Setting up company in India vs United States


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I would like to know the advantages and disadvantages of starting a company in India in contrast to the United States.

As far as I am concerned, I have seen companies (not all) set up in the United States seem to be well established both in terms of profits and as a brand than those in India.

The points that I would like to ask in this question are:

  1. Does geographic location affect the future of the company? Because, companies in United states, especially the Silicon valley startups seem to get more recognition.
  2. If the geographic location affects the future, how is it affected (in contrast with India)?
  3. Aren't people interested in Indian software companies?
  4. And the two terms, Corporation and Incorporation sound good to the ear. But in India, they call it Pvt. Ltd. Is it one of the reason that is negatively affecting Indian companies?
  5. The last, If i start my company in India, can I register it in the United States with Corporation or Incorporation, (I am enthusiastic about these two words, I love them ;) so is this question)

Kindly, reply me.

Getting Started India Incorporation USA Corporation

asked Dec 9 '13 at 18:48
Blank
Java Technical
152 points

1 Answer


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Its not the geography, its the legal framework.

In the US there are many (50+) different jurisdictions, and there are significant differences between incorporating in California, and in Delaware, for example. So its not just India vs US, its US vs US as well.

Most of the time, you would want to do what's convenient to your business operation. So if you're located in India, operating in India, and want to appeal to Indian customers - it would not make much sense to register your company in the US.

If you want to appeal to US customers, they might find it intimidating you having Indian registration, since it means, among other things, that they'd have to go to India to sue you. If you have presence in the US, you'll have to register in the US in any case (either as a domestic corporation or a foreign corporation doing business in the US).

Silicon valley start-ups get recognition because of connections, not because of the blue skies of Northern California.

answered Dec 10 '13 at 08:22
Blank
Littleadv
5,090 points
  • Thanks for the answer. By the way, is the name incorporation or corporation matters, they sound pretty good than Pvt. Ltd? Also can i register the company in US as corporation or incorporation after I register in India as Pvt. Ltd? – Java Technical 5 years ago
  • @JavaTechnical the incorporation jurisdiction laws dictate what the name should be. In many US jurisdictions, "Inc." means the entity is registered as a Corporation, while "LLC" or "Limited" means that the entity is registered as LLC (some States allow "Limited" for corporations as well). – Littleadv 5 years ago
  • You cannot register the same company twice. You *can* register your existing Indian company as a foreign entity in the US, but the name will be the one of the Indian company (unless you also set up a DBA). – Littleadv 5 years ago

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Getting Started India Incorporation USA Corporation