Tips When Starting Up A Business Abroad

If you’re an entrepreneur with an interest in starting an international business, you will have to research the process of launching your business in another country. This involves gaining an understanding of the country in which you want to operate, including how their political structure will affect your ability to do business.

Additionally, you’ll have to address everything that starting any business entails, but you’ll have to be able to do all of that from a remote location. This guide provides a better understanding of this process.

Study the Country

Before you can consider opening your business in a different country, you must learn as much as you can about that country. To begin, you should learn about the government of that country, and study how they regulate business. For instance, you’ll need to learn how to file taxes online Canada if you intend to start a business in Ontario. You’ll also have to learn about regulatory policies that will affect how you operate your business in that country. For instance, the environmental protection regulations in Canada are different from those that are in place in the United States. Understanding those differences will help you avoid having to pay fines and suffer other penalties in the future.

Choose a Physical Location

You can’t expect to operate your business remotely 100% of the time. There will be occasions that will require you to travel to that location in person. For example, you will need to spend time in that country when it’s time to find a physical location for your business. Whether you intend to buy or lease the property, you’ll have to make sure you’re getting what you expect in terms of the condition of the property. You’ll also have to make sure the property is zoned for the type of business you intend to operate.

Hire a Business Lawyer

While every small business owner should keep a business lawyer on retainer, this is especially important in operating a business abroad. In addition to abiding by the laws of the country in which you plan to operate your business, if you are American you will also have to adhere to U.S. regulations. By way of an example, the Foreign Corrupt Practices Act forbids individuals and business entities from paying the officials of foreign countries to assist in the setup or continued operation of their business. This can put you in an especially problematic situation if you intend to operate a business in which corruption and bribery are considered normal practices. British people setting up a business abroad face similar issues with the Bribery Act which also makes offering a bribe to foreign officials an offence.  Your lawyer can advise you on alternatives that will help you avoid breaking U.S. or U.K. laws as you start your business.

Find a Local Representative

You should also take the time to find a representative who is native to the country in which you want to operate your business. This individual can assist you in the day-to-day operation of your business. They can also help you ensure your business doesn’t commit any marketing mistakes that could lead to a nightmare for your business’ continued operation. For example, a language barrier or misunderstanding of that country’s culture could end up offending the consumers you’re trying to reach. Someone with a deep understanding of that culture can help you avoid those situations.

Consider Your Financial Options

As you start your business, you will have to keep tight control over your spending just as you would in starting a business in your home country. Unfortunately, traditional banks will charge costly fees to transfer funds across international borders. You should take the time to research better alternatives for managing the capital your business generates. There are other options for transferring funds that won’t cost you as much, such as using an online payment transfer service. You should also spend time researching the foreign exchange rates for the type of currency your business will generate. This will help you maintain more accurate business records, so you can manage your business money and pay taxes on your actual earnings.

Finally, you can never underestimate the importance of networking with professionals in the country in which your business operates. You never know what financial emergencies may arise with your business and having people on the scene who can help you get things under control is essential. Those with whom you network can also help you avoid the pitfalls of operating your business from a distance.