India currently represents about 18% of the world’s population with an estimated 1.3 billion people. The latest projection models now predict that India will become the world’s most populous country in less than a decade, surpassing the population of China in approximately 2022, six years sooner than the previous estimate of 2028. India’s population is expected to grow to 1.4 billion people in 2022, then to just over 1.5 billion people in 2030, and it should reach upwards of 1.7 billion people by the year 2050. As India’s population booms, so, too, does their economy. China’s economic tidal wave is finally starting to subside, after roughly 30 years of an average growth of 10% per year. India now boasts the world’s fastest growing economy. The Reserve Bank of India recently cut the interest rate for the fourth time this year, down from 7.25% to 6.75%, which should further help stimulate economic growth (The Washington Post).
Entrepreneurs in India are chomping at the bit to break into U.S. markets. Here at Harvard Business Services, Inc., we are setting up more companies on a daily basis for clients based in India than ever before. As of today, clients from India comprise roughly 4% of our business, and this percentage is expected to surge in the very near future.
Clients from India are establishing Delaware LLCs and corporations for a variety of different types of business endeavors. The scope ranges from import/export ventures, selling finished product, SEO services, Information Technology consulting, web design, technical support, staffing agencies and so on. Many of our Indian clients aspire to become vendors for Amazon or other online wholesalers while others want to develop and sell mobile applications for Android or Apple devices.
While many of our clients from India seek to form a Delaware LLC or corporation as the first step toward obtaining a Visa and permanently relocating to the United States, others plan to offer their products or services remotely, from India, either by phone, Skype or online. Whatever their desired results may be, more and more of our clients from India are creating Delaware companies for the sole purpose of opening a United States bank account or merchant account.
While Harvard Business Services, Inc. cannot assist our international clients with opening bank accounts or merchant accounts, we can help provide many of the necessary tools and documentation. Many banks have common requirements, such as the approved Certificate of Formation or Certificate of Incorporation, Certificate of Good Standing, Certified Copy, Mail Forwarding Address, and last but definitely not least, the Federal Tax ID Number (also known as EIN).
Almost every bank and Merchant Account Provider in the United States requires a Federal Tax ID Number in order to establish a new account. However—don’t worry; we can assist you in obtaining the Federal Tax ID Number from the Internal Revenue Service for international clients who do not possess a United States address or Social Security number. To utilize our service and apply for the Federal Tax ID Number, we will need the name and address of the responsible party as well as the principle activity of your business. We will then prepare and email you a completed SS4 application and consent form for your signature. Once you return it, we will contact the IRS and apply for your EIN. Typically, the process takes between 7-14 business days if you don’t have either a U.S. address or Social Security number. Once we obtain your EIN, we will email it to you for your records. In addition, the IRS will send you the official confirmation letter directly.
According to the business news website The American Bazaar, India-based companies are responsible for creating 91,000 jobs and $15 billion in investments across the United States. 84.5% of the Indian companies plan to make additional investments in the United States. Indian businesses are here to stay, and are changing the landscape of American commerce.
If you have any questions about forming your new Delaware corporation or LLC, please call one of our top-notch customer services representatives today. I can be reached by phone at (302) 644-6265 or via email at firstname.lastname@example.org.
Citations: Katz, Andrew. “India Will Have the World’s Largest Population Earlier than Expected, U.N. Says.” The Washington Post. The Washington Post, 30 July 2015. Web.
“Indian Companies Invested $15 Billion, Created 91,000 Jobs in the United States.” The American Bazaar. The American Bazaar, 14 July 2015. Web