The Benefits of Opening a Company Abroad

By Bridgewest

Starting a company is becoming easier with every year that passes as governments all over the world adopt measures to improve the absorption of foreign investments, measures that determine enterprisers to set up businesses or move their existing companies to other countries.

When choosing to open a company, one of the biggest challenges an investor has to face is the country to establish the business. From this point of view the choice is between their home countries and foreign states. Of course, it is easier to start a business in a country whose rules one already knows, but a new country can also have significant advantages.

Entering a new market can increase the success of a company

One of the most important benefits of setting up a company in a foreign country are the new possibilities this offers. Just imagine expanding a business to a country where the services or products to be sold are not present. From this point of view, remote countries which are hard to reach are probably the best. Perhaps the logistics will imply more effort, but the profit will make it worth it.

One of the best example is Seychelles. Seen by many as an offshore destination, Seychelles is, in fact, an impressive small country where agricultural and tourism businesses thrive. So, opening a company in Seychelles could prove to be a very lucrative idea for those seeking a foreign country with less access to certain services.

The ease of doing business in a foreign country

There is also the scenario where it is simply much easier to start a business in a foreign country rather than the investor’s home country. Bureaucracy, a lot of paperwork, the legal requirements and taxation are all aspects considered important by businessmen, so when a foreign country offers more advantages, it is best to choose this option.

The legislation targeting foreign investors

We mentioned in the beginning that many countries have very good laws when it comes to attracting foreign investments. Tax cuts, residence by investment programs, streamlined company incorporation procedures, e-government services are all incentives which stimulate investors to open companies in foreign countries.

In this case, all a businessman has to do is choose the best foreign country suiting his/her needs and the market requirements. Of course, a feasibility study is mandatory in this case.

Choosing large countries with booming economies

A country’s economic performance says a lot about the chances of starting a business there. When a foreign country’s economy is better than the one in an investor’s home country, then the advantage is obvious for the foreign state.

Let’s take China for example, one of the largest economies in the world. The number of foreign businessmen setting up companies in China is growing every year even with the latest taxes imposed on pollution. This only means that even if the conditions harden, the economy is still appealing enough to make foreigners decide for this jurisdiction if it has other advantages.

There are many advantages when choosing to set up a company in a foreign country. A good research of the market together with a solid business plan can lead to a great success of a businessman in a foreign country.