Common situation
I paid for my US company on a personal credit card.
Money for a company abroad is meant to go through an Authorised Dealer bank. A personal card payment skips that bank.
The situation
- 01Many Indians formed a US LLC through a formation platform and paid the fee on a personal credit card.
- 02Paying a formation service fee by card is not itself an overseas investment. Money that buys shares in your company is, and generally needs to go through your AD bank. Most people in this position do not know it.
- 03The structuring decision on how money goes abroad, LRS or ODI, then has to be established after the fact.
Whether this applies to you depends on your facts. Nothing here is legal or tax advice. Decisions rest with the relevant authority, so no outcome can be promised. We make sure what's submitted is complete and correct, and licensed professionals sign wherever the law requires.