Doing business

United States

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
A sole proprietorship No minimum legal capital.	1 person The owner is liable for the company's debt
A General Partnership No minimum legal capital.	No limit on the number of partners The General Partner is personally liable, with no limitation, for the company's debts and obligations.
Limited Partnership No minimum legal capital	In addition of general partners there is one or more limited partners The General Partner is personally liable, with no limitation, for the company's debts and obligations
Limited Liability Partnership No minimum legal capita	No limit on the number of partners Limited Liability
A Public Limited Company (PLC) No minimum legal capital.	No limit on the number of partners Liability is limited to the value of the capital contributed.
A Private Limited Company No minimum legal capital.	No limit on the number of partners Liability is limited to the value of the capital contributed.
A Corporation half way between a joint stock company and a Private Limited Company No minimum legal capital.	No limit on the number of partners. Liability is limited to the value of the capital contributed.

Business setup procedures

Setting up a company	United States	OECD
Procedures (number)	6.0	5.6
Time (days)	6.0	13.8

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in United States.
U.S. State Corporations Databases
The competent organization: The U.S. Securities and Exchange Commission. The certificate of incorporation, also called Doing Business AS (DBA) must be registered with the Trade Register of the State where the company is located. Only General Partnerships do not need to be registered.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	324,560	152,892	228,249
FDI stock (millions USD)	2,552,572.0	3,026,781.0	3,451,405.0
Performance Index*, ranking on 141 economies	99	118	-
Potential Index**, ranking on 141 economies	1	-	-
Number of Greenfield investments***	970	1,220	-
FDI inwards (in % of GFCF****)	12.8	7.6	-
FDI stock (in % of GDP)	17.9	21.9	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest the United States

Strong points: The American market has several advantages. With a population of more than 300 million people and the world's strongest economy, the United States represents the most important market in the world, irrespective of the sector. The American manpower is considered to have a high level of qualification and to be one of the most productive and most innovative in the world. The United States has developed strong regional "clusters", which are a collection of companies in the same activity sector in a zone. These centers are very attractive to foreign investors.
Weak points: The country's weak points are a very competitive economy and a financial system that has been seriously affected by the financial crisis. The American economy is in grave difficulty. The subprime lending crisis has ended some major investment projects.
Government measures to motivate or restrict FDI: The American policies on taxation and regulations provide foreign investors with a lot of management freedom. However, in the present security environment, foreign-government controlled investments are sometimes considered as a source of concern, more and more so since the tragic September 11^th events.

The American Ministry of External trade provides a Invest in America: Guide to Federal Incentives and Programs Available to Investors, which gives information, programs and appropriate federal agencies.
Bilateral investment conventions signed by the United States: USA is a signatory to 46 conventions.
UNCTAD allows you to visualize the list of conventions signed by USA, and to download these conventions.

Procedures relative to foreign investment

Freedom of establishment: Guaranteed
Acquisition of holdings: A majority holding interest in stock of a local company is legal in the US (with a few exceptions).
Obligation to declare: The reference text for foreign investments is the International Investment Survey Act of 1976. Each State has its own regulation aiming at or having an incidence on Foreign Direct Investments and of which the inspiration is more or less liberal.
Competent organization for the declaration: International Trade Administration
Requests for specific authorizations: Investments shall be governed by sector specific policies and procedures.

Finding assistance for further information

Investment aid agency: EDA (Economic Development Administration)
Development (depending on the Department of Agriculture - USDA)
Other useful resources: United Nations Conference on Trade and Development