Global Incorporation

You can operate from India initially, but global incorporation becomes essential when:

• ✓ Raising external funding (VCs prefer VC-friendly jurisdictions like US)
• ✓ Hiring remote teams globally (need local entity for payroll)
• ✓ Serving enterprise customers (they demand local presence/compliance)
• ✓ Optimizing taxes (cross-border structures reduce tax burden)
• ✓ Planning exit (M&A buyers prefer clean structures)

For bootstrapped startups: Start from India, incorporate globally once you have revenue or funding.

Choose based on your primary goal:

• If seeking VC funding: Delaware, USA (standard for VCs)
• If focused on tax efficiency: UAE Dubai Free Zone
• If targeting Asia-Pacific: Singapore Pte Ltd
• If you want fastest & cheapest setup: UK Limited Company

Recommendation: For first-time founders, start with Singapore or UK (fast, cheap, good banking). Move to US later if raising VC.

FEMA (Foreign Exchange Management Act) is India’s law controlling cross-border money movement.

• As an Indian resident, you cannot freely send money abroad
• Global incorporation requires moving capital out (for setup costs, operations)
• You need FEMA approval for “Overseas Direct Investment” (ODI) above certain limits
• Violations are serious — penalties up to 3x the illegal amount

What to do: Hire a CA before incorporating. They’ll help you follow FEMA rules. Usually straightforward for startups.

Total cost depends on jurisdiction and complexity:

• UK (cheapest): £100–500 incorporation + £100–500/year compliance = $500–1,500 first year
• Singapore: $230 incorporation + $500–2,000 service provider + $2,000–4,000/year = $2,500–6,000 first year
• USA: $90–500 incorporation + $100–300 registered agent + $1,000–5,000 service provider = $1,500–6,000 first year
• UAE: $3,300–10,000 setup + office lease = $4,000–15,000 first year

Add professional advisory: CA ($3,000–10,000/year) + CS ($500–2,000/month) if doing full setup.

No — most jurisdictions allow fully remote incorporation:

• ✓ USA (Delaware): No physical presence needed. Registered agent handles everything.
• ✓ Singapore: Can incorporate remotely. Director must be non-resident (you can be in India).
• ✓ UK: Fully online. No physical visits required.
• ✓ UAE: Usually requires an agent/representative for paperwork, but you don’t need to visit.

Banking may require: Some banks might ask for video call KYC or in-person visit for account opening. Plan for this.

Yes — this is actually the recommended structure for most startups:

• ✓ Foreign HoldCo (e.g., US Delaware) owns IP + fundraises
• ✓ India Subsidiary executes operations (engineering, manufacturing)
• ✓ Foreign entity invoices customers globally
• ✓ India subsidiary handles local operations and taxes

Advantages: IP protected abroad, VC-friendly structure, tax-optimized (with proper transfer pricing).

Requirement: Proper transfer pricing documentation to avoid double taxation audit.

Transfer pricing is the price at which one related entity charges another for goods/services/IP.

• Example: US HoldCo pays India subsidiary ₹100/month for engineering services. That ₹100 is the “transfer price.”
• Tax authorities want this price to be “arm’s length” (what unrelated parties would charge)
• If transfer price is too low, India can audit and claim you’re trying to shift profits abroad

What to do: Get a transfer pricing study done by a CA. It costs $2,000–5,000 but saves you from audit risk.

Timeline varies significantly by jurisdiction:

• Fastest: UK (24–48 hours) and Singapore (1–3 days)
• Fast: USA Delaware (3–10 days) and UAE (1–10 days)
• Full setup: 2–8 weeks (includes bank account opening)

Timeline includes:

• Incorporation filing: 1–10 days
• Bank account opening: 1–6 weeks (longest part)
• Professional setup (if using service provider): 2–4 weeks

Pro tip: Start process early. Bank account opening is the slowest step.

You must maintain compliance to keep the company active:

• Annual filings: Tax returns, annual reports, corporate filings (deadline varies by country)
• Bank reconciliation: Keep bank records organized for audit readiness
• Transfer pricing documentation: Maintain records of all related-party transactions
• Registered office: Maintain registered address (especially for USA, UK, Singapore)
• Corporate records: Board meetings, director resolutions, shareholder agreements
• Visa/work permits: If you’re in foreign jurisdiction, maintain proper visa status

Cost: $500–2,000/year minimum (USA), higher for full-service compliance (Singapore, UAE).

Yes, but it’s complex and expensive:

• You can dissolve the current entity and incorporate in a new jurisdiction
• Complex if you have existing contracts, IP, or investor interests
• Tax implications: Can trigger capital gains if assets appreciated
• Time-consuming: Takes 2–6 months to properly wind down and restart

Better approach: Get the choice right first time. Think carefully before incorporating.

What’s easier: Adding subsidiary in new jurisdiction (keep existing entity active).