By Simon O’ Connor, 14th June 2016
Questions & Answers: What do I need to consider when registering a company abroad?
There may be a number of reasons why you are considering registering a company abroad – to benefit from lower tax rates, to target new markets or even due to a shortage of skilled labour in your home country.
Registering a company abroad is often easier than you may originally imagine, however, there are a number of important factors that you most consider beforehand. If this is something you are considering, these tips can help you on your journey.
- Market Research
If you are planning to expand into a new market, studying the local spending habits of your chosen jurisdiction is one of the most important exercises to carry-out beforehand. Recognize the local competitors and carry out a SWOT analysis on each of them to get a good indication if there is an opportunity in the market for your product/service. It is important not to rely on preconceptions when analysing the market. Through detailed market research, you may realise that the jurisdiction you originally chose for your business may not be suitable.
- Finance and budgeting
Maintaining a strong financial budget allows you to control your cash flow instead of having it control you. A good way of doing this is to implement a strategy to minimise cash burn until your business begins to see profit.
If you are seeking finance, both Local Enterprise Board and Enterprise Ireland provide funding to Irish companies looking to expand abroad.
- Taxation and reporting requirements
Taxation and reporting requirements are major factors to consider when selecting a jurisdiction. To get a clear understanding of the amount of tax your new company will be liable to pay, it is essential that you research the country’s corporate tax rate, excise duties and VAT rate and it is wise to seek advice from local tax authorities.
Subject to the taxation law in the jurisdiction, the management and control of the company may be required to take place within the country. If this is the situation and you do not plan on having a physical presence in the country immediately, assigning a local resident director to be company may be the best option.
- Incorporation Process
The company formation process varies in each country around the world. It is often in your best interest to outsource this task to a company formation agent such as Company Bureau, who can ensure the process is carried out correctly and can help avoid any mistakes which can become costly. We have experienced professionals who are familiar with local laws and requirements in the majority of countries around the world.
- Language barriers
One of the most difficult challenges faced when setting up abroad is overcoming language barriers. From negotiating with suppliers and customers to signing legal documents, being unable to communicate will slow you down.
Employing a full time translator can become relatively expensive. As a solution, hiring a translator on a weekly or monthly basis will significantly cut costs. You can also avail of free online tools such as Google Translate for interpreting emails or documents but do keep in mind that such tools are not always entirely accurate.
Not all countries have the same access to skilled labour, so it is crucial to research the availability beforehand. Local recruitments agencies can give you information regarding availability of skilled labour, salary expectations and employment legislation.
Although there are challenges involved in registering a company abroad, a strong support network in Ireland can streamline the process and help set your company up for strong growth in the years ahead. For more information on registering a company abroad, please do not hesitate to contact us on +353 (0)1 646 1625 or alternatively you can email us at email@example.com.
Contact us now for further details