This article provides information for residents of India who are considering using Stripe Atlas to incorporate their LLC or C corporation (C corp). Stripe Atlas doesn’t provide legal, tax, or accounting advice. This article was last updated in October 2024.
Atlas is not designed to support Indian founders. In 2022, the Reserve Bank of India (RBI) released the Overseas Direct Investment (ODI) regulations with its related directions and rules, which govern how Indian residents can invest in foreign entities. Complying with ODI regulations is complex and often requires a corporate structure that differs from the structure used in Atlas.
It's important to note that under the ODI regulations, even paying the fee to incorporate a US company could be considered an overseas direct investment. Your legal counsel can advise you on the proper way to handle such payments in compliance with Indian law.
If you or one of your co-founders reside in India, we strongly encourage you to work with an attorney familiar with ODI regulations.
The ODI regulations, effective since August 2022, govern how Indian residents can invest in foreign entities. These regulations may require an Indian resident to first establish an Indian Limited Liability Partnership (LLP) prior to creating a foreign entity. The LLP, rather than the individual, would then typically purchase shares from and act as the shareholder of the foreign entity. Creating a foreign entity as an individual and purchasing shares in it could violate Indian foreign exchange laws and come with significant negative consequences.
No, Atlas does not set up Indian LLPs. Atlas helps with company formation in Delaware, US, and doesn’t set up non-US entities. For guidance on establishing an Indian LLP, please consult with legal and accounting professionals in India.
Atlas is designed for individual founders rather than entities like LLPs. If you or your co-founders have established an LLP in India, we recommend consulting with a lawyer familiar with ODI regulations to determine the most appropriate way to incorporate in the US.
It's important to note that under the ODI regulations, even paying the fee to incorporate a US company could be considered an overseas direct investment. Your legal counsel can advise you on the proper way to handle such payments in compliance with Indian law.
If you've already incorporated through Atlas and are concerned about compliance with Indian regulations, we recommend consulting with a legal professional familiar with Indian foreign exchange laws. They can provide guidance on your specific situation and advise on any necessary steps to ensure compliance with ODI regulations.