If you are an entrepreneur, one of your dreams and aspirations might be growing your company into a multinational, but how do you achieve it? One method, which has worked very well for other top global brands, is taking your company offshore. Keep reading to understand the main benefits to expect by expanding your firm to a foreign jurisdiction.
Straightforward and Low Tax Regimes
One fact about a business that you should know is the importance of keeping the cost of operations as low as possible for it to be successful. By taking your business offshore, it is possible to cut down the cost of operations through low taxes.
Most offshore jurisdictions reduce their taxes to attract investors. Some might even exempt your business from paying taxes or require it to pay very little. Furthermore, top investment offshore jurisdictions have outstanding Inland Container Depot (ICD) facilities and have entered into bilateral trade agreements to help businesses in their jurisdictions avoid double taxation.
Offshore Jurisdictions Offer a Bigger Market Access
If your company’s local market is small or shrinking, one of the best options might be looking for a larger market offshore. A good foreign jurisdiction can open access to its market and other regional countries. Take the example of an offshore jurisdiction like Hong Kong. If you incorporate a business in Hong Kong, accessing the following new markets will be very easy:
- The Hong Kong market.
- The Mainland China’s market.
- Entire Far East market.
- Global market through bilateral trade arrangements signed between Hong Kong and other countries.
Government Support for Businesses
If your business is located in a country with little or no government support, achieving significant growth can be challenging. You might want to look at the World Bank’s Ease of Doing Business report for different countries when identifying the preferred option. With good government support, it might be possible to incubate new ideas through specific government programs and monetary assistance.
To assist businesses to grow faster, some offshore jurisdictions have special incentives for companies moving there. For example, China offers special incentives for companies that operate in the encouraged areas and away from the coastal cities.
For your business to grow and become successful, it requires a well-developed infrastructural system. Governments of most offshore jurisdictions have taken a lot of time to develop infrastructure for supporting their businesses. For example, you will find countries such as Australia, China, UAE, Hong Kong, and China with world-class transport facilities. This means that transporting raw materials, finished products, and labor is easy, convenient, and affordable.
The benefits we have listed in this post are only a few, and you should expect a lot more. Offshore jurisdictions act as crucial channels that businesses use to reach global statuses. This is why most of the big companies, such as Apple, Macdonald’s and Barclays have a huge offshore presence. You, too, should not be left behind. Consider working with an agency of experts to help you expand and take advantage of the benefits we have listed above.