Facts in this handbook are compiled from official sources such as local authorities. Rules change — confirm the current position through the source links or with the authority before making major decisions.
01Overview
- Region
- North America
- Capital
- Washington, D.C.
- Currency
- USD
- Languages
- English (de facto)
- ISO code
- US / USA
Jurisdictions
- United States (federal) — Federal rules; company formation and state taxes set by each state
China's direct investment
- China's 2025 FDI flow
- 19.1 USD 100m
- End-2025 FDI stock
- 831 USD 100m
- Flow rank
- #11 by flow
Source：2025 Statistical Bulletin of China's Outward Foreign Direct Investment ↗ · Flow is for calendar 2025; stock is at end-2025. Flow rank is from Table 8 (top 20); other countries from Annex Tables 1–2 (originally USD 10k, converted to USD 100m; one decimal, two below 1). A negative flow means divestment exceeded new investment that year.
Macro indicators such as GDP and population will be added from the World Bank in the data release (P1).
02Market Entry
Industries to study: Cross-border e-commerce & consumer brandsAI, SaaS & tech services
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Most sectors have no foreign ownership limits
- Applies to
- Federal limits in aviation, communications, energy, minerals and others; investments touching national security are reviewed by CFIUS
- Jurisdiction
- United States (federal)
- Source
- MOFCOM
03Business Formation
Common legal entity
The company form most commonly used by foreign investors for a local operating entity.
Corporation or limited liability company (LLC)
- Applies to
- Formed under state law; tax treatment depends on entity type and elections
- Jurisdiction
- United States (federal)
- Source
- U.S. Small Business Administration (SBA)
Registration authority
Primary authority for company or commercial registration.
Each state's Secretary of State or corporate registry
- Applies to
- Doing business in other states may require foreign qualification
- Jurisdiction
- United States (federal)
- Source
- U.S. Small Business Administration (SBA)
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Most sectors have no foreign ownership limits
- Applies to
- Federal limits in aviation, communications, energy, minerals and others; investments touching national security are reviewed by CFIUS
- Jurisdiction
- United States (federal)
- Source
- MOFCOM
Local director / representative
Whether a locally resident director, manager or representative is required.
No residence or nationality requirement for directors
- Applies to
- A registered agent in the state of formation is required
- Jurisdiction
- United States (federal)
- Source
- Delaware Division of Corporations
Local registered address
Whether a local registered address or premises is required at incorporation.
A registered agent address in the state of formation is required
- Applies to
- Professional registered agent services may be used
- Jurisdiction
- United States (federal)
- Source
- Delaware Division of Corporations
Beneficial ownership register
Whether companies must keep or file ultimate beneficial owner information.
US-formed companies are currently exempt from FinCEN beneficial ownership reporting; foreign companies registered to do business in the US must still report
- Applies to
- Check FinCEN's current rule
- Jurisdiction
- United States (federal)
- Source
- FinCEN
Foreign-entity setup flow
Main approval stages for a foreign investor setting up an entity (no time estimates).
Choose a state → file articles with the Secretary of State → obtain an EIN from the IRS → state tax registration and licences
- Applies to
- Some foreign investments are subject to CFIUS review
- Jurisdiction
- United States (federal)
- Source
- Delaware Division of Corporations
04Taxation
Headline corporate income tax
Statutory headline rate for ordinary companies, before incentives, exemptions, thresholds or special regimes. Always read with the conditions.
21% (federal)
- Applies to
- State and local income taxes apply in addition
- Jurisdiction
- United States (federal)
- Source
- Internal Revenue Service (IRS)
Indirect tax (VAT / GST / SST)
Standard rate and type of VAT, GST or sales & service tax.
No federal VAT; states and localities levy sales tax
- Applies to
- Remote sellers may owe state sales tax under economic nexus rules
- Jurisdiction
- United States (federal)
- Source
- Internal Revenue Service (IRS)
Tax authority
Authority responsible for corporate tax registration and filing.
IRS and state tax authorities
- Applies to
- Ordinary companies
- Jurisdiction
- United States (federal)
- Source
- Internal Revenue Service (IRS)
Dividend withholding tax (non-residents)
General withholding on dividends paid to foreign shareholders, before treaty relief.
30% statutory; generally 10% under the China–US treaty
- Applies to
- Treaty rates require beneficial ownership and other conditions
- Jurisdiction
- United States (federal)
- Source
- State Taxation Administration Internal Revenue Service (IRS)
Tax treaty with China
Whether a double taxation agreement with China is in force. Rates and conditions per the treaty text.
In force
- Applies to
- Rates and conditions per the treaty text and STA publications
- Jurisdiction
- United States (federal)
- Source
- State Taxation Administration (China) State Taxation Administration
05Banking & Payments
Exchange controls
Whether general exchange controls or cross-border fund rules apply.
No exchange controls; profits and dividends can be remitted freely
- Applies to
- 2025 legislation added a 1% tax on certain individual remittances (scope per IRS rules); sanctioned countries and parties are restricted
- Jurisdiction
- United States (federal)
- Source
- MOFCOM
Banking & financial regulator
Primary regulator for banking and foreign exchange.
Federal Reserve and federal / state bank regulators
- Applies to
- Dual federal and state supervision
- Jurisdiction
- United States (federal)
- Source
- MOFCOM
06Employment
Foreign employee work permit
Main permit types needed for foreign employees to work legally.
Work visas (e.g. H-1B, L-1, E-1/E-2, O-1) or an Employment Authorization Document (EAD)
- Applies to
- Categories and quotas administered by USCIS and other agencies
- Jurisdiction
- United States (federal)
- Source
- MOFCOM
Labour & work permit authority
Authority for labour rules and foreign employee work permits.
U.S. Citizenship and Immigration Services (USCIS, work authorisation)
- Applies to
- Labour standards are set by the federal Department of Labor and states
- Jurisdiction
- United States (federal)
- Source
- MOFCOM
Social security contributions
Main employer social security schemes for local and foreign employees.
Federal Social Security and Medicare (FICA); state unemployment and workers' compensation insurance
- Applies to
- Federal contributions are shared by employer and employee
- Jurisdiction
- United States (federal)
- Source
- Social Security Administration
07Trade & Customs
Customs authority
Authority for import/export clearance and tariffs.
U.S. Customs and Border Protection (CBP)
- Applies to
- Ordinary companies
- Jurisdiction
- United States (federal)
- Source
- MOFCOM
Main free trade agreements
Main regional and bilateral trade agreements relevant to Chinese exporters (not exhaustive).
USMCA and others
- Applies to
- Ordinary companies
- Jurisdiction
- United States (federal)
- Source
- MOFCOM
08Investment & Manufacturing
Investment authority / agency
Body responsible for approving, registering or promoting foreign investment.
Commerce Department SelectUSA (promotion); CFIUS (security review)
- Applies to
- States run their own economic development agencies
- Jurisdiction
- United States (federal)
- Source
- MOFCOM
Free zone / SEZ regime
Whether free zones or special economic zones operate under rules different from the mainland.
Foreign-Trade Zones (FTZ)
- Applies to
- Assembly, processing and storage with duty deferral or reduction
- Jurisdiction
- United States (federal)
- Source
- MOFCOM
09Digital & IP
IP office
Authority for trademark and patent filing and registration.
USPTO
- Applies to
- Trademark rights are territorial; register locally or designate via the Madrid System (check WIPO membership)
- Jurisdiction
- United States (federal)
- Source
- WIPO
Personal data protection law
Main law and regulator governing collection, use and cross-border transfer of personal data.
No single federal privacy law; sector-specific federal laws plus state privacy laws
- Applies to
- FTC acts on unfair or deceptive data practices federally; California and other states have their own privacy laws
- Jurisdiction
- United States (federal)
- Source
- Federal Trade Commission
10Compliance & Risk
New York Convention party
Whether the country is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which affects enforcing foreign arbitral awards locally.
Yes
- Applies to
- Foreign arbitral awards can be enforced under the Convention, subject to its limited refusal grounds
- Jurisdiction
- United States (federal)
- Source
- UNCITRAL
Live risk monitoring
Geopolitical, conflict and trade-route risk events for Americas, monitored by our sister site Global Risk Monitor.
Global Risk Monitor · Geopolitical and trade-route risk monitoring
11Step-by-Step
Main setup steps in United States
- 1Choose a state
- 2file articles with the Secretary of State
- 3obtain an EIN from the IRS
- 4state tax registration and licences
Some foreign investments are subject to CFIUS review
General checklist (setting up a subsidiary)
- Decide model and jurisdiction
- Confirm licences
- Prepare documents
- Incorporate
- Register for tax
- Open bank account
- Obtain operating licences
- Start operations
Steps follow the setup-procedure fact on this page, without times or fees; rely on the official sources.
12Official Resources
Chinese official resources
Country materials from MOFCOM, the State Taxation Administration and China's overseas commercial offices
- MOFCOM country investment guideMOFCOM · PDF (Chinese)
- Green guideMOFCOM · PDF (Chinese)
- Country tax guide (STA)State Taxation Administration · PDF
- Commercial office中华人民共和国驻美利坚合众国大使馆经济商务处
- MOFCOM going-global platformMOFCOM
- Compliance & security alertsMOFCOM platform
Official guides are long Chinese-language PDFs updated on the publishers' schedules. Our structured facts cite local authorities as primary sources; use these guides to cross-check.
Local authorities
- Tax Internal Revenue Service (IRS) Federal corporate income tax · Accessed 2026-11-12
- Company registration U.S. Small Business Administration (SBA) Business formation and registration guidance · Accessed 2026-11-12
- Legislation Federal Trade Commission Privacy and security · Accessed 2026-11-13
- Labour Social Security Administration Social security · Accessed 2026-11-13
- Company registration Delaware Division of Corporations Company formation · Accessed 2026-11-13
- Legislation FinCEN Beneficial ownership information reporting · Accessed 2026-11-13