Table of Contents
1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2. Entry Strategies: ShouldYou Form a U.S. Entity? . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.1. Direct Market Entry: Operating Through a Branch, Agent, or Distributor . . . . . . . . . . . . . 7 2.2. Establishing a U.S. Entity: Setting Up a Wholly Owned Subsidiary . . . . . . . . . . . . . . . . 7 2.3. Acquiring an Existing Business: Buying Assets or Shares of a U.S. Company . . . . . . . . . . 7 2.4. Licensing or Franchising: Partnering With a U.S. Company Without Direct Presence . . . . . . . 8 3. Direct Market Entry: Operating through a Branch, Agent, or Distributor . . . . . . . . . . . . . . 10 3.1. BranchOffice........................................... 10 3.2. IndependentSalesAgent..................................... 10 3.3. DistributorAgreements...................................... 11 3.4. RegulatoryandLicensingConsiderations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3.5. ComparisontoEstablishingaU.S.Entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 4. Establishing a U.S. Entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 4.1. TypesofBusinessEntities .................................... 14 4.2. Incorporation Process and Legal Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . 15 4.3. Execution Formalities and Legal Documentation . . . . . . . . . . . . . . . . . . . . . . . . . 21 5. Investing in an Existing U.S. Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 5.1. Advantages and Disadvantages of Investing in a U.S. Business . . . . . . . . . . . . . . . . . 24 5.2. Equityvs.AssetPurchases.................................... 24 5.3. FranchiseandLicensingAgreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 5.4. Regulatory Requirements and Qualified Investors . . . . . . . . . . . . . . . . . . . . . . . . 25 6. Intellectual Property Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 6.1. International IP Protection and U.S. Market Entry . . . . . . . . . . . . . . . . . . . . . . . . . 30 6.2. PatentProtection......................................... 31 6.3. TrademarkRegistration...................................... 31 6.4. Copyrights............................................. 32 6.5. Trade Secrets and Confidential Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 7. Labor Law Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 7.1. WageandHourLaws....................................... 34 7.2. Worker Protections and Anti-Discrimination Laws . . . . . . . . . . . . . . . . . . . . . . . . 34 7.3. HealthInsuranceandEmployeeBenefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
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