Investing from United States
Last updated 18 October 2026 · By Pradeep Kumar, India Solar
In short:
an investor from United States can buy the Indian company that owns an operating solar plant under India's automatic foreign-investment route. India withholds
15–20%
tax on dividends paid to investors from United States who give a tax residency certificate and Form 10F. Structuring for US tax rules on foreign companies.
Your home-country rules
- US outbound investment rules apply to China, Hong Kong and Macau, not India.
- Where US persons own more than 50%, the Indian company is a controlled foreign corporation; US tax and reporting rules apply (Form 5471, FBAR, FATCA).
Tax treaty and legal protection
- India–US tax treaty: 15% on dividends for corporate holdings of 10% or more; otherwise India's 20% domestic rate applies as it is lower than the treaty's 25%.
- There is no bilateral investment treaty between India and the US.
Documents you will need
- Formation documents or passport, and Form W-9
- IRS Form 6166 (US residency certification) and Form 10F
- Beneficial owner list
How we work with investors from United States
- We speak only with accredited investors and coordinate with your US tax adviser on entity classification.
Related guides
- Tax on dividends from Indian solar companies, by country
- FDI rules for foreign buyers of Indian solar plants
- Buying an operating solar plant in India
Sources
Information as of October 2026. General information only, not tax or legal advice; rules change and depend on your circumstances.