Foreign Direct Investment

California FOREIGN DIRECT INVESTMENT TECH GUIDE 2021 Introduction Do You Want to Locate Your Tech-Based Business in California? If you are looking to expand or move The California Association for Local your technology-based business to Economic Development (CALED) California, this foreign direct investment is pleased to bring you these valuable (FDI) Tech Guide will help you navigate resources. The guide is made possible the business environment by providing through the support of the U.S. key resources to answer some of the Commercial Service, including sharing most pressing questions businesses must expertise from senior staff as well as consider when locating in California. writing contributions from the following As the fifth largest economy in interns provided through Virtual Student the world, California is known for its Federal Service program; Julia Braeuner, culture of supporting new and emerging Indiana University Bloomington; Nailah businesses – especially, those that Pierce, University of Massachusetts create or embrace new technologies to Amherst; and, Grace Thomas, The advance innovation. We champion the University of Texas at Austin. value of diversity and welcome foreign Additionally, we are grateful to all the entrepreneurs to our state, which is why professionals that shared their knowledge we developed this guide to help you with to create a tool that foreign tech-based key information and resources to plan businesses can use to strategically plan your entry into the California market. their entry into our state. We hope this Some key items you should review are: guide helps your business grow here and helps you fulfill your California Dream. • FDI Checklist – things to consider ABOUT CALED before, during, and after locating The California Association for Local your business in California Economic Development is California’s • Economic Development premier economic development Organizations – information on association. With more than 800 local contacts that help businesses members, it is one of the largest economic move to and thrive in California development associations in the country, • Golden Rules for FDI – case which is why we refer to our membership studies on successful foreign as California’s Economic Development businesses that have located in Network. Since 1980, when it was created, California and how they did it CALED has led the way in supporting economic developers in California as they work hard to help businesses grow, locate, and thrive in our state. CALED California sunset 2150 River Plaza Drive, Suite 275 916-448-8252 Sacramento, CA 95833 https://caled.org/ INTRODUCTION 2 California FDI Tech Guide June 2021 Table of Contents Introduction ............................................................................ 2 Discussion on Intellectual Property ��44 Do You Want to Locate Your Tech-Based Business in California? 2 Incubators & Accelerators .................................................... 47 Table of Contents .................................................................... 3 Discussion on Incubators & Accelerators ��48 FDI Checklist .......................................................................... 4 Commercial Real Estate ��50 Economic Development Organizations (EDOs) .................... 5 Venture Capital ..................................................................... 52 California Association for Local Economic Development (CALED) ��6 Discussion on Venture Capital ��53 GlobalSF ��8 Executive Education Training ............................................... 55 Solano Economic Development Corporation ��10 Discussion on Executive Education Training ��56 Los Angeles Economic Development Corporation (LAEDC) ��12 Manufacturing Ecosystem .................................................... 59 Nevada County Economic Resource Council (NCERC) ��15 Discussion on Manufacturing Ecosystem ��60 California Governor’s Office of Business and Hiring Practices .................................................................... 63 Economic Development (GO-Biz) ��17 Discussion on Hiring Practices ��67 Tech Subsectors in California �� 18 U.S. Commercial Service ...................................................... 69 Bay Area Council Economic Institute ��20 Golden Rules for FDI: Success Stories �� 70 Business Entity Types ........................................................... 22 Epilert ��70 Discussion on Business Entity Types ��23 Aussie Landing Pad ��72 Discussions on Consulates ....................................................24 Pick-n-Watch ��74 Visa Matters ..........................................................................26 Centaur Analytics, Inc� ��75 Discussion on Visa Matters ��28 dRISK ��76 Bank Accounts & Credit .......................................................30 List of Foreign Consulates in California ............................... 78 Discussion on Credit Cards and Bank Accounts ��32 Taxes & Insurance ................................................................34 Discussion on Tax Considerations ��37 Registration Rules & Incentives ........................................... 39 Intellectual Property ............................................................. 41 TABLE OF CONTENTS 3 FDI Checklist Here is a quick summary of some of the items featured in this guide that you may want to put on your checklist to do before arrival, upon arrival, and sometime after arrival in California. BefOre arrival IN UpON arrival IN AFTer arrival IN CalifORNIA: CalifORNIA: CalifORNIA: □ Initiate conversations with □ Incorporate and register the firm □ If applicable, flip subsidy model EDOs, CALED, and U.S. (see section on Registration to have US business the top Commercial Service Rules & Incentives) company (see EDOs and U.S. (see Business Entity Types) Commercial Service) □ Apply for Federal Employer Identification Number (FEIN) □ Obtain insurance □ Research tax credits, incentives, and state tax ID for tax (see Taxes & Insurance) grants, and tariff issues registration (see Taxes & Insurance and (see Taxes & Insurance) □ Select an accounting provider Registration Rules & Incentives) and patent attorney □ Set up personal and business (see Taxes & Insurance, Bank □ Research business entity types bank account Accounts & Credit, and (see Business Entity Types) (see Bank Accounts & Credit) Intellectual Property) □ Work with the U.S. consulate to □ Make contact with your local □ Begin process to obtain a credit apply for visa consulate score (see Visa Matters) (see Consulates) (see Bank Accounts & Credit) □ Research location for □ File to protect your IP establishing business (see Intellectual Property) (see Commercial Real Estate) □ Hiring and HR considerations □ Consider available incubator/ (see Hiring Practices) accelerator programs (see Incubators & Accelerators □ Consider training needs and Commercial Real Estate) for executives (see Executive Education) □ Consider financing needs, including venture capital (see Venture Capital) □ Begin process to identify a law firm, accounting support, and identifying your IP protection plan FDI CHECKLIST 4 Economic Development Organizations (EDOs) Once foreign direct investors have made the decision to enter the U.S. market, economic development organizations (EDOs) offer a good starting place to provide the firm with information and counseling on local markets. Whether firms are still considering a variety of markets or have narrowed in their focus on a particular locality, working with EDOs will give firms an insider point of view on which market suits them best. Beyond attracting investment, EDOs typically also work to maintain relationships with the firms in their respective location to ensure long

Load more