The United States of America possesses one of the world’s biggest economies, with a diverse range of industries and consistent level of growth. Foreign investment into the USA is typically well-received, yet moving a UK-based business into North America can present a number of challenges.
Company installation, legal matter of immigration, and acceptance of your company identity under U.S. rules and regulations are just a few of the obstacles you might run into. Below gives a brief rundown of why the U.S. economy is appealing for foreign business and tips on how you can successfully move your UK business overseas.
Important statistics around the US economy
- The United States makes up almost a 25% share of the global economy.
- In 2019, the nominal GDP came in at $21.43 trillion U.S. Dollars.
- The US service sector was the biggest contributor to that level of GDP.
- Household spending in the United States accounts for nearly a third of global household consumption
Why is the United States economy so appealing?
Compared with many other countries which are considered major players within the global economy, the U.S. possesses a relative open economy. It actively encourages business investment across the various sectors, as well as welcoming foreign direct investment – either through the establishment of foreign business operations or acquisition of assets.
Outside of the raw stats that make the USA a smart business move for many organizations, the quality of life factors coupled with the established logistics networks and infrastructure can make setting up within the U.S. a rewarding business move. You’ll likely find a large, talent workforce no matter what sector your business is based within, provided you chose the right location for your U.S. headquarters.
In addition to the internal U.S. market, which remains one of the most open markets you could participate within, you can also gain access to the 20 other countries which the United States has free trade agreements with. This can be a fantastic move if you’re looking to leverage a position within the U.S. to expand your operations into new countries while using a UK business position to address the European market.
Tips on how to move a UK company into the US successfully
Before you make any concrete decisions around relocating to or setting up within the USA, make sure you’ve created a comprehensive business plan. You should only commit resources to foreign direct investment if you’re confident that it’s the correct move for your company.
Understanding how tax works within the United States and financing prospects will also factor into your decision. Working with a U.S. based accounting firm can help you get a better grasp of how your business can adapt to this new financial environment. Banking and credit can be two areas worth gaining an in-depth perspective on when considering moving a UK business overseas.
When it comes to looking at the immigration paperwork for your business and any potential employees you’re considering sending over, partnering with an experienced law firm which deals with international immigration policies is essential. This can give you the insight and support needed to get your U.S. business set up effectively and efficiently.
Once you’ve completed all the paperwork necessary to enter the U.S. market, getting set up can be made even smoother by hiring the right U.S. business consultants. They can provide direction for your decisions which will allow you to avoid pitfalls you might otherwise miss.
These four areas of consideration will give you the foundations of knowledge which you can leverage for success when entering the U.S. market. Provided you can overcome the legal obstacles to setting up in the USA, your business will be able to capitalise on the mass of opportunities within one of the strongest global economies.