Establishing a New Branch of Stratton

Oakmont in Italy
Kevan Capotosta
Zarna Shah
Fatimah Alnahash
Aasim Munshi

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 Project Summary

Stratton Oakmont will be establishing a new branch in Italy. Establishing a new

branch in Italy will help to drastically increase the companies profitability, and help bring
the company into the center stage for international investment banking. Additionally by
establishing another branch of Stratton Oakmont in Italy, the company will be able to
more easily branch off into other european countries. Currently Stratton Oakmont is
only located in the United States of America, and this is hurting our companies
profitability for several reasons. First, there are intense banking regulations in the
United States. Secondly, even though the US dollar is a very powerful currency on the
international market, the Euro, and the British Pound are still worth more than the US
Dollar. By expanding our company into Italy, and simultaneously the Euro, our
company will benefit from the stronger currency. Additionally Once our company has a
successful branch in Italy, we will be able to set our sights on the market in the United
Kingdom, and thus gain access to the British Pound. This has been the strongest
currency on the world Market for most of history, and gaining large scale investments in
pounds will offer Stratton Oakmont an advantage on the world exchange market that
strictly American companies are just unable to compete with.
In order to complete these long term goals Stratton Oakmont must first complete
several things. First of which, Stratton Oakmont must decide on one of three locations
in Italy. First is the city of Venice. Venice has long history of banking and investments,
and for most of European history it has been one of the largest banking cities in Europe,
if not the largest banking city in Europe. Venice’s long history of banking provides many
advantageous to our company, such as the plethora of talent with experience in the city,
to finding companies with experience in working with overseas clients. The second city
is Rome, which obviously it Italy’s largest city and capital. Again Rome will have the
advantages of having a large pool of talented potential employees, and a number of
companies that are accustomed to doing business with foreign companies. Lastly, the
last city contending for our new branch location is Milan. Milan is a large city located in
the northern part of Italy. Milan is more well known for its large fashion base. Milan will
likely have a large amount of talented potential employees, but will likely not be on the
same level as Rome or Venice.
In conclusion opening a new branch in Italy will help Stratton Oakmont establish
itself on the international investing market. However, when the best location has been
established, Italy, and the European Union will have several laws that will have to be
considered before the company can even begin to move on a location or begin
investing. With all things considered opening a new branch of Stratton Oakmont is a
great financial move for the company, but it will require a lot of work.

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 Table of contents

Title page (Kevan, Fatimah) 1

Project Summary (Kevan, Fatimah) 2

Table of Contents (Zarna) 3

Introduction​ (Kevan, Aasim) 4

Rational and Significance (Fatimah, Aasim) 5

Plan of Work​ (Zarna, Kevan, Fatimah) 5-6

Task Breakdown​ (Kevan) 7

Problem Analysis​ (Fatimah, Zarna) 7-8

Request for Qualification (Zarna, Fatimah) 8

Budget Proposal​ (Kevan, Zarna) 8-9

Conclusion​ (Aasim, Kevan) 10

Reference​s (Zarna, Fatimah) 10

Visualz (Aasim, Fatimah)

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 1. Introduction (Questions, Needs . . . )

Stratton Oakmont will be establishing a new branch in Italy. The proposed steps
are as followed.
● The proposed branches will be made in Rome, Venice, or Milan.
● Stephanie Conte is our company liaison and contact in Italy for
researching locations, and connections with our ​Business ​partners.
ConteRealty@gmail.com​ (111) 222-3333
● What Stratton Oakmont needs to open a new branch in Italy
○ A minimum of one director is required.
○ Accounts to be maintained but there are no reporting requirements.
○ A branch must appoint a legal representative of the branch who
shall be a domiciled in Italy.
○ Need a registered office for the branch.
○ Stratton Oakmont will be responsible for all liabilities of the branch.

● Steps to Register the New Branch in Italy

○ The parent company’s registration certificate.
○ A certificate of incorporation.
○ Memorandum and articles of association.
○ Provide the names of the company directors and secretary.
○ After registration has been completed the Tax Authority (Agenzia
delle Entrate) will release a new tax ID code to the branch (codice
fiscale) and VAT code (partita IVA).

● To have a successful growth strategy, Stratton Oakmont will work

alongside with sponsor companies in Italy that will help with marketing.
● Stratton Oakmont will be looking at what the Italian investment companies
are lacking and try provide that for its customers.
● The company will work on hiring employees that are fluent in Italian and
English to provide better customer service and connections between the
countries.
● The company will need to hire more computer scientist and web
developers to ensure that customers from various countries will be able to
reach the company through its website without any complication.
● Stratton Oakmont will hire more employees majoring in finance and
economics to ensure the company’s economy is safe.
● This new establishment will probably take two or three years to complete.
● The company should work on developing a long term customer
relationship in the current location along with the new location in case any
complications were to be encountered.
● Expanding our company overseas will give us an opportunity to take full
advantage of our expertise.

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 2. Rationale & Significance (Goals/Objectives)
Stratton Oakmont is aiming to expand the company to invest in overseas
property. Our oversea mission will start with Italy. The goal of this mission is to make
connections with major Italian companies that want to invest their money with us. This
will open up a large section of the investing market to Stratton Oakmont, and will
simultaneously help us to break into other investing markets across the European
Union.

3. Plan of Work
● The first steps in completing the process of opening the new branch in
Italy are as follows.
○ Using our Business liaison Stephanie Conte, Stratton Oakmont will
find suitable real estate to lease to house the new branch
headquarters in Italy.
○ Then to open the new brach Stratton oakmont will need as follows
➢ A minimum of one director is required.
➢ Accounts to be maintained but there are no reporting
requirements.
➢ A branch must appoint a legal representative of the branch
who shall be a domiciled in Italy.
➢ Need a registered office for the branch.
➢ Stratton Oakmont will be responsible for all liabilities of the
branch.

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 ○ Steps to Register the New Branch in Italy
➢ The parent company’s registration certificate.
➢ A certificate of incorporation.
➢ Memorandum and articles of association.
➢ Provide the names of the company directors and secretary.
➢ After registration has been completed the Tax Authority
(Agenzia delle Entrate) will release a new tax ID code to the
branch (codice fiscale) and VAT code (partita IVA).
○ Once all of the above steps are completed the new branch will be
open for business. The only remaining steps will be to find suitable
employees to run the branch.

● The Availability of Results will be available as follows

○ The layout of offers for real estate in Rome, Milan, and Venice will
be available for review by the CEO Zarna Shah on June 15th,
2018.
○ The new branch will be scheduled to move into the new host city no
later than 90 days from the selection of the branch’s host city.
○ It will take a maximum of 30 days for the Italian government to
review all of Stratton Oakmont's legal documents and the proper
permits, and get approval to open the new branch.
○ The Branch is scheduled to be open and making investments
absolutely no later than October 15th, 2018.

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4. Task breakdown

● What Stratton Oakmont needs to open a new branch in Italy

○ A minimum of one director is required.
○ Accounts to be maintained but there are no reporting requirements.
○ A branch must appoint a legal representative of the branch who
shall be a domiciled in Italy.
○ Need a registered office for the branch.
○ Stratton Oakmont will be responsible for all liabilities of the branch.

● Steps to Register the New Branch in Italy

○ The parent company’s registration certificate.
○ A certificate of incorporation.
○ Memorandum and articles of association.
○ Provide the names of the company directors and secretary.
○ After registration has been completed the Tax Authority (Agenzia
delle Entrate) will release a new tax ID code to the branch (codice
fiscale) and VAT code (partita IVA).

● Because Italy and the European Union are relatively open to foreign
investors, obtaining the proper permits is as simple as completing the
process to register the Branch with the Italian Government, and we would
be open for business.

5. Problem analysis
● Our company will need to obtains visas for personnel to go to Italy and
buy property there
● May face some conflicts and difficulties contacting the Mafia leader
● Taxes are extra for foreign companies to invest in Italy
● Costs are extra for foreign companies to invest in Italy

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 ● To obtain a property in Italy must have a Social Security or Tax ID number
and you cannot obtain it unless you do paperwork to be a permanent
resident or a citizen there.
● Buy Italian companies and make them work under Stratton Oakmont.
● Have connections with italians and/or other companies to buy land and
property and establish it on there.

6. Request for Qualifications (RFQ) or Bio Sketch

● Need people with passports
● Communication skills
● People who speak italian
● Business Majors.
● Finance Majors
● Computer Scientists
● Journalists
● Marketing Majors

7. Budget (cost Proposal)

● Typical rent for offices​ (maintenance of facilities will be included in the
price for office lease)
○ In Venice:1,500 - 5,000 euros per month
○ In Rome: 2,000 - 8,000 euros per month
○ In Milan: 2,000 - 8,000 euros per month

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● Typical salary for workers​ in the finance industry range from $2580 -
$2785 which is comparable to employees in the United States. So hiring a
complete staff will not be more or less expensive than in the US.

● The average cost to fly from America to Italy can range from $500 on the
low end to upwards of $1,000 or more on the high end. Obviously this is
affected by departure and arrival cities, and the time frame of the flights.
On average Stratton oakmont can expect to pay around $750 per
employee that we have to send to Italy. However Stratton Oakmont will
be hiring most of our employees at the new branch from Italy so this cost
will be small.
○ Average round trip flight costs per employee: $750
○ Minimal key personnel to send to italy estimated at around 8-12 for
a cost of $7,500 dollars

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 8. Conclusion
In conclusion there will be several advantages for the company to establish
another branch in Italy. After comparisons of the cost to pay employees, pay for
facilities, and pay taxes for the new branch in Italy. There will not be a significant rise in
cost to open a new branch of Stratton Oakmont in Italy. Despite the minimal increase in
costs to open a branch in a different country, there is an extremely large potential to
increase profitability. Italy uses the Euro, which is a stronger form of currency than the
US Dollar. Because this new branch will be dealing with investments all over Italy and
Europe as a whole Stratton Oakmont will gain access to the extremely lucrative
European Union markets.
Additionally Stratton Oakmont will be able to invest more competitively in
American markets because of the added capital and revenue that will be gained by
doing business with a currency that holds more value than the US Dollar. Additionally
this give Stratton Oakmont a clear shot at getting into the competitive London Stock
exchange and open our company up to companies that do business in the British
Pound. The British Pound is the strongest form of currency and this will give Stratton
Oakmont a significant boost in investing power. This will give Stratton Oakmont a huge
boost in profitability and make our company the most profitable company in the world.

9. References /Appendices
● https://www.openaeuropeancompany.com/the-benefits-of-establishing-a-b
ranch-or-subsidiary-in-europe/
● https://sprinklerage.com/how-to-expand-by-establishing-successful-branch
-offices/
● http://www.worldsalaries.org/italy.shtml
● http://orsp.umich.edu/research-proposals-plan-or-approach
● https://www.investorvisa.it/invest-in-italy/
● https://content.next.westlaw.com/Document/I63495d3fb26911e498db8b09
b4f043e0/View/FullText.html?contextData=(sc.Default)&transitionType=D
efault&firstPage=true&bhcp=1
● https://ftnnews.com/other-news/31537-italy-to-offer-residency-by-investme
nt.html
● https://www.thebalance.com/how-to-invest-in-foreign-currency-1978918

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