Indians can invest in US companies like Apple and Tesla through direct or indirect routes. You can use the RBI’s Liberalised Remittance Scheme to buy shares directly via brokers. Alternatively, mutual funds offer an indirect way to invest in rupees. Remember, tax collected at source applies to certain LRS transfers.

Indians can invest in companies such as Apple, Tesla and Nvidia through two routes. You can buy US stocks directly or invest indirectly through funds. Your choice depends on whether you prefer control over shares or simpler investing.

Buy shares directly

RBI's Liberalised Remittance Scheme (LRS) allows resident Indians to send money abroad. The limit is $250,000 per financial year for permitted transactions, including overseas share investments.

Open an account with a broker accepting Indian residents. Examples include Interactive Brokers, Vested, and platforms that work with local brokers. Transfer money from your bank through LRS, converting rupees into dollars.

Once funds reach your brokerage account, you can buy stocks on major US exchanges. These include the New York Stock Exchange and Nasdaq. You choose which shares to buy, hold or sell.

GIFT City in Gujarat offers investment platforms regulated by the International Financial Services Centres Authority. Platforms such as INDmoney provide access to US stocks through this setup.

You still transfer dollars under your LRS limit. Money enters a US stocks wallet and becomes available within 24 hours.

NSE International Exchange also offers depository receipts linked to selected US companies. However, these cover roughly 50 stocks, offering fewer choices than overseas brokerage accounts.

Indirect options

Indian mutual funds and exchange-traded funds (ETFs) offer an indirect route. Some invest through international funds, while others follow indices such as the Nasdaq-100 or theS&P 500.

You invest in rupees using your demat account or mutual fund app. This avoids international bank transfers and LRS paperwork. However, you cannot choose individual stocks through these funds.

Expenses may be higher because fees may apply at both the fund and share levels. Overseas investment limits can also disrupt access. Some fund houses have paused fresh investments when limits approach capacity.

GIFT City also offers fund structures that pool money into international assets. These provide broad exposure to the US market under an Indian regulatory framework. Their structures offer different arrangements for individual and institutional investors.

Taxes and disclosure

Tax collected at source (TCS) applies to certain LRS transfers above ₹10 lakh. The rate is 20%, excluding transfers for education or medical needs. You can adjust TCS against your tax bill.

US dividends generally incur a 25% withholding tax for individuals under the tax treaty. Submit Form W-8BEN to your broker to claim this rate. Dividends are also taxable in India.

Gains on shares held for more than 24 months are subject to a 12.5% tax. Shorter holdings are subject to your income tax slab rate. You must disclose foreign assets and file an income tax return. This applies even when income falls below the basic exemption limit.