groups find unattractive.
For US tax, an Indian private limited company is an eligible entity that can be treated as a corporation or disregarded on Form 8832; an Indian public company cannot elect.
How the US side affects the choice
A US corporate parent holding at least 10% can generally deduct the foreign-source part of the dividend, but cannot credit the Indian tax on it, so that tax is usually a final cost; fees and royalties are taxable in the US with Indian tax generally creditable.
Our services
How SU and Company helps
We compare the options against the US parent's plans and give a written recommendation before any filing.
- Activity and FDI route check
- Tax comparison of subsidiary and branch
- Eligibility check for branch or liaison office approval
- Joint venture shareholding and FEMA pricing points
Questions
Is a branch office a good option for a US company?
Only for a narrow, approved activity. A branch is taxed at the foreign company rate and exposes the parent directly, so most groups prefer a subsidiary.
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.