The United States is famous for sports, filmmaking, and tech advancements, but did you know that it is also one of the best jurisdictions for foreign companies? The country has the largest economy on the globe, offers many opportunities and supportive policies for growth. To take advantage of this important jurisdiction, the first step is offshore company incorporation.
An offshore company is any business opened in a jurisdiction other than your home country. So, if you are from outside the United States, the company you open in New York, Oregon, or California, among other states, will be an offshore company. Keep reading to learn about the three main processes of opening an offshore company in the United States.
Seven Things that Make the United States Attractive for Investment
- Easy access to skilled workers.
- Favorable business environment.
- Political and social stability.
- The US offers many opportunities for business growth.
- Easy access to new markets both in the United States and away.
- Well-developed infrastructure makes the movement of labor, raw materials, and finished products easy and fast.
- Enhanced business credibility.
The Three Main Requirements for Company Registration in the United States
Whether you want to register a software development company or an e-commerce store, here are the key requirements for offshoring in the US.
- Registering the Business with Federal Government
Depending on the nature of the business, you may need to register it with different federal government departments. For example, all companies in the medical devices, pharmaceuticals, and food imports into the United States have to be registered with the Food and Drug Administration (FDA). If the company deals with products or services for the military, it must be registered with the Directorate of Defense Trade Controls. Therefore, make sure to carry out due diligence and determine which departments need to give the nod before commencing the process.
- Registering with the Internal Revenue Service (IRS)
If you plan to offer financial-related services, your company has to be registered with the IRS in line with the Foreign Account Tax Compliance Act (FATCA). Some of the types of companies that need to make this registration include banks, hedge funds, mutual funds, trusts, insurance firms, and brokerages.
- Register with State Government
If you have a company back home and want to open an offshore subsidiary, it has to be registered with the state authorities too. The subsidiary is required to pay income taxes on revenue earned in the United States. However, there are a few states, such as Wyoming and Delaware, where companies do not pay income tax. Again, state-specific registration requirements apply when a company operating in another country enters into a partnership with a US enterprise.
What Documents are Required for Offshore Company Registration in the US?
Like in other jurisdictions, registering an offshore company in the United States requires you to prepare a number of documents. First, you need to come up with a business name and have it pre-approved. Then, prepare the following documents.
- Business structure of your company.
- Employer Identification Number (EIN).
- Acquire business licenses and permits (at the Federal and state levels).
- A compliance plan.
- . Some end-up giving up mid-way, but you do not have to follow this route because there are experts to hold your hand every step of the way.
- These professionals help you understand the complex legal framework in the United States, prepare all documents, and carry out due diligence on your behalf. Reach out to ICD fiduciaries, one of the most revered agencies, for all the assistance you need with offshore company registration. Business insurance.
For most foreign investors, the process of offshore company registration in the US is never easy