One of the most important decisions you’ll ever make as a company owner is whether or not to move your business abroad.
It is no secret that the world of business is becoming increasingly globalized. With more and more companies looking to expand overseas, it can be challenging to know where to start.
But with a little research, you will find that moving your company abroad doesn’t have to be complicated.
This article will walk you through some important considerations when moving your company abroad to avoid any major issues down the line.
How much will it cost to move your company abroad?
Before moving your company abroad, you first need to understand how much it will cost. There are two primary considerations for this: financial costs and time investment.
- Financial Costs – When considering the economic costs of moving your business overseas, some expenses can pop up along the way. We have outlined each one below with an example, so you know exactly what to plan for!
- Permit fees (for hiring foreign employees) – If you hire a new employee from another country on your team, permit fees may apply depending on their role within the company as well as which country they come from.
For instance, if you hired someone in France who was earning €50K per year, then some permit fee deductions would apply.
- Work visa fees – If you plan to hire a foreign team member, it will be necessary for them to obtain a work visa before they can start working in my company’s headquarters abroad.
These costs vary depending on the country and the type of visa requested (e.g., short term or long term).
- Time Investment – Planning is crucial when moving your business overseas to avoid scrambling at the last minute!
This includes ensuring all legal paperwork has been completed during this time, which can take several months.
Furthermore, you will need to consider how much time your team needs to get up and running smoothly. This is typically a one-time expense that can be incurred during any of the following phases:
- Before relocation – If you are planning on relocating your business, it may take some time for you to find out all of the information surrounding permits, visas, etc., before moving forward with this process.
- During relocation – In addition to finding new premises abroad, you will also have to hire employees from other countries if necessary, which comes with its own set of challenges.
These individuals require work visas, but they must also obtain local licenses within their country.
What are the laws in your new country of residence for business ownership and taxation?
Another consideration you must make before moving your company abroad is understanding the laws in your new country of residence for business ownership and taxation.
While this may seem like common sense, it can be difficult to decipher all of this information on one’s own without proper guidance.
For example, suppose you decide to move to Spain or France. In that case, there are several ways to get started with researching these important factors, which include:
You can speak with other people who moved their companies abroad, consult a lawyer specializing in international businesses, or even use an online resource.
The most important thing here is that you take action as soon as possible so that there are no unpleasant surprises down the road.
Do you need to create a local company, or can you use an existing one?
Another important consideration to make when moving your company abroad is whether or not you need to create a local company. This decision will depend on the country in which you are relocating and who owns this business.
Suppose you are starting up an entirely new branch of your current international company. In that case, you may want to consider creating a separate legal entity.
On the other hand, if your entire team wants to relocate their headquarters abroad, they can use their existing US LLC without any issues – providing that all contracts agree with this arrangement.
Will moving abroad affect your ability to trade with other countries?
In addition to those questions related directly to your business, you must consider how moving abroad will affect your ability to trade with other countries.
This is a vast topic that could warrant its article. Still, the most important thing here is ensuring that all of this information has been adequately considered before exporting or importing any products from one country to another.
The consequences for not doing so can be very costly – both financially and in terms of time.
How will this move impact your current customers, suppliers, and partners back home?
Another essential thing to consider when relocating your company abroad is whether or not this move will impact your current customers, suppliers, and partners back home.
This can be a difficult task in itself, but there are several things you can do here, which include:
Ensuring all contracts allow for changes to ownership, updating any public documentation with the new address of your business (i.e., bank statements), informing clients that are directly affected by these changes beforehand via email/phone call, etc.
Furthermore, it may also help if you let them know what your plans are moving forward too.
What is the cost of living like in your new country compared to where you currently live?
Another important factor to consider when relocating your company abroad is the cost of living in that country compared to where you live and operate.
While this may be a difficult task, there are several ways we can go about finding this information, such as looking at statistics on salary comparison websites, using tools like Numbeo, which tracks costs for rent, etc.
It’s best not to ignore these things either because your new employees will definitely want to know whether or not their income will remain adequate once relocated.
New Business Premises Checklist
Once you’ve decided on the country and city where your company will be relocated, we can start looking for office space. This checklist will help you through the process, with all of the important things to consider when renting or leasing new business premises abroad.
– Accessibility – is it near public transport? How easy is it for clients and suppliers to get there?
– Availability – what are your options in terms of office space (e.g., shared, serviced offices, etc.)?
– Costs – Can I afford this on my budget? What about construction charges, including framing and drywall, finishes including paint and flooring, Millwork, mechanical systems, electrical power and lighting, furnace costs, etc.
When moving my company abroad, you must ensure that all of these factors are properly considered beforehand.
Doing so will make the entire process much smoother, but it can also help you avoid any potential issues down the road.