HEIMATCorner EXPAT abroad Rubrik
Why your business needs a presence in the United States and how to set up a U.S. office
►► REASONS TO EXPAND YOUR BUSINESS TO THE U.S. The United States is the world’s largest economy in terms of GDP and continues to be a beacon of individual freedom, liberty and the rule of law. Foreign investors are even in this day and age at no disadvantage versus local investors as the U.S. does not force them to share their intellectual property and knowhow with local partners and potential future competitors. Inventions and property are protected by the rule of law and studies show that customers generally show no preference for local brands versus foreign brands. The U.S .is an important breeding ground for a significant portion of the world’s most important scientific discoveries, startups and large enterprises. Five of the 10 best colleges worldwide are located here and the vast majority of Nobel prizes go to U.S. institutions and people affiliated with them. From the Swiss fashion startup to the recently launched Austrian mobile app business, countless companies strive to have a presence in the U.S. Business owners understand the myriad of opportunities they will leverage by having an office within one of the most robust economies in the world. Having a base in the U.S gives companies access to a pool of world-renowned specialists in many industries, allows them to strengthen collaboration with global business partners, and, of course, enables businesses to address an audience of about 340 million prospective clients. You cannot be a worldwide leader in your industry without a significant presence in the U.S. ►► STARTING A BUSINESS Starting a business in the U.S .may seem overwhelming at first. However, it is generally much simpler than in many other countries. Registering a company in the U.S. can take as little as 30 minutes with no initial capital contribution needed. Often, new companies launch their operations with a team of independent contractors, who can be hired with a one-page contract on an as-needed basis. Of course, 34 | HEIMAT abroad | FALL 2019
companies in specific industries may have to obtain specific licenses prior to producing or selling their products. Depending on the scope of a business, obtaining a license to operate, buy or sell in the U.S. can be a relatively easy task with the right support team in place. Most small and medium-sized companies are able to launch operations in the U.S. with a budget of $40,000 or less. In order to ensure an efficient knowledge transfer from headquarters abroad to an affiliated company, businesses like to send executives and employees with specialized knowledge to the U.S. Non-U.S.-citizens will, of course, need a U.S. work visa. Foreign national entrepreneurs and corporations most commonly apply for one of the following visas: L Visa: Intracompany Transferee The L visa classification is a non-immigrant visa, which allows companies operating both in the U.S. and abroad to transfer certain classes of employees from their foreign operations to the U.S. operations for a defined period of time. The L visa type is designed to allow employees to work at a branch, parent, affiliate, or subsidiary of the current employer in a managerial or executive capacity, or in a position requiring specialized knowledge. To qualify, the foreign national must have been employed by the same employer abroad continuously for one year within the three preceding years. H-1B Visa: Person in Specialty Occupation The H-1B visa classification is a non-immigrant visa for employees who wish to work for a U.S. employer in a specialty occupation. Generally, a specialty occupation is defined as a position that requires a higher educational degree (at least a bachelor’s degree) or its equivalent for entry to the field. An approved petition filed by the United States employer is a prerequisite to visa issuance. Government authorities generally look for a high salary as proof of the value of the position.
