How should an Indian company or LLP fill Form W-8BEN-E for a US client?

US clients, marketplaces and payment companies ask Indian agencies, IT firms and consultancies for Form W-8BEN-E before paying them. The form is long, around 30 parts, because it also serves the Foreign Account Tax Compliance Act (FATCA), but an ordinary Indian operating company only fills a handful of lines.¹ This guide goes through those lines for a private limited company, an LLP and a partnership firm.

It is based on the IRS Instructions for Form W-8BEN-E (revision October 2021, current as of October 2026) and the India-US tax treaty.¹² For individual freelancers and sole proprietors, see W-8BEN for Indian freelancers instead. US entity classification and treaty eligibility can be technical, so check unusual cases with a chartered accountant (CA) or US tax adviser.

What is Form W-8BEN-E for an Indian company?

Form W-8BEN-E is the certificate an Indian company gives a US payer to document that the company is a foreign entity, and to support any treaty claim, so the payer can decide how much, if anything, to withhold.¹ Foreign persons are subject to US tax at a 30% rate on certain US-source income, including royalties and compensation for services, generally collected by withholding on the gross amount.¹

• Withholding risk: the instructions say failure to provide the form when requested "may lead to withholding at a 30% rate" in certain cases.¹
• Where the work is done: the IRS sources personal services income where the services are performed, so fees for services an Indian team performs in India are generally not US-source income.³
• FATCA status: the form still documents the company's foreign status, and its chapter 4 (FATCA) status, for the payer's records.¹

The form is a record for the payer, so it matters even when no US tax is due.

Who does Form W-8BEN-E apply to among Indian payees?

Form W-8BEN-E applies to foreign entities; individuals use W-8BEN.¹ The IRS instructions list cases where W-8BEN-E should not be used, summarised in the table below.¹

Line 4 asks for the entity's classification "under U.S. tax principles (not under the law of a treaty country)".¹ An Indian LLP or partnership firm should therefore confirm how it is classified for US tax purposes before choosing between W-8BEN-E and W-8IMY.

How do you fill Form W-8BEN-E as an Indian company?

An Indian company fills Form W-8BEN-E by completing Part I, the chapter 4 certification that fits (usually Part XXV), Part III if it claims treaty benefits, and the signature in Part XXX.¹

1. Classification: confirm the entity's US tax classification.¹
2. Part I: identify the beneficial owner.¹
3. Part XXV: certify Active NFFE status if the entity meets the test.¹
4. Part III: claim India-US treaty benefits, if any.¹
5. Part XXX: sign as an authorised officer or representative.¹
6. Delivery: give the form to the payer before payment, not to the IRS.¹

How do you fill Part I of Form W-8BEN-E?

Part I identifies the beneficial owner.¹

1. Line 1, name: the entity's legal name.¹
2. Line 2, country of incorporation or organisation: India.¹
3. Line 3: leave blank unless you are a disregarded entity in the specific cases the instructions describe.¹
4. Line 4, chapter 3 status: tick the one box that fits under US tax principles, for example "Corporation". A partnership claiming treaty benefits ticks "Partnership" and also "Yes" to the hybrid entity question.¹
5. Line 5, chapter 4 status: many operating businesses tick "Active NFFE" and complete Part XXV.¹
6. Line 6, permanent residence address: the address in India where the entity is resident for income tax. Do not use a bank's address, a PO box or a mailing-only address, unless it is the only address you use and it is your registered address.¹
7. Line 7, mailing address: only if different from line 6.¹
8. Line 8, US TIN: needed when claiming treaty benefits if no foreign TIN is provided on line 9b, and in some other cases.¹
9. Line 9a, GIIN: required only for the financial institutions and other entity types listed in the instructions; Active NFFE is not one of them.¹
10. Line 9b, foreign TIN: the entity's PAN.¹
11. Line 10, reference number: optional, for example the account number with the payer.¹

Does an Indian company qualify as an Active NFFE under Part XXV of Form W-8BEN-E?

Part XXV is the certification for an Active NFFE (non-financial foreign entity), the chapter 4 status that most trading and service companies use.¹ By ticking line 39 the entity certifies that it meets all the requirements, "including the assets and passive income test described in the certification for this part".¹ Passive income for this test includes dividends, interest, rents, royalties and annuities.¹

For example, a web development agency earning service fees will typically look at this test first. A company whose income is mostly licence fees or royalties, such as a stock media or software licensing business, should read the test carefully, because royalties count as passive income for this purpose.¹

How do you fill Part III of Form W-8BEN-E to claim India-US treaty benefits?

Part III is completed only if the company claims a reduced rate of, or exemption from, US withholding under the treaty.¹

• Line 14a: enter India as the country of residence for treaty purposes and tick the box.¹
• Line 14b: certify that the entity derives the income and meets the limitation on benefits (LOB) provision of the treaty, by ticking the box for the LOB test it meets.¹
• Line 14c: applies only to certain dividend and interest claims under treaties that entered into force before 1 January 1987, so it does not apply to the India-US treaty, which entered into force on 18 December 1990.¹²
• Line 15: used only for claims needing extra representations. The instructions name claims on business profits not attributable to a permanent establishment, and royalties where the treaty has different rates for different types, as examples. State the article and paragraph, the rate, the income type and why you qualify.¹

Article 24 of the India-US treaty is its LOB article.² A company qualifies, broadly, if more than 50% of its shares are owned by individual residents of India or the US (or US citizens) and its income is not used in substantial part to meet liabilities to non-residents; or if the US income is derived in connection with the active conduct of a trade or business in India; or if its principal class of shares is substantially and regularly traded on a recognised stock exchange.² The IRS warns that its summaries of LOB tests "may not be relied upon" and that you must check the LOB article itself.¹

Who signs Part XXX of Form W-8BEN-E for an Indian company?

Part XXX must be signed and dated by an authorised representative or officer of the entity, who must tick the box certifying legal capacity to sign.¹

• Power of attorney: an agent signing under a power of attorney must attach it.¹
• Electronic signature: if the payer accepts electronic signatures, the signature must show it was signed by an authorised person, for example with a time and date stamp; "Simply typing your name into the signature line is not an electronic signature."¹

What documents and deadlines apply to Form W-8BEN-E?

Form W-8BEN-E is given to the payer before payment and is generally valid from the date signed until the last day of the third succeeding calendar year.¹ The table lists the timing rules and identifiers in the instructions.¹

For example, a form signed on 28 October 2026 is valid to 31 December 2029.¹

What happens if an Indian company gets Form W-8BEN-E wrong?

If an Indian company gives no valid Form W-8BEN-E when requested, the payer may withhold at 30% in certain cases.¹

• Invalid signature: a typed name in the signature line is not an electronic signature under the instructions.¹
• Out-of-date form: if a change in circumstances makes information incorrect, the entity must notify the payer within 30 days and provide new documentation.¹
• Withholding already taken: see foreign withholding tax for getting credit in India.

Keep the signed form with the invoice and payment record so the trail is complete.

How is US withholding calculated for an Indian company with and without Form W-8BEN-E?

US withholding is calculated on the gross amount: 30% on certain US-source income without valid documentation, or the treaty rate when a valid treaty claim is made.¹² Under Article 12 of the India-US treaty, the US may tax royalties and fees for included services at 15% or 10% of the gross amount, depending on the type.²

The table draws on the instructions, the IRS sourcing page and the treaty.¹²³ For example, on a $10,000 US-source royalty for the use of a copyright, 30% withholding is $3,000, while a 15% treaty rate is $1,500, a difference of $1,500.¹² For the treaty rules in detail, see the India-US treaty guide.

What are the common mistakes Indian companies make with Form W-8BEN-E?

The common mistakes are using the wrong form for the entity type and ticking certifications the entity does not meet.¹

• Wrong form: a sole proprietor signs W-8BEN-E instead of W-8BEN.¹
• Classification: an LLP or firm assumes its Indian legal form decides line 4, when the line asks for classification under US tax principles.¹
• Active NFFE: a royalty-earning company ticks line 39 without checking the passive income test.¹
• LOB test: relying on the IRS summary of a limitation on benefits test instead of Article 24 itself.¹²
• Line 14c: completing it for the India-US treaty, which entered into force on 18 December 1990.¹²
• Address: giving a bank's address or a PO box on line 6.¹

A short check against the instructions before signing avoids most of these.