WILMINGTON, DE — Nearly 45% of global C-suite executives plan to establish a legal entity in the United States within the next 12 months, according to a survey released by CSC.
The survey of 300 executives from companies headquartered in Europe, the United Kingdom, Asia Pacific and South America found an additional 27% are considering entering the U.S. market within two to three years.
CSC said 65% of respondents cited supply chain or manufacturing efficiency as the primary driver for expansion, while 56% pointed to strategic positioning, including partnerships and mergers and acquisitions, and 56% cited access to capital markets.
Myrna Reijnders, market leader for the Americas at CSC, said companies are seeking access to U.S. consumers and investors.
“We’re seeing a clear trend of U.K., European, and Asia-Pacific multinationals incorporating a U.S. entity to reach the approximately 340 million consumers or investors in the U.S.,” Reijnders said.
The report also identified compliance challenges, with 88% of respondents citing federal and state tax reporting as the most burdensome requirement, followed by employment and labor regulations at 80%.
Half of companies with an existing U.S. presence said they were surprised by the complexity of tax and financial reporting requirements after entering the market.
The survey found 79% of executives are likely to outsource U.S. compliance or governance functions, including 62% who said they are very likely to do so.
Jenn Kenton, chief commercial officer at CSC, said companies often underestimate regulatory variation across jurisdictions.
“Companies assume doing business in the U.S. means you’re working in one jurisdiction. But rules and requirements can vary at the federal, state, and local levels,” Kenton said.
CSC provides governance and compliance services, including entity formation, registered agent representation and regulatory filings.
The full report, Navigating U.S. Market Entry: Insights, Risks, and Opportunities for Global Businesses, is available at cscglobal.com/service/campaigns/us-market-entry-report/.
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