When starting a business in a foreign country, the investors will have several advantages that can depend on the chosen jurisdiction and they can refer to tax advantages, types of legal entities that can be registered in a country, the easiness of opening a company, the incentives offered when entering a specific business activity and others.
Economic development and stability of the foreign country
The economic development of a jurisdiction can be a compelling argument for starting a business as it is the case of Malta, which represented the fastest growing economy in the European Union (EU) at the level of 2017. When starting a company in Malta, foreign businessmen can also benefit from the foreign direct investment policies that are available in this country, addressed to specific economic sectors (relevant developments are available in the financial sector).
Tax advantages for foreign businesses
Regardless of the economic activity in which a foreign businessman is interested, he or she will want to benefit from as many tax advantages as possible and this is one of the strongest reasons that determine the incorporation of a company in a given jurisdiction. Although numerous countries across the world provide an attractive taxation system for businesses, Dubai stands out as one of the best destinations for companies due to the fact that numerous taxes are not applicable in its free zones as follows:
- personal taxes;
- corporate taxes;
- capital gains taxes.
Foreign investors who want to start a company in Dubai can also register their business in one of the free zones available here, which provide further tax exemptions.
Low costs for running an office
When computing the overall investment that would be necessary for starting a business in a foreign country, businessmen will also have to take into consideration the costs for running an office where the company can develop its activities. An attractive jurisdiction for starting a company in Asia is Malaysia, where the cost of renting an office space is considerably lower than in similar jurisdictions in this region.
Talented international workforce
Most of the businesses nowadays need the skills of a talented workforce, able to work in diversified environments. Another key component of an attractive workforce is given by the ability to speak several foreign languages and one of the most developed markets that benefits from these characteristics is the United Kingdom (UK). Although the UK will not be a part of the European Union anymore, it still provides attractive regulations for those who want to start a business in this country. In the situation in which foreign businessmen are involved in any activities that are considered illegal under the UK legislation, they may address to a local criminal solicitor.