How to open your own business and company abroad
Recently, many Russian entrepreneurs plan to organize their business abroad. Such is the reality that bureaucratic delays, kickbacks are an integral part of Russian entrepreneurship, and abroad everything functions honestly and within the framework of the law. However, as you yourself understand, the reasons may be different.
Starting a business in another country is a tempting idea. If implemented, it will be possible to expand the scope of the company, to develop new markets and find investors, and it is possible to legalize yourself and your family in a foreign country in order to obtain citizenship. In addition, this is a good way to save invested funds and receive additional profit.
Not every entrepreneur knows which countries are best suited for starting their own business. Any country has its positive and negative points. As a rule, success depends on a number of reasons: the businessman’s abilities and his motivation, legal barriers that must be overcome to open, the tax burden. This article will tell and highlight some factors that will guide you before starting your business abroad
1. Opening a business through the acquisition of a ready-made business.
One of the simple options is to buy a ready-made and functioning company. Developed economies allow this, and the purchase of a business is well organized. There are agencies that help in evaluating and buying a business.
It is only necessary to carefully prepare for its acquisition, having previously learned about the prospects, success and consumer demand from customers. The finished company will save time on preparing documents, recruiting employees, searching for suppliers and channels for the sale and promotion of goods.
At this stage, the recommendations from us are to attract your own foreign law firm or Russian law firm, which is ready to provide legal expertise and verification of the object of sale.
2. Representation of the company.
When there is a need to declare yourself outside the homeland, then spending a minimum of funds, you can open a representative office. The savings are due to the fact that it is not necessary to register the company and this option does not require large expenses for doing business. It is important to consider that representative offices may not be engaged in commercial activities, but act on behalf of the company. Engage in monitoring the situation in the markets, advise on company services, attract customers and sell them company services.
What needs to be realized and understood before starting a business? It should be guided by a clear plan for building and developing a business. Understand that with the opening of the business you will have to create new jobs, pay taxes and contribute to the economic development of the selected country.
Basic rules for organizing your business:
- To study all materials related to the organization of their own business in another country.
- Consult with a law firm on legal issues and possible consequences.
European countries are most suitable for opening a business there. But you should be prepared for the fact that European business is developed, so you need to look for your niche in the face of fierce competition.
Factors affecting the choice of country.
- The stability of the political situation. The leaders are European countries and the USA. As well as stable states include: Canada, Australia and New Zealand. It is easy to conduct legal business in any direction.
- A low crime rate in the economy. This implies the existence of convenient ways of doing business and respect for property rights.
- Acceptable conditions of banks and loyal taxation. It is worth examining the tax laws of the countries in which you plan to expand your business. Analyze the details regarding the chosen line of business. It must be taken into account that Europe and the States tightly control all taxes.
- The mentality. Language proficiency and close cultural traditions are taken into account. It is worth predicting that adaptation can take a long time.
- The presence of the diaspora of former fellow citizens is an important factor. In case of unforeseen situations there will be someone to get support from. Although this may be for some an anti-factor.
It is definitely worth exploring the country in which you plan to start activities. It is imperative to analyze the local market, how developed it is, and which areas are considered the most profitable. And how developed are your services with which you plan to enter a new market.
If there is nothing like this, then a well-planned advertising campaign will help to attract the attention of consumers to your products. The best option is to find a middle ground and offer something new in an area that is already interesting to the local population and is in demand.
When choosing a country, it is worthwhile to dwell on several countries and choose the citizens of this country as partners. Or significantly increase the investment infusion into your business.
Economic sanctions
Now in the face of severe sanctions against Russia, it is worth considering the current political situation. It should be borne in mind that under normal conditions, the business works to increase revenue, and the conditions of sanctions put forward as a priority the ability to maintain their positions and work towards reducing costs.
It’s good when there is a financial reserve that will help you survive the crisis period. The consequences of the sanctions affect not only in Russia, but also in countries that have imposed sanctions. Greece, Italy, the Baltic countries, Finland and Hungary - a list of countries whose well-being suffered a significant blow.
Asian region as a promising area
The current political situation contributes to the study of doing business in the Asian region. The largest number of goods is now produced in China, whose economy is booming and it is he who is the largest exporter in the world. Therefore, it is worth considering the East as a promising and profitable direction for business development.
In China, taxes are quite high, and production is much cheaper. To ensure that taxes are not burdensome, Singapore is more suitable for opening a business. In this country, taxes are levied on a territorial basis. In other words, profits made in Singapore, or when it came from branches located abroad, are taxable.
You can register a company in a few hours or days. Applications, necessary permissions and obtaining licenses mainly go through the global network. The quick registration and the absence of corrupt officials contributes to the fact that Singapore is the best place to conquer the market and conduct their own affairs. In addition, Singapore's bilateral free trade agreements with other countries avoid double taxation.
Having made the final decision and choosing a country for business development, the help of a law firm in the chosen direction is necessary. The cost of such a company will pay for itself.
If you liked this material or any of our others, then recommend them to your colleagues, acquaintances, friends or business partners.
Our other useful and interesting materials:
a) why lawyers are so expensive (everyone must read it!);
b) changes to the Civil Code of the Russian Federation in terms of Article 317.1 (with judicial practice);
c) errors in the alienation of a share in the authorized capital of the company;
d) interest on borrowed money (art. 395 of the Civil Code of the Russian Federation);
e) reduction of the penalty (Article 333 of the Civil Code of the Russian Federation);
e) the charter of the LLC and JSC: errors and litigation.
September 3, 2015
David Glikshtein
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