Setting up a company abroad often brings many advantages. However, there are also bureaucratic hurdles that need to be overcome. However, you should not be deterred by this. The following article summarizes what you should pay attention to when founding a company abroad.
Table of contents:
- In which country is it possible to found a company?
- Inform yourself in detail about the country in which you want to start your business.
- Check the labor laws in the country of your choice
- Regulations for setting up a company abroad
- Find out about the use of subsidies and grants
- Choose the right corporate structure for your business
- In which country is it possible to set up a company?
Basically, you can start your own business in any country of your choice. However, it is easiest to start your business in an EU country, because it saves you a lot of bureaucracy. If you are an EU citizen, you can start your business abroad as a sole proprietor in any EU country, as well as in Norway, Iceland, and Liechtenstein. It is also possible to establish a branch or a subsidiary of an already existing company of yours in one of these countries.
If you speak the language in which you want to establish your company, this is of course an advantage. If this is only partially the case, you will need a professional translation for the documents and records. In any case, you should inform yourself well about the conditions in the country, so that you can weigh whether a foundation abroad makes sense for you, and also brings the desired success. Before you can implement your plan in the form of a business plan, you need to research and gather information. Here, too, the motto is: don’t rush things, rather plan down to the last detail.
Inform yourself in detail about the country in which you want to start your business.
First of all, it is important to get to know the country in which you want to start your business. The following questions can be helpful:
What is the economic situation in that country?
Is the political situation there stable?
What are the market access regulations? What business practices do you have to observe there?
What potential does the market there offer you?
What is the importance of your products in this country?
Check the labor laws in the country of your choice.
Once you have gathered enough general information about the country where you want to start your business, you need to research the labor laws in detail. Basically, information and research in advance is the basic requirement for a successful project.
Do you have to apply for a work permit, and if so, how long is it valid?
What are the legal requirements for setting up a company abroad?
Are there international agreements in the country of your choice?
Are there any trade restrictions, if so, which ones?
Inform yourself well about customs and tax restrictions!
Do you need to be resident in the country to incorporate?
Regulations for founding a company abroad
Different countries often have different conditions for setting up a company. The requirements common to all countries are as follows:
The company formation abroad should be done within 3 days.
The registration of the company and the completion of all formalities must be possible online.
It must be possible to complete all administrative steps through a single authority.
Inquire about the use of subsidies
If you want to set up your business abroad, find out in advance about funding programs. There are several EU funds that you may be eligible for. You can find information on the Startup Europe homepage. You can also look for investors or partnerships for your business abroad.
Choosing the right company structure for your business
Finding the right business structure is an important key to success. First of all, the business structure should fit your goals. It is also an important criterion in relation to the taxes that have to be paid in this country. You should also inform yourself about this in advance.
Setting up a company abroad requires a thorough search for information and research in advance. There are also consulting companies that can help you with the foundation of your company abroad.