War in Ukraine: Impact on international companies doing business in the US

War in Ukraine: Impact on international companies doing business in the US

Business
Introduction World attention has been focused on the very serious events that are taking place in Ukraine as a result of the attack launched by Russia on February 24. We dedicate this article to analyzing the impact that this crisis is having on international companies that participate in some way or plan to enter the US market. Some aspects such as sanctions or export restrictions can indirectly generate problems in your operations. Others are a source of potential opportunities.The United States government immediately initiated a series of punitive actions in response to the Russian attack, through executive orders from President Biden translated into concrete actions managed by the Bureau of Industry and Security (BIS) of the Department of Commerce, and the Office of Foreign Assets Control (OFAC) of the Department of…
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Do you know form 5472? Ignoring it could cost you $25,000… or a lot more!

Do you know form 5472? Ignoring it could cost you $25,000… or a lot more!

Laws and regulations
INTRODUCTION Creating a company in the US is extremely easy compared to other countries, it is a process that we explain in detail in our free guide. However, there are some details that must be taken into account. Ignoring them can be extremely costly. An example is form 5472 of the US tax authority, the Internal Revenue Service or IRS, which, with few exceptions, must be completed annually by foreign companies doing business in the US, as well as US companies that have more than 25% of its capital in the hands of foreign persons (individuals or legal entities), directly or indirectly. WHAT IS FORM 5472? This form is used to inform the IRS of the activities in the US of foreign companies or activities of US companies with more than 25%…
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How to win contracts from the world’s largest client (3): Advantages for Small Businesses

How to win contracts from the world’s largest client (3): Advantages for Small Businesses

Government Contracts
Introduction This is the third installment in the series on "How to win contracts from the world's largest client, the US Government", which started with the first article in which we talked about the structure of the government, the ways that a non-US company can use to access this gigantic market, the initial procedures that must be followed, types of government contracts and aspects to take into account when preparing bids.In the second article we deal with the applicable regulations that must be taken into account, how some of them are barriers to entry of special relevance to international companies or their US affiliates, and what solutions can be used to cross them.In this third and final installment of this series, we focus on analyzing the advantages that small businesses can…
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Incorporate in Delaware? Myths, realities and the Delaware flip

Incorporate in Delaware? Myths, realities and the Delaware flip

Business
Introduction Delaware is a small state on the East Coast of the US, not far from major metropolitan areas (Washington DC, Baltimore, Philadelphia and New York), with less than 1 million residents. Its largest city is Wilmington, with a population of around 71,000. Apart from being the home state of President Biden, a proud Delawarean, it is famous for some advantages offered to businesses. When establishing a subsidiary in the US, one of the main decisions that international companies need to make is which state to choose. There are many implications that need to be analyzed carefully. Unfortunately, there is quite a bit of misinformation regarding pros and cons of the different options. A lot of it is connected with the alleged advantages derived from setting up the business in…
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How to win contracts from the world’s largest client: the US Government (2): Regulations, barriers and solutions

How to win contracts from the world’s largest client: the US Government (2): Regulations, barriers and solutions

Government Contracts
Introduction This is the second installment of the series on "How to win contracts from the world's largest client, the US Government". In the first article we talked about the structure of the government, the ways a non-US company can access this gigantic market, the initial procedures that must be followed, types of government contracts and aspects to take into account when preparing proposals.In this second article we deal with the regulations that must be taken into account, how some of them pose entry barriers of special relevance for international companies or their US subsidiaries and what solutions can be used to avoid them. We talk about aspects such as the FAR, the 'Buy American Act', ITAR & EAR, restrictions on classified contracts, CMMC, CFIUS and barriers to outsourcing abroad. We…
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How to win contracts from the world’s largest client: the US Government

How to win contracts from the world’s largest client: the US Government

Government Contracts
Introduction The federal government of the United States is the largest customer in the world. According to USA Spending, the budget for fiscal year 2021, out of a total of 8.5 trillion dollars, includes 832 billion for services and supplies, as well as 165 billion for asset purchases. On the other hand, states and local governments (counties and cities) manage budgets totaling more than 4 trillion dollars. International companies often ignore or avoid the US government market because they incorrectly understand that it is closed to them or is very difficult to access. If they do, they may miss out on great opportunities. Of the top 100 companies that win contracts with the US government, about 35 are headquartered in other countries. As an example, BAE Systems, a British aerospace…
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US Travel Bans: News and Expectations

US Travel Bans: News and Expectations

Blog
What are the travel bans currently applicable to citizens of certain countries when coming to the US? What recent changes have taken place? What is their impact? Why are they maintained? What evolution can we expect? In this article we try to answer these questions. 1) Status As is well known, since January 2020, the US government has been imposing a series of entry bans on travelers from a group of countries as a result of the pandemic caused by COVID-19. These bans, which have hardly changed and currently affect 33 countries, prevent entry when the traveler has been in one of them in the previous 14 days. The countries affected are, in chronological order of their ban, China, Iran, the Schengen Area, the United Kingdom, Ireland, Brazil, South Africa…
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Keys for the Commercialization of Medical Devices in the US

Keys for the Commercialization of Medical Devices in the US

Laws and regulations
By Maria Jose Lopez Barragan, Ph.D. Markentry USA Partner and Juan Rivera-Mata, Ph. D. Markentry USA Partner Many companies plan their entry into the American market without a good understanding of the legal requirements that govern their products in the US. The FDA (Food and Drug Administration) regulates the consumption not only of drugs and food, but also of veterinary products, cosmetics, tobacco, and so-called “medical devices”.About one-fifth of what American consumers spend is, in one way or another, regulated by the FDA Under the category of medical devices there is a wide variety of products that ranges from complex devices that assist robotic surgery or even artificial organs, to objects that accompany our daily lives and whose perception can be very different from what anyone would consider a medical…
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Important news about immigration to the US

Important news about immigration to the US

Blog
On February 24, President Biden signed a Proclamation in which he cancelled some of the limitations on immigration imposed by the previous president Trump. Essentially, the impact of this order is to revoke the following restrictions: Presidential Proclamation 10014 of April 22, 2020, which established a general suspension of the issuance of new immigrant visas (understood as permanent residence permits or 'Green Cards'), with some exceptions.Section 1 of the Presidential Proclamation 10052 of June 22, 2020, which extended the previous one until December 31 2020Section 1 of the Presidential Proclamation 10131 of December 31, 2020, which extended the previous one until March 31 2021Therefore,  the door opens again for the issuance of new permanent residence permits or 'Green Cards' for people who meet the associated requirements. It is important to note that…
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How to open a company bank account in the US as a non-resident?

How to open a company bank account in the US as a non-resident?

Business
One of the first steps that foreign companies must take when launching their business in the US market is to open a bank account. This can be complicated when the company does not have employees residing in the country or does not have a permanent physical address, something that happens frequently at the beginning of an internationalization project and even in later phases. Many foreign-owned US companies are permanently managed by non-resident staff, with occasional support from a local representative.  The availability of a US bank account is of great importance for multiple reasons: It will make it easier to get local services and be paid for sales. For example, some online markets require the availability of a bank account in the US.It is an essential element when trying to…
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