Overseas ventures are a stepping stone to enter international market and in recent times, India has taken necessary steps to make its presence felt in the global arena. We are all aware that India has outpaced Japan and placed itself on third rank globally in terms of PPP (Purchase Power Parity). Further in the catalog of Fortune 500 companies’ Indian entrepreneurs have proved their prodigy by placing their name in the list. International investment is a two-way street. On one hand, when foreign investors route their money to India, it generates jobs’ and economic growth in the country. ‘Make in India’ is one such initiative by the Indian Government, moulding it as a global manufacturing hub, whereby encouraging both multinational as well as domestic companies to manufacture their products within the nation. And on the other hand, when Indians make overseas investment, it increases the export competitiveness in the country and creates a global presence for the Indian firms. There is also an element of value addition through enhanced technical knowhow in these cross border transactions, which is driving Indian companies to go beyond the domestic shores for investment. India today has not only liberalized its FDI regime but also emerged as investor abroad. Interestingly, new ODI (Overseas Direct Investment) regulations by Reserve Bank of India have seemed to be a boost for all sized businesses to make their presence felt internationally. As most IT companies, automobile companies and textile companies are finding their first overseas destination as USA, this article will throw light on starting up of business venture in United States of America. A. TYPES OF ENTITIES: Apart from sole-proprietorship and partnership firm, the following are the options available for incorporation of an entity:
- Corporations (Inc.) further divided as ‘C’ Corporation and ‘S’ Corporation.
- Limited Liability Companies (LLC)
- Application for reservation of name to the concerned Secretary of State.
- Preparation of formation documents like Articles of Formation or Articles of Association.
- Establish a registered agent with a valid, physical address in the selected state. A registered agent can be either the business owner or another designated person who is authorized to receive legal documents on behalf of the business during standard business hours.
- Apply to register in the concerned Secretary of State.
- Application in form SS-4 to obtain Employer Identification Number
- Payment of required filing fees
- Open a bank account in the state of incorporation.