There are only a few good things that arose from the recent pandemic. Mobility is one of them. The last two years and so, brought us a shift in perspective for both the employers and employees, as people had to readapt to a new reality in which getting out of the house was no longer an option.
Relocation these days has a whole new meaning than several years ago. People can get jobs thousands of miles away without leaving the comfort of their homes while investors and entrepreneurs can start businesses wherever they want in just a few clicks with almost no bureaucracy whatsoever.
Today, we’re going to take the entrepreneur’s path and take a quick look at the 7 most important steps when you start a company abroad.
1. Choose your destination
The destination is probably one of the most important things to consider for starting your company abroad whether it is a new startup or a relocation of an existing one.
This will not be easy. Normally, it will require a huge amount of research because the decision should never come easy and without thorough consideration of all aspects that matter to your company and what you want to achieve.
Some of the main criteria for this decision may be:
Main criteria:
A. Available local talent
Employees are the heart, brain, and muscle of a company. One of the most important things, therefore, is to find onshore talent to start with, either for full employment or to freelance your tasks.
B. Infrastructure
Depending on what type of company you want to start, local infrastructure will also be of high importance. For instance, if you want to start with manufacturing, you will need local industrial parks well maintained and with all the utilities needed as well as roads and connections to the destinations of your goods. An Internet startup, however, will require good access to broadband Internet and of course, business offices available at an affordable price.
C. Political and social environment
The socio-political environment is the third important thing to take into consideration when starting a business abroad. Research the destination’s political status, the fiscality, the economic environment, and all the laws and liabilities associated.
Stability is also of high value in this first step of your research. Political stability can have a positive or negative impact on your business so, watch out for any inconsistency or red flags.
2. Learn about the local culture and language
You are trying to move to another country and even if it is only your business that relocates, the local culture and the language are also important for a successful enterprise.
However, learning a new language can sometimes be even more difficult than starting a business. If the culture of the target country is different as well, you will face some new difficulties in achieving your goals.
In most of cases, your business will thrive even if you are unfamiliar with those two. However, you will integrate easier if you do and at the same time, you will be better received by natives. It will also be good for networking to show interest in your peers’ cultures and languages.
Even if you are choosing an Internet startup and won’t literally relocate yourself to that country, it would help you to visit from time to time, get in touch with its culture and people in person and participate in social and cultural events.
3. Evaluate the market
A little bit of research is the key at this point. Find out what people who live in your country of a destination like, what products they use, and what kind of stuff they buy. Find out everything you need to know about your ideal customer and what they want.
Talk with people who chose the same destination or who are native to that country
Networking is essential in this case and not only. However, since we’re discussing business relocation, we’ll resume to this topic only.
If the target country was attractive to you, it most certainly was to a bunch of other entrepreneurs. Connect with them and talk about the good and the bad things. Find out how to survive and thrive in a new environment based on your peers’ experience and advice.
Connect with locals as well.
They will help you get right the true colors of the business environment of the target destination. Try to see through their eyes and even if they only criticize – and this is a constant anywhere you go -, learn to separate the usual laments from the real issues. And make no mistake, there are underlying issues anywhere you go in the world, no matter how positive you are about your decision. Don’t forget at the same time, that nothing is perfect. There is no such thing.
4. Get legal counsel
Every country has its own laws and recommendations. You will not be able just to go there, start a business and expect that everything will come naturally, as you are already accustomed with the business environment in your own country. Get legal counsel. Find a lawyer or a professional business adviser who specializes in international economic law or even in the economic law of your target destination and ask them to help you step in with the right foot.
Another important step here is to learn as much as possible about social security, taxes, and fiscality regarding the target location. Every country has its own laws and its own ways to apply or enforce them. You don’t want to start on the wrong foot. Be prepared. Be ready. Knowledge is power and, while you can claim you don’t know about a legal requirement or another, it will not render the law arbitrary just because you are ignorant on this part.
5. Legalize the company. Get help if you need it
It’s time to sign the papers and put your name on the company deed. You can do it in person or not. However, I would recommend hiring a professional company for this step and letting them do everything for you or even do it through a professional platform dedicated to these types of startups. Yes, you will spend some but you will gain instead a lot of time which otherwise would have been lost with yet another type of research, a lot of travel, and serious problems caused by the language or the law.
For example, for registering a business Hong Kong, you could subscribe to a service like Sleek and do it remotely, without even stepping out of your home, which can be tens of thousands of miles away.
6. Build a website and start your venture
A website is the face of a company. Of any company, regardless of what its purpose is. Start working on it as soon as possible because you need to show the world who you are and what you are capable of. Don’t neglect social media either.
Moreso, even if you are looking to go fully global, it would be a great idea to localize the website and give the same information in the language of your new adoptive country.
7. Hire your first employees or search for freelancers to help you
Now that you are all settled, all you need is the muscle. Or the brains. Or, depending on your domain of activity, both.
If you are starting small, you can try and hire some freelancers to do most of the tasks. It would make the transition easier because freelancers are not tied to a specific location, they can work for you from virtually anywhere. Some legal aspects may also be easier to deal with if you work with freelancers in the beginning. Once you are settled and I mean really settled in the new location, you can start recruiting local talents.
And while stating your company I recommend you to read this book by Richard Branson.
Conclusion
During the last three decades, computers and the Internet taught us that borders are artificial constructs. We live in a digital era where everything is global. Moreover, after two years of pandemic lockdown and restrictions, we, who survived, learned a lot about what globalization really means and how easy is to work or develop a business even from thousands of miles away.
As an entrepreneur, there will always be challenges and at the same time, opportunities. If relocation to another country may present as an opportunity, take it. Just don’t forget how important it is to be prepared. If you follow the above 7 steps, however, you will not have to worry about it.
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