🇺🇸 United States (Delaware) vs 🇮🇳 India
A side-by-side look at setting up a company in United States (Delaware) (Delaware C-Corp / LLC) and India (Private Limited Company), plus 6 regulatory differences to plan for if you operate in both.
| Criterion | United States (Delaware) | India |
|---|---|---|
| Typical vehicle | Delaware C-Corp / LLC | Private Limited Company |
| Foreign ownership | 100% | 100% under automatic route (most sectors) |
| Minimum capital | None | No statutory minimum |
| Time to incorporate | 1–5 days | 15–30 days |
| Corporate tax | 21% federal + state | 22% (15% new manufacturing) |
| VAT / GST | State sales tax | 18% GST |
| Dividend withholding | 30% (treaty relief) | 20% (treaty relief) |
| Resident director | Not required | Required |
| Physical office | Virtual accepted | Required |
| Annual running cost | USD 2,000–7,000 | USD 2,500–8,000 |
| Audit | Not mandatory | Mandatory |
| Legal system | Common law | Common law |
| Currency controls | None | FEMA restrictions apply |
Operating in both: key conflicts
Data transfer: Incompatible cross-border data transfer regimes
One jurisdiction requires localisation or regulator approval while the other permits free flows. A single shared database or CRM will breach the stricter regime unless you localise storage or execute approved transfer mechanisms.
Employment: Termination regimes conflict
A single global employment template cannot be used: at-will clauses are unenforceable in the protective jurisdiction and expose you to reinstatement or end-of-service claims.
Sanctions & export control: Extraterritorial sanctions reach differs
The higher-exposure jurisdiction applies its sanctions and export-control rules extraterritorially to group entities, personnel and USD/GBP clearing. Screen counterparties against the stricter list group-wide.
Treasury: Capital movement restrictions on one side
Repatriation of dividends, loans and intercompany balances is regulated in one jurisdiction. Cash pooling across the group will require prior approval or will be blocked.
Information exchange: Reporting frameworks are not symmetric
Account and entity classification differ between the two regimes; self-certification forms must be prepared separately.
Governance: Resident director requirements differ
One jurisdiction requires a resident director. Appointing the same individual in both can undermine the substance position of the other entity.
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Figures are indicative and change often. Not legal or tax advice — confirm with qualified counsel.