India
Wyoming
Wyoming will register an LLC for an Indian resident without asking a single question about India. The form has no nationality field, and the fee is $100.
India asks all the questions. Under its foreign exchange rules, owning a Wyoming LLC is an overseas direct investment, with a form to file before the money moves and a report to file every year after.
This page is about that Indian half. The Wyoming half is summarised once, with links to the guides that cover it.
The Wyoming side, in one table
Nothing here is specific to India. Each line has its own guide, and the figures below are the ones those guides verified in October 2026.
| Topic | Short answer | Guide |
|---|---|---|
| Eligibility | No citizenship or residence condition. India is not on the federal adversary list Wyoming refers to | Non-residents |
| Filing | Articles of Organization, filed online through a registered agent | How to register |
| State cost | $100 to form, $60 a year at minimum, plus a 2.4% charge online | Cost |
| US tax | No federal income tax without a US trade or business. Form 5472 is due each year, $25,000 penalty | Taxes |
| Bank | Decided by the provider, not by Wyoming | Bank account |
The rest of this page assumes you live in India and are resident there for foreign exchange and tax purposes. A non-resident Indian living abroad is in a different position on almost every point below.
Why a Wyoming LLC is overseas direct investment
India rewrote its outbound investment rules on 22 August 2022. Three texts apply together: the Overseas Investment Rules, the Overseas Investment Regulations and the Reserve Bank's Directions.
The definitions in the Directions settle the question.
- A foreign entity is one formed outside India "that has limited liability". The Directions name "a limited liability company" as an example.
- Overseas direct investment includes "acquisition of any unlisted equity capital" of a foreign entity. A Wyoming LLC is unlisted.
- No minimum stake applies. The 10% threshold found in many guides concerns listed companies only.
- No minimum amount applies either. The rule attaches to the ownership, not to the sum you send.
So the size of the LLC does not change the answer. A company funded with $500 is the same kind of investment as one funded with $50,000.
Resident individuals have been allowed to do this since 5 August 2013, within three limits that the Reserve Bank's Directions repeat.
| Condition for a resident individual | What it means for a Wyoming LLC |
|---|---|
| The foreign entity must be an operating entity | A trading or services LLC fits. A shell that only holds assets is doubtful |
| No financial services activity | An LLC that lends, brokers or manages money is outside the route |
| No subsidiary under an entity you control | Your LLC cannot own another company |
| No debt | You may contribute capital. You may not lend to your own LLC |
The compliant sequence, before any money moves
The order matters more than the amount. The Directions say a bank shall facilitate a remittance to a foreign entity "only after obtaining the necessary UIN".
- 11. Designate an authorised dealer bankOne branch handles everything. For capital remittances the account should be at least one year old
- 22. File Form FC with Form A-2Submitted to the bank on or before the first investment, with your PAN
- 33. Receive the UINA unique identification number for the LLC. It records the investment and is not an approval
- 44. Remit, then prove itEvidence of the investment goes to the bank within six months of the remittance
- 55. Report every yearAnnual Performance Report by 31 December, and Schedule FA in your income tax return
Three details in the same texts catch founders who formed the company first.
- Paying for the LLC yourself is restricted. A resident "shall not make any payment on behalf of any foreign entity" except as a permitted financial commitment.
- Set-up costs have their own channel. A bank may remit pre-incorporation expenses of up to USD 100,000 per entity, counted against your LRS limit.
- Cash is excluded. Regulation 8 lists remittance through banking channels and a few other modes. A card payment to a formation website passes through none of the forms above.
If the LLC already exists, the route back is the late submission fee described below, through your bank. Ask the bank before sending anything further to the company.
LRS and TCS, at their true size
A resident individual funds the LLC under the Liberalised Remittance Scheme. The Reserve Bank's FAQ sets the frame.
- USD 250,000 per financial year, April to March, for current and capital transactions combined.
- PAN is mandatory for every remittance under the scheme.
- Family limits do not pool for an investment unless the relatives are co-owners of it.
- The bank may not lend you the money to make a capital remittance.
- The scheme is closed to companies, partnerships and trusts, which use the corporate route.
Tax collected at source is the figure most often quoted, and for a Wyoming LLC the least likely to bite. It now sits in section 394(1) of the Income-tax Act, 2025.
| LRS remittances in a financial year | Purpose | TCS |
|---|---|---|
| Up to Rs 10 lakh in aggregate | Any | Nil |
| Above Rs 10 lakh | Education or medical treatment | 2% from 1 April 2026, 5% before |
| Above Rs 10 lakh | Anything else, including investment | 20% |
Rs 10 lakh is roughly USD 11,000 to 12,000 at 2026 exchange rates. A Wyoming LLC has no minimum capital, so most founders stay far below the threshold.
The threshold counts every LRS remittance of the year together, though. Tuition or a transfer to a relative earlier in the year can push a small capital contribution into the 20% band.
What India expects every year
The filing does not end with the UIN. Regulations 9 to 12 set a yearly routine, and one of them blocks you if you fall behind.
| Obligation | Rule | Deadline or amount |
|---|---|---|
| Evidence of investment | Regulation 9(1) | Within six months of the remittance |
| Annual Performance Report | Regulation 10(4) | By 31 December each year |
| Repatriation of dues | Regulation 9(4) | Within 90 days of falling due |
| Late report | Directions, paragraph 18 | Rs 7,500 per return |
| Late Form FC | Directions, paragraph 18 | Rs 7,500 plus 0.025% of the amount per year of delay |
- A 31 December year end shifts the date. The report is then due by 31 December of the following year.
- The late fee option lasts three years from the due date. After that, the texts refer to penal action under FEMA.
- Regulation 12 freezes the investment. No further funding and no transfer until every late filing is regularised.
The audit question, where the text and the practice may differ. Regulation 10(4) says the report "shall be based on the audited financial statements" of the foreign entity. Unaudited accounts are accepted only where the investor has no control and local law requires no audit.
Wyoming requires no audit, but a sole owner has control. Read literally, the exception does not cover you. The Directions add that a chartered accountant certifies the report for an individual. Ask your bank what it accepts before the first deadline, not after.
How Indian tax reaches the profit
A Wyoming LLC with no US business may owe the IRS nothing. That says nothing about India, which taxes its residents on worldwide income and has three separate ways to reach the company's profit.
| Route | Trigger | Result |
|---|---|---|
| Place of effective management | Key decisions for the LLC are taken in India | The LLC itself becomes Indian tax resident |
| Permanent establishment | The business is run from a fixed place in India | Profit attributable to India is taxed there |
| Your own income | Salary, fees or distributions you receive | Taxed in your hands as a resident |
On the first route, tax authority guidance issued in 2017 is widely cited for exempting companies with turnover of Rs 50 crore or less in a year. We could not reread it on the department's website on 5 October 2026. Do not rely on it without a chartered accountant.
On the second route, the treaty is plain. Article 5 lists "a place of management" first among the forms of permanent establishment. A founder who runs the LLC from a home office in Bengaluru should assume the question will be asked.
Two readings exist on what the LLC is. The United States disregards a single-member LLC. India has no equivalent election, and the sources split.
- Reading one: the profit is yours as it arises, as if the LLC were not there. Most formation websites assume this.
- Reading two: the LLC is a foreign company under Indian law, taxed through the routes above, and you are taxed on what it pays you.
- What follows: the timing of tax and the available credits differ. Settle the reading with an adviser before the first invoice.
What the India and US treaty changes
The convention was signed on 12 September 1989 and has been in force since 18 December 1990. For a transparent LLC with no US tax to relieve, it does less than founders hope.
- Article 4 treats a fiscally transparent entity as a resident only to the extent its income is taxed in the hands of a resident. The LLC claims nothing by itself.
- Article 10 caps US tax on dividends at 15% for a company holding 10% of the voting stock and 25% otherwise. This matters if you choose a corporation.
- Article 25 has India credit US income tax paid on the same income. With no US tax paid, there is nothing to credit.
Schedule FA and the Black Money Act
The LLC is a foreign asset from the day it exists. A resident and ordinarily resident individual reports it in Schedule FA of the income tax return, whatever its value.
The simplest return form, ITR-1, is closed to anyone with a financial interest in an entity outside India. Penalties for staying silent sit in a separate law, the Black Money Act of 2015.
- 5 Aug 2013Resident individuals allowed to make overseas direct investment
- 22 Aug 2022New overseas investment regime: Form FC, UIN, late submission fee
- 1 Oct 2024Rs 10 lakh disclosure penalty lifted for foreign assets up to Rs 20 lakh
- 1 Apr 2026TCS on education and medical remittances cut to 2%, investment stays at 20%
- 2026Six month foreign asset disclosure scheme announced, start date to be notified
- The penalty is Rs 10 lakh for failing to report a foreign asset, "regardless of the value of asset".
- Since 1 October 2024 it does not apply where your foreign assets, other than immovable property, total Rs 20 lakh or less.
- The 2026 Finance Bill proposed the same threshold for prosecution, with effect back to that date.
- The duty to disclose is unchanged. A small LLC is below the penalty threshold, not outside the schedule.
- A disclosure scheme was announced in the 2026 budget for small taxpayers, with a six month window. Check whether it has opened.
Banking and Stripe from India
India is in a comfortable position on the published lists. The bank account guide read each provider's page: India appears on none of the country lists kept by Mercury, Relay or Wise in autumn 2026.
- Not listed is not approved. Every provider reviews the application and none publishes approval rates.
- Your Indian home address is acceptable as operating address at Mercury and Relay. The registered agent's address is not.
- Stripe in India is by invitation. Its Indian pricing page showed "Request an invite" on 5 October 2026. A Wyoming LLC applies as a US business instead.
- Money owed to you comes home. Distributions the LLC declares fall under the 90 day repatriation rule.
The full comparison is in opening a Wyoming LLC bank account as a non-resident.
The bottom line
For an Indian resident, a Wyoming LLC is legal, cheap to hold and well served by US payment providers. None of that is in doubt.
What decides whether it stays clean is the Indian file: Form FC and the UIN before the first remittance, the report each December, the asset in Schedule FA, and a clear view of where the company is managed. The tax collected at source that everyone mentions is, for a company this small, usually the least of it.
Do the Indian steps first, with your bank and a chartered accountant. The Wyoming side can then be handled in one place: the filing, the registered agent and the EIN. See what the Wyoming LLC formation service covers, or talk to a specialist.
Frequently asked questions
Can an Indian resident legally own a Wyoming LLC?
Yes. Wyoming sets no nationality or residence condition, and India has allowed resident individuals to make overseas direct investment since 5 August 2013. The investment has to follow the 2022 overseas investment rules and go through an authorised dealer bank.
Do I have to inform the RBI before forming the LLC?
You deal with your bank, not with the Reserve Bank directly. Form FC is submitted to the authorised dealer bank on or before the first investment, and the bank obtains a UIN. The Directions say no remittance is facilitated before that number exists.
How much can I send from India to my Wyoming LLC?
A resident individual may remit up to USD 250,000 per financial year under the Liberalised Remittance Scheme, for all purposes combined. Capital contributions count towards it. Money the LLC later earns from its own customers does not.
Will I pay 20% TCS on the money I send?
Only on the part of your yearly LRS remittances above Rs 10 lakh, when the purpose is investment. A Wyoming LLC needs no minimum capital, so many founders never reach the threshold. Other remittances in the same year count towards it.
What is the Annual Performance Report?
It is a yearly report on the foreign entity, filed through your bank by 31 December. The fee for a late report is Rs 7,500, and no further funding or transfer is allowed until the delay is regularised.
Does a Wyoming LLC reduce my Indian tax?
No. An Indian resident is taxed on worldwide income. A company managed from India can also be treated as Indian tax resident or as having a permanent establishment there. The LLC gives access to US banking and payments, not a lower tax bill.
Do I have to report the LLC in my income tax return?
Yes, if you are resident and ordinarily resident. The interest goes in Schedule FA, and you cannot use ITR-1. Since 1 October 2024 the Rs 10 lakh penalty does not apply to foreign assets of Rs 20 lakh or less, but the reporting duty remains.
Can I open a US bank account from India for the LLC?
India is not on the country lists published by Mercury, Relay or Wise as read in autumn 2026. That is not an approval. Each provider reviews the application, and a complete file with the EIN letter matters more than speed.
Sources
- Reserve Bank of India, Foreign Exchange Management (Overseas Investment) Directions, 2022: what counts as overseas direct investment, Form FC and the UIN before any remittance, the late submission fee and the rules for resident individuals
- Reserve Bank of India, Notification FEMA 400/2022-RB: regulation 9 on evidence of investment and repatriation within ninety days, regulation 10 on the Annual Performance Report due by 31 December
- Reserve Bank of India, FAQ on the Liberalised Remittance Scheme: USD 250,000 per financial year, mandatory PAN, the one year bank relationship and the limits on pooling within a family
- Government of India, Memorandum to the Finance Bill 2026: tax collected at source under section 394(1) of the Income-tax Act, 2025, at 20% above ten lakh rupees, and the foreign asset disclosure scheme
- India and United States income tax convention, signed 12 September 1989, in force 18 December 1990: Article 4 on residence, Article 5 on permanent establishment, Article 10 on dividends
Official, read on 5 October 2026: the Reserve Bank of India's Overseas Investment Directions and Regulations of 22 August 2022, its Master Direction on the Liberalised Remittance Scheme as updated on 6 September 2024 and the related FAQ, the memoranda to the Finance (No. 2) Bill 2024 and the Finance Bill 2026, the 2026 budget speech, and the text of the India and United States tax convention. The Finance Bill documents describe proposals: we did not confirm that the 2026 bill was enacted exactly as proposed, nor the date on which the foreign asset disclosure scheme opens. Not read on a primary source that day, because the Income Tax Department and India Code websites were unreachable: the residence section of the Income-tax Act, 2025, the 2017 circulars on place of effective management and their fifty crore rupee turnover threshold, the Schedule FA instructions, the credit mechanism for tax collected at source, and Schedule III of the Overseas Investment Rules, which is described here from the Reserve Bank's own summary. The rupee to dollar conversion is an approximation. Wyoming and United States figures are those of the guides in this series. Banking lists are private policies that change without notice. How Indian tax law classifies your LLC, and whether your bank will process the filing, are questions for a chartered accountant and your authorised dealer bank. This is not legal or tax advice.