Incorporating a Delaware LLC for Indian SaaS Founders
Indian founders incorporating a Delaware LLC via Stripe Atlas must navigate both US tax reporting requirements and Indian Reserve Bank of India (RBI) Overseas Direct Investment (ODI) regulations. This structure provides a legal entity for US-based SaaS operations but requires strict adherence to federal tax filings.
The process involves formal registration in Delaware, obtaining an Employer Identification Number (EIN), and ensuring compliance with the Foreign Exchange Management Act (FEMA) regarding capital outflows.
Model the full outlay, not just the setup fee
- SetupStripe Atlas setup$500.00
- AnnualYear 2 renewal$250.00
What the tax authority sees
US LLCs are pass-through entities for federal tax purposes, meaning non-US members are only taxed on income effectively connected with a US trade or business (ETBUS).
ODI (Overseas Direct Investment) RBI approval required for equity
Ensure your Indian entity complies with RBI's ODI regulations before transferring capital to your Delaware LLC to avoid FEMA violations.
- 01Form 5472 and 5472 penalty of $25,000 for late filing
- 02RBI ODI compliance requirements for Indian residents
- 03Potential double taxation without proper tax treaty application
- 04State-level franchise tax obligations regardless of revenue
From filing to funded bank account
US LLC (Delaware) vs Estonia OÜ (e-Residency)
FAQ
Start filing with Stripe Atlas
Formation typically completes in 2–3 weeks. Use the promo below, then click through to begin the checklist directly on the platform.