What according to you are the most essential factors when it comes to setting up a company abroad? Finding the board of directors? Looking for shareholders? Appointing the officers, for example, the CEO, the president, or the secretary?
Well, according to us these are the secondary factors that a company needs. If you are heading to set up your business abroad, the very first thing that you require is the revenue or the resources, followed by the certificates that clearly state - you can incorporate your business on the foreign land. For example, if you are planning to incorporate your business in Dubai you need to have the Tax Residency Certificate in Dubai UAE.
Likewise, there are multiple other factors that you need to ponder while heading to have company incorporation abroad. Let’s pay attention to them.
4 Primary Factors To Consider While Incorporating Your Company Abroad
- Resources: Resources or revenue, to be more specific, is mandatory when you are planning to incorporate a business. It doesn’t matter where, but it matters how.
Do you have sufficient funds in your bank account? We guess you understand what we mean by the term “fund”. It’s not just about investing in something with a few bucks. Instead, it requires a lot of investment with a possibility of risk.
Accumulate all your resources, set up a budget, and finance your operations.
- Tax Residency Certificate: The next step should be attaining a tax residency certificate for your jurisdiction. Every country has its own way of charging taxes and VAT rates.
Hence it is essential to check out all these before you plan your company incorporation abroad. You must have a transparent idea about the taxes that you have to pay while setting up a company in foreign lands. Now, this sometimes results in double tax payment.
To avoid such risks in Dubai, it is substantial to have a Tax Residency Certificate in Dubai UAE. This is a legal paper offered by the government to the investors in order to set up a business abroad. This even protects the business owner from paying double tax simply by signing up for a Double Tax Avoidance Agreement or the Double Taxation Treaty.
- Work on language barriers: One of the major problems that a marketer may come across while setting up a business in foreign lands is the language barriers. Especially, in setting up a business overseas, language turns out to be the major problem when interacting with the customers or clients. Solution? You have to find out a midway that can help you to have a flexible conversations with your foreign clients or employees. Maybe Google Translate can help you with this. Learn a few common phrases and be prepared to answer all their queries.
- Risk in currency: Finally, it’s the currency. Quite obvious. If you are an Indian company and want to set up your business in the USA, Rupees will no longer be accepted. You have to work with Dollars. Now there is a huge difference between a Dollar and a Rupee.
It is often found that marketers heading to set up their business internationally are more likely to encounter currency risk and variation. You have to prepare for this as well. The best way to deal with this is by setting up a multi-currency bank account and reduce the currency fluctuation.
From financing to acquiring the Tax Residency Certificate in Dubai UAE, for proper company incorporation, you need every such thing mentioned above. You may find this a headache, but friend there is no other option except abiding them.
Once you are done with all, its time to think about your directors, officers, and shareholders to run your organization abroad.