Two of the focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. Business takes place all around the world. In some instances businesses are based in specific countries but have operations all around the world. Expanding your operations overseas is a major step. The following contributed post is entitled, 3 Top Tips For Launching A Business in a Foreign Country.
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So business is booming and you think you’re ready to expand into a foreign market. Congratulations! Exciting and lucrative times lie ahead.
However, launching a business in another country is hard work and there are lots of things to consider before you take the plunge. You can expect it to be considerably tougher than getting set up at home, and certainly more time-consuming.
The good news is, with careful planning, some fantastic opportunities may be available to you. So check out the list below for some pointers.
Patience and Planning
There’s no way around it – this is going to take time. Rushing the process is only going to cause problems later down the line.
So do your research, seek experienced counsel, and make considered decisions. Some countries are more welcoming than others to foreign start-ups moving in, and some even provide useful benefits for those that do.
Singapore has a super quick system for solving commercial disputes, something which can really slow down businesses in other countries. Whilst setting-up in a location like Mauritius can save you on tax – check out mauritius offshore company formation to see exactly how.
What is going to be essential for the success of your business abroad? And which locations will aid, rather than hinder this? Once you’ve picked a location, study the laws and requirements of that country thoroughly before laying the groundwork.
Consider the Political Climate
The laws, economies and business practices of any given country evolve over time. This is a given. But some areas have a more stable political history, providing a less risky prospect for your start-up.
You are making a long-term investment, so it’s essential you consider the political climate of the country you’re entering, as well as its history regarding taxation and asset seizure.
As a business owner in a foreign country, you don’t want to find your profits are being unexpectedly taxed, or that your assets are available to be seized because the political climate is spiraling into turmoil.
The key word here is ‘stability’. Read into the modern political history of your chosen country and be sure to exercise caution where necessary.
Legal and Local Advice
When searching for a legal representative, the ideal candidate is an expat lawyer from your home country who has experience of the country you wish to set-up in, or better yet – someone who is currently living and working there.
This way you get the best of both worlds. A lawyer with the same cultural background who can clearly explain everything you need to know, who also has the knowledge and contacts to help you navigate a foreign environment.
However, the sooner you start making your own connections locally, the better. Finding friendly business allies in the country where you plan to open your business will provide invaluable support and advice, and help you find solutions to problems you might not even be aware of yet.
And there we have it. There’s lots to consider when launching a business abroad so take your time and plan carefully. Use these tips to get you started and of course – best of luck!