How to extend your business abroad
Expanding a business to a new market means important opportunities for growth and will increase the client base. For many companies, it is a natural step once they reach a certain level of maturity and development. Launching a business abroad can be both rewarding and challenging and the process will differ according to specific business goals, existing market opportunities and, most importantly, the company’s business field. Here are some of the most important aspects to consider about how to extend your business abroad.
Researching the target market before incorporating the company is an essential step when expanding a business abroad. This step is particularly important when entering a significantly different market, for example for European companies that want to open a branch in Malaysia or another Asian country. The business environment, the development of the particular business sector, the foreign trade policies as well as many other issues should be researched during an initial pre-expansion phase. The actual marketing strategy will need to be adapted according to the market particularities.
Car rental companies can explore the Dubai luxury car rental market, where they can either open a branch or incorporate a new resident company. The Dubai market holds important potential particularly because the luxury car rental sector is one that is favored by the number of high-income individuals living in the area. Similarly, investors can explore other relevant markets that present an important client base in a certain sector.
The incorporation procedure
Choosing the right type of company, when incorporating abroad, is another important step when expanding the company. Entrepreneurs who want to expand their limited liability company in Spain to another country might want to consider incorporating the corresponding legal structure. This is important as the various types of companies available for incorporation in a certain country can be subject to different tax rates or, if this is not the case, to different annual accounting and reporting requirements.
The taxation rules
The tax requirements differ from one jurisdiction to another and an important distinction is made in case of offshore locations. For example, the taxes in Seychelles are generally perceived as advantageous for companies and many investors choose where to expand their company based on the taxation principles in a chosen jurisdiction. Understanding the applicable taxes and accounting laws is an important step before moving the business abroad.
The issues highlighted in this article include only the basic steps towards launching a business abroad. Investors should prepare this step with the strategic consideration it deserves and be completely informed about the business culture, the tax and corporate laws in the country chosen for expansion. Those investors should also know the local rules when doing business, otherwise they may need legal assistance in case of being accused of a business crime.
The successful expansion of a business abroad can hold important potential and opportunities and will represent the beginning of a new age in the evolution of the corporation.