7

Can a non-US citizen who has never been to the US own equity in a company that is only incorporated in the US?

  • 12
    This comment reminds me that there is a scam in which the scammer tells the victim that he is a foreigner who wants to invest in the USA and that he needs the victims'help (for a profit) to do it. This is always a scam; you can check some questions at Personal Finance & Money. – SJuan76 Oct 27 '19 at 17:16
12

Yes, non-US citizens can own equity in US companies. To be specific: You do not have to be a citizen or resident of the US to own securities in a company incorporated in the US.

| improve this answer | |
  • Though there may be limitations. I live in Canada and here you must have a minimum of 25% of shares being held by a Canadian resident or citizen. It seems reasonable the US has something simliar. – corsiKa Oct 27 '19 at 22:54
  • 3
    @corsiKa that seems a bit suspicious - for a publicly traded company, the % of shares held by various residents would change every day, and a Canadian public company traded on any major exchange can't prohibit all their stocks there to suddenly get traded to a nonresident (to be more precise, if they needed to prohibit that, then as far as I understand they wouldn't meet the conditions to be listed on that exchange); and of course most shares are not directly owned by citizens or residents of any country but by other institutions. – Peteris Oct 27 '19 at 23:20
  • 2
    @corsiKa for a simple counterexample, Walmart Canada is an Ontario-registered company that's wholly owned by Walmart USA, which is in turn mostly owned by USA residents (the Walton family) and definitely not 25% by Canadian residents/citizens. – Peteris Oct 27 '19 at 23:22
  • 1
    @Peteris the question didn't specify publicly traded. I was assuming privately held corporations. – corsiKa Oct 28 '19 at 1:38
  • 1
    @Peteris it could work, but that would effectively mandate that no more than 75% of the stock in any Canadian based company be publicly traded. – jwenting Oct 28 '19 at 4:54

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.