Starting a Business Overseas

Starting a business in another country may seem difficult at first, but it can be very advantageous, especially for free port companies and global firms in free trade zones. Starting a business overseas brings various opportunities as detailed below. Here you may find all the information regarding how to open a business overseas and the benefits of doing so. Read carefully, since different countries and areas can have different rules and regulation that you will have to follow in order to conduct a smooth process.

How to Start a Business in Another Country?

There are few steps to be taken for a Limited Liability Company (LLC) starting a business in a foreign country: 

• Obtaining the tax number: This number can be obtained directly from the tax authorities.
• Obtaining an intra-community VAT number: It is depending on your tax situation. In order to obtain this VAT number, you must submit an additional VAT registration form.
• Registration with the Social Insurance Agency.
• Registration of the corporate bank account: the creation of the corporate bank account is essential to ensure the operational needs of international business companies. 
• Reservation of the brand name: It is strongly advised to proceed with the reservation of the brand name of your company in opening a business abroad.

Which Country Is Best to Start a Business in?

Both Cyprus and Republic of North Cyprus are the ideal place to establish a shipping company for numerous overseas business opportunities not only because of its geographical position, but also because these countries have favorable legislation for this type of business. The business tax proportion is set at 12.50%. This is one of the lowermost rates among the European countries. Based on the tax, further taxes may also be applicable. The number of double taxation agreements contributes to the development of the local shipping industry and also allows these countries to increase its influence as a maritime center. A good maritime infrastructure combined with a good tax regime and anti-piracy laws ensure that investors in this industry are protected and prosper. Specialized shipping companies, both local and international, manage a large proportion of commercial vessels in Cyprus. For detailed information on the laws and requirements of shipping companies in free port zones, you can contact our Cyprus company registration consultants.

What to Consider Before Starting a Business Overseas

First of all, you must choose the country in which to create your company. You will find at the end of this sheet a list of the best countries to start a business. This choice is difficult because you have to take into account a large number of factors: legal framework, fiscal framework, characteristics of the domestic market and local consumer habits, job market, development prospects, climate etc.

Once you have made your choice, find out more about the country: regulations on starting a business, tax regulations, local labor laws, culture, languages, the state of the local economy, the state of the various markets, etc. Beware: the procedures for opening a business overseas vary from one country to another.

Benefits of Starting a Business Abroad

The legislation on starting a business overseas may offer advantages to investors who wish to open a business at abroad or in developed countries such as countries in Europe. 

• An attractive tax system: Companies can benefit from favorable tax systems in foreign countries,
• A favorable legislation: foreign legislation may be advantageous to register international business companies,
• Trade and tax agreements between states may be promising for overseas investors,
• Quick and easy company registration,
• Legal security (such as EU),
• Access to a reliable banking network (IBAN),
• Access to online payment providers.

Disadvantages of Starting a Business Abroad

Depending on the country you are in, in some cases there may be disadvantages of starting a business abroad. 

• No anonymity possible: Do not expect from the Business Registry to preserve your privacy. All information, related to your company in Cyprus, is published on the Business Registry. 
• To carry out an e-commerce activity sometimes may be problematic.
• The costs of registering a structure may be expensive: You should be aware of the costs associated with the registration and proper management of a company.
• Language barrier: All official documents may be only issued in the local language. Also, as one of the biggest disadvantages of starting a business abroad, it will not be easy to communicate with your local partners. Unless you have mastered this language, you may probably need to utilize the services of a translator.