Ongoing · Tax Structuring

Both sides of the corridor,
structured to align.

When you own a US company from India, the India-US tax treaty (DTAA), transfer pricing on intercompany work, and India's FEMA/ODI rules together decide what you actually pay and whether your structure holds up. We align all three — so the same income isn't taxed twice, your intercompany pricing is defensible, and cross-border ownership stays compliant on both sides.

The corridor only works when both tax systems agree. We design your DTAA position, transfer-pricing policy, and FEMA/ODI compliance as one coherent structure — coordinated with your ownership and your filings.

Corridor
Live
AlignmentBoth sides
DTAA
TP
FEMA
PE
Aligned
Structure status
  • DTAA positionApplied
  • Transfer pricingDocumented
  • FEMA / ODICompliant
Aligned
US & India
Defensible
Transfer pricing
DTAA
No double taxation
Transfer pricing
Documented & defensible
FEMA / ODI
India side compliant
Why the corridor needs structuring

Filed in isolation, the corridor breaks.

  • Double tax

    Are you being taxed twice on the same income?

    Without applying the India-US treaty (DTAA) and foreign tax credit, income earned across the corridor can be taxed in both countries — money you simply didn't need to lose.

  • Transfer pricing

    Is your intercompany work priced at arm's length?

    When your India entity bills your US entity, the price has to be defensible under transfer-pricing rules — in both countries. Get it wrong and you face adjustments and penalties.

  • FEMA / ODI

    Is the India side compliant with FEMA and ODI?

    Funding or owning a US entity from India triggers RBI/FEMA reporting and Overseas Direct Investment rules. Non-compliance here can unravel the whole structure.

  • PE risk

    Could you be creating a taxable presence by accident?

    Where your team works and how contracts are signed can create a 'permanent establishment' and unexpected tax in the other country. It has to be planned, not stumbled into.

Most founders file the US side and the India side separately, and the gaps between them are where money and compliance leak — double taxation, indefensible intercompany pricing, FEMA exposure, and accidental taxable presence. Structuring is what makes the two sides agree.

What's included

One structure that works in both countries.

Treaty

DTAA position

We apply the India-US Double Taxation Avoidance Agreement and the foreign tax credit so the same income isn't taxed twice across the corridor.

  • Treaty benefits applied
  • Foreign tax credit coordinated
  • Withholding optimized
Pricing

Transfer pricing policy

We set an arm's-length transfer-pricing policy for your intercompany transactions and prepare the documentation to defend it in both countries.

  • Arm's-length pricing set
  • Documentation prepared
  • Defensible in US & India
India side

FEMA / ODI compliance

We keep the India side compliant — FEMA reporting and Overseas Direct Investment rules — so cross-border ownership and funding hold up to RBI scrutiny.

  • FEMA reporting handled
  • ODI compliance maintained
  • RBI-ready documentation
Agreements

Intercompany agreements

We put the intercompany agreements in place that underpin your transfer-pricing position and document how the two entities actually work together.

  • Services / IP agreements
  • Aligned with TP policy
  • Diligence-ready
Risk

PE & withholding review

We review permanent-establishment and withholding-tax exposure so where your team works and how you contract doesn't create surprise tax.

  • PE exposure assessed
  • Withholding mapped
  • Risks flagged early
Holistic

Whole-structure review

We look at ownership, tax, and compliance together across both countries, so the structure is coherent — not a set of filings that quietly contradict each other.

  • Both countries reviewed together
  • Coordinated with ownership setup
  • One coherent position
How we work

From two tax systems to one aligned structure.

01Map
Map both sides

We review your US and India entities, ownership, and money flows to see where double tax, transfer pricing, and FEMA exposure sit.

A full picture of the corridor
02Design
Design the structure

We design the treaty position, transfer-pricing policy, and FEMA/ODI approach so the whole structure is coherent and compliant.

A plan that works both sides
03Document
Put it in place

We prepare the intercompany agreements and transfer-pricing documentation and put the compliance steps into motion.

Structure documented & live
04Maintain
Keep it aligned

As you grow, we keep the treaty position, transfer pricing, and FEMA compliance aligned with your filings on both sides.

Stays coherent as you scale
FAQ

India-US tax structuring, answered.

What is the India-US DTAA and how does it help me?

The India-US Double Taxation Avoidance Agreement (DTAA) is a treaty that prevents the same income from being taxed fully in both India and the US. Combined with the foreign tax credit, it determines how income earned across the corridor is taxed and credited. Applied correctly, it stops you from overpaying; ignored, you can end up taxed twice. We build your structure around the treaty rather than filing each side in isolation.

What is transfer pricing and does it apply to my company?

Transfer pricing is the set of rules governing the prices charged between related entities — for example, when your India company provides engineering or services to your US company. Both countries require those prices to be at 'arm's length' (what unrelated parties would charge) and documented. If you have any intercompany transactions across the corridor, transfer pricing applies, and getting it wrong invites adjustments and penalties.

What are FEMA and ODI, and why do they matter for a US company?

FEMA (the Foreign Exchange Management Act) and the Overseas Direct Investment (ODI) rules govern how Indian residents can invest in or fund a foreign entity. When you own or capitalize a US company from India, these rules require specific reporting to the RBI. Non-compliance on the India side can undermine an otherwise sound US structure, so we keep FEMA/ODI aligned as part of structuring.

Can I be taxed in both India and the US on the same income?

Potentially, if the structure isn't planned. The DTAA and foreign tax credit exist precisely to prevent full double taxation, but they only help when applied correctly — claiming treaty benefits, crediting taxes paid, and managing withholding. We coordinate both sides so the same income isn't taxed twice and your overall rate is what it should be.

What is permanent establishment (PE) risk?

A permanent establishment is a taxable presence one country can assert when your business has enough activity there — for example, a team that habitually concludes contracts. Creating a PE by accident can expose you to tax and filings in a country you didn't intend. We review where your people work and how you contract so PE risk is planned around, not discovered later.

How does tax structuring connect to my ownership structure?

Closely. Whether you run a US-parent/India-subsidiary structure or a flip, and how equity is held, drives your treaty position, transfer pricing, and FEMA obligations. Tax structuring and ownership structuring have to be designed together — which is why the same team handles both, so the cap table and the tax position never contradict each other.

When should I set up my corridor tax structure?

Ideally before significant intercompany activity, funding flows, or a US raise — because the cleanest structure is the one set deliberately at the start. That said, existing structures can be reviewed and corrected; if your corridor has grown organically, a structure review often finds both compliance gaps and overpaid tax worth fixing.

Do you handle both the US and India sides yourself?

Yes. The point of corridor structuring is that one team owns both sides — US tax and the India-side FEMA/ODI and transfer pricing — so the treaty position, documentation, and filings are consistent. You're not coordinating a US CPA and an India CA who never talk to each other.

Talk to our US team

Let's structure the corridor the right way.

Tell us how your US and India sides are set up today. We'll review your DTAA position, transfer pricing, and FEMA/ODI exposure and design one coherent structure.

The India-US DTAA applied so the same income isn't taxed twice
An arm's-length transfer-pricing policy, documented for both countries
FEMA and ODI kept compliant on the India side, RBI-ready
Permanent-establishment and withholding exposure reviewed before it bites
Ownership, tax, and compliance designed as one coherent structure
Talk to our US team
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