Question

Answer the following questions for the U.S. and Russia:

What is the country’s overall immigration policy?

Do U.S. and other foreign companies operate inside of the country? If so, do these firms contribute to the country’s exports?

Answer 1

1. US:

U.S. Immigration Policy contends that America has reaped tremendous benefits from opening its doors to immigrants, as well as to students, skilled employees and others who may only live in the country for shorter periods of time. But it warns that "the continued inability of the United States to develop and enforce a workable system of immigration laws threatens to undermine these achievements."

• Reforms the legal immigration system so that it operates more efficiently, responds more accurately to labor market needs, and enhances U.S. competitiveness;
• Restores the integrity of immigration laws through an enforcement regime that strongly discourages employers and employees from operating outside that legal system, secures America's borders, and levies significant penalties against those who violate the rules;
• Offers a fair, humane, and orderly way to allow many of the roughly twelve million migrants currently living illegally in the United States to earn the right to remain legally.

-Comprehensive immigration reform: A new effort to pass a comprehensive immigration reform bill should be a first-tier priority for the Obama administration and Congress, and should be started without delay.

-Attracting skilled immigrants: The United States must tackle head-on the growing competition for skilled immigrants from other countries, and make the goal of attracting such immigrants a central component of its immigration policy. The report urges an end to the hard caps on employment-based immigrant visas and skilled work visas in favor of a more flexible system, the elimination of strict nationality quotas, and new opportunities for foreign students earning advanced degrees to remain in the United States after they graduate.

-National security: The Task Force calls for minimizing visa restrictions that impede scientific collaboration, noting that America's long-term security depends on maintaining its place as a world leader in science and technology. The administration should also permit a broader effort by the U.S. military to recruit recent immigrants who are not yet citizens or green card holders, so as to bolster U.S. military capabilities.

Russia:

The history of dynamic migration flows throughout the Soviet Union pre- and post-collapse has significantly shaped the current migration reality in Russia. Even as borders have shifted and policies changed, inflows and outflows still occur mostly within the former Soviet space. As this article explores, Russia has worked in recent decades to strengthen its migration management system and update its residence and citizenship policies.

The history of dynamic migration flows throughout the Soviet Union pre- and post-collapse has significantly shaped the current migration reality in Russia. Even as borders have shifted and policies changed, inflows and outflows still occur mostly within the former Soviet space. As this article explores, Russia has worked in recent decades to strengthen its migration management system and update its residence and citizenship policies.

A new measure tightening registration rules is set to cause mayhem for millions of foreigners in Russia, making their stay in the country illegal from one day to the next.

Currently, foreigners are required to provide the Federal Migration Service (FMS) with their address shortly after entering Russia as part of the registration process. A simpler way until now has been for employers to register their foreign employees for them, providing a work address.

However, according to amendments to migration law signed by President Vladimir Putin last month, starting July 8, employers will no longer be able to register their foreign employees unless they actually reside at the office. Instead, foreigners will have to be registered with the FMS by their landlords with their home address.

Fines range between 2,000 rubles ($32) for individuals to 500,000 ($7,900) rubles for companies. Those who breach migration rules are also at risk of being deported.

2. United States Legal System. The United States has a federal system of government. This means that laws are made at the national (federal), state, and local levels. “Local” laws are those made by cities and counties that apply in those geographic regions. All 50 states (along with US territories and the District of Columbia) have their own state and local laws that apply in those jurisdictions. Some areas of law, such as patent and copyright, are governed exclusively by federal law. Many other laws, including laws governing contracts, employment relationships, and sales transactions, are primarily set by individual states. And many other areas of law are governed by both federal and state law. When doing business in the US, foreign companies should be aware that they are subject to these parallel systems of laws which often differ from state to state.

Entity Choice.  A foreign company entering the US must decide on the form of business entity it will use to conduct its US operations. The most common types of domestic business entities are corporations, limited liability companies (LLCs), and partnerships. Each business form has its own benefits and the choice of form depends on case-specific legal and business factors. Each type of business entity must be formed according to the laws of the state in which the entity is formed. All entity types other than partnerships require organizing documents to be filed with the state government.

Branch Office. A foreign company is not required to conduct business in the US through a US entity and could instead open a branch office. Doing so, however, is generally not advised for tax and liability reasons. A branch office, unlike a subsidiary, is not a separate legal entity of the parent company. A branch office is considered to be the foreign company operating in the US. If a foreign company establishes a branch office in the US and conducts business in the US, the entire company is considered to be “doing business” in the US. This can subject the company to taxation on all income earned, rather than limiting taxation to the income of the branch office. Furthermore, liability of the foreign company would not be limited to liability incurred at the branch level. Accordingly, foreign businesses coming to the US do not generally elect to open a branch office unless specifically advised to do so by a US attorney. Selecting one of the entity forms discussed below is typically more advantageous than opening a branch office.

Corporations. Many foreign companies do business in the US as corporations. Corporations are organized under state law and each state has its own rules for creating and operating corporations. In the US a corporation may be created under the laws of one state and have its principal place of business in a different state. A logical choice is to incorporate in the state where the business intends to locate its operations. The state of Washington is popular choice for business to incorporate in due to predictable and business-friendly laws. The Washington Uniform Business Organizations Code and the Washington Business Corporation Act govern the formation of a Washington corporation.