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Attractive Countries for Expanding your Business

Companies / SME Oct 06, 2017 - 01:27 PM GMT

By: Submissions

Companies

Most entrepreneurs start a small or medium-sized company and as the company begins to develop, they take into consideration the possibility of expanding the business to a new jurisdiction. This decision can have important strategic implications for the company, as it will open up a range of new possibilities and access to new customers.

Here are some countries in Europe and Asia that offer various advantages for investors. You can start considering these after you have decided that expansion is the next step for your company.


Business expansion in Europe

Bulgaria and Croatia have some of the lowest corporate income tax rates in Europe. Bulgaria has promising opportunities for investors who want to relocate in Europe and an important advantage is that the labour costs here are comparatively lower than in Western Europe. The corporate income tax in Bulgaria is 10% while that in Croatia is 18% and a lower rate of 12% applies to small businesses.

Cyprus offers an important geographical advantage to all investors who expand their business in the country: easy access to the European, African and Asian markets. The country has an attractive taxation regime, with a 12.5% corporate income tax rate. Moreover, dividends received by a resident Cypriot company are exempt from corporate tax. Cyprus has a special program for foreign citizens who are considering relocating to the country for business purposes. We recommend that you talk to a local expert about the process of obtaining citizenship by investment in Cyprus.

The Netherlands is known for its multi-cultural and welcoming business environment. Investors here benefits from the country’s central location in Europe and have access to a favourable foreign investment legislation.

Ireland is another location in Europe with a beneficial taxation regime, especially for certain categories of companies. The country has a 12.5% corporate income tax for trading income and a 25% corporate tax for non-trading income. Ireland is a hub for innovative companies and talented workers. The foreign direct investments sector is well-established and well-represented and the company formation process is simplified, all to the advantage of investors. If you are considering expanding your business to this country, you can ask for legal assistance from a law office in Ireland.

Expanding your business to Asia

Hong Kong is one of the top locations for investments in Asia. The Special Administrative Region is located close to Mainland China and investors who expand their business here can use their headquarters in the city for easy access to Shenzhen and other large Chinese cities. However, Hong Kong has more to offer than just a good location. The city has a well-developed infrastructure and a low and simple taxation regime. Moreover, it is a hub for foreign talent and English and Chinese are both official languages. If you need assistance for opening a company, you can contact a team of experts in forming companies in Hong Kong.

Singapore is another hub for innovative start-ups and foreign companies that are considering expanding to the Asian market. It has a good intellectual property protection regime and low taxes for companies. The city has a favourable business regime and many companies in the trade and service sector have expanded their business here.

Malaysia is best represented by the city of Kuala Lumpur. In Malaysia, foreign investors have access to a developed infrastructure and an ever-evolving business environment. English is widely used and the country has a large business community, especially in the Labuan International Business and Finance Centre, a special economic zone in Malaysia.

Other attractive Asian countries for expanding your business are: Thailand and Japan. Investors interested in starting a company in Thailand should know that the Thai Government offers various tax incentives to foreign investors and the country has a stable economy. Being the world's third-largest economy, it is no wonder that many investors choose to open a company in Japan, either a new one or a branch or subsidiary. The jurisdiction offers numerous business opportunities to foreign businessmen.

Before expanding to a new location, you should take the time to explore the market in that jurisdiction in order to have an image of how your products or services will gain recognition.

Expanding a business can be exciting and challenging at the same time. Choosing the right jurisdiction can be crucial for the future success of the company. We recommend that you talk to a local company formation agent once you have decided where your business is headed next.

By Andreea Paulsen

© 2017 Andreea Paulsen - All Rights Reserved

Disclaimer: This is an paid advertorial. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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