Content tagged with:Entity Setup

One of the first questions often asked by those expanding overseas is, “Do I need to set up an entity?” Permanent establishment risk, tax considerations and multiple other issues will come into play when considering international entity setup.

Entity Structuring Checklist

The choice of foreign entity structure always depends on the investor's strategy and the desired degree of independence that the overseas operation is to have from the parent company, but it also depends on the risk/reward profile, local requirements, and general ease of entry. With markets in flux around the world and tax authorities on high alert for taxable presence, it’s of increasing importance that due consideration be given to the following issues when determining an entity structure.

Pondering Expansion to China? 3 Entity Options to Consider

published by HSP on 4/18/2012

If expansion to China is on your mind, good news: The Chinese economy is expected to become the world’s largest by 2020. The not-so-good news is that, even if you’re interested in simply exploring the Chinese market prior to making a long-term commitment, you may need to set up a legal presence. What entity options are available for your business? Read on to find out.

What Entity Type Makes Sense for Your International Operations?

published by HSP on 2/10/2012

If your business is planning an international expansion, a key consideration is how to setup your operations. And, if your overseas business opens you up to permanent establishment risk, you may to consider establishing an international entity.

Permanent establishment or not? A checklist for international expansion

published by HSP on 10/4/2011

If your business is expanding internationally, you are likely familiar with the phrase permanent establishment (PE). Any business activity that generates revenue in a country can be deemed by local authorities as having created a PE, giving that country the power to assess income or a value-added tax.

China: WFOE Registration: Office Lease Considerations

The establishment of a Wholly Foreign Owned Enterprise (WFOE) is often undertaken by those who have long-term business objectives in China. This private, limited liability company allows a foreign organization to do business directly in China by means of foreign investment, while allowing the parent to retain control over the business. Once approved to do so, a WFOE can enter into contracts, hire local employees, conduct research and development, market products and services, issue invoices, and receive payments in Chinese currency.

United States: “Check the Box” Entity Selection – Context for Foreign Entities

For United States federal income tax purposes, US corporations and foreign entities of the type that can be publicly traded must be treated as corporations. For many other business entities, however, there is an option to elect to be treated either as a corporation or as other than a corporation.

Case Study: Emptoris

High Street Partners tames the Dragon for Emptoris: Rapid entity set-up in China helps software maker capture first mover advantage


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