Does RBI/FEMA allowed Indian Residence to form LLC in USA to invest in stock ?
if it possible,
every year investor can invest up to 2,50,000 USD to LLC ?
all the capital gain and sale proceeds will remain under LLC so Investor can re invest that amount ?
yeah you can form a US LLC as an indian resident under LRS, but the
structure you’re describing doesn’t really work the way you think. the 250k
USD annual LRS limit is on outward remittance from india. once you send
money out under LRS, that’s your limit used for the year. the LLC can
reinvest gains internally without touching your next year’s LRS quota, but
each new remittance counts against that year’s limit regardless of what’s
already sitting abroad. also the LLC being a US entity means it’ll file US
taxes (probably as disregarded entity so it flows to your 1040-NR), and
you’ll still owe indian tax on worldwide income as a resident. the
structure doesn’t shield you from dual filing, it just adds complexity. if
the goal is to keep compounding abroad without repatriating, that part
works, but the annual 250k thing is still capped per person per year total
outflows. fema-wise it’s allowed but you need to report it properly on your
indian tax return and mark the remittances as investment under LRS with
your bank. i’d run the LLC idea by a CA who does cross-border stuff before
setting it up, the compliance overhead might not be worth it vs just using
an international brokerage account directly.
On Sat, May 23, 2026 at 11:42 PM Reddit Pipeline Bot [email protected]
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