In this section you will find more information about expatriation and information for foreign entrepreneurs desiring to
- invest in the U.S, set up a company in the US
- create import and export opportunities
- build partnerships
For more information: [email protected]
|Posted by USAFRANCE, LLC on January 27, 2015 at 1:30 AM||comments (0)|
The first step when you want to apply for a visa E-2 investor is to choose what type of business in which you invest.
It is important to note that when you make your decision, there are several points to be observed. Including the kind of business that you like, but your decision should be in line with your professional skills and experience.
In the case handed over to immigration, one of the most important points is the part about your "Summary", that is to say, your experience and training (diplomas but especially experience and previous successes). The summary is a kind of guarantee to show the consulate that you are competent, qualified, and you have the ability to succeed in the business you are going to implement. Having funds is one thing, but your ability to succeed is also essential. So you can prove to the consular officer that that your company will be a success, because it will be led by a competent and qualified person. This is because of your professional and personal experience.
Below you will find many examples of business types that you can open to obtain an E-2 visa:
- Barber shop
- Service Station
- A pool maintenance company
- A grooming salon for dogs
- A staffing company
- A franchise: in this regard, please refer to our blog on the franchise: http://reussirusa-franchise.blogspot.com/2014/09/business-independant-ou-franchise.html#.VC8chPldWCo
- In fact, any company you have has the ability to succeed
The key to an E-2 visa application is to demonstrate that you have experience and knowledge in the industry you have chosen, this allows you to demonstrate the future success of your business.
Furthermore it will prove that your business is a healthy company.
In this regard, some information will be requested during the period known as the "due diligence" and include:
The EIN of the company (number IRS)
The last 3 tax returns for your business (tax returns)
The quarterly wage reports or pay stubs (for example, W-2 and W-3)
The list of personnel with the flow chart of the company that you control: if you take only part of the staff, attention to resume "keys employees" who will ensure a smooth transition and will be a source of success.
Bank statements, utility bills and ads / telephone directories
Customer contracts or agreements / suppliers
How can I prove that my company is not marginal?
Here are some things that you can present to demonstrate that your business is not marginal:
• A detailed business plan that includes information about financials of the business as well as employees.
The business plan is a centerpiece of the record and must have a 5 year financial plan and hiring plan.
Does the investor need to buy its business before applying for a visa E-2?
The creation of a company in the United States is considered a key requirement for applicants to receive the investor visa. The best course of action is to place the funds that will be used to buy the company in an escrow account in the United States. If buying a business, the funds in the attorney escrow account and the sale, will be subject to certain conditions to obtain a visa.
Why can a visa be refused?
We can boast that we have had so far 100% success in obtaining visas for our customers. Make sure that the file submitted to immigration must be complete. Some main reasons for refusal are a poorly prepared business plan, lack of documents, poor preparation or maintenance. If this occurs then the consulate will assume that your business is not viable.
You may want to make the attempt and establish yourself in the USA. Although the opportunities are there, we must have a well-prepared project and be surrounded by a team that will assist you throughout your development.
For more information please contact us [email protected]
|Posted by USAFRANCE, LLC on January 27, 2015 at 1:15 AM||comments (0)|
Is it a good strategy to apply for an investor visa (E-2) while waiting to begin the process of EB-5 visa?
Will this get me to a Green Card?
I- Reminder on the E-2 investor visa
Contrary to popular belief, there is no minimum investment required unlike the EB5 visa. But when a foreign investor wishes to obtain the classification as E-2 investor, he must demonstrate that a particular company has been "adequately capitalized" and has a majority stake in a company in the United States.
Three major issues are involved and relate to:
• The company's nationality;
• The investment substantiality;
• Non-marginality of the company.
With respect to the nationality of the company, the investor must be of French nationality and demonstrate that he (she) has a majority stake in American society.
In case of married couples, it is even possible that the spouse holds the majority of shares jointly. In addition, an employee of the foreign investor may still be classified with an E-2 visa if the employee was engaged in an executive position or, if employed minor title, the employee has special qualifications that make its services essential to the efficient operation of the company.
It is important to note that there is no minimum investment amount. However, the investor must demonstrate that it has capitalized sufficiently in the new company or, in case of buying an existing business; he paid the amount needed for the purchase in question. In this respect, so must demonstrate how the value of the company was determined.
To obtain the E-2 visa, the investor must demonstrate that the company will create enough profit to support the investor and family, as well as to hire American employees.
Here are some of the steps necessary to implement to get your investor visa:
1. Form the company;
2. Find the premises for the enterprise;
3. Demonstrate that the business is ready to open its doors;
4. Make a business plan, centerpiece of the visa;
5. Next, the lawyer who will assist you finalize approached the consulate and prepare you for the interview.
All the steps are not listed and do not hesitate to contact us for more information.
This visa will be granted for a period of 2 to 5 years.
If you can demonstrate the ability to succeed, a good investment, and that the file is well prepared, you should be granted a green card for 5 years.
Your spouse may obtain a work permit which can eventually lead you to get the Green Card.
Moreover, a bill is underway to allow E-2 visa holders to apply for Green Card after a certain period and under certain conditions. But for the moment, renewable visa as the business works is a visa that says "No immigrant"
II- The EB-5 visa
The EB5 visa is an immigrant visa.
All EB-5 investors should invest in a new business venture.
The investment must meet the following criteria:
1) A business enterprise means any for-profit activity formed for the ongoing conduct of lawful commercial transactions, including but not limited to:
• A sole proprietorship;
• Partnership (general or limited);
• Joint venture;
• For trust companies or other entities, which can be public or private, it is not necessary to hold the majority of shares or units of the company.
2) The EB-5 investor visa must establish that the business enterprise can create or retain at least 10 jobs for US citizens or Green Card holders.
3) Investment Requirements:
To obtain an EB-5 visa there is need for minimum investments which are:
• General: The minimum investment to qualify is $ 1 million;
• An investment of USD 500,000 is possible in some areas. An area of targeted Jobs knows unemployment of at least 150 percent of the national average (Unemployment High or Rural Zone).
• The EB-5 investor, spouse and eligible children get the Conditional Permanent Resident status for a probationary period of 2 years. One year and nine months after the issuance of their Green Cards, investors should request removal of the conditional status for him and his family to continue to reside in the United States and to receive a Green Card valid for 10 years. Failure to request such deletion may result in termination of Conditional Permanent Resident status.
III - Questions Visa E-2 / EB-5: Can we start with an E-2 visa much shorter, less expensive and less difficult to obtain?
The procedure for obtaining the EB-5 visa is long, an investor from a country signatory to the agreement he can travel to the US with a E-2 visa and subsequently initiate the procedures to obtain the visa EB-5? Is it a long process?
What is the waiting time for obtaining the E-2 visa? I heard that the procedure for obtaining the EB-5 visa could take between 12 and 15 months. Is it worth it to start the procedure of the E-2 visa to the US and start working on my new business or is it for as long as the EB-5 visa?
Technically, an E-2 visa does not lead to an EB-5 visa, but there's no reason your efforts on the E-2 visa cannot form the basis of your EB-5 visa. However, there are some things you should be aware:
• There is no minimum investment required for an E-2 visa, but you must pay at least the required $ 1 million (or $ 500 000 if the company is in a targeted employment or rural area) for EB-5 visa.
• Retained earnings / profits reinvested for the visa E-2 generally do not count as money invested for the EB-5 visa (there may be exceptions).
• For the E-2 visa, you or another national of the signatory countries must have more than 50% of the company's shares, which is not required for EB-5.
Finally, the company's conversion to an EB-5 visa from your US immigration process with the E-2 is a possible strategy. Requests for EB-5 can take 12 months or longer to process, and these times may vary. Of course, the E-2 processing times may vary. Arrange a consultation with a lawyer for the EB-5 visa can help you develop the best strategy for possibly the United States is your new home and to start your business in light of your financial situation, timelines, and other goals.
|Posted by USAFRANCE, LLC on January 13, 2015 at 1:30 AM||comments (0)|
For more information contact us and we will put you in contact with our lawyers on the subject.
When one wants to work in the United States, the question always arises, ‘How to get a visa.’ Indeed, there are many different types of visas and it is sometimes difficult to know which will be best suited to a particular situation. Here, below, a brief overview of various visas to come to work in the United States:
E visas are non-immigrant visas, therefore, applicants should plan to return to their country of origin. In addition, E visa applicants must have management skills in supervision or in specialized areas. The relatives of the applicants will get the E visa dependent. This category is available in two forms:
The E-1 Visa: Trading
The E-1 visa is for individuals representing a foreign company, 50% of trade is conducted between France and the USA. This visa has the advantage of being renewed as the company in question works and still has a substantial business with the United States.
The E-2 Visa: Entrepreneur
This visa is for entrepreneurs wishing to start a business in the United States. Like the E-1 visa, it may be renewed on forever as long as the company exists in the United States. The applicant must invest an amount that is correlated with the project and expand his business himself. Furthermore we must foresee hiring plan over 5 years and submit a business plan including a financial plan over 5 years
L-1 visas can be an alternative to the E-1 visa. They are intended for intra-company transfers. However, the request is not made by the principal concerned, but directly by the company wishing to send a frame, an officer or a person with special skills. There are three requirements for a company to apply for a visa L-1 for an employee:
- The company must have at least 51% of the subsidiary or branch in the United States.
- The employee in question must have worked for at least one year for the parent in the previous 3 years.
- The position dismayed the United States must be a position of responsibility or requiring specialized skills.
The L-1 visa is divided into 2 categories:
L-1A: Officers and executives
This visa is intended for companies wishing to send someone with managerial skills or management.
The employee must be employed for either:
- Lead an organization, a department,
- Supervise and monitor the work of other supervisory,
- Be in charge of recruitment
If he does not have a management position, it must have a high level in the corporate hierarchy.
The maximum duration of L-1A visa is 7 years and can lead to obtaining a green card under certain conditions and if the employer sponsoring the employee concerned.
L-1B: Specialized knowledge
The L-1 visa is for people with specialized knowledge or skills in a field relevant to the business.
For example, the person may have extensive knowledge of the products, services, or other management techniques related to the company. Or, it can be expertly procedures within the company.
The maximum duration of an L-1B visa is 5 years.
O Visas: Extraordinary Skills
The O visa is for people that have extraordinary skills in the fields of art, science, education, business or athletics.
The O visa is divided into 3 categories:
- The O-1A: refers to the fields of Science, Education, Business or Athletics;
- The O-1B: refers to the fields of Art and Cinematography and Television industries;
- The O-2 refers to persons accompanying the holder of an O-1 visa to assist in the completion of an event or a specific task.
Visa P: Artists & Athletes
P visas are visas for athletes or international artists from participating in a competition or event or issue a provision that comes as part of a reciprocal exchange program.
There are 3 visa type D:
- P-1A: renowned for Sport
- P-2: Individual artists or member of a group
- P-1S, 2S-P: Essential Support Staff
P visas are valid for as long as the 'mission' is made in the USA
Visa EB: these visas allow access to the green card
Multinational executives and managers (EB-1)
If you own a company in your country of residence and you create an affiliate in the United States, you can transfer and after a year of activity, you can apply for a green card in the category EB 1 for multinational managers and executives. Similarly, you can be transferred with the L-1 visa by a company for which you work in a leadership position, and then apply for the green card in the same category.
Advantage to qualify in this category:
The biggest advantage to qualify in this category is that it does not go through the "labor certification". The "labor certification" is the process through which the applicant green card to prove it does not move for American workers.
Extraordinary Ability (EB-1)
Persons outside of extraordinary ability in the sciences, arts, education, business or athletic can qualify for a green card for their talents and expertise to the United States.
A job offer is not required in this category for green cards. It is not necessary to obtain a "labor certification.”
A candidate for the EB-1 green card in the sciences, arts, education, business or athletic must prove that he is among the best in its field of expertise at national level or international.
The foreign applicant must prove that he has received an international award recognized as the Nobel Prize, or it must submit at least three of the following evidence and documents:
• Prize or recognition at national or international level in the field of expertise;
• Membership in associations dedicated to people who have demonstrated extraordinary talent in their field;
• Articles about the completion of the applicant published in trade magazines or in newspapers of high reputation;
• Member of a jury to try the other work in the area of their specialty;
• An important scientific contribution, theoretical, or other in their field;
• Important papers published by the candidate in the trade press or in nationally recognized media;
• Employment in a key position to organizations or high reputation institutions;
• High salary or remuneration for services rendered in the field; or
• Other evidence or documentation (usually letters of recommendation by renowned personalities in the field of specialization.
Many people continue to qualify for the green card without having obtained price level "Nobel Prize" and without being recognized internationally. Sometimes just a candidate to be recognized as absolute expert in his field in his home country.
Outstanding Researchers or Professors (EB-1)
There is a category of green cards for teachers or outstanding researchers with at least three years’ experience in the field of education and research, which have been internationally recognized for their work.
Exceptional Ability (EB-2)
Foreigners who cannot qualify for a green card in the EB-1 category, but have exceptional abilities in the sciences, arts, or business, can qualify in the EB-2 category for foreigners in exceptional ability in the sciences, arts or business. In this category, it is nevertheless necessary to obtain a "labor certification". An immigrant in this category must have a "sponsor", an American company, organization or an educational institute submitting a petition to the immigrant.
Professionals and Skilled Workers (EB-3)
Professionals and skilled workers can qualify for a green card in the EB-3 category for professionals and skilled workers. In this category, it is nevertheless necessary to obtain a "labor certification". An immigrant in this category must have a "sponsor", an American company, organization or an educational institute submitting a petition to the immigrant.
If you would like more information on work visas in the United States or on entrepreneurship in the United States in general, feel free to visit our website and contact us so we can advise you best with our partners (lawyers, accountants ... Franco-American)
You can also contact us by mail, telephone or on social networks.
|Posted by USAFRANCE, LLC on January 13, 2015 at 1:15 AM||comments (0)|
The United States is the country of entrepreneurship. Undertaking the US does remains a challenge for those who want an accomplishment for both personal and professional. Before embarking on the adventure, it is very important to be well prepared. Here are some things to see before you start:
1. Define your project
Once your project, your budget, and your location is certain, it will be possible to search Trade Commercial for resume. At the same time, USAFRANCE, Dba ReussirUSA, assist you in registering your company, writing your business plan, essential document to be presented to the Immigration and shall at minimum include:
- Your "executive summary"
- A recruitment plan over 5 years
- A financial plan over 5 years
- A marketing plan
2. Without visa not work: the investor visa
An investor visa allows a foreign entrepreneur to be admitted into the United States to live and work there with his family. The investor should invest in the United States:
1) Creating a new business.
2) By purchasing an existing business.
3) By partnering - with a capital contribution and share ownership of more than 50% - with an existing US company.
The investment must be "substantial". But there is no legal minimum.
The investment must in fact correspond to what would be required for the purchase of the Company at fair market price. The last turnover of the three years of the acquired company will be claimed.
An important point: The investment must be already achieved. Consulate refuse to grant a visa to an investor who list the expenses necessary to carry out a project but has not yet invested. It should list all the expenses with supporting rationale.
The business plan is the centerpiece of the record.
3. Other key documents
You have created or acquired a business
Now we have to manage it. A first step is to validate the necessary assurances:
General Liability ....
For more information about business rules see our blog
4. Or settle
This depends on the type of business you want to establish your marketing and policy. But know that in the US, the legal framework of the company differs from one state to another. So remember to ask about taxes in force in different states before making your final choice.
5. Keys for a successful presence in the United States
The US still in the French imagination, an image of paradise businesses, dreams and unique development opportunities. But is this realistic and verifiable? What are the keys to a successful implementation in the USA?
Here is training in minutes
- The Entrepreneur portrait establishing itself in the USA
- Misconceptions about the USA to fight
- The main mistakes not to make for a successful introduction in the USA
- The preparation process of implantation in the USA
- Possible visas to implement the US
- The reasons for visa refusal
- The legal and administrative peculiarities in the USA
- Additional efforts to move his family to the USA
If you would like more information, you can reach us by mail, telephone, on our web site or on social networks.
|Posted by USAFRANCE, LLC on January 12, 2015 at 12:45 PM||comments (0)|
Some basics about the American Taxation
Overall, and although this depends on the States, the US tax system is less heavy than in France. However, it is no less complicated because overlapping rules at the federal level that is to say at the country level and at the state level. It is necessary to master the subject to avoid mistakes and to make choices for your business whether legally (entity type) or to choose the state in which it is better to locate. Because states like Florida have no income taxes which can help your business.
A Franco-American accountant is required for any French company wishing to enter America or any contractor wishing to launch their business.
Taxes on the different types of companies
Gains or losses are reported in the income statement. The entrepreneurs are subject to federal and state taxes (around 25-28% depending on the state). There would also be more SE Tax (Self Employment Tax), which is 15.3%. Self-entrepreneurship is the form of the most controlled company by the IRS because there is a lot of abuse in the matter. Some entrepreneurs confuse too quickly their business with their personal income and make deductions that are not always desirable. It must therefore be well informed before embarking deductions. The important thing is to keep in mind that your business does not look like a hobby in the eyes of the IRS and must generate profits!
The IRS assumes that a company is profitable if it generated a profit of at least three years in the last 5 years, current year included. If an activity is not profitable, the losses cannot be used to offset other income.
The limit on losses 'not-for-profit' applies to individuals, partners, groups, foundations and S-Corporations. It does not apply to corporations other than S -Corporations.
Deductions for hobbies are regulated differently and should be postponed so detailed on Form 1040.
As an entrepreneur, your profits go directly into your personal income. In case of loss, they are also directly plotted on personal income. This reduces the amount of taxable income from other profitable activities.
Limited Liability Company, LLC (kind of SARL)
An LLC has different options to be taxed. You choose which one is best for your business. You should know that the LLC including non US residents will not have access to certain features such as S-CORP, which allows the manager to perceive combines real wages and thus not to pay the SE. However, you cannot decide when you are going to make your statement, this depends on when your business was created. If you do not choose, the IRS will choose for you. In any case, be sure to discuss this with the accountant.
LLC, one-person, as a transparent entity
An LLC with one member is essentially taxed as a sole proprietorship. As the name suggests, you must be the sole owner of the company. This classification falls into the class of taxation "Pass-through" - The company is not subject to any direct tax. As the owner, you see your loss and your profits directly on your personal income.
You will be liable for the Self Employment Tax (SE Tax) if you are engaged in an active business (sale of a good or service). If you created your company to perform a passive activity as an investment company for example, you will not be subject to SE Tax.
For example, Jonathan is a freelance UI designer who created an LLC for its business. He earns $75,000 in 2011. He reports that income on his tax return. It will increasingly pay the SE Tax.
LLC, with more partners
If an LLC has 2 or more members, it will be taxed at the federal level as a partnership, unless it is to save as S-Corp or C-Corp. In a multi-LLC members, each partner reports its own income in proportion to the shares held in the company. Then each partner pays the SE Tax proportionally. As a one-man LLC, you pay the SE Tax if your business sells goods or services.
LLC as a C Corporation
An LLC may request to be treated as a C Corporation in the tax level by filling the form 8832 with the IRS. The LLC completes the 1120 tax return and pays taxes on its profits. If profits are distributed among the various owners in the form of dividends, such dividends will be taxed as themselves, so in general the LLC prefer the status "partnership" or "S corp".
The profits of the LLC are not subject to the SE Tax.
If you prefer to keep the profits in the business rather than distribute them as dividends at year-end, the C Corp may be the right choice. In this case, only the company is taxed on its profits.
LLC S Corp tax option
This is the last case: the LLC may request to be treated as an S Corp. The tax return of S Corp is the 1120S. The profits of the company are not subject to corporation tax in contrast to C Corp. Instead, owners are taxed in proportion to their share in the company on the profits: the Manager may receive a salary. However, this option is reserved for companies associated with the Americans citizens or green card holders.
If an owner of an LLC works in his company, he shall be paid a reasonable salary for his work, and the company has to pay tax on that salary.
Run his business from home.
If you want to get an investor visa, this option should be avoided. You will be asked to demonstrate that you have leased premises to be able to receive in the future one or more wage earners.
To be subject to tax deductions, your office must pass strict tests imposed by the IRS. For example, you must have a site exclusively dedicated to your work. Also be careful that the consequences will be different if you own your home or only tenant.
Despite-all, working from home has significant advantages, in fact, you can depreciate your business via a portion of your rent, your electricity, internet and a portion of household expenditures related to your business.
But if you own your home, it is not necessarily advisable to take tax deductions because when selling your home, you will be subject to new taxes.
Your service vehicle is subject to tax deductions: in fact, the business miles system allows you to deduct 56.4 cents per mile in the framework of your business, the purchase price of the car can also be amortized.
Do you do business in more than one state?
If so, perhaps you'll have to register and pay taxes in all these different states. Also be aware that each state has its own tax laws. Some states like Florida does not have this income tax means that income from your LLC does not in principle be taxed at the state level but remain taxes at the federal level.
Types of IRS penalties
You may suffer a tax adjustment by the IRS for various reasons.
If the company does not pay all the taxes which it is subject.
If you complete your late folder.
If this folder is not complete or misinformed
If the accounts are distorted
Have non-complete accounts or not-to-day can be considered a tax fraud can have very serious repercussions for your business.
Managing your accounts
Who keeps the accounts for your business? How do you organize your expenses / income?
It is mandatory under the law to keep accounts current. Monitoring of defective accounts can be expensive when the time arrives taxes. Having missing or corrupted data access to thousands of tax saving dollars can be lost.
Use accounting software to manage:
Your income and expenses
Your balance profit / loss
Your accounting tables
The most used software Peachtree and QuickBooks
The credit score
In the US, the credit score is very important for a business or anyone wanting to use a bank to finance a project or any other bank loan. This credit score gives you a 'note' from 0 to 100. Anything above 80 is considered favorable. New businesses are not registered with credit agencies, their score is 0. If an opportunity presents itself tomorrow or in five years and you need more capital will require that you increase your credit score increase your chances of obtaining financing.
To do this, put all your personal debts related to your business to your company name to 'away' from you. Moreover, as soon as you start your business think to ask a Credit Card, which is different from a credit card and make sure that this has credit card is never debtor. Banks usually offer no system of direct deposit to your credit card: so be sure to replenish each month
Taxes on businesses in the United States are lighter than in France, it is important not to neglect their complexity. This paper provides a brief overview of the operation, but if you want more information, do not hesitate to contact us by email or phone, on our website or on social networks. Our accountants Franco-Americans will respond more fully to launch your project in the USA.
|Posted by USAFRANCE, LLC on January 6, 2015 at 1:15 AM||comments (0)|
Export its franchise concept: How to implement a franchise brand in the United States
Geneviève Lethu, Speedy, Laforet Immobilier, Orchestra, Illico Works, Five Dry ... These networks are all well established in France. They decided to tackle the international market by opening outlets in the world. These are usually the older networks (over 15 years) and whose turnover exceeds 10 million who choose to boost export development.
For implantation outside our borders, the majority of them opted for the formula of the master franchise (42%), before the direct franchise or the establishment of branches. The brand Planet Sushi, already present in Miami, Casablanca, and Ibiza (in branches) will, in turn, favor the master franchise this year, with a target of four master years. Why this choice? According to its founder, Siben N'Ser, benefit from a partner based in the country allows to easily manage the international network development.
Development for a good return on investment
"The Master Franchise is a development model praised by franchisors because the return on investment is important. In this system, the franchisor sells to master franchisee the right to use his concept and develop it in the target country by recruiting, in turn, the franchisees. “The master reports, to the network development of the franchisor, the application of the concept and pays him a part of the fees paid by the franchisees," says the consultant Jean Samper AC Franchise. It's also a way for the network heads to rely on local partners invested and motivated. In contrast to direct franchising, franchise masters often receive a percentage on the success of the franchisees they have recruited.
The franchise has almost naturally intended to expand beyond the borders of a country; when a concept operated within a franchise network has proven itself at national level, the offeror may be tempted to consider its export to foreign markets.
This is even more true that the franchise can be, unlike other methods of development and distribution, a sustainable settlement patterns abroad (This article does not deal with the franchise production obeys the realities of its own).
The formalization of an international franchise agreement: If the international franchise not been uniform rules, practice in this area is still guided by ethics and codes of ethics (in particular is thought to code European ethics of the aforementioned franchise in franchising code of ethics of the International Association of franchising (IFA) and the UNIDROIT Guide to International master franchise agreements).
In addition, various international organizations, including the International Chamber of Commerce, have developed model contracts to the attention of economic operator’s parties to an international franchise operation.
Withholding exemption method (direct free / master-franchise) usually combine with a form of organization; Indeed, beyond contractual obligations that will require it as part of the franchise agreement, the franchisor often seek to strike a say on the franchisee management and changes in its ownership.
If the franchisor is considering taking a stake in the franchisee during training or running the franchise contract (in particular to the exercise of a right of preference or first refusal on shares franchisee, participation may reach different levels according to its objectives:
• A minority stake in the franchisee's capital will enable the franchisor, as a shareholder, to be informed of the activity and the franchisee's financial perspectives without taking significant financial risks. It may also negotiate with the majority shareholder, as part of a shareholders' agreement, a veto on decision of certain particularly strategic decisions.
• The creation of a joint venture ("JV" by future partners will be an adequate solution the franchisor will provide its concept, its brand and its success. Bring his partner, for its part, his knowledge of the local market and, where appropriate, the funds to the start of the operation.)
The JV will give the franchisor the opportunity to properly adapt its formula to the local market as its partner will have a perfect knowledge of it. It also keeps a stronghold on the network, as it will be exported shareholder of the company that develops the concept. Finally, the main costs will be borne by the JV, therefore shared between the two partners.
Whatever the method chosen, it will take into account local rules.
Indeed, the Federal Law requires franchisors to provide prospective franchisees very detailed pre-contractual information and delivery of this information at least 14 calendar days before signing the franchise agreement. This is what is called the "Franchise Disclosure Document" or FDD
Most states provide for registration or notification obligations
Here are some questions to consider before establishing a franchise network in the US
1. Are you a registered trademark in the United States, patents, software, and protectable elements by copyright?
2. Do you have a business plan for the US market?
3. What will be the initial investment?
4. How do you recruit your franchisees?
5. How will the training be conducted?
6. What are the entry fees, royalties?
7. Do you have a marketing budget? Will it funded by franchisees?
8. Will you advertise?
9. Do you have manual skills, manual operations, accounting, etc ...
10. Your business documents have they been translated?
11. Do you have a DIP (Disclosure Document pre)?
12. What is your development strategy?
A. Will you master-franchisees?
B. Regional developers?
13. What have you done adaptation for the US market?
14. Have you formed your company?
15. Are you subject to legal convictions at the company, officers?
16. The company or any of its officers have they experienced bankruptcy?
17. What is the experience of business leaders at the French headquarters, the US headquarters?
18. What are your target markets in the United States?
19. Do you have financial projection elements to provide candidates to the franchise?
20. The franchises will they restricted from selling certain products or service?
Testimony, expert opinions
Few French brands have managed to conquer America. Two prerequisites: the adaptation of the concept and the choice of good partners. Expert advice and testimony of signs.
A consumer population at heart, a vast territory, a spirit of general business, the New World is a paradise for ... US franchisors.
"American consumers are demanding, fond of novelties. For successful implementation, the French networks must be innovative and have a very successful concept," warns Pascal Lambert.
What niches to invest in? "You have to fill what’s not covered by the US banners segment. Mostly in luxury, bakery, catering, "says Pascal Lambert. A view shared by Groupe Le Duff, who has not failed to take root in the US, but with an alternative strategy. A partnership with the Italian brand Autogrill, airport concessions leader in the United States, has allowed him to open 27 units under the name Brioche Doree. Repeated operation with Sodexo and the key, opening a dozen shops. The Breton origin group then bought the restaurant chain La Madeleine, 73 high schools. Finally the group took in her lap teaches Bruegger's, No. 3 American coffee-bakery, strong network of more than 300 restaurants. A first class lever to force the restoration of the French. The group Le Duff gradually replaces half of the bagel-based products, American specialty, baguette, and sell pastries from butter from Brittany and Poitou.
ReussirUSA assists companies Francophone has had to settle in the US. We work in partnerships with lawyers specializing in the field of Franchise.
|Posted by USAFRANCE, LLC on January 6, 2015 at 1:10 AM||comments (0)|
Whether you want to immigrate or simply export to the United States, it is very important to know the country in which you are going. In fact, American culture is very different from the French culture, especially in the business world and it will be essential to master the aspects of this culture before dealing with the US to avoid missteps.
1. Entrepreneurs are unprepared
Today, French entrepreneurs are not sufficiently trained in cultural differences when it comes to exporting a product or immigrating to a new country. This lack of training often leads to mistakes. For example, consider the concept of time in an international exchange; the French often tend to focus on the content at the expense of time. In the US, it is the opposite; delays are considered more important than the content (Source Corinne Saurel). This problem can be seen as a detail, but it is the accumulation of such details that result in complications that can be major, up until the loss of a contract.
There are many problems in international trade and mistakes that can be avoided. If the protagonists of one side or the other are more familiar with the practices and expectations of their employees, these errors may not occur.
If problems continue such as these intercultural misunderstandings, it will only accentuate discomfort and can lead to a breach of contractual relationships.
Implantation in the US
These problems are not solely caused in the case of an exchange between two countries. We could take the example of a company that wants to establish itself in the United States to create a new production center. One might think it would be enough to "duplicate" their French factory in the United States. But this process is simply impossible. It should, for example, adapt to managerial differences. US employees do not think like French employees. Hierarchy is less present, employees like to express their ideas, and are free to leave whenever they want, if they feel that the business does not meet their expectations.
In most states, the labor law is based on the notion of employee "At will": that is to say that one can return it but he is free to leave at any time! Hence the importance of always giving feedback to salaries, and understand the Open Door Policy: the employee can come at any time to see the manager to ask him questions or expose her problems. The Manager is there to meet him and listen to him and "fix" the problem.
French Tech Tour
Another interesting example is the French Tech Tour (FTT), which allows French entrepreneurs to be put in contact with the heads of American companies. Before being admitted to the show, entrepreneurs need to engage in an exercise of presenting their products at several US partners in a minimum amount of time. The famous Pitch! It is in such times that one can see large cultural differences between the French and the Americans.
Indeed, we note that many French people do not meet the expectations of Americans. Not that their products are bad, but they just do not have the right way. The French will tend to present the technological advantages of the product, while Americans prefer to know how the product meets a need.
Some French, despite the fact that they have excellent products, have trouble communicating the way Americans would like. These difficulties in convincing unfortunately often reflected on the results of a company.
3. What is intercultural training?
Intercultural course provides the necessary knowledge of the uses and customs of the US. This can pertain to the world of work or on everyday life. For example it can help by providing information on US consumer habits to help in developing market research.
This training is essential to prepare a project. Indeed, learning a culture takes years, this course provides a comprehensive understanding of the thinking of American and therefore you will save time and money in the development of your projects.
With our partner, we can assist you in this cultural adaption of your employees, your products, your company, which will be a faster success guarantee.
|Posted by USAFRANCE, LLC on January 5, 2015 at 3:10 PM||comments (0)|
Cultural differences within a business can be a source of tension and be a major obstacle to the functioning of the group, or even a cause of failure. It can also be factors in development of individuals and business performance. The result depends on how we manage cultural differences. Evalde Mutabazi is a permanent professor at EM Lyon. He specializes in intercultural management and shares his expertise.
Lepetitjournal.com: Clash of cultures, language barriers, working in a foreign country is not always simple. Should we prepare before we leave?
Evalde Mutabazi: Obviously, any preparation is beneficial to be able to integrate in a different context, in a departure abroad but also to return to his business and his home country. Preparation is important particularly in three areas: the working language, cultural background, but at the company level or the home team. Learn useful language to work in the country where one immigrates to is interesting because the language is the first gateway to a national or professional culture. Whether one is expected to become leader or not speaking the language allows you to perceive nuances, to avoid unpleasant misunderstanding, to be accepted, and to win the trust and gain credibility. With the language, it opens a different cultural universe, even if sometimes we do realizes posteriori, after a shorter or longer immersion in this new universe of meaning, codes and practices, that may seem odd or fascinating us in the early days.
Next, it is important to learn more broadly on the country or the company where you will work, because many behaviors, attitudes, and values are different from those that we know in our own country or company of origin. This is often the case in relation to time: accuracy, timeliness, the project completion time, waiting time, schedule management, method of conducting a meeting, choosing the right time ... so in many situations cultural differences appear clearly. Without falling into the trap often stereotyped, the idea is to advance to build critical cultural decoding keys which we will be confronted. Without this approach, it goes before exchange and communication problems, which can generate tensions or even very serious relationship difficulties and work.
Furthermore, the integration is not done alone and the expatriate is not the only player. It is also very important that the team that is prepared to welcome his arrival. Local staff will wear a certain look about him, having perceptions that may be reducing or over-rewarding. It is the managers on site to create a framework for the integration of the expatriate to establish the necessary conditions for his colleagues to habilitation newcomer, by advising on local operation, but also the brakes or obstacles he may encounter. It is this together- not the only expatriate expert also technically it is in its area- allowing proper integration and maximum efficiency.
Can the company culture change across countries?
Yes of course. It should even do it voluntarily and intelligently for lasting success in legal systems, different political and managerial cultures from one country to another, in a globalized business. There are local features, such as managing relationships with banks, suppliers or distribution networks, and we have no other choice than to adapt. A marketing plan, you must give the company, its products or services the color of the country. Thus, even in the luxury goods and for groups such as L'Oréal, this adaptation is their main lever of success. Coca-Cola, one of the most recognized brands on the planet, has changed not only the taste of his drinks, but also the color of the packaging and advertising by country cultures. Except for the technical aspects of financial management that can be relatively globalized, everything else, including management control, factory organization, the distribution of activities and sharing of responsibilities must be adapted if the company wishes full and lasting success in multicultural contexts. But be careful, however, a culture and its continued success is based on its identity often built from his job and key values promoted by its leaders, in some cases with those of its shareholders, and the shows current success Lewis US.
Diversity in teams she carries a risk or is it an advantage?
There is of course a risk of indifference, mutual misunderstanding, lack of synergies and cooperation that go beyond linguistic misunderstanding, often linked to the use of a third language, such as the English today. There is sometimes a juxtaposition of people side by side in multicultural teams. We must not underestimate either the problems of professional rivalry and power plays that are universal human phenomena. These behaviors are against-productive and lead to failure if we ignore what is valued, legitimate or noble in cultures in the presence, in a CODIR for example.
The effectiveness of intercultural teams is not automatic. Intercultural management requires real business investment in the development of a favorable dynamic learning and mutual enrichment of its multicultural members. This requires the will of leaders to empower them to "co-born" around a concrete and demanding project, understand their logic of action and develop relationships of mutual recognition. Mutual trust, cooperation and innovation go hand in hand in multicultural contexts. It increases the performance of such teams by facilitating communication, exchange of ideas and exchange of experiences, but also the joint realization of original projects sometimes not included in the program. This intercultural space creates synergies and complementarities sustainable operational. It brings innovation and progress for the people, multicultural teams and the enterprise.
In this context, what is a good manager?
In terms of management, the same attitude, the same behavior (a nod or a smile, for example) are perceived and decoded differently in the United States, South Africa, Japan or France. A good manager, a good collaborator, the same customer, does not have the same behavior in different countries. For a multicultural team to perform well, it must have confidence in their leader and accept his legitimacy. The project manager's acceptance and legitimacy criteria undoubtedly respond to specific cultural references. Thus, for example - and the risk of généraliser- to be recognized by his German team, the project manager must have real technical skills, a diploma and a status of power against the French, strong communication skills and management of the consensus against the Dutch; it must demonstrate its competence in the coordination and animation against a team of Belgians, and be listening and conciliation.
In cultures "rather democratic," the project manager, who fills advantage as a coordinator and facilitator of trade leaves the team more easily make decisions and each of its members to express their ideas. In hierarchical cultures against the project manager (or the hierarchy) is the decision maker; the team members expect their leader he makes decisions, and they can accept that they are arbitrary and do not take into account individual issues. In some cases, however, the operation can be more complex and the decision of the chief questioned. In France, a country that often worships sacrosanct to reason, a decision may be challenged and replaced by another that seems less rational and better adapted to the context and the objectives pursued. This approach, often misunderstood by the Anglo-Saxon, can be very frustrating for people who place a high importance to the contract, the formal procedures and the word.
In multicultural work context, the integration of the expatriate goes through its ability to combine good local practice with those of the country where the headquarters of his company. Local partners expect it to be culturally different and the same, distant and close to both. This paradox of the expected behavior of the expatriate is expressed in the famous "Act local, think global", that companies often do not know how to translate in terms of management, and driving change in their international subsidiaries. An intelligent management, it is the combination of expertise and knowledge to be here (in the branch) and elsewhere (headquarters or subsidiaries in other countries).
What is the main lesson to be learned in conclusion?
In addition to preparing and learning to decode the differences between cultures and managerial practices, coaching sometimes necessary advice, a good expatriate integrates successfully if he knows more, relies on openness, and exchange experience both managerial and commercial. His company must help develop the skills needed to understand the context in which it operates. This is to establish rules of the game locally acceptable - and possibly the support required for the development of specific charters, especially within teams very sharp, and the management of them involving their members - all experts in complementary areas essential to the project - the production rules of conduct necessary for collective efficiency. Their manager then can in a very legitimate and credible way encourage good behaviors but also punish the bad, without creating cultural resistance, braking or rebellion, which often generates exorbitant hidden costs for the company and a return rather difficult for the expatriate.
The big lesson is that any intercultural approach for the integration and success of expatriation is based on the recognition of the other. Specifically, it is a question of enhancing experience and specific know-how; to ensure that each member of the team or operationally multicultural feel truly recognized regardless of age, gender, business expertise, skin color or origin.
|Posted by USAFRANCE, LLC on January 5, 2015 at 12:20 PM||comments (0)|
On a commercial level, we must choose its partners!
If the company has no subsidiaries there, do not neglect to appeal to a Franco-American lawyer to draft distribution agreements or partnership. It is important to study the contract thoroughly even if it’s very long because prevention is better than fixing problems down the road.
• US partners: pay attention to their legal classification!
Be sure to:
• Master the differences between a "distributor" or "dealer" and between a "sales agent" or "sales rep". Carefully choose the type of relationship you want to share with your partner on the US market.
• "Due Diligence" Perform due diligence qualities of your distributor, dealer, commercial agent, and representative before hiring. Too many companies not accustomed to the practice of business in the United States engage in the transaction of business in the US without a "due diligence.” This can result in detrimental circumstances.
In legal terms
Can we sell and do business in the US without a branch?
It is clear that if you start to test the market, establishing a subsidiary will be too expensive. But once you start having serious distributors you should be thinking in a serious way if you wish to set up a sustainable way in the US and see your sales grow.
Also, creating a network is quite simple and brings considerable benefit.
The advantages of a flexible structure such as the LLC:
• The subsidiary will transfer and limitation of legal risks by contract. As a French provider, you can validly transfer some significant risks of liability for products distributor subsidiary in the USA.
• The subsidiary will set up a double insurance for liability products.
• Moreover, in the worst case, simply put "bankrupt" the subsidiary and the French company will normally reach out (Please comply with all formalities with your lawyer council)
• The company may open a bank account: Americans buyers prefer to pay in USD
• It can recruit and send an officer to the US to launch the subsidiary (L1 or E2 Visa, depending on the case, to confirm with immigration lawyer)
On a tax plan
Some customers have a virtual presence in the US either through a phone number or an address in a Regus office type. What are the consequences to the US address on invoices to send to US customers? The US tax authorities could consider that this address somehow gives a tax presence in society to USA. It needs to be understood that everything will depend on the circumstances of the company and a study by a lawyer is recommended.
However, under Article 5 of the Tax Treaty between the United States and France, one could consider that this foreign company (French) has a Permanent Establishment ("PE" in the United States, could then be subject to tax on the US federal income. Judging on the basis that it carries on business or occupation in the United States through a fixed operating headquarters or through a dependent agent who has, and exercises usually, signing authority to bind the company by French contract.
If the company sells in the US regularly, it is advisable to hire a tax lawyer or Franco-American accountant who can validate if the company needs to fill or not certain documents with the US administration and demonstrate that company has no PE in the United States.
|Posted by USAFRANCE, LLC on November 10, 2014 at 4:40 PM||comments (0)|
Some of the most successful founders in the U.S. are immigrants. How do you become a successful business leader in the U.S.? The first step is traveling there.
There are a few different ways to come to America and obtain a green card by using a business. One way is to get an EB-5 immigrant visa. To obtain this you have to invest in $1 million dollars in a U.S. business or $500,000 dollars in a business located in a rural area.
The second way is to obtain an EB-2 © visa. The requirement is to have a higher education degree of a masters or higher. This may still apply to you if you have exceptional ability in your field. The main purpose of this visa is for you to bring you experience and expertise into the U.S.
The third way is to obtain an E-2 Treaty Investors. To obtain this come to the U.S. start a business and invest at least $100,000 dollars. Also check to make sure your home country is on the list of treaty of investors, as this is another requirement.
The fourth way is to obtain an O-1 visa. To get this you have to have good business capability or be recognized for your talent. An example of this is someone who created a new business product that is selling very well, or someone who has created something that gets reviewed my United States media. The last requirement is to get a U.S. business to sponsor you.
The fifth way is a L1 visa. If you are a CEO or a top executive of a company that has locations in and out of the U.S. then the L1A visa is for you. If your company needs to send you to the U.S. you can receive this visa if you have worked at the company for at least one year. However, if your company is sending you to the U.S. because they want you to start a U.S. office for them then you should apply for the L1B visa. You do not have to be CEO to receive this visa; it is more likely that you just specialize in a certain area.
The sixth option is H1B visa. To obtain this visa you need to have at least a bachelor’s degree and be an employee of a company. There are specified requirements you will also have to meet which can be found here.
The seventh option is the B-1 Visa. This short term visa that max’s at one year. This is not a work visa. This visa is used mainly for networking. Most use this when they are researching what they wish to invest in or which business they’re going to start up.
The last option is for up and coming entrepreneurs. The F-1 OPT can get you to the U.S. if you are a student and have been studying for at least one year. If you plan on starting a business it has to be related to your major of study. You also can’t work more than 20 hours during the school year.
|Posted by USAFRANCE, LLC on September 10, 2014 at 3:05 PM||comments (0)|
Florida ranks the 4th largest GDP ($672,287 millions) right after New York.
Florida is part of the South-Eastern United States and it is growing, representing many opportunities.
The state gives access to many favorable tax provisions, and is ranked 5th among the most “Tax Friendly” states: no income taxes. So you can gain a million dollars and pay no taxes to the State of Florida, and corporate taxes are low; as well.
The tax rate for companies by the state of Florida is 5.5% and is one of the lowest rates in the country. The State also relies on local sales and property taxes more than most other states.
The cost of living and energy resources are low and the state has a good labor market (unemployment rate=6.2%). Besides, Florida is known for its near absence of unions.
Florida is becoming more and more attractive; services to individuals and business are developing in all areas. The state is the center of the country’s largest consumer in many sectors, such as food, textile, automotive, leisure and pharmaceuticals.
The attraction of Florida is apparent. Several companies have announced their presence as Aromatech France, Splendia Group, Pronutri Laboratories and Staff Batteries Group.
Florida is a state that provides a local market and is a first location to access the large U.S. market but also an opening to South America. It is the meeting point between the U.S. market and the Hispanic market. The Caribbean region has 750 million potential consumers and 80% of exports are directed towards these markets.
The 3 growth sectors are:
The number of registered French in the consulate of France is about 12,000.
France is an important player in the economy of Florida and one of its major economic partners. It is the first European partner in the region and the eighth supplier with 2.5 billion euro of trade. In addition, 450 French companies operating in Florida led to the creation of 20,000 jobs.
Florida is known worldwide for its mild climate. Its mild winters, gave him the status of paradise for retirees. Summers can be long and hot with showers and coastal areas have a gentle breeze in the summer.
There are 12 international airports and 14 deep water ports.
Florida has more golf courses than any other state. It offers excellent schools, and also has the particularity, especially South Florida, offering a program of French and American bilingual education in public schools in Miami-Dade and Broward County, known as the “International Studies” (IS).
Real estate in Florida is very attractive and offers great opportunities for European investors, particularly for French. Compared to prices found in Europe, the state offers prices lower, keeping in mind that the dollar remains less strong than the Euro.
Nature is omnipresent. One can go hiking and safari in the exceptional terrain of the Everglades. In Miami, there is the Coconut Grove neighborhood that offers a great density of trees and tropical plants.
Regarding cultural offerings, Miami, St Petersburg, Naples, Orlando or Fort Lauderdale, have many places and cultural events, such as concerts and museums.
It is important to know that despite a high rate of crime, the police are very present in Florida. The state, including Miami, has invested heavily in security in recent years to protect tourists.
Furthermore, it is not uncommon to meet many wild animals such as peacocks, alligators and raccoons.
Beaches in this area are huge. Florida is surrounded by ocean on three coasts and has over 869 miles of coastline, not to mention the thousands of miles of bays. There are beaches everywhere, for all ages and all tastes.
Therefore, Florida is a land of the future due to its geographical location and the growth rate of South America. The envy of all, the region displays a surplus of $1 billion and law makers are looking at dozens of new measures to reduce costs and taxes.
Zoom on Miami
Miami is one of the most popular places to vacation among all states and also in the world. You have the choice between the trendy nightlife of South Beach, the bustle of Calle Ocho and the caffeine energy of Little Havana. Miami Beach offers luxurious hotels in historic corner of Coral Gables. It provides visitors and residents a dazzling array of conveniences to enjoy.
Welcome to South America
The Hispanic population, mostly from Cuba, represents 60% of the population, 75% of the population speaks Spanish, while 30% speak little or no English. It is therefore important to know how to speak Spanish.
An economic potential
Miami hosts the largest fortunes of the United States. First port in the world for passenger cruises, the city has an important financial district composed mainly of banks and law firms.
The aerospace industry, the medical center, which is very important and has a good reputation (there is a new incubator program near the research center of Miami, for companies that have products or solutions that may apply to medicine), but also the creative industries such as accessories, luxury, fashion and creativity in media’s field.
The particularity of Miami is its diversity of sectors; the regions chose not to be dependent on a single sector.
A city of contrast
Miami Beach is a showcase of luxury, there is an array of big hotels, luxury boutiques and nightclubs. However this golden image of Miami hides another, the one with 26.9% of the population who lives below the poverty line, twice more than in the rest of the country.
Miami is a big city (37 miles long); most people say it is difficult to get around, also due to its heavy traffic.
Miami Beach, city coveted by the French youth
Cheaper than New York, Los Angeles or San Francisco, Miami is a booming city. Better known under the name of “paradise for retirees”, we are now seeing a younger population.
The Miami real estate is doing very well and is a favorable market. Neighborhoods of French predilections are Coconut Grove, vey lush, Miami Beach, Coral Gables and Brickell, the latter more urban.
The French influence
6000 French live in Miami and this community is very present in the hotel and restaurant industry, trade, real estate and nightlife.
Are you ready to establish a new business in Florida,
Starting a new business in Florida or buying an established business?
This is a question you must ask yourself if you hope to go into business in Florida. Buying an established business in Florida means established viability, reputation and customer base. This will also mean the purchase cost will be considerably higher than setting up a new business and will have to be weighed against your budget for relocating to Florida.
Starting your own business in Florida is obviously more risky. You must find the right piece of Florida real estate for your premises and carry out research to find out if there is a market for the goods or services you are offering.
It is vital that you set up your business in Florida in the right location.
More informations about businesses for sale in Florida: click on the picture below!
If you want to implement, CONTACT US: [email protected]
|Posted by USAFRANCE, LLC on May 14, 2014 at 11:35 AM||comments (0)|
Welcome to the economic and cultural center of the Midwest, the 3rd largest city in the United States, bordered by Lake Michigan and with 10 million inhabitants.
The city of “the most”:
“The Windy City”:
The climate is very pleasant during the summer but very rigorous in winter (down to - 4 degree farenheit). However, the city is very well equipped to face the climate and to facilitate people to circulate and move.
A completely different mindset, the philosophy of “Can Do Attitude”, which makes us say that when you have a “why” which makes us live, we can support the “how”.
With its 250 corporate headquarters, including 28 of the Fortune 500 list and 1,500 foreign companies, Chicago is undoubtedly a must business to study if you want to settle in the United States. Here, companies thrive as the economy of Chicago is diverse, ranging from innovative startups to multinational activities through manufacturing companies.
The city ranks at the 3rd place nationally for the number of companies established in its metropolitan area, the most important are:
Quality of life in Chicago is excellent…
Chicago is accessible and the cost of living there is not too high. Indeed, it is a city for everyone and every mood, where you can do a multitude of things. Shops, nightlife and restaurants are the equal of New York. And it’s beautiful beaches and numerous water activities appeal to outdoor enthusiasts.
There is a testimony of Guillaume Labat: “Chicago has a great architecture. We find here a blend of modern skyscrapers and older buildings, dating from early nineteenth century.”
“I think that America continues to support the entrepreneurial spirit. In a way I would say that the American Dream exists as long as you operate according to the American mentality and methodology of work: to jump into the water a little faster, put aside his fears and “just do it”, indicates an entrepreneur.
Here are some testimonials from entrepreneurs implanted in Chicago : http://www.frenchinchicago.com/#!__articles/etre-entrepreneur
For more information: [email protected]
|Posted by USAFRANCE, LLC on May 14, 2014 at 10:50 AM||comments (0)|
A recent report from IMD (Institute for Management Development) has named the United States as the top of the listing of the most competitive countries in the World.
We assisted to the “rebirth” of the United States. In 2012, Hong-Kong was at first place, followed by the United States, and Switzerland but surprisingly in 2013 the listing completely changed with at the top the United States, followed by Switzerland and Hong-Kong, in this order. This global report on competitiveness 2013-2014 showed that countries which have a high innovation rate and with large institutions networking, dominate international rankings of competitiveness.
We can find these factors when we describe the United States. This country is known for its jumping financial industry, good reputation according to technological innovations, performing companies, and its political stability and academic excellence.
The U.S. economy is the largest and the most productive in the world. It represents one fifth of global GDP with 4.5% of the world population. The US economy is nearly twice the size of China in nominal dollars. In 2008, eight of the ten top brands are American. The country hosts the major players in social media, offers the best universities in the world (six of the top ten universities in the world was American by Quacquareli Symons World Ranking). Not to mention that the dollar ($) is the world’s reserve currency and accounted for about 62% of world reserves of the central bank in the fourth quarter of 2012, according to the IMF.
Manufacturing: The winning key
The U.S. manufacturing is about to become, one of the most competitive among rich countries, it is called the “low-cost” country of the west.
According to the U.S. Trust, the nominal manufacturing is $1.9 billion in 2012, an increase of 27% over 2009.
The United-States is about to become one of the countries with the lowest manufacturing costs in the developed world (by a report from the Boston Consulting Group). By 2015, the average cost of manufacturing in Britain, Germany, Japan, Italy and France should be 8 to 18% higher than those prevailing in the United States. The advantage compared to the others, is its cost of labor, it is 16% lower than in the UK, 18% lower than in Germany and 35% lower than in France and Italy. Not only wages are lower but factories also benefit from digital technologies which reduce payroll.
Top 10 countries where manufacturing is the most competitive:
(2) The United-States
(3) South Korea
(4) The United Kingdom
(6) The Netherlands
(10) And France
We are witnessing a technological leap of the United States.
There are only 66 countries which are evaluated according to the basic criteria for innovation in the field of technology: the global economy, infrastructures, numbers of potential employees, research and development, legal environment and public support to industry.
In the United States, there is a drop in energy supply costs. A mastery of hydraulic fracturing, explained by their unlocking in North Dakota, Oklahoma and Texas.
U.S. companies have a gas price of 2.6 to 3.8 times lower than in other industrialized countries. The gas price has fallen by 50% in ten years with the development of shale gas. The main sectors benefiting are transport, energy sector, chemistry, computer science, electronics, mechanics and metallurgy. The United States may be called the “low-cost” country of industrialized countries, but its cost of production is still higher than that of China.
A declining budget deficit
Exports are at their highest level for 50 years and the United States is experiencing a wave of re-industrialization with the rush of large groups such as Toyota, Honda, Siemens, and Michelin. Total exports in 2012 were 2.2 billion dollars, an increase of 40% since 2009. According to BCG, by 2015, the country could reach 70 to 115 billion dollars in exports to other major industrialized countries, especially Germany, France, the United Kingdom and Japan.
Employment and productivity of the United States
The United States is in a slow growth of employment that has not yet filled the heavy losses during 2008-2009 crisis. Since 2012 until the first quarter of 2013, 498,000 jobs were created against the 1.3 million jobs destroyed in 2009.
According to Boston Consulting Group, by 2020, The U.S. could recover between 20 and 55 billion export market over their European competitors. Thus by 2020, between 600,000 and 1.2 million direct jobs will be created in the result of increasing exports and the improvement of the competitiveness of industrial jobs. Added to that between 1.9 million and 3.5 million jobs in services (distribution, transportation, and logistics).
A report published in April 2014 by BCG, shows that while China remains the world leader in terms of competitiveness of its manufacturing industry, it is put “under pressure” due to the rising costs of labor and transportation and a slight improvement in its productivity.
Thus, the U.S. economy is marked by a reduction in the current account deficit, this shows an increase of productivity gains, leading to a massive reduction in unit costs of production and therefore a competitive gain of U.S. companies. Americans workers are much better paid than workers in emerging countries, but they are also much more productive. Salary costs in emerging countries are rising so there is a return to employment in the United States, especially in the manufacturing sector.
The attractiveness of the United States
Demand of the United States attracts a lot. The country is one of the largest consumer markets. Furthermore, theirs is the largest and richest world middle class.
Foreign investors are also very attracted to the United States. FDI inflows in the years after the crises have accumulated 736 billion and that is 15% of the world total.
Set up in the United States
Each year many companies locate their subsidiaries in the USA. Even recently, the French start-up Augment, after having lifted a million euro has just gone to Chicago. This amount will allow it to open a permanent office in the United States to develop the U.S. market. This subsidiary will be headed by Mickael Jordan who went to live in Chicago, the city where his namesake, the basketball player Michael Jordan, made his career. “We want to create a new form of viral marketing,” laughs Jean-François Chianetta.
Entrepreneurs create or take each days, businesses: Recently, in Florida a former manager of a Carrefour brand in France decided to locate in Florida by buying a promising company: Clear Water Pools; A complete service for owners of pools two steps of Orlando.
Whether large or small scale, the United States is definitely a pole of attraction for entrepreneurs wishing to succeed.
ReussirUsa stands at your disposal if you want to join those who have succeeded in the U.S.
|Posted by USAFRANCE, LLC on May 2, 2014 at 1:55 AM||comments (0)|
As you may know, the US market is one of the most attractive and one of the toughest in the world. Settling in this country can become easier with the right cipher and some planning and studying.
First you must forget all the clichés you have about the USA and its population. Here are a few examples of stereotypes of America as seen by foreigners:
- Americans are cowboys and shoot before they aim.
- Americans have no culture.
- Americans do not know their geography.
Before settling in the USA, it’s essential to understand the people, the country and the American way of life.
Being an expatriate.
Some steps must be respected before and after the move concerning taxes, bank accounts, visas, social security, etc. Not following these steps can be damaging for you and your relatives.
You want to export in the USA?
The procedures have to be mastered and will depend on your products and/or the targeted market. Passing through U.S. customs is not an easy task without the advice of an experienced person used to dealing with importers, customs and governmental agencies. This is why we strongly recommend having a partner on site that will be able to help you comply with U.S. regulations. The American market and consumers aren’t waiting for you and your products and you will have to adapt your strategy to them, and even your products.
Why the choice of the location is important? The USA is the USA right?
The territory is huge; don’t forget that this country is almost as big as Europe. To choose the right destination you must consider several criteria, such as:
- Climate (The south is hot, the North can be amazingly cold, the West Coast and the East coast are different, etc.). So choose a location where you will feel comfortable living.
- Your budget (New York and Los Angeles which are extremely expensive, are not the only possibilities).
- All the States are not equal regarding taxes, which can matter for your company and for your family.
- And more …
Creating and managing a business in America is different than most other countries and once again, procedures and regulations have to be followed to the letter.
Unfortunately, it can’t be summarized in a few lines. For more information, check out our complete guide available online explaining all the steps to follow and the main information necessary to successfully settle and adjust in the USA.
|Posted by USAFRANCE, LLC on July 27, 2013 at 1:45 AM||comments (0)|
According to Lucintel, the global cosmetics industry is expected to reach $630Bn (€487Bn) by 2017, with a CAGR of 3.4% over the next five years (1). Europe is traditionally the leading market in cosmetics, representing nearly half of the global market. In 2010, its value was worth €66.6bn, and it has been constantly growing since the industry’s full post-recession recovery in 2011 (2). Europe is also the world’s largest cosmetics exporter, with 62% of its cosmetic products being marketed outside of Europe.
In 2012, skin care saw the introduction of even more targeted solutions, serums and even bespoke services tailored to the consumer’s needs. Adding to this mix has been the variety of offerings aimed at consumers of a specific age, such as the over 50s, over 30s, pre-teens etc. Recent product launches include lines from Shiseido, Mary Kay and L’Oréal, for example L’Oréal’s Age Perfect Renaissance Cellulaire. With consumers more knowledgeable and demanding than ever before, targeted offerings and services are becoming a vital tool to gain a competitive advantage. - See more at blog euromonitor
A study by Nielsen also suggests that consumers are increasingly socially responsible, discussing product sustainability on social networks and seeking sustainable and environment-friendly products. These consumers are mostly under 40 years of age, and are willing to pay a premium for such products. This implies that sustainability trends are bound to continue and further increase in the future.
If you wish to export your product to Europe, be aware that the cosmetic products are regulated according to the EU regulations. The European Union (EU) has published the long-awaited Regulation No. 1223/2009 which went into effect on July 11, 2013.
Often US companies wonder if they have to register their products in each country in Europe. Actually, once your product has been properly registered in one country, it can be imported into all the EU countries.
|Posted by USAFRANCE, LLC on April 17, 2013 at 10:30 AM||comments (0)|
April 16th, 2013
A Press Conference was postpone out of respects for the victims of the Bombings in Boston yesterday, but small amounts of details were being reported from early this morning. The Senate group could announce the final measure tomorrow
A Statement by the President on Commonsense Immigration Reform was posted:
“This afternoon, Senators Schumer and McCain briefed me on the bipartisan immigration reform bill that they have drafted with their colleagues in the Senate. This bill is clearly a compromise” says the President Barack Obama
The U.S. immigration system would shift from emphasizing family ties to U.S. citizens or permanent residents in determining who can come to this country, to putting a much bigger focus on their skills or employment opportunities.
The Senate creates a new W visa that provides a new mechanism for hiring foreign labor. For temporary H-1B visas, the bill nearly doubles the base number of visas from 65,000 to 110,000. Employers will have to pay higher wages for H-1B workers, pay additional fees, and show that they actively recruit U.S. workers for a particular position. The bill creates a new guest worker “W-visa” for 20,000 immigrants in low-skilled jobs. The number of W visas could rise to 75,000 in 2019.
Some entrepreneurs may benefit from the proposed merit-based visa, which could help keep especially talented employees in the U.S. The merit-based visa would not be available until the fifth year after the law is passed, according to the summary. These visas would be distributed to those who earn the most points in a system that rewards individuals based on education, employment, length of residence in the U.S., and other various metrics (source entrepreneur)
|Posted by USAFRANCE, LLC on April 16, 2013 at 4:45 PM||comments (0)|
Bill number H.R.6210 was introduced into Congress in July, 2012. It would allow Non Immigrant visa holders to apply for Green Cards if they have created employment for 5 US citizens for 4 years or more.
This bill was introduced to amend the Immigration and Nationality Act to provide for additional immigrant visas for certain entrepreneurs and job creators, and for other purposes.
At this moment, the committee chair needs to determine whether the bill will move past the committee stage.
“This bill would amend the immigration laws to prioritize existing employment-based green cards for entrepreneurs who start new businesses in the United States and create jobs for American workers
The American Investment and Job Creation Act is a step forward, and it is an immigration bill that people from all sides should be able to support", says US Congressman John Conyers
For more information: [email protected]
|Posted by USAFRANCE, LLC on April 4, 2013 at 3:40 PM||comments (0)|
FOR INTERNATIONAL FRANCHISORS, THE U.S. MARKET IS THE HOLY GRAIL. HERE’S HOW SOME FOREIGN COMPANIES WERE ABLE TO OVERCOME CULTURAL AND LEGAL DIFFERENCES AND STAKE A CLAIM FOR THEIR CONCEPTS IN THE STATES. (From Entrepreneur Magazine)
The word "franchise" is derived from the Anglo-French word meaning “liberty.” In Middle French, it is “franchir”– to free. In Old French, it is “franc,” signifying free. The French term “francis” means granting rights or power to a peasant or serf. The English term “enfranchise” is defined as empowering those who have no rights. The term “Royal Tithes” is the predecessor of royalties, and originated as the practice of certain English men (referred to as “freemen, receiving a percentage of the land fees paid by serfs to nobility. Throughout history, franchising has promoted economic liberation, synergy, and opportunity, and has been true to its etymological roots – “freeing” commerce from many of the traditional chains that had bound it. Naisbitt’s famous comment in Megatrends is no exaggeration – “Franchising is the single most successful marketing concept ever.”
Many people view franchising as a uniquely American practice—with McDonald’s, KFC and Subway seen as the ambassadors of American culture. While the goal for many domestic franchises is to build a base in the U.S. and eventually expand across the globe, it turns out the Holy Grail for international franchises is the U.S. market. And in the last few years, as franchising has matured elsewhere, many strong concepts are making it to America. Yogurt franchise Red Mango, for instance, is an import from South Korea. Sixt, one of the largest car-rental agencies (France), has opened nine U.S. units. And Cartridge World, with 650 locations in North America, originated in Australia. A lot of French franchises have been successful in the USA, including Jacques Dessange. In 1977, Jacques Dessange launched the first franchise ever in the hair industry, successfully combining for the first time the franchising system and a sector of the luxury industry.( Source Entrepreneur Magazine)
Indeed, similar to the United States, France has a long history in franchising, which dates back to the 1930s when a knitting company started to “franchise” its business model. It was around the 1970s that franchising clearly started to grow and to appear in all sectors of the economy, parallel to the development pattern in the United States.
French franchises have also experienced strong growth outside of their national territory with more than 230 brands present in international markets.
Franchisors can turn their expansion over to a master franchisee in the U.S. In another case, that of Aussie Pet Mobile, which originated Down Under, the franchise moved its headquarters to the U.S. to conquer the pet-grooming niche here.
“A foreign franchisor looks at the U.S. market like mecca,” says Aussie Pet Mobile founder Ian Moses. “It’s one thing to be successful in a country with 20 million people. But it stands to reason [you’d want] to bring the concept to America, with 300 million people who have the same aspirations and same love for their pets. And it’s a fairly easy transition, since there are no language problems and no real cultural barriers.”
Since its arrival in 1999, Aussie Pet Mobile has launched 70 U.S. franchises that operate 200 pet-grooming vans. The company is now based in Aliso Viejo, Calif., having sold its Australian operations to a licensee.
But the transition wasn’t without hiccups. At first, the “pet mobile” was a trailer pulled behind a truck—an ideal setup for a warm locale like Australia, but no easy task when facing a blizzard in Boston. So Moses redesigned the concept, putting the mobile grooming studio inside a van.
The hardest sell for foreign franchises in the U.S. might be the restaurant sector. While tastes have evolved in the last few decades, American palates are still not as adventurous as many would like to think.
Yoshinoya—the gyudon, or “beef bowl,” chain—was founded in 1899 in Japan as one of the world’s first fast-food companies. In 1979, Yoshinoya, which has 1,800 units worldwide, decided to try its hand in the U.S., mainly in Southern California. In 2008, the company decided to start franchising; it now has 22 franchised units and 72 company stores in the States.
But Japanese tastes are not always compatible with those of Americans. That’s why subsidiary Yoshinoya America has the freedom to tweak flavor profiles and operations to fit the U.S. consumer. In fact, in May 2012 it launched a sister concept, Asiana Grill Yoshinoya, a fast-casual restaurant that lets customers create their own rice and noodle bowls. “Our parent company gave approval, but this is definitely a Yoshinoya USA project,” says Lea Rodriguez, vice president of marketing for Yoshinoya America. “We’re constantly looking at our industry and want to adapt and bring in new market share. Asiana Grill is geared for a different demographic than Yoshinoya.”
Franchise businesses expanding into the U.S., for example, face some of the most comprehensive franchise disclosure rules in the world. For all franchisors looking to offer a franchise in the U.S. they have to comply with the FDD (Franchise Disclosure Document) rule and deliver a disclosure document within at least 14 calendar days before the prospective franchisee signs a binding agreement with, or makes any payment to, the franchisor or an affiliate in connection with the proposed franchise sale6.
The franchise laws in many other countries are not as strict as in the U.S. However it is important that a franchisor hires a local attorney who is familiar with franchising and local law to assist in preparing any necessary legal documents.
Moses of Aussie Pet Mobile faced these challenges. “One of the best pieces of advice I can give to any franchisor is to surround yourself with very, very competent professionals,” he says. “I was lucky to have a good franchise attorney. You have to pay to engage professionals who have been doing this for 20 or 25 years. It may cost more, but it’s going to pay off so much for you to get the regulatory thing under control and get you off and running.”
Successful European franchisors are running out of markets, and there’s no way they can’t not look at the U.S. They have the financial firepower, and if they get the paperwork in place and a pilot off the ground, they stand a good chance of competing with U.S. franchisors.
And then there’s simply the cachet that comes with conquering a mega market. “The world views America as the franchising capital of the world,” Moses says. “It goes back to McDonald’s, etc.—that’s where franchising started. Everyone around the world has the ultimate goal of having a successful system in America.
|Posted by USAFRANCE, LLC on April 2, 2013 at 12:40 PM||comments (0)|
The American economy grew at a faster rate at the end of last year than previously estimated. For the first time since the financial crisis, U.S. employers are expected within days to reach a limit on the yearly allotment of applications for coveted skilled-worker visas, a sign of the strengthening economy that means some employers will rely on a lottery to fill key positions.
U.S. companies each year can sponsor a total of 65,000 foreigners with at least a bachelor's degree for a so-called H-1B visa, many of which go to programmers and other specialized workers. The program allocates an additional 20,000 visas each year to foreign nationals with advanced degrees from U.S. universities.
Government and company officials predict employers by Friday will exhaust the quota for this year's application season, which opened Monday for jobs starting in October or later. If that happens, the U.S. Citizenship and Immigration Services, the agency that runs the program, will randomly select applications that will then be considered for visas if any applications received before the cap are rejected.
The last time employers reached the congressionally mandated limit in less than a week was 2008. In subsequent years, the weak economy left thousands of H-1B spots unfilled until later in the season. Demand for the program has increased in the past two years as companies accelerated hiring overall.
The rising demand comes as the Senate moves closer to a broad immigration bill that would, among other things, revamp a series of work-visa programs.
The H-1Bs are granted for three years but can be renewed for a total of six years.
An H1B visa holder can be the beneficiary of an immigrant visa petition, apply for adjustment of status, or take other steps toward Lawful Permanent Resident (Green Card) status without affecting their H1B status. This is known as "dual intent" and has been recognized in the immigration law since passage of the Immigration Act of 1990
|Posted by USAFRANCE, LLC on March 27, 2013 at 5:30 PM||comments (0)|
E-2 visa helps many non-U.S. citizens start small firms
A noncitizen of the U.S. can come to this country and start a business under an E-2 treaty investor visa for an investment . And that business owner, as well as members of his or her family, can live here legally as long as the business is a going concern.
But meeting the requirements of the E-2 visa is not that easy.
First of all, the visa applicant must make a "substantial" investment in the planned business, according to the U.S. State Department, that is "sufficient to ensure the successful operation of the enterprise."
Denmark native Mia Pedersen went through the process in order to start up an ice cream store, Paradis, in the Montrose Shopping Park in 2009. (Source LATIMES.COM)
"You have to have your business almost 80% ready to go before you can apply," said Pedersen.
And even a small business, such as a single ice cream shop, has to prove it will provide some benefit to the local economy by creating jobs or by other means.
The US immigration states that:
"The investment enterprise may not be marginal. A marginal enterprise is one that does not have the present or future capacity to generate more than enough income to provide a minimal living for the treaty investor and his or her family. "
You must show a progression and that your business can generate some profit and that you can have few employees
An E-2 visa can be renewed every two to five years, but every time it comes up for renewal the business owner may be called upon to show that his or her enterprise is providing economic benefits.
The E-2 is not the only visa that allows a person to come to the U.S. to start a business, but it is less expensive than others. The amount of investment depends on the type of business that's being started, and there's no set rule.
By comparison, the EB-5 immigrant investor visa requires a minimum outlay of $500,000 and has far more rigid criteria regarding employee counts. But it provides a pathway to a green card and permanent residency.
The E-2, of which 25,500 were issued by the government in fiscal 2010, is intended for what the State Department calls "temporary visitors." And children of E-2 visa holders can't stay in the country once they turn 21 unless they qualify for a different type of visa.
In the last two years, bills have been proposed to allow E-2 holders to eventually earn permanent residency.
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