6 advantages of business relocation abroad

Business relocation may be required for various reasons. Establishing new connections, searching for a more profitable taxation system, convenience and access to technology, cheap labor.

We talk about all the advantages of relocating a business abroad, as well as the pitfalls!

Advantages of business relocation abroad:

Obtaining a residence permit or a second citizenship: Many countries provide the opportunity to obtain a residence permit or a second citizenship for foreign entrepreneurs, which makes it easier to do business in these countries. For example, government programs operate in Cyprus, Spain, Italy and the United Arab Emirates. And in Turkey, business investors can immediately obtain citizenship.

Favorable environment for company development: Countries that attract entrepreneurs usually have a developed business infrastructure, an innovative environment and simple company registration procedures.

Loyal tax policy: Some countries offer attractive tax regimes for companies, including exemption from taxes on dividends, capital gains and even income tax.

Government Incentives: Many governments provide various incentives to support businesses, such as free economic zones, subsidies, and tax breaks.

Entering a New Market: Relocating a business abroad provides an opportunity to expand and reach a new international market, collaborating with new partners and attracting more customers.

Employee Skill Development: Business relocation can help improve employee skills, as the employer usually provides relocation, training, and onboarding support. It also provides an opportunity to hire local professionals who are well aware of the business culture of the country and contribute to the company's successful adaptation to the new market.

The disadvantages of business relocation include the following:

Difficulty adapting to a new market: The need to adjust to the new business etiquette and culture of a country can present challenges for entrepreneurs.
High costs: Relocation of a company and employees can be accompanied by significant costs associated with moving and adjusting to a new environment.

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Jurisdiction and Tax Difficulties: Understanding and complying with someone else's system of law and taxation can be a daunting task for entrepreneurs.
It should be noted that the decision to relocate a business abroad should be considered and based on a thorough analysis of all the pros and cons, as well as taking into account the characteristics of a particular business and markets.

Relocation:

Mercury Group experts provide comprehensive turnkey relocation services:

  • Business relocation (full and partial)
  • Opening a new company;
  • Opening a personal and corporate account,
  • Assistance in attracting investments, obtaining a bank loan,
  • Support in the procedure for obtaining a residence permit / permanent residence,
  • Selection of housing for rent or purchase.

 

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