While it is possible to invest in companies domiciled outside of the US through US-formed SPVs, there is additional complexity:
- The foreign company’s reporting requirements may differ from US requirements based on that country’s internal securities regulations;
- The process for forming and registering the US-based SPV with the SEC may be less straightforward than for an SPV investing in a US-based company;
- Accounting standards for the company may differ based on foreign tax and accounting standards;
- Withholding and other tax requirements may differ for both the fund and individual investor(s);
- And other potential complexities such as foreign currency exchange considerations
Flow is currently focused on administering SPVs for US-based companies, but if you are interested in using SPVs to invest in companies outside of the US, please reach out to the Flow team at sales@flowinc.com to determine whether we can support you.
Still have questions? Reach out to support@flowinc.com for more details!