Open a company abroad. Algorithm of actions
Registering a company abroad and running your own business abroad is no longer a dream for many of our fellow citizens. Today, most countries are as open and loyal to foreign investors as possible, so it is even more profitable to start a business in another country than at home.
If you decide to register a company abroad, first of all, you should clarify whether you are allowed, as a citizen of a certain jurisdiction, to have an offshore company. As a rule, this is not prohibited, but there are some nuances in the tax legislation.
The main advantages of registering a company abroad
The most important advantage of starting a business in another country is the initial cost and first costs of operating the company. Even if the investor moves to this country and lives in it, in some cases it will be cheaper than at home.
The main costs and taxes for starting a company and registering it, licensing fees, and initial capital are relatively lower than in your hometown. Especially if you plan to conduct licensing activities.
However, before you decide on something, it is recommended to contact the law firm of the country where you want to register the company for help and support.
An equally important advantage is low taxes or no taxation at all. There are a large number of countries in the world where minimum corporate taxes are provided, and in some countries there are no taxes at all.
For most of our entrepreneurs, one of the most compelling reasons to register a business abroad is all the benefits and incentives provided by the government. These incentives are now quite popular, as many governments have followed the example of offshore states that have been able to earn significant capital for the economy with just such incentives. In this case, you can take into account not only preferential taxation, but also the financial policy in general, which offers low loan rates and minimal social benefits. deductions and support measures for private entrepreneurs.
Different countries have their own incentives, for example, in New Zealand you can register your business in just 1 day, and real estate in 2. The main thing is to study all the benefits and incentives offered by the country when moving, compare the conditions in different countries and choose the most suitable ones.
In addition, our entrepreneurs strive to register a company abroad because of the excellent IT infrastructure that guarantees excellent connectivity and interaction with the rest of the world. Especially considering the measures taken by the domestic government regarding restrictions on the freedom to use the Internet. Poor IT capabilities will not have the best impact on any projects based on crypto encryption or blockchain.
Thus, the choice of domestic investors in favor of foreign countries to conduct their business is influenced by the market, taxation, infrastructure, certain incentives, etc. But in most cases, the decision to register a company abroad is usually subjective, based on various studies and comparisons in the chosen country.
Possibility of attracting credit funds for development abroad
Not all young projects and startups will be able to find funding at home, especially if there is no provision for venture capital investment. Today, almost every business of any size can be transferred abroad.
The most effective way to reach new levels in your field of activity and in the economic niche is to scale your existing business by opening a new company in another country. Entering foreign markets will help entrepreneurs find new clients and start developing their own business in new ways that were not available in their native land.
Moving into a niche that is not yet developed in your chosen country will allow you to get there before the competition, which will give you the opportunity to declare yourself as a new brand that the country trusts. In the future, this will help to get into the markets of neighboring countries.
How do I register a company abroad?
The algorithm of actions of an entrepreneur is not complicated:
- conduct the necessary marketing research and use it to select the state that best suits your needs and objectives for business development;
- carefully study the legislation of the chosen country for doing business, the legal framework of the state, including the current list of offshore zones;
- think through the composition of the founders of the company abroad, decide on the choice of managers who will manage the business;
- choose a name for your new company and a company registration form abroad.There is an opportunity to become a private entrepreneur or a limited corporation, the choice of form will depend on your goals for further activity and the share of local capital in your development.The name must contain its legal form, be unique, and do not contradict moral norms, etc.;
- prepare a standard package of documents for registering a company abroad, which contains an application form for opening a company, a copy of the founders ‘ identity card, documents confirming their place of residence, the company’s charter, and a letter of recommendation from a banking institution.Depending on the country in which you plan to register a company abroad, additional documents may be requested.
As a rule, registration of a company abroad takes three to four weeks.
After the company goes through the necessary steps for registration, you will need to think about opening an account with a foreign bank. However, it is not necessary to choose a bank from among the residents of the state in which your new company is opened, it is enough to have a representative office. However, it is recommended to pay attention to some points:
- the cost of opening and maintaining an account is not always a guarantee of the reliability and quality of the services provided;
- the preparation time for bank documents varies from two to four weeks, but some banks offer an accelerated processing process;
- in different banks, the conditions for opening an account when registering a legal entity abroad may be different. In some cases, they require the applicant’s personal presence, and in others they work remotely;
- the bank’s branches are staffed with employees who speak English and Russian. For the convenience of customers, there are notification services and Internet banking;
- when working with partners, the prestige of your company and the presence of an account in a reliable and popular bank with a good reputation are not in the last place;
- some large banking organizations, when considering an application for opening an account, require recommendations from their other clients or proof of citizenship from the CEO in addition to the standard package of documents.;
- confidentiality is also not in the last place, if the founder wants to be sure of non-disclosure of information about himself, you should choose a bank that especially carefully protects information about its customers.
How do I open an international company and organize its management?
Not the least role in the establishment of a company abroad is the question of its further management. Naturally, it is important to choose the country of registration of the company, since in offshore jurisdictions it is possible to use the services of a nominee director, who will only have the obligation to sign documents at your direction.
And, for example, in mid-offshore companies, you will need a secretary who is a resident of the state, he will become an important link in the need to submit reports to your company.
When deciding whether to register your company in another country, you also need to think in advance about the additional services that you will need. This can be a virtual office, address, phone number, secretarial service, etc. These, of course, are not mandatory parameters for registering a company, they depend on your goals and business plans.
It is also important to immediately choose the right company for providing audit and accounting services to meet your requirements. Even if you register your business in an offshore company, it is important to keep accounting records even if there are no mandatory requirements for submitting annual reports.