The American market is important for most companies. It is the largest domestic market in the world, and income from the dollar area is an important currency hedging instrument. If you believe experts like McKinsey or Roland Berger – and we see this confirmed – no company can really afford not to be present in the US.
From what we see – and Gata has accompanied a high three-digit number of companies on their way to America during its existence – entering the US market is a rewarding task that most managers enjoy. Quite unlike China or the European East, for example.
The risks of US business are often overstated and should not deter anyone from entering the market. After all, they are manageable if you know how to tackle them, and you can also insure them. Our executive management meetings cover all relevant aspects of corporate risk management and take place four times a year in Germany, once in Vienna and once in the US.
But first of all, when we talk about how to enter the US market, it’s about an introduction to the tasks ahead. Company foundation yes/no; which taxes; what about Delaware as founding state, etc.
We also offer a so-called U.S. Entry Meeting four times a year in Germany and once in Austria to discuss all relevant aspects of market entry, including liability issues.
Among the most important issues that will be addressed in relation to market entry are:
- Choice of legal form: must be well thought over, including liability issues and organs. We also provide an overview of costs, timing and procedures.
- Capitalisation & taxes: what types are there? Equity, loans, contribution in kind and what are the documentation requirements in the Minute book? The different types and levels of taxation are as much a part of this as the distribution of dividends.
- Marketing & Sales: The USA are world champions in marketing, but there are cultural differences and patterns of behaviour. What are the typical difficulties & risks. How to prepare a market entry? We offer a guide including a checklist, show ways to a successful marketing communication and help with a successful sales concept.
- Contractual management: Description of the usual contract types, agency, sales and distribution contracts, reps & warranties and transfer price scenarios.
- Site selection & subsidy programs: not to be underestimated, we provide an overview of possible subsidies and government support for investors.
- Product liability issues: What must be done to limit liability?
- Labour law: Main differences in the drafting of employment contracts, protection against dismissal, leave, titles and discrimination prohibitions
- Visa: a big issue under Trump. What is new and different and what should be considered?
- Insurance solutions: what to do about the insurability of US liability risks with practical examples of liability claims management