Many people have found an environment that they love and have relocated to a foreign land and set up a business to fund their new life. Southeast Asian nations in particular, with Thailand, Indonesia and Cambodia seeing many such relocations and when you take a look at the lost cost of living, it is easy to understand the attraction.
Here are some very important aspects of setting up a business in a foreign country that you need to consider.
- Seek out legal advice – Regardless of where you intend to register your business, it is essential that you approach an English-speaking lawyer with experience in setting up a foreign owned business. Of course, it is critical that you comply with local laws and regulations and there are numerous types of business registration, so you need to make the right decisions regarding this. The law firm can show you the various methods of business registration and advise you on every aspect, making sure that you take advantage of the attractive incentives, while also making sure you are in full compliance with local laws and regulations.
- Working visas – When you approach a locally based law firm, they can assist you in the process of obtaining a long-stay visa that allows you to work. Under no circumstances should you overstay your visa, as this could lead to arrest, deportation and even blacklisting. When you talk to a local law firm, they can offer you the best advice about which type of business registration is most suited to your needs. Working illegally is not something you want to do and a local law firm can apply for a work permit on your behalf. Renewing your visa can be a stressful experience, which is why you should enlist the help of a local visa agent or a law firm that can facilitate visa applications.
- Outsourcing essential business services – When setting up a business in a foreign country, the last thing you want to do is directly hire local staff and whether you are looking for payroll in Indonesia or Thailand, there are specialist firms that can source local services. Typical office work can be assigned to local staff who are qualified and with a low cost of living, you won’t have to pay too much. You will have to prepare quarterly returns and this is something a local accountant can handle remotely by connecting to your cloud and ordinary secretarial services can also be sourced by your legal advisor.
- Trading or non-trading entity – You could register as a non-trading entity, which allows you to carry out market research and also keeps you outside of local laws. Once you are ready to trade, you can upgrade your business registration, or if you are already good to go, start a private limited company and begin trading straight away. In most countries, an expat can claim tax credits, as this article highlights.
- Understand the culture – When doing business in a foreign land, it is crucial that you fully understand the local customs and culture; the sooner you learn to speak the local language, the easier things will become. The last thing that you want is to upset the locals with inappropriate behaviour; you could sign up for a course that teaches the language and cultural aspects and that ensures you don’t make any silly mistakes. One must always be respectful when a guest in another country and with a local law firm in your corner, you can be sure that you don’t do anything you shouldn’t.
- Look for incentives – Most countries welcome foreign investment, so much so that they are happy to offer attractive tax concessions and other benefits to foreign investors. Thailand, for example, has the Board of Investment and there are many benefits to setting up a business in the Land of Smiles.
- Carrying out market research – If you are unsure about moving into a strange marketplace, open a non-trading entity that allows you to do some serious market research. Such a business usually offers at least one foreigner who can legally work in the local office and as you are not trading, you are not bound by local laws and customs as much as a trading entity would.
Of course, you do need to carry out extensive market research before you commit to investing in a foreign business and with the help of an established local law firm, you can ensure full compliance with local laws. In the event you are in need of a local business partner, a local law firm can probably put you in touch with suitable partners and having a local partner ensures that you don’t pay any more than is necessary.