Why US Investors Ask Indian Startups for EIN, W-8, FATCA & Other Compliance Documents
Why US Investors Ask Indian Startups for EIN, W-8, FATCA & Other Compliance Documents Indian startups are attracting US clients, US investors, and US accelerator programs faster than ever. But there’s a moment that confuses almost every founder: Why is the investor asking for an EIN? What is W-8BEN-E? Why is FATCA suddenly required? It feels random until you understand how US financial compliance works. Even if your startup is based in India, earning or raising money from the US triggers US tax and reporting requirements. This blog explains it in simple language. Why US investors need compliance documents US investors, whether angel, VC or institutional, are required by law to verify: Who they are investing in Where money is being transferred The tax identity of the startup Whether the company is foreign or US-based Whether IRS withholding applies Without these documents, funds are often delayed or cancelled. Compliance protects both sides. The three documents Indian founders hear ...