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Is it possible for a US company to give some percentage of its ownership to an Indian?

Background: I'm an Indian citizen working with a US client. I'm located in India. Together we are developing a product for the US market. As per the verbal agreement, my client has promised to give 10-30% of ownership of the US company. So is this possible? Note that I'll not be investing money, rather my contribution comes in the product development.

And Thanks in Advance!

  • "rather my contribution comes in the product development." That's called sweat equity. What kind of visa do you have? – RonJohn Dec 27 '19 at 5:50
  • Right now, I don't have any Visa. – Vivek Dec 27 '19 at 5:51
  • Presumably that means you're in India? – RonJohn Dec 27 '19 at 5:55
  • yes, I'm in India. – Vivek Dec 27 '19 at 7:40
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    "Per the verbal agreement" is the same as saying "this will never happen". Get it in writing, as soon as possible! – Grade 'Eh' Bacon Dec 27 '19 at 16:02
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Is it possible for a US company to give some percentage of its ownership to an Indian?

Yes, with some restrictions.

https://www.lexology.com/library/detail.aspx?g=545805cd-814e-433c-b141-09bba35a1247

Subject to certain industry-specific restrictions and state law exceptions (eg, certain restrictions sometimes seen with respect to foreign investments in agricultural real property) federal and state law generally do not restrict foreign ownership of, or investment in, US companies. However, such acquisitions may be subject to review by the Committee on Foreign Investment in the United States (CFIUS). If CFIUS determines that a transaction raises national security concerns, it can impose a range of mitigation measures on the parties (which may include requiring the certain information regarding sensitive US government activities to be shielded from the non-US investor, or even unwinding the transaction if concerns cannot be addresses through other measures).

In addition, the Commerce Department’s Bureau of Economic Affairs may require US companies to submit a report (the Survey of New Foreign Direct Investment in the United States (Form BE-13)) if a foreign person acquires 10% or more of the voting securities of the US company.

Lawyers must get involved. You'll need a US lawyer, probably will need to visit, etc

  • Thank you for the information and link. – Vivek Dec 27 '19 at 6:02

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