Why do business abroad

Expanding abroad allows you to get out of a saturated market. Expanding abroad gives you access to new customers and in a market where your competitors do not operate. One of the reasons why businesses expand globally is to be able to provide a reliable service to their international clients. A good global reputation will attract new customers. Expanding abroad allows a company to build name brand recognition and establish credibility internationally.

By setting up in a new country, a business will be able to lower their operational costs and save money. Many companies have found its advantageous to move some of their manufacturing operations to other markets due to cheaper labour costs and more affordable talent. When considering expanding internationally, many businesses think that the only way to achieve their global goal is by setting up their own entity in a foreign country.

It is true that if a company is building infrastructure and has set long-term plans for the country, then establishing an entity may well be the best solution. Is keeping ahead of the competition your greatest concern? Whatever your goals are, going global provides a major business growth opportunity while boosting international economy.

Though there are many benefits to expanding abroad, the process can be tricky for a first timer… 10 steps towards successful international expansion.

Before any strategic decision making occurs you need to learn about the country you wish to do business in: culture and customs, political and economical situation, spending habits, entry requirements, business environment, foreign trade….

Get thorough and reliable information about regulations and tax schemes: local law, international agreements, regulated activities, employment practices, customs procedures….

Many governments and organizations support investing abroad by providing businesses with advice and assistance. Make the most of any help you can get from embassies or consulates, Chambers of Commerce, Trade Missions…. Enrolling in a training program such as export or foreign trade courses, can be an effective way to gain extra global expertise.

Knowing what your goals are is the key to selecting an adequate business structure for expanding abroad. Depending on the legal structure you choose representative office, branch office, subsidiary, joint venture… tax rates might be extremely different. Administrative procedures vary from one country to another. Study each possibility before making a decision!

Many countries have set up government funding programs to support business international expansion. Determine if your business qualifies for government support. You also need to find the right insurance solutions to protect your business against trade and political risks. International growth often leads to changes to human resources management. Undertake market research to find out which countries are best for you to accomplish this.

In China, the most popular markets are jewelry, fashion, beauty accessories and vitamins. That may not be so in other countries.

Do your research! You can realize big corporate tax savings when you funnel profits through overseas countries who may boast more lenient tax policies for businesses than the United States. Corporate taxes in Bermuda , for example, are at zero percent, which can be a very attractive option when faced with paying higher rates here.

It just makes good business sense to move to another country with a much lower tax rate. The United States, in comparison, now has a 21 percent corporate tax rate, down from 35 percent previously. When you move your business to a country with more relaxed regulations, you are in a better position to be innovative, grow and take risks — more so than you might feel comfortable at home.

Economies that allow companies to operate with minimal interference are attractive to all kinds of businesses. As such, you may be able to avoid things like price-fixing rules or anti-competition and labor laws. Moving internationally puts you in a position of increasing your prestige as a trusted brand globally. Going the extra mile to increase your reach and showing your customers that care about their needs, cultures, etc. Think about globally popular brands now and how much more exposure they get.

Because they are so big, they are seen as trustworthy entities. By expanding, you will be better able to produce more units.