[bambax]

> if your company is already incorporated as a non-United States company, to participate in YC you will need to convert your foreign company into a United States corporation

I have always wondered what this means exactly. If I'm the CEO of a company outside the US, that is unrelated to what the startup would be doing, does it matter?

Is it just a question of who owns the IP for the startup? And even if another company owns the IP, can't the IP be transferred/sold without converting the company itself?

[kirsty]

It depends on specific circumstances. If the IP in the foreign company is truly unrelated, then there are circumstances where it could make sense to just start a new company in the US. If the US company is going to use the IP, then there are lots of potential solutions and structures.

Often we see founders with foreign companies do a share exchange so the shares in the foreign company are exchanged for shares in the US company and the foreign company then becomes a subsidiary of the US company. Particularly in the case where the founders plan to go back to their home country or to hire / operate in that country.

If you get accepted into YC and have already incorporated a foreign company, then we can help you figure out what the best solution would be in your situation.

If you aren't already incorporated and you don't have to immediately, then probably best to wait to find out if you're accepted into YC before incorporating anywhere other than the US.

[bambax]

Thank you!