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 are not included yet; see official statistics such as the World Bank.
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 AdministrationInternal 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
- TaxInternal Revenue Service (IRS)Federal corporate income tax · Accessed 2026-11-12
- Company registrationU.S. Small Business Administration (SBA)Business formation and registration guidance · Accessed 2026-11-12
- LegislationFederal Trade CommissionPrivacy and security · Accessed 2026-11-13
- LabourSocial Security AdministrationSocial security · Accessed 2026-11-13
- Company registrationDelaware Division of CorporationsCompany formation · Accessed 2026-11-13
- LegislationFinCENBeneficial ownership information reporting · Accessed 2026-11-13