W-8BEN or W-8BEN-E?
| You are | Form |
|---|---|
| An individual freelancer in India, invoicing in your own name | W-8BEN |
| An Indian private limited company, LLP or other entity | W-8BEN-E |
| A US company or US LLC (even if Indian-owned) | Neither — a US entity gives Form W-9 |
The forms go to your US client or payment platform, not to the IRS. Keep a signed copy.
Why US clients ask for it
- It documents that you are foreign, so the client doesn’t treat you as a US person needing a Form 1099 or backup withholding.
- It tells the client whether any US withholding applies to what they pay you, and at what rate.
- Without a valid form, US payers are generally required to withhold at the maximum rate on payments that are subject to withholding.
Services performed in India: often no US withholding at all
Payment for services you perform outside the US is generally foreign-source income, which isn’t subject to US withholding for a foreign payee. For most Indian software, design and consulting businesses, the W-8 simply confirms foreign status — you usually don’t need to claim a treaty rate on it at all. Treaty claims matter more for US-source payments such as royalties, licence fees or dividends.
Key lines on W-8BEN-E for an Indian company
- Line 1 — Name: the legal name exactly as on your certificate of incorporation.
- Line 2 — Country: India.
- Line 4 — Chapter 3 status: usually Corporation for a private limited company; an LLP should check how it is classified for US purposes.
- Line 5 — Chapter 4 (FATCA) status: most operating companies are an Active NFFE — broadly, less than 50% of income and assets are passive. Complete the matching part (Part XXV) as well.
- Line 6 — Address: your registered or business address in India (not a US or P.O. box address).
- Line 8 / 9b — Taxpayer IDs: a US TIN is usually not required for services income; enter your PAN as the foreign TIN on line 9b.
- Part XXX — Signature: signed by an authorised director or signatory, with capacity stated.
Claiming India–US treaty rates (Part III)
Complete Part III only if you are claiming a reduced rate on US-source income:
- Line 14a: certify the company is resident in India under the treaty.
- Line 14b: certify it meets the treaty’s limitation on benefits article and tick the test it satisfies — without this, the treaty claim isn’t honoured.
- Line 15: state the article, rate and type of income (for example, Article 12 royalties).
Rates by income type are in the India–US DTAA guide. Individuals claim treaty benefits in Part II of W-8BEN.
Validity and updates
- A W-8BEN-E is generally valid from signing until the end of the third calendar year after — a form signed in 2026 lasts to 31 December 2029.
- Give a new form within 30 days if something changes — name, address, entity classification or FATCA status.
Common mistakes
- A US-owned or US-formed LLC filling W-8BEN-E instead of W-9.
- Choosing a financial-institution FATCA status for an ordinary services company.
- Claiming Article 12 “fees for included services” for services performed in India, where no withholding applied anyway.
- Leaving the limitation-on-benefits box blank while claiming a treaty rate.
- Names or addresses that don’t match your invoices and bank details.
Also useful: US LLC for Indian freelancers, GST on export of services.
Frequently asked questions
Should an Indian company fill W-8BEN or W-8BEN-E?
What FATCA status should an Indian services company choose on W-8BEN-E?
Do US clients withhold tax on services performed in India?
How long is a W-8BEN-E valid?
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.