In accordance with international guidelines, ownership or control of 10 percent or more of an enterprise’s voting securities or the equivalent is considered evidence of such a lasting interest or degree of influence over management. Thus, foreign direct investment in the U.S. is ownership or control, direct or indirect, by one foreign person of 10 percent or more of the voting securities of an incorporated U.S. business enterprise or an equivalent interest in an unincorporated U.S. business enterprise. Direct investment in a U.S. business enterprise can result from direct or indirect ownership by a foreign person. In direct ownership, the foreign person itself holds the ownership interest in the U.S. business enterprise. In indirect ownership, one or more tiers of ownership exist between the U.S. business enterprise and the foreign person. Foreign investors invest in the United States because it has an open and welcoming investment climate. The United States enjoys an unparalleled higher education system, benefits from world-class infrastructure, and has the strongest intellectual property rights protections globally. Among others, these factors put the U.S. economy in a position to innovate and quickly take advantage of the rapid advancement in information technology and other new technologies. We believe that international investors in the United States enjoy the best risk-adjusted return on investment globally. The activities of SelectUSA support the foreign investment, as the primary U.S. Government mechanism to coordinate inward investment promotion. Both domestic and foreign owned companies are treated equally in the United States and must follow the same laws, rules, and procedures for acquiring or administering an investment. Foreign investors benefit from an open, transparent, and nondiscriminatory investment climate. In the United States, foreign investors will find free transferability of capital and profits, advanced physical and financial infrastructure, and nondiscriminatory legal recourse in the event of an investment-related dispute. Additionally, there is no mandatory screening body to review and approve foreign investments in the United States. Unlike other countries, there are no regulations of “minimum investments required” or other stipulations in the United States.
The United States does not maintain a mandatory investment screening body. The Committee on Foreign Investment in the United States (CFIUS) has the authority under a voluntary review mechanism to review individual FDI transactions to determine their effects, if any, on national security. The overwhelming majority of FDI in the United States does not necessitate a CFIUS review. Where CFIUS reviews have been conducted, risk mitigation assurances are requested for only a few transactions per year, and when these assurances are met the transaction is allowed to proceed. The United States is open to foreign investment and is committed to affording all foreign investors fair, equitable and nondiscriminatory treatment.
The way you structure your U.S. operation is largely up to you. The type of structure you choose can determine the taxes you have to pay as well as the personal liability business owners may bear, and the U.S. gives you the ability to choose the structure that best fits your business. There are several general business structures, and descriptions of these can be found at Business.gov. Most likely the process will differ depending on the location and type of your investment. You can find general guidelines in any of the Investment Guides under the “Useful Links” category in our toolbar. The guidelines include the statutes outlining the incorporation process and how to obtain appropriate permits, licenses and registration. The length of the process will vary by type of investment and investment location, but in general starting a business is a rapid process that requires no minimum investment. According to the 2010 World Bank Doing Business Report, opening a business in the U.S. takes only 6 days – well below the world average, and even well below the OECD average of 13 days. (Source – SelectUSA)
