Establishing a new company in a foreign country can be difficult. There are so many things you need to know about – taxation, employment laws, local business culture etc. But one thing you might not know is there is now a smarter, faster way to do it… with minimal risk and a significantly higher rate of success.
As COVID recedes and a degree of normality returns, we are starting to see a rapid return to growth in the Asian business sector.
Emerging Asian economies are projected to expand by 5.8% on average in 2022 and by 5.2% in 2023. Growth in real gross domestic product (GDP) is forecast to be 5.2% for the Association of Southeast Asian Nations (ASEAN) in 2022, and 5.2% in 2023; albeit with countries in the region varying in the pace of their recoveries.
As the world awakes from COVID, companies are keen to become part of this new post-pandemic growth story. Even moreso given that many Asian Governments are offering a range of inducements for them to set up shop. Singapore, for example, offers a range of incentives for a broad spectrum of industries, including tax holidays and concessions, accelerated depreciation schemes, grants and favourable loan conditions. Others are not far behind.
The benefits of international expansion
These incentives however are just icing on the cake for many as international expansion so many benefits, in addition to improved revenue potential. For example:
- The ability to access more customers.
- Greater access to more diverse talent on a global scale.
- Exposure to new foreign investment opportunities.
- Diversified markets and enhanced security and stability.
So if you’re keen to set up a company abroad – perhaps in Asia –what are some key issues you need to be aware of? After all, so many fail.
Want to set up a business abroad? Do your homework
It’s important to take time to understand the market you’re going into. Make sure you’re fully across the local culture, laws and languages of the countries you’re planning to enter. In addition, regulatory requirements vary significantly between countries, so taxes, banking, exchange rates and prices should all feature prominently in your planning and preparation.
Want to set up a business abroad? Conduct a full competitor review
Make sure you fully understand the competitive landscape in your new country. Who is succesful, and why? Then perhaps look at a few companies that tried to enter that market and failed. You can learn a lot from the past failures of others.
Want to set up a business abroad? Assemble a great team of people with local knowledge
A good local team is particularly important when you are starting a business abroad. Locals will know the country’s culture and inner workings much better than you.
A smarter more streamlined way to set up a business abroad?
Despite all the benefits and advantages of setting up a company abroad, for so many businesses there is an element of complexity and fear about global expansion. Setting up in a foreign country is time consuming and costly. Especially for smaller companies. A traditional DIY solution may entail risk, cost and time factors that are overwhelming, especially if you intend a toe-in-the-water strategy of starting small and growing your business there over time.
In addition, the COVID-19 pandemic has proven how volatile markets can become, with restrictions on international travel, closures of government and financial offices and endless fluctuations in local legislation making setup significantly more difficult.
But there is a smarter alternative. One that makes it possible to expand internationally without putting your business at risk.
Partner with a specialist global workforce outsourcing partner like CXC Global
Today, many companies looking to expand internationally use the services of a specialist global workforce outsourcing partner such as CXC for streamlined solutions like an Employer of Record (EoR).
An EoR is effectively an organization that takes over all the legal and administrative responsibilities associated with employing staff on your behalf; including taking care of the onboarding process while simplifying your payroll, producing expense reports, taking care of tax issues, and setting up your employees’ statutory local benefits.
An Employer of Record can also support you with foreign exchange and in-country money movement, insurances and local laws and regulations, as well as arranging work permits and visas for expat employees.
Is an Employer of Record service right for you?
The EoR service is a perfect fit for you if:
- You don’t have a local entity set up already and want it all to happen quickly
- Your company is just testing out a new foreign market
- You want to have global access to recruit top talent
- Managing risk is a priority
CXC can even support your new market entry needs by providing business premises to house local, foreign/expat and remote workers.
CXC could make your international expansion plans a whole lot easier. For more information do not hesitate to contact CXC today!
