How to Transfer Money from Your US LLC to India
Complete guide to sending money from your US business bank account to India (INR). Compare fees, speeds, and regulations for India-bound transfers.
Quick Facts
In This Guide
Overview
If you own a US LLC and need to transfer money to India, you have several options ranging from traditional bank wires to modern fintech services. The best choice depends on the transfer amount, urgency, and whether you prioritize low fees or fast delivery.
Important Note for India
India has strict foreign exchange regulations under FEMA (Foreign Exchange Management Act) enforced by RBI (Reserve Bank of India). Transfers must comply with RBI guidelines. The Liberalised Remittance Scheme (LRS) governs outward remittances from India, but inward remittances to India are generally unrestricted.
Best Transfer Methods
Wise
Best option for most transfers. Transfers directly to Indian bank accounts via IMPS/NEFT.
Remitly
Excellent for transfers to India. Very fast with bank deposit or UPI.
Bank Wire (SWIFT)
Standard for large amounts. IFSC code required. Indian banks may hold funds for compliance.
Payoneer
Popular with Indian freelancers and e-commerce sellers.
Fees & Speed Comparison
| Service | Fees | Speed | FX Rate |
|---|---|---|---|
| Wise | 0.5–1.5% | 1–2 business days | Mid-market rate |
| Remitly | $1.99–$4.99 | Minutes to 1 business day | Competitive (near mid-market) |
| Bank Wire (SWIFT) | $25–$50 | 2–4 business days | 1–3% markup |
| Payoneer | Up to 2% | 2–5 business days | 1–2% markup |
Regulations & Requirements
When transferring money to India, be aware of these regulatory requirements:
- FEMA governs all foreign exchange transactions in India
- Inward remittances to India are generally unrestricted (no cap on receiving)
- Recipient must provide purpose code for the transfer (e.g., P1301 for business income)
- RBI requires banks to report all inward remittances
- FCRA (Foreign Contribution Regulation Act) applies to certain non-profit transfers
Common Pitfalls to Avoid
- IFSC code (11 characters) is mandatory for Indian bank transfers
- Purpose code must be specified correctly or transfer may be delayed
- Indian banks may hold funds for 24–48 hours for compliance verification
- NRO vs NRE accounts — know which account type to send to
- Transfers to Indian UPI addresses are not supported by SWIFT
Tax Implications
Transferring money from your US LLC to India has important tax considerations on both sides:
- No US withholding on LLC distributions (disregarded entity)
- Indian residents must report worldwide income to Income Tax Department
- US-India tax treaty available but complex
- FBAR filing required if aggregate foreign accounts exceed $10,000
- Indian tax on foreign income may be offset by foreign tax credits
Pro Tips for Transferring to India
- Wise and Remitly both offer excellent INR rates
- For large transfers (>$10K), compare bank wire with Wise
- Always include IFSC code and the correct purpose code
- NRE accounts can receive foreign currency — NRO accounts receive INR
- Timing matters — INR rates fluctuate; use rate alerts
FBAR & US Reporting Requirements
FBAR (FinCEN Form 114): If you have foreign bank accounts (including in India) with an aggregate balance exceeding $10,000 at any time during the year, you must file an FBAR by April 15 (automatic extension to October 15).
FATCA (Form 8938): If your foreign financial assets exceed $50,000 at year-end (or $75,000 at any time), you must report them on Form 8938 with your tax return.
Form 5472: Your foreign-owned LLC must file Form 5472 annually to report transactions with foreign related parties, including transfers to your account in India.
Next Steps
File Form 5472
Report your LLC's transactions with foreign owners. Required annually.
FBAR Guide
Learn about foreign bank account reporting requirements.
Open a US Bank Account
Guide to opening a US business bank account for your foreign LLC.
India LLC Tax Guide
Complete tax guide for India residents who own a US LLC.
Get Tax Filing Reminders
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