Going international helps a business to grow its operations. This, in turn, creates more revenue. An important decision that a business owner has to make when looking to expand a business is the country in which to expand to.
The legislation of a country and its economic situation greatly matter when choosing to expand into it. Some countries have legislations that are not conducive for international businesses to thrive in them.
Such legislation can have high taxation rates for businesses owned by non-citizens or businesses that are not based in their country.
On the other hand, some other countries have created an area conducive for businesses to grow and thrive. Some countries offer business owners the option to gain fast citizenship. This is a common concept in Europe and the Caribbean countries.
In this article, we will take a look at the best countries to start your overseas business.
- United Kingdom
The progressive growth of the UK’s GDP makes it a good option for business owners seeking to expand their businesses. Among all the G20 nations, the United Kingdom has the lowest corporate tax. Tax legislations are always a crucial determinant for business success or failure.
In 2018, the United Kingdom was named the best country in the world, to do business with. Such accolades depict the ease of business and high success rates for businesses in the country. The UK also offers quick and cheap company or business incorporation.
The GDP (gross domestic product) of a country is a clear indication of the country’s economic stability and performance. In 2020, the GDP of the United Kingdom was $2.7 trillion. This figure is expected to grow to $3.2 trillion by the end of 2022.
As a business owner, it is easy to get UK citizenship. Citizenship can be gotten through EU citizenship by investment. This citizenship method has various requirements.
When looking to start or expand a business to another country, many business owners often ignore the Caribbean countries. Grenada is a Caribbean country that has created an environment conducive for business growth.
The country’s GDP has shown tremendous gradual growth over the years. In 2019, Grenada recorded a GDP of $1.21 billion.
Grenada offers business owners the ability to gain Grenada citizenship through investment. This entails a business person investing in a country to get dual citizenship. This can be done through purchasing government bonds, investing in the country’s real estate, etc.
Going through their residency requirements will help you get to know more about it. The country’s tax laws offer businesses the chance to grow without limitations. The legislation states that the country does not tax funds from capital gains or even withholding taxes.
When most business owners are looking to expand their businesses, they mostly consider the tax laws of the nation. However, one factor that has made Singapore a good country for people looking to expand their businesses is the availability of a strong workforce.
Singapore offers a skilled and experienced workforce. This eliminates the need for getting citizenship for your workers to travel to Singapore and work there. The Singapore government also has numerous free trade accords. These accords grant businesses more markets to trade with.
The political stability of Singapore also plays a huge part in making the nation a good choice for expanding businesses. Unlike other nations, Singapore’s tax legislation does not impose capital or dividend gain taxes.
Dividend taxes are those imposed on profits that a business makes while trading on the stock market. Capital gain taxes on the other hand, are taxes imposed on the value increase of an asset that a business held since it was bought.
Capital gain taxes and dividend taxes are significant hindrances to increased business revenues in the countries that implement these taxes.
Often referred to as a business tax haven, Switzerland is an ideal choice when choosing a country to expand your business into. Switzerland has implemented tax laws that significantly favor businesses and offer a conducive avenue for business growth and flourishing.
Switzerland is strategically located at the center of Europe, thereby offering an easy chance to trade with other countries in the region. A look at Switzerland’s history reveals the country’s political and economic stability as it has sailed through numerous crisis situations unshaken.
Switzerland, like Singapore, is noted for having a highly educated and talented workforce. The nation is well-developed in terms of industrial facilities. This development can help a business reduce its manufacturing costs by doing its product development in the country.
Switzerland’s business registering and opening policies are friendly to new businesses. In Switzerland, any tech startups are well supported and embraced by the government.
Canada is extremely friendly to foreign investors. The country has numerous natural resources that a new business can take advantage of. These resources include gas, timber, and oil. The nation also has an availability of skilled work personnel.
A key advantage of expanding your business to Canada that is often overlooked is the access to USA markets. Canada has an agreement with the United States of America. The treaty allows Canadian businesses to trade freely in the US.
Access to the USA market creates a huge avenue of growth for your business. This makes Canada a lucrative country to expand a business into.
- United Arab Emirates
The United Arab Emirates (UAE) is a business hub that has had dramatic growth and improvement over the past few years. The UAE has implemented laws that make it easy for businesses to get registered and set up quickly.
The UAE also has numerous possible business investors. This creates a unique opportunity for businesses that need finances to grow but does not have adequate funding. Tax laws in this country are also known to promote business growth.
In terms of international logistics, the UAE is strategically positioned on the globe. Its centered position helps ease logistics processes between the East and West side of the world.
- South Korea
Asian nations have shown significant progress in terms of economic development in the past years. The problem, however, lies in the policies of these countries. The policies make it hard for businesses to expand into these countries.
South Korea’s economic contributions to the global economy have greatly increased over the years. The country offers good opportunities, especially for the automotive industry, technology, and steel industries.
If your business is under those sectors, the nation will greatly help to improve and better your business revenues.
When looking to expand your business into a specific country, there are some crucial factors that you need to consider. These factors are tax rates, consumer price index, the manufacturing industry, employment rate, and financial policies.
Observing these critical factors will ensure that once you expand your business internationally, you will be able to sustain it. In the long run, your decision to expand your business will pay off in terms of increased business revenues.