[Consultation] Legal consultation on overseas corporation conversion flip(Flip) Law firm Veat

Flip means the procedure for a domestic company to establish a foreign corporation and for the newly established foreign corporation to become a subsidiary of the domestic company. When undergoing the foreign corporation conversion procedure, Flip, the registered office of the parent company or holding company changes from domestic to foreign, but the composition of shareholders remains the same in the foreign corporation.

Many startups show high interest in the foreign corporation conversion procedure, Flip, primarily because it allows them to secure favorable conditions for investment from foreign venture capital (Venture Capital, hereinafter VC). In particular, US VCs sometimes propose the foreign corporation procedure, Flip, as an investment condition before investing in startups. Secondly, companies that have aimed for overseas expansion from the time of their startup establishment often show high interest in the foreign corporation procedure, Flip, due to various advantages in overseas sales. Thirdly, when a startup conducts business through the foreign corporation conversion procedure, Flip, it is relatively easy to comply with the laws and regulations of the country where the establishment was made. 

Law firm Veat has provided legal advice on major cases related to the foreign corporation conversion procedure, Flip.

● A Co., B Co.’s Flip with a US subsidiary : Representing A Co., B Co. in their work to Flip A Co., B Co. with their US subsidiary that they had established in the US, making the US subsidiary the parent company and making A Co., B Co. a US subsidiary, and providing legal advice.

● A Co., B Co.’s Flip with a newly established US entity : Representing A Co., B Co. in their work to establish a new entity in the US and Flip it with A Co., B Co., making the new entity the parent company and making A Co., B Co. a subsidiary, and providing legal advice.

● E Co.’s Flip with a Singapore subsidiary : Representing E Co. in their work to Flip E Co. with their Singapore subsidiary that they had established in Singapore, making the Singapore subsidiary the parent company and making E Co. a Singapore subsidiary, and providing legal advice, etcetera.

In the case of the foreign corporation conversion procedure, Flip, cooperation with overseas law firms may be required depending on the jurisdiction of the overseas affiliate. It is important to collaborate with various overseas law firms, and Veat maintains close working relationships with such overseas law firms, allowing it to carry out the foreign corporation conversion procedure, Flip, in most countries around the world.

Law firm Veat has built a trusted relationship with local startup-specialized law firms in the US, Europe, and Singapore through numerous Flip experiences, and collaborates closely when necessary to provide advisory services. Those who require more detailed legal advice on Flip should inquire through the following channels.
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Law firm Veat