USA Market Entry Strategy

How to set up Business in the United States?

Starting a business in US as a foreigner can be a long road but the country has made it easier to register an entity and open up a business. One of the basic requirement if you plan to do business with Americans would be to learn English for better communication but other compliances & choosing the type of company you want to be, could quite confusing as well. Following are five stages of setting up a business in the United States:

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  Choose a Business structure

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  Choose a state that one wants to register their organization in.

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  Registration of the Business - Obtain Federal & State ID numbers

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  The business should next apply for licenses and permits

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  Open a business bank account that will enable financial transfers and receipts for various purposes.

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There are a variety of entry options open to foreign companies that want to enter the U.S. market. While many companies prefer to set-up new operations, others like to collaborate with a local partner to get access to the new market. The best market entry strategies for Indian businesses to enter the United States will depend on the specific sector and business objectives.

Here are a few tips on planning, legal issues, hiring, immigration, and taxes & an overview of US market that would help you to build a expansion strategy for your business.

Top 3 Sectors for Investment in the United States

Information technology and Communication, Life sciences and healthcare, Manufacturing and Automotive industries are major industries where Indian companies have invested in the US. Here are some main industrial sectors that have been identified as potential sectors for foreign companies expanding a business in USA

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Having shown strong growth in certain key industries and upward trajectories in others, now would seem like a good time to invest in the American economy by new entrants and cash rich companies looking to invest or divest. Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.

Visa and Immigration

There are a variety of visa categories which could be used to work or set up shop in the US. A brief run through of the various categories are as under

H1B – This is required to work in a specialty occupation. Requires a higher education degree or its equivalent.

EB5 Direct Investment- A certain investment ($1,000,000) is needed to be made in your own business and directly employ 10 US citizens for 2 years atleast. Processing usually takes about 1.5 years.

 

 

EB5 Regional Center Investment - Under this program, investors, their spouses and unmarried children are allowed to apply for a green card if:
a) The necessary investment ($500,000) is made in a commercial enterprise in the United States.
b) There is a plan to create 10 permanent full time jobs for qualified US workers.
This is a passive investment and the money will go into someone else’s commercial project.

 

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