Business with offices in USA & India

jugs

Registered Users (C)
Hi! All,
I am an indian citizen on H1B , thinking of starting a company which will have majority of the clients in USA & some in Canada & UK.
Please suggest
Is it a good idea to open two independent companies - one in india & the other in USA (making USA company client of indian company although both are owned by same person) OR
Open one company with main office in one country & branch office in the other.

P.S: I can open Company/companies on my name or my relative's name(indian citizen).

Please let me know what would be the best option for a person like me.

Your response is highly appreciated.
Thank you
Jugs
 
JoeF said:
And who would run the company? Being on H1, you can't do that.
You can only be a passive investor.

Thanks JoeF for your reply. If my relative in india runs the company what would be the best option ? (taking into consideration tax implications - avoid double taxation)
 
JoeF said:
Hmm, and under which direction? As passive investor, you can't give your relative any leads, you can't open a bank account for the company in the US, you can't deposit business checks, etc.
So, how would your relative in India do all these things in the US?
Do not try to bypass US immigration law.
Tax considerations should be the least of your worries. Taxes have to be paid where the business is done, regardless if these are two companies or one.
But you can't run the business at all, as long as you are in the US on H1, and your relative can't run the US part, in practice. So, the whole thing falls apart right there.

Joe thanks again. I know many companies owned by indians like TCS, Infosys, Satyam , Reliance etc etc who are doing business in USA , not sure how they acheived it. Any ideas/information ?

So how can a foreign citizen (indian to be specific) start a company in USA & what kind of company should be formed ? ( for eg to make sure a company is not subjected to double taxation etc , should it be one company with branch office in another country OR 2 seperate companies one in each country ?)
 
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