Article · 18 min read
US LLC vs India Pvt Ltd for Indian Founders: Tax and Compliance Comparison
IncorpX Free Intermediate India
The side-by-side an Indian founder actually needs: a compliance matrix and a 5-year cost table for both entities, written from the dual-jurisdiction reality most Indian founders live in. Its sharpest point is counterintuitive: a US entity has fewer entity-level filings, but an Indian resident owner ends up with MORE total obligations because you stack US filings (5472, state report, registered agent) on top of Indian ones (FEMA, Schedule FA, 15CA/15CB).
- A US entity looks lighter on paper (300 to 800 a year) but an India-resident owner adds FEMA reporting, Schedule FA, and 15CA/15CB on the Indian side, so the real filing load is US plus India, not US instead of India
- India Pvt Ltd carries the heavier standalone burden: 4 mandatory board meetings a year, statutory audit, and ROC filings that a US LLC simply does not require
- Pick the structure by where your team, investors, and revenue sit; the recurring compliance stack, not the formation fee, is what you are signing up for
