In order to find the right market for their products and business orientation, many businesses are interested in establishing companies abroad. Besides some barriers of culture, language, ... there are many potential lands for businesses to exploit when setting up companies in foreign countries.
According to the representative of One IBC, a foreign investment service provider, the development of technology helps businesses no longer be limited by border barriers, opening up a global market with unlimited potential. Accordingly, enterprises owning foreign companies will solve the problem of managing and maximizing foreign currency cash flows.
Here are some of the advantages of setting up a company abroad that you can take advantage of to boost your business and promote growth.
Enterprises enjoy many advantages when establishing a company in a foreign country. Photo: One IBC
Policy incentives
Opening a company abroad comes with a number of advantages as the host country offers incentives to attract businesses and promote development for the whole economy.
In the UK, the government is always interested in the startup community and regularly updates a number of policies to support businesses with favorable conditions. Currently, the charter capital for business registration to establish a company in the UK is at 1 pound, equivalent to 28,000 VND.
In addition, some countries also offer tax incentives for businesses when establishing a company. After completing the procedures for setting up a company in Singapore, businesses can enjoy many incentives from the government, especially the 3-year tax exemption and reduction (YA) policy. Accordingly, enterprises are entitled to 75% tax exemption for the first 10,000 SGD of taxable income and an additional 50% tax exemption for the next 190,000 SGD of taxable income. This can create an impetus to promote business activities of enterprises in the host country.
Besides, easy business registration procedures can be one of the advantages that make a difference for businesses to choose to establish a domestic or international company. In Malaysia, the procedure for setting up a company is quite simple. It only takes a few days with a few document requirements to build a business in this Southeast Asian country.
Expand the business market
The saturated market is always the reason that pushes businesses to approach new lands to find opportunities and approach customers. Most businesses will be attracted to economies with stable business environments where the company has a lot of potential to grow.
The UK is an ideal location for many businesses looking to set up a company abroad. Mr. Bui Duc Tue, Representative Director of One IBC said: "Many businesses look to One IBC to set up a company in the UK. The UK is a potential market in Europe, so on average each businesses can reach about 500 million consumers every day.
Similarly, Hong Kong is also a potential market for many financial and banking businesses when they want to set up a company. When opening a company in Hong Kong, businesses can enjoy a number of benefits including: modern facilities to help speed up trade, trade agreements that allow goods to be circulated to many markets. .
Hong Kong is a potential market for businesses that want to open companies abroad. Photo: One IBC
Leveraging the global supply chain
Some economies have to rely heavily on imported raw materials and materials, so disruptions and changes in global supply chains have had a significant impact on businesses. In order to adapt to the fluctuations of the supply chain, many enterprises decide to set up companies in a number of countries with important geopolitical positions. At the same time, companies also promote linkages and regionalization of supply chains to minimize risks of shortage of raw materials.
Therefore, when setting up a company in foreign countries, especially countries with favorable sea and air routes, businesses can take advantage of the global supply chain to boost production.
Build brand reputation
Businesses are increasingly aware of the importance of building and developing professional and methodical brand positioning strategies. This is a prerequisite to help enterprises improve their competitiveness, affirm their position, thereby expanding the business market.
When establishing business registration in a foreign country, companies may have a higher position in terms of trademarks, financial instruments and tariffs than domestic enterprises. Setting up companies in countries and geographical areas with high reputation allows businesses to increase their credit scores to make it easier to sign contracts with partners.
