In our days, entrepreneurs interested in starting a company can choose the country in accordance with their needs and the market they want to address as it has become easier to set up a business in a state that is not one own’s home country.
Opening a company abroad comes with many advantages as many governments introduce incentives with the purpose of attracting foreign entrepreneurs who can generate money and add value to the economy.
There are also other benefits one can consider when deciding to open a company in another county no matter how close or far from home. Let’s see what are the most seven important benefits of opening a company in a foreign country.
1. Discovering new opportunities
A market that is already saturated can push a business owner to try and reach new markets which, in the end, will lead to new opportunities not only in terms of clients, but also for other business partnerships. These opportunities can usually be found abroad. Whether the company decides to expand through a new entity, a branch or a subsidiary, governments all over the world usually welcome them.
2. Reviving an existing business
There are countries with populations who do not have access to certain products and businesses which have reached a point in which their home countries cannot any longer absorb a large portion of their products. The best way of reviving a business is to extend to those countries which could really need their products.
3. Easier company registration procedures
Those who do not have a business, but are thinking about starting a new one can decide from the beginning to open it in a foreign country. In this case, the easier registration procedure can make a difference when choosing the country to open the company in. There are many governments which provide for simple incorporation procedures, among them being Malaysia. Setting up a business in Malaysia only takes a few days and is subject to very few documentation requirements.
4. Developed economies generate substantial incomes
For those interested in accessing large markets, Europe is the place they are seeking. The European Union is one of the largest markets in the world and can bring substantial incomes from the beginning, considering the company can be established in one country and from there it can branch out in all other EU states. Opening a company in Italy, which is one of the most appealing EU countries, is a great idea for those interested in relocating to Europe. With a great infrastructure, easy access from all over the world and reduced business start-up costs, Italy can be a great solution for those in their early days in the business world.
5. The taxation system of a country attracts many entrepreneurs
Indeed, a foreign country’s taxation system can usually be the greatest incentive when searching for a state to open a company in. Many times, small and medium-sized companies benefit from lower taxes and various support schemes from the government. One of these countries is Malta which offers many advantages to foreign investors, one of most important ones being the taxation system. Opening a company in Malta also comes with other benefits, such as a fast company registration procedure which can be completed online.
6. The developed business environment
Most of the times, investors are attracted by stable economies. These economies will usually ensure a good business climate where companies can thrive. Many entrepreneurs read a lot about the countries they are interested in and a developed business environment will definitely attract them.
7. Incentives and support schemes
We mentioned earlier that many governments offer various types of incentives. When we say incentives, these are not limited to tax deductions, but other types of programs which enable newly formed companies to buy equipment, to hire specialized personnel and so on. These are very important when deciding to open a company abroad and choosing a country which offers this kind of help can be a great advantage for a good start.
Starting a business abroad can imply more work and research, however the benefits will usually measure up to all the effort. Getting to know new people, discovering new cultures and facing new challenges can also be considered advantages for a businessman from a personal point of view, so when choosing a foreign country to start a company in, the personal experience should also be factored in.