What kinds of certificates/approvals do foreign companies need to invest in ground-up construction projects in the U.S. as the sole developer (without U.S. partners)? How far ahead should they start the application process?
First and foremost, you must register your company and submit qualifications to the appropriate authorities. Subject to the sector of development (i.e., hotel, residential high-rise, retail), you would need a minimum of six months. If this is your first development in the United States, it is always recommended to work with a local sponsor or have someone with vast knowledge and experience in the local sector to assist in addressing all requirements needed by law.
My initial reaction is that the foreign company needs someone on staff or a partner who understands local rules, regulations anc customs. Each state, each month municipality has zoning laws, building codes, mechanics’ lien requirements, not to mention the way to find property at the right price.
The best way to learn ground-up development in the U.S. is to partner up with a reliable, experienced developer for your first project and make sure they have some skin in the game. I've sold large tracts of entitled land to Chinese developers from the mainland before, and I can tell you that they would have been much better off partnering up on the first deal.
Other than our CFIUS laws, the U.S. has no restrictions on where foreign investors may build new projects. The key is having the right team of professionals to help you through the process, as well as the right architects, engineers, planners, code consultants and land-use lawyers to help you through the approval process. With the right team, as long as not near a strategic security location (CFIUS), you are not at a disadvantage compared to any U.S. developer.
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