Moving companies abroad can be expensive, complicated as well as time-consuming. However, they move overseas for just one reason: the economy. Now what are the things to be considered before taking such an important, life-changing decision?
Looking for a country that has a moderate tax regime can create large savings for any company, and helps to generate increased profits. For example, establishing a company in a country like Bermuda that levies no corporate taxes at all can be a capital idea. Another potential nation is Ireland, where the corporate remains at a low 12.5 percent whereas the U.S. taxes companies at a high 35 percent. Ireland is right now very popular when it comes to relocation service.
Cost of Labour
Cost of labour is another key factor to consider. For example, many American companies have established production facilities in countries like India and China where workers are paid very low wages as compared to Western standards. Besides, U.S. companies can obtain cheaper raw materials and land as compared to the U.S. due to the difference in costs.
When a company moves to a country that has less regulations, it can grow, innovate, as well as take the necessary risks easily without worrying about tough regulations. It is no good relocating to a country that has strict regulations on matters such as labor, anti-competition, price-fixing. Looking at countries like Luxembourg or Malta is a good way to get informed about these matters.
Seeking New Markets
Companies are often relocated across borders in order to enhance their growth. Any business that reaches the saturation point within its own domestic market can go further by seeking better opportunities in other countries. To reach this goal it can be extremely beneficial to establish a regional office in a favourable country with a minimum of employees, setting up a subsidiary company, or even engaging in a joint-partnership with some suitable local equivalent.
By keeping in mind the above factors, any business can relocate to another country and reap the rewards thereof.