Business

Get a US Bank Account Online From India (For Businesses & Freelancers)

Having a US bank account can simplify managing funds for Indian businesses and freelancers operating with US clients. Payments are faster, currency conversion fees are lower, and the account integrates well with PayPal, Stripe, or other payment providers.

In this guide, we will discuss how to open a US bank account online from India, the requirements, and the best options for managing cross-border payments efficiently.

How does a US Bank Account from India Work?

A US bank account for Indian residents generally works as a virtual account, providing basic banking services such as receiving and sending USD funds. These accounts can be managed through neo-banks,  payment platforms, and international banks without having to visit the US physically.

How it Works -

Account Creation

Platforms like Karbon, Wise, Payoneer, etc. allow Indian users to create virtual US accounts online. These accounts come with US bank details, such as an account number and routing number.

Receiving Payments

Clients in the US can transfer funds directly to your virtual account using domestic payment methods like ACH or wire transfers (which are free). This eliminates international transfer fees.

Converting Funds

Once you receive payments in USD, you can convert them at competitive exchange rates and withdraw them to your Indian bank account.

Payment Gateway Integration

Virtual US Bank accounts can be easily connected with PayPal or Stripe for payment purposes, thereby collecting the money earned from US clients.

Advantages of an India-Based US Business Bank Account

  • Quick Transactions
  • Less Cost
  • Access to US Platforms
  • Credibility
  • Easy Operations

What are the Documents Required for Opening a US Bank Account from India?

Opening a US bank account online from India is straightforward if you have the right documents. Here’s what you’ll need:

  • Pan Card
  • Identity Proof
  • Address Proof
  • Business Documents: GST Certificate or Certificate of Incorporation, as applicable (for freelancers, it is not mandatory)
  • US Tax Forms - W-8BEN or W-8BEN-E (These forms are needed by a resident of India to certify that they are not subject to tax withholding by the US. Freelancers and businesses usually fill out these forms when they are working with clients or institutions based in the United States).

All documents must be current and scanned to make online submissions uncomplicated.

How to Open a US Bank Account Online from India

It is quite easy to open a US bank account online from India given the advanced technology in digital banking and specialized financial platforms. Here's a step-by-step guide that can make it even simpler for you to get started:

Step 1: Selecting the Right Provider

Based on your requirements, you can choose from various providers like Karbon, Payoneer, Neteller, etc. that offer US bank accounts for non-residents. In our example, we’ll be using Karbon Forex as the provider.

Step 2: Register Online

Go to the Sign Up link on Karbon’s website and start an account registration process. Create an account by providing an email address or phone number.

Step 3: Validation

Signing up will give you access to Karbon’s modern dashboard. Here you can submit necessary documents like a PAN card, proof of address, and business registration documents (where applicable). You need to complete the KYC procedure.

Step 4: Receive US Bank Account Details

After the documents are validated, Karbon will provide you with a US Bank Account with our partner bank JP Morgan Chase. This account will be based in the US, with a US bank account number, SWIFT code, and routing number.

Step 5: Start Using Your Account

Share your US bank account details with your clients. You can now use this account to receive payments, change the funds into INR, and withdraw them to your Indian bank account.

Most providers use a similar procedure for opening a US bank account from India.

What are the Costs & Fees Associated with a US Bank Account from India?

Different platforms have varying fee structures, and knowing these details can help you make informed decisions. Here’s a breakdown of common costs:

Fee Type Karbon Wise Payoneer Zolve Deel Traditional Banks (e.g., CitiBank, HSBC)
Account Setup Cost Free Free Free Free Free $25–$100
Inbound Transfer Fee Up to 1% 0.4%–0.6% 1% for ACH payments Free for ACH Free for ACH Varies; often free for high-value transfers
Outbound Transfer Fee Up to 1% $0.50–$2 per transfer $1–$3 per transfer $1–$3 $2–$5 $20–$50 (depending on method)
Currency Conversion Rate Live Exchange Rate, 0% Markup Mid-market rate + 0.4%–0.6% Markup of ~2% Mid-market + 1.5% Mid-market rate + 1% Markup of 1%–3%
Monthly Maintenance Fee None None None None None $10–$20 if below minimum balance
ATM Withdrawal Fees N/A N/A ~$3 per withdrawal $2–$3 ~$2–$5 $2–$5 per withdrawal + conversion markup
Compliance/Other Fees None None May charge for additional verifications None None May charge for tax forms or compliance

*Fees and charges listed above are subject to change. Please verify with each service provider for the most current information.

This table provides you a brief overview of the costs and fees for US bank account from India. For a more detailed comparison, please take a look at our article comparing different virtual US bank account providers.

Get Started with a US Business Bank Account by Karbon

Karbon simplifies cross-border payments for Indian businesses and freelancers and provides all the functionalities of a US bank account. You can better manage your international transactions, whether it’s receiving payments from international clients or paying contractors who are based abroad. Here's what makes Karbon different:

Quick Onboarding: Karbon specializes in opening US bank accounts for Indian customers.

Competitive Forex Rates: Karbon offers live exchange rates with 0% markup.

Streamlined Integration: Connect your Karbon account with US banking services and enjoy a central location for all your payments.

Regulatory Compliance: Karbon has been built to meet global compliance regulations so you can easily maintain an international presence.

A US bank account accessible from India will be beneficial for both you and your clients. Karbon can help you scale your global ambitions. Join Karbon today and start sending and receiving money in 2 hours!

FAQ

Can I open a US bank account from India without traveling to the US?

Yes, platforms like Karbon,  Wise, Payoneer, etc. offer virtual US bank accounts without requiring a physical visit.

Can I Open a US Bank Account Without a Passport?

For most virtual US bank accounts, a passport is the preferred document for identity verification. However, Karbon provides virtual US business bank accounts with basic documents like Aadhar, PAN, and GST certificate (for businesses).

Are virtual US accounts as reliable as traditional bank accounts?

Yes, virtual accounts provide essential banking services like receiving payments, transfers, and more. They’re backed by leading financial institutions and function the same as a local US bank account.

Does Karbon provide US bank accounts directly?

Karbon partners with its international banking partner, JP Morgan Chase, to offer US virtual bank accounts to our Indian customers. Our special relationship with this partner enables us to offer free money transfers to the US bank account. We only charge you for transferring the money from the virtual account to your Indian account, that too is very cost-effective through our international banking partners. We guarantee no more than 1% transfer fees.

What are the other options if I need a physical US account?

Banks like CitiBank or HSBC have international accounts, but they have significantly higher fees, stricter requirements, and no extra benefits.

Do I require an ITIN or SSN to open a US bank account from India?

No, the ITIN or SSN is not required for virtual US bank accounts, but traditional banks in the United States usually require one.

Can I accept payments from international clients with a US bank account?

Yes, with a US bank account, you can accept payments in USD, thus eliminating conversion fees and speeding up your payment processing time.

What is the minimum balance required for a US bank account?

Virtual accounts have no minimum balance, while traditional US banks demand balances of anywhere between $500 and $1,000.

How long does it take to open a virtual US bank account?

Setting up your virtual account takes less than a day. It is completed within 24 hours after the necessary documents are submitted.

How Long Can I Store Money in a US Virtual Bank Account?

The funds can be kept in the account for as long as necessary, but some providers require different specifications. Karbon allows funds to be stored indefinitely as long as your account is active.

The views expressed in the blogs on this page are solely the opinions of the authors and do not constitute expert advice. While we strive to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. We disclaim any liability for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

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