# FAQ for Indian Founders using Stripe Atlas

_Indian founders can use Atlas to incorporate a US company,_ access $2,500 in Stripe product credits, and _receive over_ $50K of partner discounts and credits_. Read our_ [_Indian Founder Guide_](https://docs.stripe.com/atlas/indian-founder-guide) _for step-by-step guidance. This article was updated in August 2025._
## **Complying with Indian ODI regulations**
### If I live in India, can I use Atlas to incorporate a US company while complying with India’s ODI regulations?
Yes. If you live in India, you can incorporate a company using Stripe Atlas and comply with the Reserve Bank of India’s overseas direct investment ([ODI](https://www.taxmann.com/post/blog/comprehensive-guide-to-overseas-direct-investment-odi)) regulations.
To learn more about how to use Atlas compliantly, follow our detailed [Indian Founder Guide](https://docs.stripe.com/atlas/indian-founder-guide) to incorporate a US C Corp using Atlas.
### Are payments to Atlas compliant with India’s ODI regulations?
Yes. Atlas charges 500 USD to generate, execute, and file documents for founders. This Atlas service is not a foreign investment subject to ODI regulations.
You can pay Atlas using a credit or debit card under the [LRS](https://www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=1834), which permits up to $250K USD to be remitted abroad each year by each Indian resident.
### What are my ongoing reporting requirements in India once my US entity is incorporated?
Indian founders with US entities need to complete two filings each year.
First, an Annual Performance Report ([APR](https://rbidocs.rbi.org.in/rdocs/content/pdfs/13MDR291215.pdf)) with respect to any US entity, with your Authorised Dealer Bank (AD Bank), on an annual basis by 31st December. Note that only the founder with the largest equity stake is required to file. If equity is equally distributed, a joint filing is acceptable.
Second, file [Form FLA](https://www.rbi.org.in/commonman/English/scripts/FAQs.aspx?Id=1171) regarding the overseas investments made by an Indian entity, with the Reserve Bank of India, on an annual basis by July 15th of every year.
Our Indian compliance partner, [Inkle](https://www.inkle.io/), can help with both of these filings. Contact them at incorporate@inkle.io.
### What documents do authorised dealer (AD) banks normally need for ODI transactions?
Founders should consult their AD bank for specifics. Applications usually include each LLP’s agreement, PAN card, certificate of incorporation, and stock purchase resolution. They should also include the US subsidiary’s certificate of incorporation, stock purchase agreement, and a signed Form FC and the bank’s version of Form A2.
## **Setting Up Your Business Structure**
### Why is it more common to form an Indian Limited Liability Partnership (LLP) than a Private Limited Company (Pvt Ltd) as a parent for the US C corp?
LLPs involve lesser administrative burdens and costs than Private Limited Companies. While LLPs can’t issue equity, that isn’t a problem: investors will purchase equity in the US C Corp and Indian employees usually receive stock from the Indian Pvt Ltd subsidiary.
### Why can’t co-founders jointly own a single Limited Liability Partnership (LLP) or Private Limited Company (Pvt Ltd) to own their US C corp equity?
Creating an LLP for each founder is common practice to simplify equity vesting agreements. When each founder has their own LLP, that LLP can sign a vesting agreement directly with the US C corp. If the founders instead use a joint LLP or Pvt Ltd, the C corp would sign a vesting agreement with the joint LLP or Pvt Ltd, and each founder would then need to sign an additional vesting agreement with the LLP or Pvt Ltd.
### Why do Indian founders commonly set up a Private Limited Company as a subsidiary for their US C corp?
If founders want to operate in India (which includes one or more founders residing in India), they should consider creating an Indian Private Limited Company subsidiary for their US C corp. Creating an Indian subsidiary helps Indian startups more easily collect GST, employ people in India, and access tax benefits. Founders living in India are typically employed by the Private Limited Company subsidiary.
Unlike LLPs, private limited companies can issue equity and manage Indian employee [ESOPs](https://www.investopedia.com/terms/e/esop.asp).
### How should I create an Indian Limited Liability Partnership (LLP) or Private Limited Company (Pvt Ltd)?
[Inkle](https://www.inkle.io/) has published an [overview](https://cdn.prod.website-files.com/66a7642b33d7a77ffea22b67/689235cfddac0da045c9319c_Inkle%20Incorporate%20-%20Indian%20entities.pdf) of the process to form an Indian LLP and Private Limited Company. We encourage Indian founders to email Inkle at incorporate@inkle.io if they’d like support forming either of those Indian entities.
### What should my LLP resolution to purchase my US C corp’s stock include?
Resolutions should include a brief addendum explaining the purpose of the investment, that it is a _bona fide business_ (i.e., one that is legal in both India and the US), and that the US C corp’s $100 valuation is due to the C corp having just formed.
Atlas developed a [template LLP resolution](https://qa-b.stripecdn.com/atlas/assets/Indian_Resident_Founder_Limited_Liability_Partnership_Stock_Purchase_Agreement.docx) with [JSA](https://www.jsalaw.com/), a major Indian law firm with a dedicated startup practice. Simply fill out and sign the template for it to be legally effective. If you have questions about filling out the template, please consult an Indian lawyer.
## **Using Stripe Atlas**
### Will Atlas file my 83(b) election?
Atlas does not file Section 83(b) elections for subsidiaries, but provides [instructions and a template](https://qa-b.stripecdn.com/atlas/assets/Indian_Resident_Founder_How_to_File_83b_Election.docx) for Indian founders to do so themselves. The template can also be used by non-Indian founders.
Generally, startup lawyers recommend founders outside the US who file US tax returns or think they might become a US taxpayer in future make an 83(b) election because it might reduce their future US tax liability. If a founder isn’t currently a US taxpayer and doesn’t anticipate becoming one in the future, they don’t need to make an 83(b) election because it affects only US tax liability.
### What if I submitted an Atlas application for a standard (i.e., non-subsidiary) C corp and discovered afterward I needed to form a subsidiary instead?
In these situations, we recommend founding teams cancel their Atlas application and begin a new one, following the steps in our [Indian Founder Guide](https://docs.stripe.com/atlas/indian-founder-guide).
To do so, founders should reach out to Atlas support via the Stripe dashboard, and let support know they’d like to cancel their Atlas application and receive a refund because one or more of the founders is an Indian resident.
### Are there any separate steps for non-Indian residents who are founding a startup with Indian residents?
To ensure Indian founders are compliant with ODI laws, we advise teams with Indian and non-Indian founders to choose the “Subsidiary” structure in the Atlas application.
Non-Indian founders should purchase their US C corp stock using a standard Restricted Stock Purchase Agreement, rather than the template that Atlas provides for Indian founders. We encourage non-Indian founders to utilize CooleyGo’s free [Delaware C corp document generator](https://www.cooleygo.com/documents/incorporation-package-delaware/) to do so.
### Does Atlas provide a Confidential Information and Invention Assignment Agreement (CIIAA)?
For subsidiaries, Atlas doesn’t automatically generate a CIIAA for founders. We encourage teams with Indian resident founders to generate and execute a CIIAA template using CooleyGo’s free [Delaware C corp document generator](https://www.cooleygo.com/documents/incorporation-package-delaware/).