CA Abhinav Gulechha

Why we picked it This is the India-specific FEMA reality check almost every cross-border founder gets wrong. It is written by a practicing CA who walks through exactly what happens when an Indian resident holds equity in a Delaware corp: the LRS $250,000 annual cap, the $100,000 pre-incorporation expense sub-limit, the Overseas Investment Rules 2022, UIN registration before any transfer, the Annual Performance Report due December 31, and the specific trap of funding a US entity by credit card via Stripe Atlas. It names the mistakes people actually make, so you fix the structure before you grant a single share.

Indian Resident Individual Planning to Incorporate in US? Ensure Compliance with Indian FEMA Law

From CA Abhinav Gulechha by Abhinav Gulechha 18 min read

• An Indian resident holding shares in a US company triggers RBI's ODI/LRS framework: report via AD bank, register a UIN before transferring funds, and stay within the $250,000/year LRS limit
• Even a zero-cash Delaware incorporation you control counts as ODI and must be reported; assuming an LLC or a Stripe Atlas credit-card setup is exempt is a common and penalized error
• Ongoing duties are real: Annual Performance Report by December 31, disinvestment reporting within 30 days, and proof of investment within 6 months, with penalties for skipping them