# How to Register a Delaware C Corporation

## **Optimal Route for Founders with Foreign Sourced Funds**

For founders with funds outside India (e.g., in the UAE), this is the most streamlined method.

**Steps**:

1. Use foreign funds to purchase shares in the Delaware C Corporation.
2. Avoid ties to any Indian financial or regulatory system.

**Advantages**: Simple compliance with no need for Indian entity registration.

**Timeline**: Approximately 1 month.

**Cost**: Around $5,000, depending on the law firm.

<mark style="background-color:orange;">**Recommendation**</mark><mark style="background-color:orange;">: Avoid using services like Stripe Atlas; consult a law firm for efficient handling.</mark>

## **Flip Structure**

Suitable for founders without foreign funds, widely used by Indian founders.

**Steps**:

1. Establish an Indian company.
2. Create a US entity.
3. Flip ownership so that the US entity holds 99.99% of the Indian company.

**Requirements**:

1. Draft a service agreement between the Indian and US entities.
2. Transfer intellectual property to the US entity.
3. Comply with both Indian and US regulations.

**Timeline**: Approximately 3-4 months.

**Cost**: Around $20,000, depending on legal fees.

## **RFCA Route**

Similar to the foreign funds route but involves setting up a Resident Foreign Currency Account (RFCA). Ideal for Indian residents investing in a US entity.

## **Direct Ownership through ODI**

Direct purchase of shares in the US entity by founders through Overseas Direct Investment (ODI). US entity can only hold less than 10% of the Indian entity, limiting control.

## **Registered Partnership (RP) Structure**

Form an RP in India, which then buys shares in the US entity, allowing the US entity to own 99.99% of the Indian company. While setup is quick, this option has complex tax implications upon exit.

## **LLP Structure**

Similar to RP but uses a Limited Liability Partnership (LLP) in India. Highest setup cost and time requirement, with intricate tax liabilities during exit.


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