Why I Chose to Register a Company in the U.S. Uncovering the Truth Behind Hangzhou Entrepreneurs

Why I Chose to Register a Company in the U.S. Insights from a Hangzhou Entrepreneur

In the dynamic and innovative city of Hangzhou, more and more entrepreneurs are turning their gaze overseas in search of broader development opportunities. As a business owner navigating the path of globalization, I recently made a decision that may seem surprising at first glance - to register a company in the United States. This was not a spur-of-the-moment choice, but rather a well-considered move based on a comprehensive evaluation of the current business environment, policy trends, and long-term corporate strategy.

In recent years, as economic interactions between China and the U.S. have deepened, an increasing number of Chinese companies have chosen to expand internationally. The U.S., as one of the world’s largest economies, remains a top destination for many entrepreneurs. According to media reports from 2025, the number of Chinese companies registering in the U.S. has seen an upward trend compared to the previous year, particularly in fields such as technology, biomedicine, and new energy. These companies are leveraging the U.S. market to achieve technological integration and capital convergence.

So why am I, as an entrepreneur based in Hangzhou, joining this trend? The decision is rooted in several key factors.

1. A More Mature Financing Environment and Efficient Capital Operations

The U.S. boasts the world’s most mature capital market system. Exchanges like NASDAQ and the New York Stock Exchange have long provided strong financing platforms for global startups. Despite regulatory differences between China and the U.S., the U.S. offers a multi-layered capital market, abundant venture capital resources, and a relatively transparent listing mechanism - all of which continue to attract Chinese enterprises.

Take Hangzhou as an example in recent years, numerous technology-driven companies have emerged in sectors such as artificial intelligence, biotechnology, and smart manufacturing. These companies require substantial financial support. While platforms like the STAR Market and the Beijing Stock Exchange have improved access to financing for SMEs, the overall efficiency and valuation levels still lag behind those in the U.S. For high-growth companies that are not yet profitable, registering in the U.S. often makes it easier to gain recognition from international investors.

2. Global Branding and Enhanced Corporate Image

Registering a company in the U.S. is not just a legal formality - it’s a powerful step toward global branding. As a global economic leader, the U.S. business system and commercial credibility are widely recognized around the world. To international clients, a U.S.-based company often signals a more professional management system, stronger technical capabilities, and greater reliability.

For Hangzhou-based foreign trade companies, this brand premium is especially valuable. According to data from Hangzhou’s Cross-Border E-commerce Comprehensive Pilot Zone in 2025, local cross-border e-commerce transaction volumes grew by over 20% year-on-year. During this process, many companies found that having a U.S. company identity helps them enter the European and American markets more smoothly, boosts customer trust, and even strengthens their position in price negotiations.

3. Easier Access to Technology Collaboration and Talent Acquisition

The U.S. is not only the global center of technological innovation but also a hub for top-tier talent. By registering a company in the U.S., businesses can more easily establish partnerships with local universities, research institutions, and tech firms, gaining access to advanced technological resources. Additionally, the U.S. visa policies, such as the H-1B visa and the EB-1A extraordinary ability immigration program, offer convenient pathways for recruiting high-level talent.

For tech companies in Hangzhou, this represents a major advantage. Access to global talent pools and cutting-edge research can significantly accelerate innovation and competitiveness.

4. Bypassing Trade Barriers and Strengthening Supply Chain Resilience

In recent years, the global trade landscape has undergone profound changes, with rising protectionism posing challenges to Chinese companies expanding overseas. However, setting up a U.S. entity can help mitigate some of these trade barriers - such as tariffs and export restrictions. For instance, in 2025, although China and the U.S. reached some interim agreements in several areas, significant disagreements remained in the high-tech sector.

In this context, some companies have opted to establish subsidiaries or joint ventures in the U.S., enabling localized operations that reduce trade risks and enhance the resilience of global supply chains.

5. A Robust Legal System and Transparent Business Environment

The U.S. legal system is mature and the business environment is relatively transparent - both are crucial for enterprise development. Whether it’s contract disputes, intellectual property protection, or labor relations, there are well-established legal frameworks in place. In contrast, legal systems in many emerging markets remain underdeveloped, exposing companies to greater legal risks when expanding overseas.

The U.S. also maintains a strict intellectual property protection regime - a critical asset for technology and innovation-driven companies. Many enterprises in Hangzhou are actively filing international patents, and establishing a U.S. company can help better manage and enforce these intellectual property rights.

Conclusion

Choosing to register a company in the U.S. does not mean abandoning the domestic market - it is a strategic decision made with a global vision. Entrepreneurs in Hangzhou are increasingly recognizing that globalization is no longer an option, but a necessity. Establishing a U.S. entity can significantly enhance a company’s international competitiveness and open up broader market opportunities.

Of course, this path is not without its challenges - including tax compliance, legal considerations, and human resource management. But with thorough preparation and the right professional support, we can confidently and steadily advance on this global journey.