Investment framework and opportunities in the United States
Procedures Relative to Foreign Investment
- Freedom of Establishment
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Guaranteed
- Acquisition of Holdings
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A majority holding interest in stock of a local company is legal in the U.S. There are no restrictions per se on the transfer of shares to a foreign investor, however, there are a number of situations in which the US Government may deny or restrict such investments by foreign persons for reasons of national security.
The Committee on Foreign Investment in the United States (CFIUS) is responsible for examining the national security implications of acquisitions or investments in a US company by foreign persons and may block or cancel such transactions when they threaten US national security. CFIUS audits only cover acquisitions or investments involving the transfer of control of a US company to a foreign entity.
- Obligation to Declare
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The reference text for foreign investments is the International Investment Survey Act of 1976, although each state has its own regulations on foreign direct investments.
- Competent Organisation For the Declaration
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International Trade Administration
- Requests For Specific Authorisations
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Investments are governed by sector specific policies and procedures. There are limits on foreign investment in certain industries believed to affect national security, including: shipping, aircraft, banking, energy, communications and media and government contracting.
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Latest Update: July 2024