Because most of the countries have permissive legislation, it is quite easy to open a company if all the local requirements are observed. However, the language barrier might be a problem if legal support or consultancy is not requested at the time of company formation in the chosen country for business.
A name verification is mandatory
In order to avoid the contraventions related to the business names that might be already on the market, it is recommended to check such aspect with the Trade Register in the city you want to open a company and verify if you can make a name reservation. The authorities in charge of company incorporation provide to the entrepreneurs the possibility of authenticating the business name, whether on the internet through the official websites or at the local office if an application is made in this sense.
Choose the business structure
An entrepreneur is, first of all, interested in the business structures available in the foreign country where he/she chooses to start a company. Depending on the types of activities you wish to perform abroad, you can decide on a limited liability company which is the most common business structure on an international level, you can choose a joint stock company or you can establish branches or subsidiaries as a representative of the foreign company. On the other hand, if you would like to have complete control on the firm, a sole proprietorship can be the right type of structure for your activities in the foreign country, bearing in mind that if the business thrives and gains success, you can change the type of entity at any time.
Register with the tax authorities when opening a company
Another step in opening a company abroad is definitely related to the tax regime in that country because you wouldn’t want to activate on the market without paying the taxes. The value added tax or the VAT is the type of tax imposed on goods and services in most of the countries, but you can be subject to a sales tax if you are planning a business in USA or to GST (goods and services tax) if you want to establish your operations in New Zealand. Also, entrepreneurs who decide on hiring staff for their companies should comply with the related social contributions. It is very important to know all the local regulations related to doing business in the chosen country in order to protect yourself from being accused of different business crimes.
Visa for business matters might be necessary
Specific investors, mostly from countries outside EU (European Union) or EEA (European Economic Area) and who decide on opening a company overseas can find out that a business visa might be among the mandatory requirements. Such visa can be obtained if a particular sum of money is invested in the chosen country for business, and more than that, the permit will come with several benefits like a permanent residence permit or clear entrance and free travels worldwide for family members. There is also the possibility of applying for a golden visa programme which is met in countries like Malta, Italy, Spain, Cyprus, USA, Ireland, Greece, UK and Portugal and which is granted if a specific property investment is made in the above-mentioned states.
Search for local company formation services
Instead of dealing with misunderstandings in terms of business incorporation in a foreign country, it is highly recommended to choose the services of a company that deals with incorporation of firms and handles the requirements of the local authorities. With a short verification on the internet, like “setting up a company in Malaysia”, for instance, you can find experts that deal with company registration, business consultancy, accountancy, and many more, all of these services being tailored to the clients’ needs, and particularly for foreigners looking to incorporate their operations abroad.
Opening a company overseas is not a difficult task as long as the conditions imposed in this sense are entirely respected, regardless of the chosen business sector and operations.