Company registration in USA is easy and investor-friendly. The applicant needn’t apply for visa to register a company in USA. Anyone, resident or non-resident of USA can apply for Company registration in USA. Moreover, the applicant don’t have to travel or stay in USA to conduct their business because the registration process is completely online. The USA is a developed country and has an advanced infrastructure, technology, and abundant natural resources. The 80% GDP of the country is mainly derived from service-oriented business.
Forms of Business for Company Registration in USA
For the purposes of company registration in USA, there are mainly three forms of business:-
Shareholders are the owners of a Corporation. Directors are elected by shareholders and are responsible for setting objectives and policies. The corporations in USA are divided into C-Corp and S-Corp. If one of the owners of the company is not a US citizen, then the person has the option of either forming a Corporation with C-Corporation whereas for “S-Corporation”, it requires all shareholders to be US Citizens.
This allows members of the company to be responsible only for the amount invested in the company and protects personal assets such as bank accounts and real estate, but illegal activity makes the individual or company vulnerable to legal action
An organization of two or more individuals who run highly profitable businesses as co-owners is known as Partnership. These companies are responsible for their business which is inclusive of all liabilities and losses or profits.
Benefits of Company Registration in USA
Company registration in USA is hassle-free compared to most countries in the world and the benefits is as follows:-
- Applicant doesn’t have to be a resident of the USA
- Visa is not a requirement for company registration in USA
- High-end infrastructure
- Availability of latest technology
- Social stability among inhabitants
- Digital and cost-effective process
- Good reach in the global market
- Relaxed trade law
- Reduction in taxation rates
A person will be eligible for Company Registration in USA, if he or she fulfils the following requirements:-
- 18 years or above
- Possess passport and address proof.
- Requires a registered USA citizen to get company registration in USA.
Documents Required for Company Registration in USA
The following are the documents required for company registration in USA:-
- Information regarding the name for the company,
- AOA (attached list of its types of activities)
- Copy of Passport of all the shareholders and directors
- Pan Card details of Shareholders (Indian nationals)
- Photo Identity Proof (Driving License or any other registered photo ID card)
- Utility Bills like electricity or water bills. (Residence in US)
- Specimen Signatures of all the shareholders
NOTE: Documents should be translated into English, if necessary and it should be notarised as well.
Procedure of Company Registration in USA
The procedure for company registration in USA is simple and involves the following steps:
Step 1: Decide the type of business entity
The shareholders or the directors have to decide which form of business and type of company, mentioned above they want to choose.
Step 2: Choose the State for business
There are 50 States in the country and the applicant can opt for Company registration in any one of them. It is best to decide the state based on proper research regarding the state, whether they are business friendly or investor friendly, tax exemption, infrastructure etc.
Step 3: Decide the company name
It is necessary to decide a company name. There should not be any existing company with the name the applicant decides. The name should not be offensive to the culture of the country and not represent any political party or religion.
Step 4: Submit details
The applicant is required to provide names and addresses of the members involved in the Company which is inclusive of officers, directors, members, etc. The documents mentioned above should be submitted to the concerned authority. Upon verification, the concerned authority will provide the certificate of incorporation.
Step 5: Certificate of Incorporation
Once the concerned authority is satisfied with the registration application and documents submitted, a certificate of incorporation will be given to the applicant. This certificate will speed up the visa process. It will take 14 working days to deliver the certificate of incorporation.
Step 6: Obtaining Employer Identification Number (EIN)
For the purposes of company registration in USA, the applicant has to apply for EIN. This is a 9 digit number used for tax purposes. For opening a business bank account, bank loan, to apply for a business licence, etc., he or she should have an EIN.
Step 7: Open a bank account in USA
The company should open a business bank account in any one of the banks in the country. The company is at liberty to choose a bank which has branch in USA and its home country. This will help the company in smooth transactions and fewer formalities in USA to open a bank account.
Consequences of Not Having Proper Company Registration in USA
There are consequences which an applicant will have to face when company registration in USA is not done and they are as follows:
- Inability to file a lawsuit:
If the company is not registered and if their rights are violated, then the company cannot approach a court or file a lawsuit because certain states or laws requires for the company to be registered.
- Monetary Penalties:
Certain states impose monetary penalties for not registering their companies at proper time or proper manner. The company will be required to pay all the taxes and fees from the date the company began its business.
- Penalties can be levied on Officers and Directors:
The officers or the directors might also be personally liable for not registering their company.
With well-established laws and regulations and a very low tax rate, it is very helpful for foreign companies to prosper efficiently in the country. The country has acquired all the advanced technologies for the purposes of meeting the demands of the growing world. Company registration in USA helps a company to flourish abundantly because of the business friendly environment the country possess.
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