Before starting a business in a foreign jurisdiction, it is important to follow a number of steps that will ensure a good understanding of the local company formation principles and laws as well as the cultural or business particularities. Opening a company in Dubai will be different from starting a business in Germany and investors should be informed of the general incorporation conditions in the jurisdiction where they decide to base their business.
Know the local company formation rules
Company incorporation is jurisdiction-specific, meaning that each country will have its particular set of rules for the incorporation and the registration of the business, as well as for obtaining permits and licenses for running the company.
Investors who open a business or a foundation in the Netherlands will need to comply with the Company Law in the Netherlands and register the company with the Chamber of Commerce or KVK.
Some countries offer more attractive business conditions, compared to others, especially for startups, in terms of company taxation and the overall ease of doing business. Researching the particularities of a jurisdiction is the key for finding a suitable business location.
Request professional aid
In some situations, reaching out to a local law firm or professional company formation specialist can be a good solution. Investors in the United Kingdom can also request professional defense solicitor services if they have been the victims of criminal business acts while performing an economic activity in that country.
Research the market
Understanding the local needs and preferences, as well as performing a targeted market research, can be a key ingredient for businesses that are successful in foreign markets. Due diligence is important when starting a business abroad. For example, when opening a luxury car rental business in Dubai, investors can start by analyzing the competition, the market particularities and the preferences of the clients in order to determine how their services can meet the needs of the clients.
Researching the conditions for doing business and the general steps for company formation, understanding the business and cultural differences as well as getting to know the market and the clients are all good steps when deciding to open a business abroad.