Investment Options for investors contemplating an investment in California
The most common forms of investment include: direct, portfolio, joint venture partnering, and real estate. Each form of investment has inherent legal and tax advantages and disadvantages. Therefore, it is of utmost importance to obtain competent legal and tax advice from a qualified professional before finalizing your investment decision.
Direct investment is the most traditional type of business investment. It entails direct ownership in the business, and leasing or purchasing the property from which the business operates. Generally, direct investments require the highest commitment as the investment is directly at risk and cannot be easily removed once invested. At the same time, however, a direct investment usually provides the investor with the highest rates of return if the investment is properly planned and managed.
Portfolio investments include investments made in securities, stocks, bank notes, bonds, bank accounts, and other types of commercial paper. Since portfolio investments are in the form of money or commercial paper, generally such investments can be quickly and easily removed, however various restrictions and/or charges may apply.
Joint venturing is a hybrid type of investment in that it normally, but not necessarily, combines elements of both direct and portfolio investments. A joint venture is established through an agreement of the parties involved. Typically, such an investment entails one partner providing the funds for the business venture and the other partner providing the license or know-how needed to operate the business, however, many variations and combinations are possible in the joint venture agreement.
Real Estate investment is generally divided into two specific categories, commercial and residential. Commercial real estate investment relates to the outright purchase of hotels, apartments, condominiums, and office buildings for commercial purposes. It also includes the purchase of land zoned for commercial development. Residential real estate investment relates to the purchase of a home, apartment, condominium, cabin, or the like for private enjoyment.
Investment Assistance Provided by the State of California [http://commerce.ca.gov/]
To assist the investors, the State of California established the Office of Foreign Investment (OFI), which works in partnership with California's twelve Trade and Investment Offices located in Buenos Aries, Frankfurt, Hong Kong, Jerusalem, Johannesburg, London, Mexico City, Seoul, Shanghai, Singapore, Taipei, and Tokyo. The combined offices employ a wide, value-added network of resources including state and local agencies, foreign governments and private resources to attract foreign direct investment into the state.
OFI and the Trade and Investment Offices jointly offer a wide range of services to prospective foreign investors. OFI serves as a business advocate and liaison between foreign companies and state government. Assistance on investment requests is provided by TeamCalifornia, a network of public and private-sector economic development leaders that brings together resources and expertise from various organizations throughout California to promote investment in California.
