Setting up a Business in Another Country: 5 Things You Need to Know

Entrepreneurs are notoriously nomadic, and you may well be just the same. If you’ve got visions of being your own business in another country, then you’re probably well aware of the challenges that you’re going to face, but it’s good to get all the help you can. Setting up a company outside your home nation can be very difficult depending on where you are now and where you’re looking to go, but if you believe there’s money to be made by moving your operations, then its well worth going for it. With this in mind, here are some of the things that you absolutely must remember:

Language

It’s all too easy to say that most people will speak English at least as a second language wherever you’re going. This may well be true, but it doesn’t mean that you’re going to be able to operate perfectly. Communication is vitally important, and your business will benefit from being multilingual, whether you’re establishing a small retail outlet, or a major consultancy for businesses. Learn the most common business languages.

Currency

You can check right now how much your money is worth in your chosen destination, but this will only get you so far. You need to spend some time there understanding the currency, and getting a feel for how much it means in actual spending power. You also need to work out the best way of transferring your personal finances from one currency and country to another – there can be a lot of value made and lost in the exchange rates.

Taxes

Taxes can completely change interpretations of cost, which is something you absolutely must get your head around, especially when pricing products. You can work out how much spending power your money affords you in a different currency, but the differing taxes placed on different items means that there’s an added layer of complexity. On this subject, you may also have to pay certain taxes in your home country as well as your new one.

Market

You might think you’ve got the next big idea, but it’s not going to be worth anything if it’s not suited to the market that you’re entering. Different countries and cultures like different things, so you really need to do your research beforehand. If you’re not already dead set on a destination, it’s better to find out which country is best for your business, rather than trying to alter your business to a new climate.

Time

You have to accept that it’s going to take you longer to get set up in a new country than it is your own. This means that not only do you have to be patient, you’ll also need the funds to maintain yourself while you’re waiting for the money to come in. Always plan conservatively and leave yourself room to maneuver, because it’s much harder to pull out and do something else if you’ve moved your entire life to a new place.

2 Responses to Setting up a Business in Another Country: 5 Things You Need to Know

  1. I dunno about that. Maybe it’s my inherent financial conservatism…but gosh, it seems problematic. Tax issues. Ownership laws. Rules on how much money can be taken out of or brought into the country. Rules on where you can live and how long you can stay at any given time…augh. And you think America has bureaucracy? You ain’t seen nothin’ yet!

    Maybe if you figured you were going to go to the country and live there, permanently or at least for the very long term… But maybe not. Depends on the country and the bidness.

    Friend of mine wants to start a diving shop in Mexico after her son gets out of the slam next spring. He was convicted of child molesting for diddling his underage girlfriend…underage by three days. This of course means his entire life is ruined. He wishes to assume a fake identity and use it to sneak out of the country and establish a life somewhere else. Seems like it would be a little obvious if his muhther hired him in her dive shop…but maybe it’s best to hide in plain sight. You see what I mean about the “dubious” part…

    Now, a nice little beachside bar in a grass shack in the British VI (sans the convict)…yeah. Now we’re talkin’.

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