In response to US President Donald Trump’s extensive immigration crackdown, Tata Technologies, an Indian provider of engineering services, announced that it will hire more locals in the US.
In an effort to protect Americans from wage competition from overseas, the Trump administration intends to impose a high cost on companies applying for H1-B visas, which are utilised by internet giants like Amazon.com and Meta Platforms. Warren Harris, the CEO and Managing Director of Tata Technologies, told Reuters on 23 October that the company will be hiring more local citizens in the US as it responds to the changes in the laws pertaining to visas.
Tata has 12000 Employees Across the Globe
With more than 12,000 workers worldwide, including in the US, Tata Technologies offers engineering and technology services to manufacturers of cars, aeroplanes, and heavy machinery in at least two dozen nations. According to official data, over three-fourths of those who received H-1B visas last year were from India.
North America accounted for over a fifth of Tata Technologies’ INR 5,168 crore ($587.97 million) sales in 2024–2025; however, the Pune, India-based company does not reveal its revenue or staff count by nation. More than 70% of Tata Technologies’ employees are local citizens in China, Sweden, the United Kingdom, and the United States. The company’s clients include Jaguar Land Rover, Boeing, and the Vietnamese electric vehicle manufacturer VinFast.
Tata Tech Under Immense Pressure Due to US Tariff Cuts
Automotive companies suffering from the effects of US tariffs have been cutting back, putting pressure on Indian technical service providers that mostly rely on outsourcing work from corporate America. However, the CEO of Tata Technologies remains optimistic about the US.
According to Harris, the market is still quite significant and lively. Now that its customers have adjusted to the new tariff structure, Tata does anticipate a pickup in the US during the next six to nine months. Harris added that other “targeted” acquisitions will be made by Tata Technologies in the upcoming years. Last month, the company announced plans to pay 75 million euros ($87.47 million) to acquire German peer ES-Tec Group.
Quick Shots
•Tata
Technologies to hire more US locals amid President Trump’s renewed
immigration crackdown.
•Trump
administration plans to increase H1-B visa costs to protect American workers,
impacting Indian IT firms.
•Tata
Tech CEO & MD Warren Harris confirmed the company’s plan to boost US
local hiring in response to new visa rules.
•North
America accounts for over 20% of Tata Tech’s INR 5,168 crore revenue in
FY2024–25.
•Over
70% of Tata Tech’s employees in the US, UK, China, and Sweden are local
citizens.
•US
tariff cuts have slowed outsourcing demand, adding pressure on Indian tech
service firms.
In the event that US President Donald Trump’s tariffs take effect, the Reserve Bank of India (RBI), as it has in the past, will intervene and offer financial assistance to the most severely affected industries to help them weather the storm, RBI Governor Sanjay Malhotra stated in Mumbai on Monday, August 25, 2025.
Possible Impact of Trump’s 50% Tariff on Indian Exports
Through monetary policy, the RBI essentially helped the economy during COVID by easing credit access for MSMEs and imposing a ban on term loans. In response to a query during the FIBAC annual conference, which was hosted by the Indian Banks’ Association (IBA) and FICCI, the governor stated that the 50% tax has not yet gone into effect.
Appreciating the move, Arunabh Sinha, CEO & Founder, UClean stated, “The RBI stepping up for tariff-hit sectors is a confidence signal. Tariffs can quickly raise costs and squeeze margins, and knowing the central bank is ready to cushion that shock gives businesses the breathing space they need. What really stands out is the RBI’s push for trade in local currencies. That’s a game-changer. It cuts dollar dependence, trims transaction costs, and shields companies from the whiplash of currency swings.”
” For the brands that is expanding into international markets, smoother local-currency trade directly strengthens our ability to scale across borders. RBI alone cannot erase the pain of tariffs. But in an uncertain global environment, reassurance matters. When the central bank signals stability, it helps startups and growth-stage companies plan with conviction instead of hesitation. For entrepreneurs, that predictability is half the battle won. In short, this is the RBI saying: ‘Yes, the global headwinds are strong, but Indian businesses will not sail alone.’ And that assurance is priceless for anyone building for the long run,” Sinha added.
Sectors at Risk – Textiles, Auto Parts, Gems, Shrimp
The RBI hopes that the impact of the ongoing negotiations will be low. As you are aware, 45% of exported goods are exempt from taxes, while the remaining 55% may have an effect on certain industries, including textiles, auto parts, gems and jewellery, shrimp, and MSMEs.
RBI Measures to Cushion the Economy
The government is investigating it, Malhotra added. The RBI has been in a period of relaxing. In order to give the economy enough cash, it lowered the repo rate by 100 basis points. The federal bank would provide any assistance that the RBI deems necessary for the expansion of the economy, including that of the most affected sectors, as soon as possible.
“It’s an important area on which the RBI has been working for many years, and it’s important for the country to develop trade in local currency,” Malhotra responded when asked about the rupee’s internationalisation. It protects us from foreign exchange fluctuations.
He stated that “healthy trade is happening in local currency” and that India presently has agreements with four nations: the Maldives, Mauritius, Indonesia, and the United Arab Emirates. “It’s a slow process and would take years and decades to evolve to have trade in local currencies,” he remarked when asked how it would work out.
Strengthening Banking Correspondents for Financial Inclusion
In order to accomplish the aims of financial inclusion, Malhotra emphasised in his conference speech the necessity of significantly fortifying the Banking Correspondents (BCs) network.
He went on to say that we must never forget that nearly two-thirds of our nation’s population lives in rural areas, and we have a duty to them all. Although practically every town within a 5-kilometre radius now has banking access, there is still room to improve it. In our nation’s sparsely populated areas, BCs are a useful conduit for service delivery.
To increase the calibre, reliability, and accessibility of financial services, this channel must be reinforced. Not only is there room to enhance them, but they also need to be trained and have their service offerings expanded. He underlined that while this will increase the BCs’ financial sustainability and viability, it will also enhance the calibre and scope of their services.
Quick
Shots
•RBI ready to support sectors impacted
by potential US tariffs.
•Proposed 50% tariff could affect
Indian exports like textiles, auto parts, gems & jewellery, shrimp, and
MSMEs.
•RBI provided relief during COVID
through credit easing, loan moratoriums, and repo rate cuts.
•Repo Rate Cut by 100 bps – Recent
policy step to inject liquidity and support growth.
Following the imposition of reciprocal tariffs of 26% by the United States, India’s stock plummeted on April 3. U.S. President Donald Trump imposed a 26% reciprocal duty on India on 2 March as part of his plan to impose a 10% baseline tariff on all trade partners from 5 April. Further, he also imposed greater tariffs on dozens of other countries, including 34% on China from April 9. China’s major indices dropped 1.5%, while Thailand and Vietnam saw declines of 1% and 6.1%, respectively. While small-cap stocks increased by 0.2%, the Indian mid-cap index fell by 0.2%. Although analysts pointed out that the reciprocal tariffs are lower than those imposed on Asian exporters like China, Vietnam, and Thailand. This advantage may give India a competitive edge. Experts further stated that the immediate impact on Indian markets is negative due to worries about global trade and growth.
India’s Pharmaceutical Sector Exempted From Trump’s Reciprocal Tax
In his “reciprocal tariffs”, Trump exempted imports of energy, pharmaceuticals, and some minerals. This move is expected to provide India’s generic drug industry a reprieve. In an information sheet, the White House stated that the Reciprocal Tariff would not apply to certain products. These include (1) items covered by 50 USC 1702(b); (2) steel/aluminum products and automobiles/auto parts already subject to Section 232 tariffs; (3) copper, semiconductors, pharmaceuticals, and lumber products; (4) any and all items that could be subject to Section 232 tariffs in the future; (5) bullion; and (6) energy and other specific minerals that are not available in the United States.
US Tariffs don’t have as Much of an Impact on India: ASSOCHAM President Sanjay Nayar
According to ASSOCHAM president Sanjay Nayar, the United States’ tariffs are not having a significant negative impact on India. ASSOCHAM’s Nayar emphasised that the Indian economy is more inward-looking than its peer Asian markets. Nayar stated that he believes India is not as severely affected by the tariffs; while the 26% tariff figure may seem high, it appears to be less so when compared to other Southeast Asian nations. Other significant nations with import duties include China (34%), the European Union (20%), Vietnam (46%), Taiwan (32%), Japan (24%), India (26%), the United Kingdom (10%), Bangladesh (37%), Pakistan (29%), Sri Lanka (44%), and Israel (17%). Steel, aluminium, and auto-related products will be subject to a 25% tax under the imposed duties, whereas pharmaceuticals, semiconductors, copper, and energy products would not be subject to any tariffs. The analysts claim that the tariffs placed on Indian goods going to the US pose a dilemma for the country’s manufacturing industry.
The reciprocal tariffs that President Donald Trump intends to implement on April 2 will apply to all countries. Earlier, it was speculated to be meant for those with the most significant trade imbalances with the US. India, China, the European Union, Mexico, Vietnam, Taiwan, Japan, South Korea, and Canada are among the nations that are expected to be impacted by Donald Trump’s “Liberation Day” tariffs. On 31 March, however, White House press secretary Karoline Leavitt stated that the president will announce his intentions to apply reciprocal tariffs on all of the US’ trading partners on 2 March. She went on to say that Trump alone will decide whether or not the tariffs’ specifics are made public. Trump has consistently demonstrated his aggressiveness with tariff threats since taking office for a second term in January of this year.
President’s Claims Vs Reality?
The leader of the Republic has maintained that tariffs will shield American businesses from unfair competition. He further pointed out that it will also provide revenue for the federal government. He also mentioned that it will also empower the government to pressure other countries into making concessions. But according to reports, analysts have warned that imposing wide tariffs at these rates might only backfire. Tariffs have a tendency to increase prices for consumers, but companies worldwide stand to lose a great deal if their expenses rise and sales decline. Import levies have already angered the financial markets and eroded consumer confidence, as has the uncertainty surrounding future trade.
Is it Alarming for India
According to an international news agency report earlier this week, India and the US have agreed to finish a portion of a bilateral trade pact by this year. However, neither party has indicated any signs of any tariff exclusions. Days before the implementation of US President Donald Trump’s reciprocal trade tariff plan, both nations held trade negotiations in New Delhi this week. Furthermore, the postponed import duties on Mexico and Canada may soon be implemented.
Indian Pharma Sector Already Raising its Eyebrows
India now levies a 10% duty on pharmaceutical imports from the US. On the other hand, the US does not impose any tariff on Indian pharmaceutical imports. According to analysts, reciprocal tariffs on imported medications will, at most, amount to 10% if they are applied to the pharmaceutical industry. Pharma corporations, according to experts, would try to pass on the tariff increases to payors. The entire supply chain will have to partially absorb the rise if the expenses are not transferred to the final patients. According to a media source, businesses that are most exposed to the US generics market will probably experience a one-time impact to their Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of between 9% and 12% if there is no pass through.
Dreaming of tapping into the land of opportunity? The United States, with its booming economy and entrepreneurial spirit, is a magnet for ambitious minds worldwide. But as a non-resident, you might be wondering: Can I really start a business in the U.S.? The answer is a resounding yes! And guess what? It’s not as daunting as it sounds. This guide is your golden ticket to hovering through the American business scene, even if you’re thousands of miles away. No matter who you are: someone planning to relocate or run your venture from abroad, we’ll walk you through every step, from choosing the right business structure to opening a U.S. bank account. So, grab a cup of coffee, and let’s turn your American dream into a thriving reality.
Why the U.S.? The Allure of the American Market
Let’s start with the big question: Why the U.S.?
The U.S. market is a behemoth – home to over 330 million consumers with diverse tastes and needs. Irrespective of what you’re selling artisanal coffee, tech gadgets, or consulting services, there’s a niche waiting for you. Add to that the country’s robust infrastructure, advanced technology, and business-friendly policies, and you’ve got a recipe for success.
But here’s the kicker: you don’t need to be a U.S. citizen to start a business here. That’s right. Non-residents too, can own and operate businesses in the U.S. However, there are a few nuances to understand, like visas, taxes, and state-specific regulations. Don’t worry; we’ve got you covered.
7 Steps to Start a Business in the U.S. as a Non-Resident
Before you dive in, you’ll need to decide on the legal structure of your business. This decision will impact everything from taxes to liability, so choose wisely. Here’s a quick rundown of your options:
1.Limited Liability Company (LLC)
The LLC is a fan favourite among non-residents, and for good reason. It’s flexible, easy to manage, and offers personal asset protection. Plus, you can choose how you want to be taxed—either as a pass-through entity or a corporation.
Pros
Personal assets are shielded from business liabilities.
Minimal compliance requirements compared to corporations.
You can manage it yourself or hire someone to run it.
Cons
Some states have restrictions on foreign-owned LLCs.
If you’re planning to go big – in the lines of venture capital, investors, or going public – a C Corporation might be your best bet.
Pros
Unlimited growth potential (you can issue multiple classes of stock).
Attractive to investors.
Limited liability for shareholders.
Cons
Double taxation (profits taxed at both corporate and individual levels).
3. S Corporation
While S Corporations offer pass-through taxation, they’re generally not an option for non-residents. Why? Because shareholders must be U.S. citizens or residents.
Step 2: Pick the Perfect State for Your Business
Here’s a fun fact: you don’t need to live in the U.S. to start a business here. In fact, you can choose any state for incorporation, regardless of where you plan to operate. But not all states are created equal. Some are more business-friendly than others.
Top States for Business Registration
Delaware: The gold standard for incorporation. Known for its flexible corporate laws and specialized Court of Chancery for business disputes. It is a tax haven too, so win-win!
Nevada: Another tax haven with no state corporate income tax and strong privacy laws.
Wyoming: Low fees, no corporate income tax, and excellent asset protection.
Pro Tip: If you incorporate in one state but operate in another, you’ll need to “foreign qualify” in the state where you do business. This means extra paperwork and fees, so plan accordingly.
Step 3: The Registration Process
Now that you’ve chosen your business structure and state, it’s time to make it official. Here’s how:
Choose a Unique Business Name: Make sure it’s available and doesn’t infringe on any trademarks.
Appoint a Registered Agent: This person or company will receive legal documents on your behalf.
File Formation Documents: Submit the necessary paperwork (like Articles of Organization for LLCs) to the state.
Get an EIN: This is your business’s tax ID number, essential for opening a bank account and filing taxes.
Create Operating Agreements or Bylaws: These documents outline how your business will be run.
Obtain Licenses and Permits: Depending on your industry, you may need specific licenses to operate.
Here’s where things can get tricky for non-residents. U.S. banks have strict regulations, and not all are willing to work with foreign business owners. But don’t fret—there are ways around this.
What You’ll Need:
EIN
Business formation documents
Proof of identity (passport)
Proof of address (both in your home country and the U.S.)
Pro Tip: Consider working with international banks or online banks that cater to non-residents.
Step 5: Understand Visa Options
If you plan to manage your business from within the U.S., you’ll need the right visa. Here are a few options:
E-2 Treaty Investor Visa: Perfect for those making a substantial investment in a U.S. business.
L-1 Intracompany Transferee Visa: Ideal if you’re expanding an existing business to the U.S.
EB-5 Immigrant Investor Visa: Offers a direct path to permanent residency for those willing to invest 1.8million(or1.8million(or900,000 in targeted areas).
Step 6: Tackle Taxes Like a Pro
Ah, taxes – the inevitable part of doing business. As a non-resident, you’ll need to hover through both federal and state tax obligations.
Key Considerations:
Federal income tax
State income tax (if applicable)
Sales tax (if you’re selling goods)
Employment taxes (if you have U.S. employees)
Pro Tip: Feel free to consult with a tax professional who specialises in international business to avoid costly mistakes.
Step 7: Build Your U.S. Presence
Last but not least, it’s time to establish your business’s credibility in the U.S. market.
How to Do It:
Get a professional U.S. business address (virtual offices work great).
Set up a local phone number (VoIP services are your friend).
Build a strong online presence with a professional website and active social media profiles.
Network like crazy! Join local business associations and attend industry events. Nothing beats networking – absolutely nothing.
Final Thoughts
Starting a business in the U.S. as a non-resident may seem like a mountain to climb, but with the right guidance, it’s entirely achievable. The key is to do your homework, seek professional advice when needed, and stay persistent. Remember, every big business started as a small idea. So, take that first step, and who knows? Your American dream might just be a few forms and a phone call away. And, yes – if you’re reading this, then chances are that you’re already ahead in this marathon. Yes, not a race – a business in the US is a long term game & when you have access to resources like Startuptalky – you are more likely to win (winks).
Yes, non-residents can absolutely start and own businesses in the U.S. You don’t need to be a U.S. citizen or resident to do so.
What is an EIN, and do I need one?
An EIN is like a Social Security number for your business. You’ll need one if your business has employees, operates as a corporation or partnership, or if required by your bank. Many non-resident-owned businesses will need an EIN.
Do I need a U.S. bank account?
While not strictly required to form a business, opening a U.S. business bank account is highly recommended for managing your finances and transactions.
