IMPLEMENTATION LEVEL

Subnational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 01 Jun 2018 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On March 28, 2018 the governor of the state of Wisconsin signed into law a bill (now 2017 Wisconsin Act 156) that may facilitate foreign investment in the state. Existing law had required a foreign corporation to obtain from the Department of Financial Institutions (DFI) a certificate of authority before transacting business in Wisconsin. Thereafter, a foreign corporation must annually file a report with DFI, and must obtain a certificate of withdrawal from DFI before withdrawing its operations from Wisconsin.

The fees associated with a certificate of authority, an annual report, and a certificate of withdrawal each consist of a flat fee plus a capital-based variable fee that increases in proportion to the amount of the corporation’s capital that is employed in Wisconsin.

The new law  eliminated the capital-based variable fee portion of each of these fees for a foreign corporation that is certified by the Wisconsin Economic Development Corporation as a “qualified new business venture.” To be certified as a qualified new business venture, a business must satisfy the following conditions:

  • It is headquartered in Wisconsin.
  • At least 51% of its employees are employed in Wisconsin.
  • It has the potential for increasing jobs or capital investment in Wisconsin.
  • It has fewer than 100 employees.
  • It has been in operation in Wisconsin for 10 or fewer consecutive years.

The new law’s effective date was June 1, 2018.

AFFECTED COUNTRIES

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