Challenges and opportunities:

Dealing with Construction Permits and Getting Electricity

it can take an average of 89 days to get construction licenses with 15 processes that need to be
followed. Submitting the zoning diagrams, getting sewer connection permits, occupancy permits
and department of transportation work permits are just a few of these procedures. Many of them
have fees which can add up to over USD $6,000 and getting your electricity turned on can take
over 60 days.

Registering Property

In America registering property takes about 12 days. The first two steps of obtaining a title report
and an environmental review are done by private companies while the other two processes,
transferring the forms and recording the title, are done through a public agency.

In Los Angeles, registering property takes 20 days with 5 procedures. The longest process, which
can take 2 weeks, requires an outside company to provide various environmental inspections in
order to issue the title insurance policies.

Getting Credit

The USA is the worlds’ most mature Capital Market, with strong rules and regulations protecting
the rights of borrowers and lenders. These laws around collateral and bankruptcies allow
borrowers to offer security against a loan in an environment where all parties
roles/responsibilities are clearly defined and protected.

Paying Taxes

The US has a complex array of federal, state and local taxes and the IRS is known for strict
enforcement of these rules. Rules for corporates, and individuals, changed earlier this year with
the 2018 tax reform. Companies and their advisors are still assessing the new framework and
their new obligations. The changes included cutting corporate tax from 35% to 21%, moving
toward a territorial system of taxation, lowering the transition tax of 8-15% and putting a limit on
interest deductibility of 30% of 12- month earnings. All of these changes are impacting the
market but the full impact is still yet to be seen. 

The recent tax changes are also focused on regulating international trade, with the USA taking a
more combative stance to protect US industry and maximize US tax receipts.

Culture

overall, the America has more of individualistic culture rather than a collectivist outlook.
Individually speaking Americans believe that each person should have the freedom to define
themselves and achieve the “American Dream” based on their own talents, abilities and
ambition. Companies, and investors, are very results oriented and the short-term is measured and
weighed higher than long-term strategic goals. 

American working hours tend to stray outside of the normal business day leading to longer work
days with Americans tending to not to be awarded, or take, as many vacation days as other
regions. Americans are direct and believe that time is very valuable so, although building
relationships is still essential, people often cut straight to the point in meetings and on phone
calls.

OPPORTUNITIES

The America is a projecting market for foreign investment because of the country’s wealth and
business-friendly infrastructure and laws. With so many companies from across the globe
looking to do business in America, their understanding of U.S. markets, laws, oversight groups
and cultural dynamics is important to their long-term success.

The United States accounts for almost half the world’s total production and is the world’s largest
consumer market. Estimates for 2018 indicate there are more than 135 million households in the
United States, each with a median household income of approximately $57,652. The United
States is the world’s largest and most concentrated market for almost every product and service.
In fact, according to the U.S. Census Bureau, U.S. imports of goods in 2018 totaled $2.54
trillion, while exports that year totaled $1.66 trillion. China, Canada, Mexico and Japan
accounted for just over 50% of U.S. imports in the period.

RSM supports hundreds of foreign companies with operations in the United States with audit, tax
and consulting services. Working with our RSM colleagues around the world, we provide the
global professional services that position international companies for success.

Identifying and capitalizing on the right opportunity in the United States includes working with
advisors skilled and versatile enough to provide the full range of services you need. Advisors that
will invest the time it takes to understand your goals and challenges. Advisors that combine
deep, broad experience with a passion for personal client service.