Key Points Potential Opportunities You Must Know to Establish a Subsidiary in the U.S.

Key Considerations and Potential Opportunities When Establishing a Subsidiary in the United States

In recent years, with the acceleration of globalization, more and more Chinese companies have chosen to expand overseas. The United States, as one of the world's largest economies, offers a mature market mechanism, a vast consumer base, and a robust legal framework, making it a top destination for companies pursuing international expansion. Particularly in 2025, as business exchanges between China and the U.S. gradually resume, many companies are once again turning their attention to the American market. In this context, establishing a U.S. subsidiary has become a crucial step for many companies in executing their global strategies.

1. Why Establish a Subsidiary in the U.S.?

The U.S. market is highly open and inclusive, with a relatively transparent legal system and strong intellectual property protection-making it especially attractive for companies focused on technological innovation and brand development. The U.S. also boasts a world-leading financial system and capital market, offering broad opportunities for financing, listing, and capital operations.

According to a July 2025 report by The Wall Street Journal, more Asian companies chose to establish branches in the U.S. during the first half of 2025, particularly in the fields of technology, new energy, and biomedicine, showing strong growth momentum. This trend reflects a growing international confidence in the resilience of the U.S. economy.

2. Key Considerations in Establishing a U.S. Subsidiary

2.1 Choosing the Right Business Structure

When setting up a subsidiary in the U.S., companies should choose an appropriate legal structure based on their business nature and long-term goals. Common structures include C Corporations, S Corporations, and Limited Liability Companies LLCs. C Corporations are typically suitable for companies planning to go public or attract foreign investment, while LLCs are often preferred by small and medium-sized enterprises due to their flexibility in tax treatment and liability protection.

2.2 Registration Process and Legal Compliance

Company registration in the U.S. is handled at the state level, so businesses must select a state based on their operational focus. Delaware, for example, is a popular choice due to its business-friendly legal environment and tax policies. During registration, companies must submit documents such as the articles of incorporation, registered address, and shareholder information, and apply for an Employer Identification Number EIN. Additionally, companies must comply with both federal and state regulations, including tax filings, labor laws, and environmental standards. For foreign firms, legal compliance costs and risks should not be underestimated.

2.3 Tax Planning and Structural Arrangements

The U.S. tax system is complex, involving federal income tax, state tax, and sales tax, all of which require careful planning. At the same time, the U.S. and China have a tax treaty that can be leveraged to avoid double taxation. It is advisable for companies to consult professional tax advisors before establishment to design an efficient cross-border tax structure.

2.4 Bank Accounts and Financial Management

After establishing a subsidiary, companies must open a U.S. bank account to manage daily operations and financial transactions. Due to strict financial regulations, the account-opening process may be complex and require documents such as company registration papers, shareholder identification, and business plans. Companies should also consider the compliance and efficiency of cross-border capital flows.

2.5 Human Resources and Local Management

Operating a subsidiary in the U.S. means navigating different cultural and management environments. Hiring local talent, establishing compliant employment practices, and adhering to U.S. labor laws are essential for successful operations. Additionally, companies should focus on brand localization to better adapt to the U.S. market.

3. Potential Opportunities and Future Outlook

3.1 Innovation and Collaboration Opportunities

The U.S. is a global hub for technological innovation, home to numerous top universities, research institutions, and startups. Establishing a U.S. subsidiary allows Chinese companies to access cutting-edge technologies and pursue partnerships or acquisitions to accelerate innovation. For example, in August 2025, a Chinese new energy company acquired a Silicon Valley battery technology firm, securing core patents and speeding up its global expansion.

3.2 Capital Markets and Financing Channels

The U.S. hosts the world’s most active capital markets, with the New York Stock Exchange and NASDAQ offering global companies a platform for fundraising and listing. For companies with long-term development goals, setting up a U.S. subsidiary is often the first step toward entering the capital markets. The U.S. venture capital and private equity markets also provide ample funding opportunities for startups.

3.3 Brand Internationalization and Market Expansion

Establishing a U.S. presence helps elevate a company’s global brand image and build trust with international clients and partners. The high standards and rigorous requirements of the U.S. market push companies to continuously improve product quality, service processes, and management capabilities, thereby enhancing overall competitiveness.

3.4 Adapting to Global Supply Chain Restructuring

In recent years, global supply chains have undergone significant changes. The U.S. government has been promoting domestic manufacturing and offering various policy incentives. In this environment, Chinese companies setting up factories or subsidiaries in the U.S. can better optimize their global supply chain strategies and reduce trade-related risks.

4. Conclusion

Establishing a subsidiary in the U.S. is a complex and strategic endeavor, full of both challenges and opportunities. Companies must approach this process from a strategic perspective, aligning their resources and market positioning with thorough planning. Only by laying a solid foundation in legal compliance, taxation, and talent management can companies truly seize the opportunities offered by the U.S. market and achieve a breakthrough in their global development strategy.