Nowadays, it is possible to set up a business in nearly any corner of the world observing the local rules of law. Trade agreements, the developed infrastructure which allows quick connections and the internet help businessmen start companies in one or more countries, depending on their needs and the markets they want to reach.
Starting a company in another country than one’s own home state is now possible more than ever and it brings a lot of advantages. Here are seven of the most important benefits of starting a company abroad.
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New country, new possibilities
A new country will always offer new options in terms of clients and partners. This is perhaps one of the greatest advantages when deciding to open a company in another country. Europe offers plenty of such opportunities, especially in EU countries with economies under development. Setting up a company in the Czech Republic is one of the best choices when it comes to EU countries that offer o lot of potential for developing a business.
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Fast company incorporation procedures
There are countries which continue to provide for lengthy procedures related to opening a company which usually drives businessmen away. They will search for countries which allow them to register their businesses fast and there are plenty of governments who have understood this request and have cut the costs and simplified this process. Take for example the British Virgin Islands: even if it is considered a tax haven, it is also possible to set up onshore companies in the BVI.
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Government aids and incentives
Another advantage of choosing to open a company abroad is represented by the incentives available. Many governments provide targeted incentives, assistance schemes and development programs to the benefit of foreign businessmen seeking for countries which can accommodate their needs.
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Improved business conditions
There are so many studies and rankings conducted by international organizations which gather data about the business conditions and environment in countries all over the world that attract a great number of foreign businessmen. Many times, these studies are very helpful for investors who seek for a country to do business in.
One of the countries that has ranked better in the last years in these studies is Slovakia which has started attracting more investors. We can easily say that the government’s efforts to improve the business environment have paid off and the procedure of opening a company in Slovakia has also been simplified.
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New expansion options
Once a company is developing in its home country, why not take it abroad in order to expand its operations? Setting up a branch or subsidiary in another country is just the way to do that. This way, the company will be able to reach existing clients miles away. E-commerce platforms are the best example in this case.
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Better taxation system
One of the most important advantages of starting a business abroad is related to taxation. This aspect can really make the difference between an investor’ home country and a foreign state which offers a better taxation system. As a matter of fact, most businessmen consider that taxation is one of the most important factors determining them to choose a country for setting up a business. One of the best examples in this case is Isle of Man: starting a company in Isle of Man offers a great taxation system based on the English system.
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The workforce can make a difference
Small countries usually lack qualified personnel or the number of skilled people is too low. This can really make a difference when opening a company and having no one to work in it. This is another factor that can determine a businessman to choose a country which provides the necessary workforce to get the job done.
Starting a company in another country can really make a difference in the profits of the businessman and the success of his/her efforts. One must pay attention to all the factors which imply starting a company in a new country, including the healthcare system which plays an important role in case of personal injuries which imply various claims and suitable measures.
There are many advantages related to starting a business in a foreign country and each investor will choose this country based on their needs and interest in a particular market.
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