How JTC’s Corporate Services Offerings Can Help US Firms do Business Overseas and Foreign Investors Enter the US Market
Since NES Financial was acquired by JTC and became JTC Americas, there have been many significant additions to our offerings and a broad expansion of our capabilities. While we still offer the industry-leading technology and fund administration solutions upon which our reputation was built, we’re now also able to help our clients in new ways.
We’ve previously discussed the JTC Americas corporate services offerings, which include a suite of solutions related to corporate governance, back office administration, reporting and compliance, AML/KYC, accounting, and other administrative functions. We’ve also highlighted how JTC Americas, thanks to the international reach of JTC, has been able to help US companies go from local to global.
But the opposite is true as well: we’ve helped foreign investment firms expand into the US market, providing them with a full suite of services that can cover all their needs, including issues they may not be aware of if they’ve never ventured into the US market before. To show you what we mean, and what’s unique about our local-to-global approach, let’s examine a recent case study involving an international client.
A foreign investment company was eager to invest in US real estate. Just like with any new jurisdiction, there are regulatory steps that must be taken that are unique to the US, and JTC had the right experience to help the client understand and manage these responsibilities.
In particular, a new corporate entity had to be created: a US-based business that would carry out local functions on behalf of investors. But what kind of corporate entity to create, where to establish this entity, and how to navigate the particular challenges of this jurisdiction are complicated decisions that have wide ramifications, and it’s important to work with partners who are familiar with the local market. This is true no matter where you want to expand, and it’s true in the US.
In the past, clients may have had to enlist a separate firm to handle these duties, which could slow down the process as they searched for the right partner and went through the onboarding process. Instead, JTC was able to aid in the formation of a corporate entity that would allow the client to set up its investment vehicle in the US while properly adhering to the relevant administrative requirements, speeding up the process by providing comprehensive support.
For real estate investments like the ones this foreign investment company was looking to make, escrow services are required. Previously, JTC Americas, formerly NES Financial, acted as an escrow administrator, which meant we could monitor escrow transactions but didn’t have the fiduciary responsibility of an escrow agent. Now that we have all of JTC’s solutions under one roof, we’re able to provide a complete range of escrow services. In this case, JTC acted as the independent escrow agent, mitigating transactional risk and ensuring every step of the process had proper oversight.
In order for this new corporate entity to invest, it needed treasury services, which include the setting up of bank accounts, something JTC can provide through its Corporate Services division, along with accounting, investor onboarding, and a variety of other back-office functions as needed. As the business grew and new problems arose, we were able to provide whatever help was required.
Hopefully this example shows how Corporate Services involve a lot more than simple secretarial and accounting duties, especially when expanding into new jurisdictions. It’s important to have a partner that understands the unique aspects of each jurisdiction and that has the ability to add services as needed so you don’t have to involve new companies at every step.
By combining the power of JTC Americas and JTC, we can offer comprehensive solutions that allow investment companies from all over the world to enter the US market and vice versa, meeting our clients’ diverse needs at any stage. All parts of our business work together to provide customized solutions whatever you require, from major decisions down to the smallest detail.
Together We Grow
To learn how JTC can take you from local to global, read more about our Corporate Services offerings.