Opening a new company can be an expensive and time-consuming process, so it’s easy to understand why the idea of doing this abroad can be so attractive in many cases. What are the main benefits that a start-up looks to achieve by registering in a different country?
More Favorable Tax Conditions
Finding better tax conditions is one of the key reasons for opening a company abroad. According to this list of global corporate tax rates, Comoros and Puerto Rico have the highest figures, with Turkmenistan and Barbados among those that have the lowest rates for companies. However, not every company offers these rates as a way of attracting new companies, as some simply offer these rates to national businesses as standard.
An example of how these lower rates can be used to stimulate business growth can be seen in Ireland, which is one of the few countries to have a statutory corporate tax rate of below 15%. This strategy goes back to their entry to the European Union, with a low tax rate used as a way of attracting companies and developing Ireland’s economy.
Easier Licensing and More Relaxed Regulations
Another of the powerful reasons for looking around the world is among the factors listed here as advantages to seeking business registration abroad. More relaxed rules and regulations can make it easier for companies to get going in the country of their choice. Georgia, Bulgaria, and Singapore are among the nations stated as offering policies that welcome new corporations.
A similar approach can be seen in the US state of Delaware, where the legal framework includes a greater degree of safety for company directors and controlling stockholders in the event of disputes. Easier licensing is a particular issue in industries such as online gambling and cryptocurrencies, which explains why many companies look abroad to places like Malta and Costa Rica.
Lower Startup and Operating Costs
Finally, the cost of starting up a new company varies greatly, depending on where in the world you do it. This is one of the areas where some of the countries that we’ve already mentioned appear again. We can add the name of New Zealand to the list, as it’s known for the low cost and smooth online process that lets new companies get registered quickly and without any fuss.
When it comes to operating costs, it’s something that varies widely according to the business needs. However, what’s clear is that opening a business abroad can be a smart move in various situations. This can be a way of getting access to a highly qualified workforce at less cost than in your home countries. In some cases, start-ups can simply register their office in a different country, with no need to have staff or even a physical base there.
All of these areas are worth taking into account when you’re looking to decide where to set up a new company. With such a big decision, there are many points to take into account that determine whether a particular choice is the right decision or not.
