7 benefits of opening a business abroad

Opening a business abroad can be both a challenge and an important achievement. Entering a new market has its advantages and can be a suitable option for many investors looking to start a new business or relocate an existing one. Here are seven benefits of opening a business abroad, starting with the chance of growing the business and concluding with the various management and employment opportunities investors may find in a foreign location.

1. Business expansion

When opening a business abroad, investors can do so for the purpose of starting their new company or simply for expanding onto new territories. Broadening the business operations can have a significant impact on the overall profits and one example to illustrate such an expansion can be a European company that expands to the Asian market and opens a branch in Malaysia.

2. Business recognition

This benefit can come as a direct result of the first point, that of business expansion. The visibility of the company can be greatly improved when opening a branch or a subsidiary abroad and this will attract more customers. The company can thus improve its brand image, its credibility and, for listed companies, its stock value.

3. A new market

Opening a business abroad will mean entering a new and different territory not only in terms of business rules and regulations, but also in terms of clientele. The spending patterns, purchase power and general client recognition and acceptance can differ from one market to the other. Exploring these possibilities can bring important benefits to a company.

4. Tax advantages

Taking advantage of the existing tax benefits in a foreign business location is also an important reason to start a business abroad. Several locations worldwide are known for their advantageous taxation regime and examples include Hong Kong, Singapore or Ireland and Cyprus in Europe. Investors interested in opening a company in the UAE can start a company in Dubai and benefit from the advantages in the free zones.

5. Special incentives

While some countries have a low-taxation regime, others will offer an attractive incentives program. These often target specific activities, such as research and development, and can come on the form of tax reductions or grants for qualifying companies. We recommend that you explore the options according to the size of the company and the business field.

6. Easy company formation

The business environment and the laws on company management can also be attractive in a chosen jurisdiction. Singapore, Hong Kong, the Netherlands, Lithuania and a number of other countries are considered locations where it is easy to start a company.

7. Access to local workforce

Apart from an easy company formation process, entrepreneurs can also find that the workforce in a certain country is an advantage. Spanish employees are highly qualified and the country offers competitive labor costs. Investors can choose where to base their companies abroad based on the workforce pool they have available there and the conditions for hiring foreign employees.

Opening a business abroad can offer one or a combination of the advantages described here and it can be a rewarding step for investors.