As an entrepreneur, you may be considering an expansion or new business opportunities overseas. The Covid-19 impact on businesses is driving more entrepreneurs to try accessing international markets, develop a product or service that appeals more to overseas consumers, or leverage a more friendly and healthier business environment.
No doubt, this is good consideration since business opportunities in foreign destinations have the potential to generate huge profits. However, such opportunities have their own fair share of risks and potential pitfalls. So, get informed about the possible challenges before making a final decision.
Registration of Business and General Regulations
In addition to tax issues, registration and other regulations would come into play when seeking to set up a business overseas. For instance, some countries would require an entrepreneur to register a business to an address, whether or not you will be living in that country. And, there must be someone to represent you in accessing your legal documents via the physical address your business is registered with.
Another regulation is that some foreign destinations limit property rights when it comes to foreigners, including foreign investors. Some countries will mandate you to partner with a native of the country in running your business, as one of their regulations for foreign investors. So, you should bear these and other possible regulations in mind when you set out to invest in an overseas market.
Tax Situations Could Get Tricky
Naturally, new tax complications would surface when venturing into foreign markets. Of course, the tax matters at home are also staring you in the face. For investors who have their main business office in the United States, some of the income you earn may not be included in your U.S. taxes. But, this is only if you qualify for FEIE – Foreign Earned Income Exclusion. Besides, you may carry out tax obligations in the foreign destination you are setting up your business. So, you should outsource tax matters relating to foreign business to a tax expert. This way, you can be better informed and avoid potential grave legal issues.
Possible Language Barriers
Don’t wave off the possible challenges arising from language and cultural differences. You can always learn from history when it comes to the impact of language and cultural differences.
For example, the phrase that Braniff Airlines adopted in Mexico happens to mean “Fly naked”. While such language commotion in ads can sound funny, they can become major turnoffs to the audience you are targeting in a foreign destination. You can prevent such issues by employing some persons who can speak your language in addition to the foreign country’s language.
Finally, consider the economic climate of the overseas destination you seek business opportunity in.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams
Colin Sprott says: 
Seeking Business Opportunities Overseas? Don’t Take Any Step Yet Until You Read the Guidelines On This Post
As an entrepreneur, you may be considering an expansion or new business opportunities overseas. The Covid-19 impact on businesses is driving more entrepreneurs to try accessing international markets, develop a product or service that appeals more to overseas consumers, or leverage a more friendly and healthier business environment.
No doubt, this is good consideration since business opportunities in foreign destinations have the potential to generate huge profits. However, such opportunities have their own fair share of risks and potential pitfalls. So, get informed about the possible challenges before making a final decision.
Registration of Business and General Regulations
In addition to tax issues, registration and other regulations would come into play when seeking to set up a business overseas. For instance, some countries would require an entrepreneur to register a business to an address, whether or not you will be living in that country. And, there must be someone to represent you in accessing your legal documents via the physical address your business is registered with.
Another regulation is that some foreign destinations limit property rights when it comes to foreigners, including foreign investors. Some countries will mandate you to partner with a native of the country in running your business, as one of their regulations for foreign investors. So, you should bear these and other possible regulations in mind when you set out to invest in an overseas market.
Tax Situations Could Get Tricky
Naturally, new tax complications would surface when venturing into foreign markets. Of course, the tax matters at home are also staring you in the face. For investors who have their main business office in the United States, some of the income you earn may not be included in your U.S. taxes. But, this is only if you qualify for FEIE – Foreign Earned Income Exclusion. Besides, you may carry out tax obligations in the foreign destination you are setting up your business. So, you should outsource tax matters relating to foreign business to a tax expert. This way, you can be better informed and avoid potential grave legal issues.
Possible Language Barriers
Don’t wave off the possible challenges arising from language and cultural differences. You can always learn from history when it comes to the impact of language and cultural differences.
For example, the phrase that Braniff Airlines adopted in Mexico happens to mean “Fly naked”. While such language commotion in ads can sound funny, they can become major turnoffs to the audience you are targeting in a foreign destination. You can prevent such issues by employing some persons who can speak your language in addition to the foreign country’s language.
Finally, consider the economic climate of the overseas destination you seek business opportunity in.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams
Related Posts