There are many reasons why a person might wish to set up a business abroad and it can seem like a daunting prospect, especially in a non-English-speaking country. One common motivation is the desire to penetrate new markets, which requires some serious market research and opening a branch office in the target country would be the natural first step to eventually trading.
Initial exploration
The first thing to do is make contact with an international law firm that has extensive hands-on experience in assisting foreign investors to set up business entities. They would be happy to share a video meeting to discuss your needs and this would enable the lawyer to present the options. Should you wish to engage the law firm, they would give you a list of required documents, along with instructions for banking; a business registration might take 4-6 weeks, depending on the nature of the business.
Offshore company formation
You might be looking for ways to minimise taxation and setting up an offshore company somewhere like Belize or Jersey would achieve that goal. If you have a global reach, there are many nations that offer low taxation for foreign companies and corporations and you can also become a citizen of said country, which brings with it many benefits. It is generally regarded that offshore companies and corporations exploit legal loopholes, with the aim of minimising taxes; there are many benefits to basing your business in a foreign country.
Market research
Entering a new market demands that you do some serious research and if that is your plan, you can set up a Representative Office (RO), which is a non-trading entity that enables you to have foreign employees and a local office. China offers a lot of potential for western businesses and you would need the help of a western law firm that helps foreign investors to prepare and submit business registration documents. Click here for small business solutions.
Global reach
There are many countries that are happy to welcome foreign investment; the Asia-Pacific region has Singapore and Hong Kong, the Indian Ocean region has Mauritius and Seychelles where you can set up a company. In the West Indies, there are the Cayman Islands, British Virgin Islands, Anguilla and the Bahamas and Europe leads the way with the UK, Malta, Switzerland and Cyprus.
Offshore business options
There are numerous options, which are listed below;
• International Business Company (IBC) – A transparent business structure with no restrictions on business activities.
• Limited Liability Company (LLC) – Partnerships and limited liability with a trading entity that is compliant with local laws.
• International Trading Entity (ITE) – This is ideal for investors, financial advisers and professionals; the entity is subject to local laws.
If you would like to learn more about setting up an offshore business in the UK, click here. With the help of a leading international law firm, you can take the necessary steps to create the perfect business entity.
