Hello,

I am a resident Indian and have recently incorporated a Limited Liability Company (LLC) in the United States. The LLC is currently wholly owned by me, but I have not yet infused any capital into it. There are no transactions or income yet, and the company exists only as a legal entity at this stage.

 

While filing my personal ITR-2, I understand that I must disclose foreign assets under Schedule FA. However, the ITR utility is not accepting ₹0 as the initial investment value in the “financial interest in entity” section.

 

My questions are:

 

  1. How should I disclose the US LLC in Schedule FA if no capital has been infused yet?
  2. Is it acceptable to declare a nominal value (e.g., ₹1 or ₹10) to avoid validation errors, and add an explanation?
  3. Do I need to comply with FEMA reporting requirements (FC-GPR or otherwise) even if no capital has been infused yet?
  4. Will this trigger any taxability or scrutiny if there is no income derived from the LLC?
  5. Is there a preferred way to handle such situations to ensure full compliance with both Income Tax and FEMA regulations?

 

 

Would appreciate expert clarification, especially from someone who has dealt with similar foreign company setups.

 

Thank you!