After planning to start a business, the next phase of the process is setting up the business. When setting up a business, location is one of the key decisions made. Many factors are considered when deciding on the location for the business set up, including but not limited to:
- Location of customers
- Cost of labor
- Business costs
- Government assistance
Entrepreneurs may decide to start the business offshore to benefit from cheaper costs or government grants for foreign investment, or within their own country. This guide will provide a checklist on a variety of factors that must be considered when setting up a business.
Starting a Business – Setup Phase Considerations
Accounting and taxes
This consideration includes the actual corporate tax rate charged to the company and government requirements on tax audits. The level of corporate tax rate can have an influence on your decision to set up your company locally or offshore.
Government regulations include a variety of areas including the company registration process, licensing, etc. In some countries, the registration process can be quite lengthy due to the amount of paperwork or number of regulations governing the setup of foreign businesses. Thus, when setting up a company, it is important to consider the time it will take for the company to successfully be registered.
When setting up a company, you must consider where to locate your office premises as well as the amount of space that is required for your business activity. For some companies, if setting up a new branch of an existing company in a new country, it may not be necessary to set up a large office, and business can be carried out from the main headquarters. In such cases, it may be a more feasible option to open a virtual office/phone line in the new country that allows for local customers to contact the company headquarters.
Corporate banking is another area that must be considered. Setting up a company requires you to set up a corporate bank account for your company. In this case, it is important to consider the different banking options, i.e. whether to set up an account in a local bank or an international bank.
When setting up a company, it is important to note the compliance requirements of the country. This includes minimum share capital, number of shareholders, etc.
Setting up and running a company overseas may require you to gain the appropriate visas required to carry out business activity in the country. This, like the country registration step, can be quite lengthy, and therefore the time it may take to gain the appropriate visas must be considered.
Starting a Business – Setup Phase Assistance
When setting up a company, tedious paperwork and keeping track of all different requirements can be quite difficult. As such, it is possible for entrepreneurs and companies to seek assistance from companies dedicated to providing clients with assistance when setting up companies. Healy Consultants Group PLC has experience in setting up companies worldwide for over ten years and our experienced group of Country Experts is always willing to speak to you about your company set up needs.
Feel free to visit our website to learn more about the services that we provide and how we can make the company setup phase easier for you.