Moving your business overseas could be a wonderful decision. We recommend researching the opportunities and the potential problems that could get in the way. Any move is a challenge, and moving a business overseas is going to be an enormous challenge. However, with the right knowledge, it will help to cope better with the expected setbacks down the road. Continue reading for important considerations to reflect on before taking the first step toward moving your business overseas.
6 Things to Consider Before Moving Your Business Overseas
If you’re planning to move to Europe, then this is probably not too much of a problem. Although, some locations are easier to access than others. Lisbon has an international airport with links to 120 European destinations. New Zealand’s transport links are a major concern. However, they topped the World Bank’s ‘Ease of Doing Business’ index in 2019.
Cultural differences and local laws
Sometimes, we think of ourselves as living in a global village, and it’s easy to overlook the very different cultural practices. Local laws compounded difficulty, which may restrict certain workers from performing certain operations. Once you’ve settled on your intended destination, make sure that you are familiar with local cultural practices and employment laws. So that you don’t inadvertently cause offense, which will damage the standing of your business.
This is probably a key motive for moving your business overseas. The opportunity to make savings on the day-to-day costs of running a business. Portugal is currently a popular relocation destination for big tech companies like Amazon and Google. This is because of the available skilled labor at a third of the cost of Paris, London, or Berlin. This is also the case with the cost of office space. The average annual cost of office space, per square meter in London, is 1,300 euros. In Ireland, that figure is 673 euros. However, in Lisbon, it is just 288 euros.
Start-up grants and incentives
In Europe, there is a lot of competition to attract foreign business. It certainly pays off to shop around in order to find the most welcoming environment for your business. As well as direct grants to get you started, most European governments are offering attractive tax incentives. The Netherlands offers a tax rate as low as 5% for research and development. If your business income is linked to an address outside of France, you may be exempt from France corporation tax completely.
As an additional motive, most countries are now offering business visas for entrepreneurs and start-ups. In New Zealand, the ‘Entrepreneur Work Visa’ allows you to set up a business. This only takes one day and one procedure as the first step to the residence. In Europe, attractive business visas for tech start-ups are available in both Denmark and the Netherlands.
If you are considering moving your business overseas, we recommend being prepared. Research is the key to preparation. This decision will come with opportunities and expected challenges down the road. With the right information, it will be easier to push through these challenges. However, it is important to understand the opportunities available to you. With research, the decision may be easier for the company.
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