Global business opportunities have never been more accessible. For Indian entrepreneurs looking to expand into international markets, forming a Limited Liability Company (LLC) in the USA is a popular route. However, to legally trade across borders, you’ll need to obtain the right Import Export Licenses for LLCs.
In this tutorial, we will guide you through the step-by-step procedure of how to establish an LLC in the USA from India and secure the required import and export permits.
Why Open an LLC in the USA from India?
Having an LLC in the U.S. gives Indian entrepreneurs numerous benefits:
- Access to one of the largest consumer markets in the world.
- Enhanced credibility with international clients.
- Better payment processing and opening an American bank account.
- Protection against limited liability.
- Easy tax filing compared to corporations.
Most Indian entrepreneurs form their LLCs in states such as Delaware, Wyoming, or Florida owing to business-friendly policies and lower fees for filing.
LLC Company Registration in USA: A Simple Overview
Before filing any import/export license, your U.S. LLC needs to be registered officially. The following is a simple step-by-step overview of LLC company registration in USA
- Select a State: Delaware and Wyoming are great choices because they have low fees and tax advantages.
- Select a Name: Make sure the name is unique and contains the words “LLC”.
- Appoint a Registered Agent: You would want someone based in the U.S. to take care of the legal documents.
- File Articles of Organization: The official document to create your LLC.
- Obtain an EIN (Employer Identification Number): Essentially a business tax ID, used for banking and licensing purposes.
- Open a US Business Bank Account: Not required but strongly recommended for convenience of doing business.
- Comply with RBI Guidelines (for Indian Citizens): If you’re transferring money from India to fund the LLC, follow RBI’s Overseas Direct Investment (ODI) guidelines.
Import Export Licenses for LLCs
Once your LLC is registered, the next step is to obtain the licenses that allow your business to legally import and export goods. These licenses depend on what you’re trading and with whom.
Import License for LLCs
In the USA, not all imports require a license. However, if your business deals in regulated items such as:
- Food or beverages
- Pharmaceuticals or medical devices
- Chemicals or hazardous materials
- Alcohol, firearms, or tobacco
You would require special federal agency approvals like the FDA, USDA, or ATF. You would require your LLC registration with the U.S. Customs and Border Protection (CBP) and might require a Customs Bond for expensive shipments.
-
Export License for LLCs
Similarly, some products do not require an export license, typically products of national security, military, or high-technology nature. If your LLC is shipping controlled items or software, the approval of the Bureau of Industry and Security (BIS) might be required for you.
To find out whether your product must have an export license, identify its Export Control Classification Number (ECCN) and examine the regulations of the importing nation.
Major Steps to Get Import Export Licenses for LLCs
Shipping your business to the U.S. is a great thought for Indian business owners. Starting an LLC in the U.S. opens up room for global business, but legal importing or exporting of products requires your LLC to have a license. Below is a step-by-step guide specifically tailored for Indian founders:
-
Register Your LLC in the USA
Choose a business-friendly state like Delaware, Wyoming, or Florida. Designate a registered agent and file Articles of Organization. Upon approval, your LLC is established.
-
Obtain an EIN
Apply for an Employer Identification Number (EIN) with the IRS. Your LLC’s tax ID and for licensing, banking, and compliance purposes, this is utilized.
-
Open a U.S. Business Bank Account
Most import/export sites and payment processors require a U.S. account to make transactions easy.
See also: How to Open US Bank Account Without SSN?
-
Register with U.S. Customs and Border Protection (CBP)
Your LLC would be registered as Importer of Record. Register an account through the ACE (Automated Commercial Environment) portal, whereby shipments and documents can be monitored.
-
Obtain Necessary Import/Export Licenses
Based on the type of goods, licenses may be acquired with authorities like:
- FDA (food products, cosmetics, pharmaceuticals)
- USDA (agriculture, meat products)
- BIS (controlled technology)
- ATF (tobacco, alcohol, firearms)
- Classify your products with HTS codes (imports) or ECCN (exports).
-
Adhere to RBI via ODI
While exporting capital out of India, report under the Overseas Direct Investment (ODI) regime. Fill out Form ODI, get a Unique Identification Number (UIN), and adhere to RBI regulations.
-
Document Properly and Renew Licenses
Document properly, renew licenses on time, and stay in compliance with U.S. and Indian trade laws.
In this manner, Indian businesspeople can efficiently perform licensed import/export operations with a U.S.-based LLC.
Compliance for Indian Founders
As an Indian resident founder of a U.S.-based LLC, you should abide by India’s foreign exchange regulations:
- Such transfer or investment of capital to the U.S. LLC must be reported under RBI’s Liberalized Remittance Scheme (LRS).
- You have to submit the forms like Form ODI, obtain a UIN (Unique Identification Number), and adhere to reporting rules annually.
- If money is not being remitted in the first place, then it is easy to comply, but if the LLC is receiving money from India, you must adhere to RBI guidelines carefully.
Advantages of Obtaining Proper Import/Export Licenses
- Legal Protection: Stay away from fines, seizure, or prohibition on your goods.
- Quicker Customs Clearance: Licensed products get through customs and border crossings more quickly.
- Improved Partner Relationships: Suppliers and buyers prefer conducting business with law-abiding companies.
- More Access to the World: Licenses allow you to sell in high-value or sensitive markets.
Frequently Asked Questions
-
Are all US LLCs subject to an import/export license?
No. Just LLCs dealing with regulated commodities need licensor approval. But all companies are bound to follow customs and federal laws.
-
Can I obtain these licenses from India?
Yes, with a registered U.S. LLC, you can obtain most import/export licenses online from anywhere, including India.
-
Do I need an EIN to license?
Yes. You need an EIN (Employer Identification Number) to get your LLC registered with customs and federal authorities.
-
What is the cost of obtaining an import/export license?
They differ by agency and product. Most are free, but a few cost money. Obtaining a customs broker increases the cost.
-
How long is the application process for obtaining a license?
Licenses will take anywhere from a few days to a few weeks, depending on the agency. Double-check your paperwork to make sure you don’t have any delays.
-
Can I operate the business remotely from India?
Yes. You can operate the LLC remotely, as long as you have an America-based registered agent and meet all compliance and legal obligations.
Begin your business with Estartup today.
Want to set up a U.S. LLC from India and embark on your international trade journey? Estartup makes it easy to register an LLC company, obtain import/export licenses, and meet Indian and U.S. regulations. Embark on the journey of growing your business worldwide with expert guidance from Estartup.
Which Is the Best Online Company to Create an LLC in the USA?
If you need further assistance or have any doubts, our experts are here to help you. Call us: 8881-069-069.
Download E-Startup Mobile App and Never miss the latest updates narrating to your business.