The world has undergone a rapid transformation in many respects, as digital technology continues to develop and entrepreneurs are able to penetrate foreign markets like never before. A few decades ago, if you wanted to do business with a Chinese manufacturer, you would have to go through several middlemen, while today, you can enjoy a real-time video call with the Chinese CEO and have real-time translation!
Setting up a company in a foreign country
In order to minimise taxation, you can set up a company in the country where you do most of your business; hire a leading international law firm to process the company setup and before you know it, your new business entity is ready to trade! Using a top-rated law firm with offices in said country ensures a smooth registration process and they can help you in so many ways, such as sourcing local providers and obtaining long-term business visas.
Types of business registration
Take Vietnam as an example, there are three types of business entities;
- Joint Stock Company – A trading entity that can be 100% foreign-owned or partnership with a local, a management board is required. This type of business registration takes 6-8 weeks to complete.
- Limited Liability Company – This is the most popular choice for foreigners wishing to do business in Vietnam, this trading entity can also be 100% foreign-owned and is subject to local laws.
- Representative Office – The RO is ideal for companies that wish to carry out market research in Vietnam; a non-trading entity that must be 100% owned by the Head Office. A chief representative is required.
When you consult with a leading international law firm, you receive the best advice from experts and they have many essential services that you can use. The lawyer can help you make the right choices and he/she will give you a list of required documents and instructions regarding opening bank accounts and depositing money. Click here to read about AI and how it is integrated into the world of commerce.
Outsourcing essential business services
Not all foreign entrepreneurs wish to self-manage their business, which is where the international lawyer comes into play; they can connect you with the following services:
- General secretarial work
- Bookkeeping & accounting
- Inventory management
- Annual & quarterly reports
You can manage your business remotely with cloud-based data storage and your legal partner will ensure that you are fully compliant with local laws.
Tax incentives
One of the reasons why investors prefer to set up a company in a foreign country is the attractive tax concessions that are in place to encourage foreign investment. Hire an international lawyer and they can explain how you can minimise taxation with foreign company formation, while also providing you with the best advice.
It has never been this easy to set up a company in a foreign country; whether you want to start a business in Vietnam, Thailand or Malaysia, there are law firms that can help you in this regard.
