Opening a business abroad is a tempting prospect, considering the support programs provided for businessmen in different countries. For example, in America since 1959, the SBA has been operating, an organization that helps businessmen. Here they can consult, receive funding, request an audit and an independent assessment, receive recommendations on how to improve profitability. The support is provided in 4 directions (more than 40 state programs) – state orders, education, protection in court, access to the capital.
In France, Germany and other EU countries, simplified registration, low fees, consultations, and educational programs are provided. In Germany, since 1978, there is a program for financing risky enterprises.
In comparison with foreign conditions, businessmen in Russia face the following barriers of conducting successful activity:
- restriction on financing. We are talking about inflated lending rates of 16–20% (for comparison, in America, lending rates are 4–5%);
- lack of long-term lending programs, an opportunity of obtaining a loan for modernization and expansion;
- bureaucracy. Municipal and state institutions do not show interest in supporting the businessmen, but they often carry out inspections, and laws change not less frequently;
- corruption. Its consequences are extortion, unfair competition;
- quality of training. Young employees have insufficient professionalism, while experienced ones leave abroad;
- costs. High prices for real estate, utilities, as well as the growth of tax bring to nothing even profitable projects.
The factors which are listed above determine the desire to open a business abroad in order to achieve the long-awaited success.
How can you start a business abroad?
Before starting a business abroad, a number of tasks have to be solved. First, you need to decide on the idea, taking into account your own experience and knowledge in a certain area. Next comes the stage of choosing a country from those that seem attractive, or those that have already been visited. It is advisable to choose a country according to the project of making money and take into account how attractive the idea is whether there are competitors. The most popular directions abroad are medicine, construction, ecology, restaurants, and hotels.
An initial assessment of directions will determine where and which types of activities are most perspective. Next, it is worth consulting with a lawyer with practical experience in international law. The specialist will tell in detail what to expect, what documents are required, how much it will cost and how long the procedure will last. The lawyers of RPI Solutions will solve the registration issues, will to help prepare documents and assist in the execution of contracts. Without knowing the local mentality and not having sufficient knowledge of the language, it is difficult to independently conduct negotiations at a decent level. Moreover, knowledge of English does not always help, although it is considered international. It is advisable to learn the language of that country where you plan to develop activities.
Features of conducting foreign business
In our consulting center, the experts will prompt how to start to act if you plan to run a business abroad. Abroad 3 forms of organization of commercial activities are provided.
- A sole proprietorship is an analogue of Russian IP. The simplest form with minimal taxation.
- The partnership is a partnership where the owners are 2 or more people who are responsible by personal capital.
- Corporation – commercial legal entities, analogue of LLC and JSC.
Taxation level is surely considered. The highest taxes are in Argentina, Bolivia and France, Venezuela, the Gambia and Belgium, Italy, and others. Sparing taxes are in Kazakhstan, the United Arab Emirates and New Zealand, Great Britain, etc.
Which country is more profitable and safer to choose?
Our experts are ready to answer any questions to potential business owners abroad: what account to open and where, how to execute documents, where to apply, etc. The choice of a country depends on the purposes. If this is a tax optimization, you should pay attention to the Maldives, Panama, Hong Kong, and Cyprus. Those who are looking for a reliable way of investment are offered stable conditions in Poland, Great Britain, America, Switzerland. When you want to register a company cheaply and quickly, you can pay attention to New Zealand, Canada, Hong Kong, Georgia, Singapore, etc.
Our experts will prompt you how to open a company officially or to buy a ready-made abroad, will help at all stages of the procedure, and will offer further support as necessary. Call us to find out more on the consultation.