Setting up an Account to Invest in US Stocks from India
There are three main types of accounts that investors can use to hold and trade US stocks from India with Vested:
- Individual or single accounts: These are held in the name of one person and are the most common type of account used by small investors. All gains or losses from these types of accounts are taxed as per the individual’s tax slab.
- Joint accounts: These are held in the names of two or more people, and any gains or losses are taxed according to the applicable tax slab for each individual.
- Corporate accounts: These are held in the name of a company, partnership firm, trust, etc. and any gains or losses from these types of accounts are taxed according to corporate tax rates.
Step-by-Step Guide for Opening an Account.
The process for opening an account to How to buy US stocks from India is as follows:
- The first step is to choose which type of account you would like to open – an individual/single account, joint account, or corporate account.
- Once you have chosen the type of account, you will need to gather all of the required documents. For an individual/single account, you will need your passport, PAN card, address proof, and bank statements/canceled cheques. For a joint account, you will need all of the above documents for each applicant as well as a copy of the joint application form. For a corporate account, you will need a copy of the company’s incorporation certificate, board resolution authorizing signatories, memorandum, and articles of association, among other documents.
- After you have gathered all required documents, you will need to open a demat and trading account with a broker who offers US stock trading services. Most brokers will require you to fill out an online application form and submit your KYC (Know Your Customer) documents along with it.
- Once your broker has received your completed application form and KYC documents, they will open your demat and trading account and provide you with login credentials.
- You can then fund your trading account using any one of several methods available – NEFT/RTGS transfer, cheque deposit, debit card, or credit card.
- Once your account is funded, you are ready to start trading US stocks from India!