- Opening a Business Abroad
- Being Your Own Boss Abroad
Expats
who want to open a business abroad often face strict rules and regulations.
Depending on your country of choice, on its level of bureaucracy and the nature
of your business, you may have to jump through quite a few hoops before
realizing your dream. For those who hoped to have a better and easier life
abroad, this is often disheartening.
Additional
assets, knowledge of the local business world and proficiency in the local
language are often a must. But don’t let all this scare you off. With a little
help from friends, the financial assets and the will to follow through, you can
still make it in your country of choice.
Bureaucracy
Marcella
(34) was confronted with many more rules and laws than she had expected when
she moved to Shanghai to open an Italian restaurant catering to the city’s
sizable expat community. First of all, it took her a long time to decide which
legal form the restaurant should have.
“As
a foreigner in China, you can only start a representative office, a joint
venture, or a wholly foreign-owned entity,” she explains. Ironically, Marcella
needed to have a legally formed business elsewhere to act as the investor for
her own Shanghai business. “During my preparations, I thought I was going to go
crazy. I didn’t know how to deal with Chinese bureaucracy. My Mandarin wasn’t
good enough. I wasn’t sure if I had figured out the supply chain for the local
restaurant scene, which licenses and insurance policies I might need after
opening the restaurant and just how things worked in China.”
Business Partners
Marcella
finally found a Chinese business partner she could trust. She and Mei Ming (31)
are now managing the restaurant together. “When I decided to do this, I never
had a joint venture in mind. But Mei Ming helped me overcome all the
bureaucratic barriers. I could have never done this on my own.”
When
you decide to open your own business abroad, like Marcella, remember that the
business structures available in your country of choice may not be the same as
in your home country. It is important that you figure out which structures you
can adopt for your business and that you know about the restrictions of each.
In some cases, you may not be free to choose between all of them. Instead, the
very nature and size of your business abroad may restrict you to only one
option.
Taxes
You
should always keep in mind that finances, taxes, and banking procedures are
handled differently all over the world. Even if taxes are relatively low
compared to your home country, there may be a lot of paperwork involved.
Getting informed about these matters is key – ideally, you should try to get a
good idea what might await you in terms of taxes in your new home country
before you even leave. Our overview on taxes for expats may be a great starting
point for your preparations.
Global Partner
When Anna (42) left Austria
to open a B&B in Ireland, she had to face a lot more of the aforementioned
paperwork than she had expected. “First of all, I thought it would be no
problem to register for tax purposes when my hotel was up and running. I wish I
had known before how to deal with red tape because it would have saved me lots
of trouble.”
