What legal steps can I take to establish my company abroad?
December 20, 2023 | 60,00 EUR | answered by Tobias Helbig
Dear lawyer,
my name is Otto Stamm and I am the managing director of a medium-sized company in Germany. We are planning to expand our business activities to international markets and establish a subsidiary abroad. So far, we have no experience with the founding process abroad and are unsure about the legal steps to consider.
Our company currently employs 50 employees and generates an annual revenue of 5 million euros. We have decided to establish a subsidiary in order to strengthen our market position and tap into new sales markets. We are particularly interested in a location in the USA, as we already have good business contacts there and assess the market environment as promising.
Our main concern is that we do not know the legal requirements abroad exactly and could potentially make mistakes during the establishment process that could lead to legal issues. Therefore, it would be very helpful for us if you could provide us with information about the necessary steps and documents for establishing a subsidiary abroad. Are there specific laws or regulations that we need to consider? What legal risks could we face and how can we avoid them?
We are willing to take the necessary legal steps to successfully establish our company abroad, and would greatly appreciate your professional advice and support in this matter.
Sincerely,
Otto Stamm
Dear Mr. Stamm,
Thank you for your inquiry regarding the establishment of a subsidiary overseas. It is understandable that you have concerns about the legal requirements and risks involved, as this can be a complex process, especially when it comes to international law.
First and foremost, it is important to mention that the establishment of a subsidiary overseas can vary from country to country, as each country has its own laws and regulations. In your case, since you are interested in a location in the USA, you will need to familiarize yourself with the legal requirements in the United States.
In the USA, you will need to first establish a legal entity to set up your subsidiary. This can be done in the form of a Corporation (Inc.) or a Limited Liability Company (LLC). It is important to choose the right business structure, as this can have implications on your liability, taxes, and other aspects.
Additionally, you will need to register your subsidiary with the Secretary of State in the state where you plan to establish your business. You will also need to apply for a Tax Identification Number and ensure that you obtain all necessary permits and licenses for your business.
It is advisable to seek advice from an experienced international law attorney in the USA to ensure that you meet all legal requirements and minimize potential legal risks. An attorney can help you prepare all necessary documents, review contracts, and ensure compliance with all legal regulations.
It is also important to educate yourself on the tax implications of establishing a subsidiary overseas, as this can have significant impacts on your finances. An attorney can help you understand the tax regulations in the USA and ensure that you do not evade taxes.
Overall, it is important to prepare thoroughly and seek professional advice to ensure the successful establishment of your subsidiary overseas. I am available to assist you with this process and provide you with further information and guidance.
Best regards,
Tobias Helbig
International Law Attorney
