Skip to content

    US–India cross-border tax and compliance for tech companies

    Tax, FEMA, RBI and corporate compliance for tech, SaaS and venture-backed companies operating in both countries. We set up the India subsidiary or the US entity, run the annual filings on both sides, and keep you ready for the next round.

    Tax led by Mallavarjalla Mounika; FEMA and corporate led by Manavi Arora

    A company with engineers in Bengaluru and customers in California answers to two tax authorities, two corporate registries and a central bank, each on its own calendar. India's year ends in March; the US parent's usually ends in December. The filings are different, the deadlines are different, and the advisers on each side rarely talk to each other.

    That gap is where the problems sit. A transfer price one country accepts and the other does not. A share allotment that was never reported to RBI. A Delaware company whose real decisions are taken in India. None of these shows up in a monthly close; most of them surface when an investor's lawyers ask for the file.

    The desk exists to close it. Tax and transfer pricing sit with Mounika, FEMA, RBI and corporate compliance with Manavi, and both work from the same set of numbers and the same calendar.

    Two directions, one team

    US company building in India

    Your engineering team is in India. Your entity should be too.

    From the first India hire to a full development centre, we set up the Indian subsidiary, report the investment to RBI, and price the work between your entities so both tax authorities accept it.

    • Private limited company incorporation, with a resident director arranged
    • FDI reporting: FC-GPR within 30 days of each allotment, and the annual FLA return
    • A cost-plus intercompany agreement and the India Form 3CEB
    • GST zero-rating for exported services, and the intermediary exposure in years before April 2026
    • Form 5471 and the treatment of foreign R&D costs on the US return
    • India payroll, provident fund, and ESOPs granted by the US parent

    Indian startup expanding to the US

    Going to the US without tripping on either side.

    Whether you are opening a US sales entity or flipping to Delaware for fundraising, we handle India's overseas investment rules and the federal and state requirements in the US.

    • Delaware C-corporation formation, an EIN without a US social security number, and US banking
    • Overseas investment filings: Form FC and the annual performance report
    • A round-tripping and place of effective management review before you flip
    • Form 5472, Form 1120 and state franchise filings
    • Sales tax nexus for SaaS revenue, state by state
    • Withholding on payments between the entities: Forms 145 and 146 in India, W-8BEN-E in the US

    What usually turns up in a first review

    These are the issues that tend to surface in an investor's due diligence. Better to hear about them from us first.

    • The round closed, but the RBI filing didn't happen

      A missed FC-GPR or FC-TRS means late submission fees or compounding, and it can delay the next round's closing.

    • A Delaware company managed from Bengaluru

      If key decisions are taken in India, the US company can become tax-resident in India under the place of effective management rules.

    • SaaS revenue with no sales tax plan

      Economic nexus can apply in states where you have no office, and the India–US tax treaty does not cover state taxes.

    • GST on exports from the years before the rule changed

      Until 30 March 2026, an Indian entity treated as an intermediary owed 18% GST on services it billed abroad as exports. The law changed, but not backwards, so open years can still be assessed.

    • Missing international information returns

      Penalties for a missing Form 5471 or Form 5472 start at $10,000 and $25,000 per form, whether or not any tax is due.

    • Transfer pricing that only works in one country

      A markup the IRS considers too high may be one India considers too low. Both positions have to hold at once.

    How healthy is your US–India setup?

    The Corridor Health Check: twelve questions, about five minutes. Answer yes, no or not sure. Each "no" or "not sure" is worth a closer look, and the summary below says why. Your answers stay in this page and are not sent anywhere.

    1. 01 IndiaWas every share issue to a foreign investor reported to RBI within 30 days?
    2. 02 IndiaHas the FLA return been filed every year by 15 July?
    3. 03 IndiaIf an Indian entity invested abroad, are the ODI filings and annual performance reports current?
    4. 04 IndiaDoes the Indian company have a director resident in India?
    5. 05 IndiaHas Form 3CEB been filed every year, backed by a current benchmarking study?
    6. 06 IndiaIs the GST letter of undertaking renewed every year for exported services?
    7. 07 IndiaIs withholding tax deducted on payments to the US parent?
    8. 08 USIs Form 5471 filed for each foreign subsidiary, and Form 5472 if the US company is 25% or more foreign-owned?
    9. 09 USIs the US company registered in every state where it has employees?
    10. 10 Both countriesIs there a signed intercompany agreement that matches how the business actually runs?
    11. 11 Both countriesAre major decisions for the US company made outside India?
    12. 12 Both countriesCould you hand an investor every RBI acknowledgement and tax filing within a week?

    0 of 12 answered

    Anything you answer no or not sure will be listed here with a line on why it matters.

    Book a Corridor Health Check

    How we work with you

    1. Set up

      Choose the structure, form the entities in both countries, and register for tax, GST, payroll and RBI reporting.

    2. Operate

      Run monthly, quarterly and annual compliance on one shared calendar, with one point of contact.

    3. Raise

      Keep the diligence file current, so investor questions can be answered in days rather than weeks.

    4. Restructure or exit

      Flips, reverse flips, cross-border mergers, acquisitions and closures, handled in both countries.

    What we do

    Tax and transfer pricing

    Led by Mallavarjalla Mounika

    • Indian corporate tax, withholding and the India–US treaty
    • US federal returns, international information returns and state tax
    • Transfer pricing policy and documentation in both countries
    • GST, US sales tax and nexus reviews

    FEMA, RBI and corporate

    Led by Manavi Arora

    • Foreign direct and overseas investment structuring and filings
    • RBI reporting: FC-GPR, FC-TRS, FLA, Form FC (ODI), APR and ECB
    • Companies Act and ROC annual compliance, and board governance
    • Round-tripping reviews, flips and cross-border mergers

    Structure and setup

    • Entity choice and incorporation in India and the US
    • Intercompany services and licence agreements
    • Bank accounts, registrations and the first-year calendar

    Running the operations

    • Payroll and payroll tax in both countries
    • Cross-border employees, ESOPs and secondments
    • Bookkeeping, consolidation and the annual compliance calendar

    The dates that come round every year

    Indicative due dates for a US company on a calendar year and an Indian company on an April to March year. Extensions, notifications and the move to the Income-tax Act, 2025 can shift them; we confirm each one against the current notification before it is filed.

    Recurring US and India compliance dates
    DueWhat
    1 MarchUSDelaware franchise tax and annual report for a corporation
    Before the year's first exportIndiaGST letter of undertaking, so exported services are invoiced without tax (filing by 31 March is good practice)
    15 AprilUSForm 1120 with Forms 5471 and 5472, or an extension on Form 7004; FBAR for foreign accounts
    15 JulyIndiaAnnual return on foreign liabilities and assets (FLA) to RBI
    30 SeptemberIndiaAnnual general meeting, followed by the ROC filings of accounts and the annual return
    15 OctoberUSExtended Form 1120 and its international information returns; the FBAR's automatic extension ends
    31 OctoberIndiaForm 3CEB, the accountant's transfer pricing report (Form 48 from tax year 2026-27, on the same date)
    30 NovemberIndiaIncome tax return for a company with international transactions; Form 3CEAA master file (Part A for every company in an international group)
    31 DecemberIndiaAnnual performance report for each overseas investment

    And each time something happens

    • Within 30 days of allotment

      FC-GPR for shares issued to a foreign investor

    • Within 60 days of transfer or payment

      FC-TRS for shares moving between a resident and a non-resident, whichever comes first

    • Before each remittance

      Form 145, with a chartered accountant's Form 146 where required (Forms 15CA and 15CB until March 2026)

    Guides

    Reading for US–India companies

    FAQ

    Questions US–India companies ask us

    What filings does an Indian subsidiary of a US company need?

    In India: the annual accounts and annual return with the Registrar after the AGM, the income tax return with Form 3CEB for its transactions with the US parent, GST returns, and RBI reporting, which means an FC-GPR for each allotment of shares to the parent and the FLA return every July. In the US, the parent reports the subsidiary on Form 5471 with its own return.

    Does India have a tax treaty with the US?

    Yes. The India–US tax treaty covers federal income tax: it sets the withholding rates on dividends, interest and royalties and decides where business profits are taxed. It does not cover US state taxes. States set their own nexus rules, and many tax a company on its sales into the state alone, with no office or employee there.

    Who files Form 5471 for an Indian subsidiary?

    The US shareholder, which is usually the US parent company. The form is attached to its Form 1120 and due on the same date, including extensions. A parent owning more than half of the Indian company usually falls into the most demanding filer categories, and the penalty for a missing form starts at $10,000.

    Can an Indian citizen be a director or officer of a Delaware company?

    Yes. Delaware does not require directors or officers to be US citizens or residents. An officer title is not permission to work in the US, though, so anyone doing the work from inside the US needs a suitable visa.

    Does our India subsidiary need a resident director?

    Yes. Every Indian company needs at least one director who stays in India for a total of 182 days or more during the financial year. For a newly incorporated company the days are counted proportionately, and we can help you meet the requirement.

    We raised money into our Indian company from US investors. What do we file?

    An FC-GPR on RBI's FIRMS portal within 30 days of allotting the shares, supported by a valuation report. The company then files the FLA return every year by 15 July for as long as it holds foreign investment.

    Can Indian founders flip to a Delaware parent?

    Often, but it needs careful FEMA structuring. India's 2022 overseas investment rules restrict resident individuals from controlling a foreign company that itself owns subsidiaries, which is what a Delaware parent with an Indian subsidiary is, and they limit round tripping. The Indian tax on the swap and the place of effective management risk also need planning before anything is signed.