Challenges of OCI (with US Citizenship) starting a company in US

[sms97]

Hi,

It is usually difficult to sort out legal, business and tax matters when spouses are not citizens of the same country.
You will end up paying consultants a lot of extra money for almost every thing.

If you return to India on a green card and plan to stay there, forget about being able to manage your green card status. You will have to choose between status and family life.

So, stick to being citizens of one country. Also, stay together if you value family life. It doesn't matter much which country you choose to live in. Both US and India are great places full of opportunities.

[okonomi]

OP,
Sounds like a good plan. Go for it !! And does your wife know who was the 41st president ? And what was he famous for ?

[rsr]

Hello -
I am going for the US citizenship interview tomorrow. before that I need to make an important decision... Whether both of us should get the US citizenship, or just my wife taking the US Citizenship, and I taking Indian Citizenship. This is based on the following assumptions. Can some one please validate these assumptions?
1. If one of us is the US citizen and other is the Indian citizen, and if we need to start a business in India, we can have it started by the Indian citizen spouse, thus avoiding 15% Social security and Medicare tax that a USC needs to pay...
2. At a later point in time, if we need to migrate back to US then the USC spouse can apply for the green card for the IC spouse, which should be approved in around 4-6 weeks...
My specific situations
1. My only daughter is a US Citizen by birth
2. We have a large savings, around $1Mn in both India and US (hence implications for taxation)
3. I am the one who earns maximum in the family, and plan to take IC. My wife's income level may not be that high, and she wants to take USC.

Please advise what would be the best strategy in our case? Since my interview is tomorrow, your quick response is greatly appreciated.

Depending on which state you are currently residing, OCI can take anywhere from 2 months to more than 9 months. If you take your OCI, you have all the rights as an NRI except voting/buying agri land. Besides, the 15% tax rate is less when compared to 30% TDS in India.

With the number of GC's being applied, political and economic situation, the time to process green card may increase from the current timing.

If both of you have already applied for USC, get the USC and then apply for OCI. Once you get your OCI, open your business in India/US wherever you chose and talk to a competent CPA/lawyer who knows laws of both the lands. If you find that having USC-OCI is not helping, one of you can renounce USC and get Indian citizenship then

[lsk]

>> If both of you have already applied for USC, get the USC and then apply for OCI.
>> Once you get your OCI, open your business in India/US wherever you chose and talk >> to a competent CPA/lawyer who knows laws of both the lands. If you find that
>> having USC-OCI is not helping, one of you can renounce USC and get Indian
>> citizenship then

IIRC, there is a time period between giving up Indian Citizenship and re-taking it. 5 yrs seem to be the time that curries favor with my memory unit at this time. Please did more on this issue.