Expanding overseas is one of the best decisions any organization can make. There are several reasons for this. First, it is a great opportunity to tap into a new market and gain an entirely different range of customers. Depending on the size of the said market and the level of success of the company, it could represent millions of dollars in sales and profit. Second, it is a chance to explore new horizons, get to know and understand a new culture, and gain perspective on how things are done in different places. Finally, it is a possibility to build important networks with both other businesses and individuals — networks that can eventually lead to interesting partnerships and a higher level of prosperity for the firm.
Still, it is vital to understand that while all of these things are true, an enterprise will not succeed unless it takes the proper measures to ensure everything is done well right from the start. Among many other things, this entails the adequate handling of legal matters in various issues, ranging from employee contracts and business entities to trade laws, local rules and regulations, and corporate partnerships. Anything less, and the firm will not flourish. Instead, it might even go bankrupt or be left at the brink.
As we keep that in mind, let us look into a few key legal aspects to consider before expanding your business abroad.
Hiring the Right Workforce
When it comes to hiring the right employees, there are two important aspects to consider. The first one is ability. While the country where your business originated might have certain standards concerning skill and ability, it is crucial to keep in mind that this is oftentimes subjective. What this means is that an individual who is adept at something up to a certain extent may not be equally an expert when measured against his foreign counterparts. For instance, the title of sales specialist in one nation can represent a completely different thing in another.
Second, there is the legal issue of employee contracts. In this case, your best course of action is to hire a combination of locals from the country you are going into and workers from your home country. This will ensure not only a level of expertise in native markets but also an already existing knowledge of the business from the people you have worked with in the past.
Naturally, there are other ways you could go about this. But whatever you choose, make sure you are familiar with local employment laws for foreigners and visa requirements. Your best bet is to manage things well from the beginning. However, make sure you hire a well-respected, reputable deportation immigration lawyer to handle extreme cases as well as advise you on what should and should not be done.
All about Business Entities
We previously touched on the value of hiring different types of workers when expanding your business overseas. Having dealt with the people, we can now discuss the company itself.
As an enterprise owner, you are probably aware that there is a long list of business entities from which you can choose. After all, you had to go through this process at the beginning stages of your firm.
Nonetheless, let us review some of the most common ones, the reason being that you will have to go through this process again once you expand into new territory. Furthermore, it might not be the same as the one you experienced in your home country.
Among others, if you are only one individual, in all likelihood, you registered your company as a sole proprietorship. If there were others involved, it might have been a partnership or one of several types of corporations. No matter the case, here are some important things to consider:
- Tax ramifications of each type of business entity. Different countries have different tax laws based on the business you run. As usual, you should do your due diligence on the rights and duties that your business ownership entails.
- Legal matters when working with partners. The best way for your enterprise to succeed in a foreign nation is to establish win-win partnerships with local businesses. Yet, before you do it, make sure you understand what you are getting into.
By doing the requisite research, you will not only be making the process of expanding overseas go as smoothly as possible, but you will also be avoiding unnecessary future headaches from taking place.
If you are ready to tap into a new market in a foreign land, it means you have done something right. Not all companies reach the level of success required to have the option of global expansion. Nevertheless, don’t forget to take care of the legal details concerning your business and your employees. By doing so, you will be giving this new adventure the best possible chances of prosperity.