Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
How to Start a Business Abroad: Where and How to Launch Your Company Internationally
Moneymagpie Team
23rd Apr 2025
Opening a business abroad is a step that entrepreneurs decide to take for a number of reasons. Entering the international arena helps to attract a new audience, expand the business, avoid restrictions when working with foreign services, freely accept payments from abroad, and place paid applications in official stores. Many entrepreneurs consider this a qualitatively new stage of development for any business.
This may seem like a very difficult task, especially if this is the first such case for the entrepreneur. First, you need to test the existing business for survival in another country. And if the project is launched from scratch, then you need to think through several ideas, decide on the country in which the business will be conducted, and then formalize everything correctly.
What Country to Choose for Business
Many people today prefer the UAE because there is a favorable environment for almost any business, there is a free economic zone, developed infrastructure, and a large number of programs that can help at the initial stage. Entrepreneurs usually use the help of professionals, for example, many turn to Award – Winning Business Setup Consultancy in the UAE for advice when opening their company in the Emirates. Thanks to experts, you can avoid unnecessary expenses, incorrect actions, or non-compliance with the law.
The UAE is also preferred for the reason that you can open different forms of companies – mainland, onshore, offshore, and even virtual. At the same time, this is one of the few countries that also provide an entrepreneur with a residence permit, mainly for 2-3 years. When investing and receiving approval from a business incubator, a residence permit can be given for up to 10 years.
Also, common countries for business relocation are Cyprus, Turkey, Portugal, and others. From this list, the UAE also stands out primarily because it is actually a world center of innovation and high technology, which attracts startups and IT companies.
Seven factors will help you decide on a country:
- Stable political situation. Laws in the country should not change every year. We are talking about fundamental changes. Supplements to the current legislation are a normal trend. The most stable countries in terms of political situation are considered to be the UAE, Australia, New Zealand, Canada, and the USA.
- Corruption. It is important to find out what policy the state pursues regarding bribes, whether there are any raider takeovers of businesses.
- Tax legislation. Clarify the minimum amount of authorized capital. Plan your profit and compare it with the amount of taxes. Inquire about the availability of free economic zones – FEZs, which practice preferential taxation. There are such things in the UAE.
- Lending. How difficult is it to get a loan?
- Laws that regulate the entrepreneurial activity of foreigners. Find out whether you will need a visa or a residence permit to do business. What share of the business can a foreigner own, whether it is necessary to be permanently in the country, and how to obtain a patent or license.
- Infrastructure. Study the terms of the lease of the premises and related expenses. This is the minimum that you need to familiarize yourself with. If you plan to engage in trade, you need to find suppliers, channels for transporting goods, and establish an international delivery network. For production, you will need to establish logistics, study markets for product sales, and raw material supplies.
- Socio-cultural factors. Differences in culture and mentality can be a serious barrier. Study the peculiarities of mentality, everyday, and business etiquette.
For example, you can open a business in the USA online, while being in another country, but the political and economic situation there sometimes raises concerns, Japan leads the list of countries with the lowest rates of corruption and economic crimes, but you need to get used to the peculiar Eastern mentality, and in the EU countries they will willingly give a loan for a promising project, but rent and wages for hired employees will be expensive. You will have to weigh the pros and cons in any case.
General Advice for Starting a Business Abroad
Before registering a company abroad, study the laws of the selected country. Pay attention to four key points:
- How the authorities treat foreign entrepreneurs.
- Is it possible to use state support?
- What share of companies can foreigners own?
- Are non-residents provided with tax breaks?
Visit the country chosen for doing business, learn about the mentality of the people, the local culture, study the market: what local businessmen earn, what niches foreigners choose.
Key Takeaways
Starting a business abroad can be a turning point in your entrepreneurial journey. Whether you’re expanding an existing company or launching a new one from scratch, proper preparation is the key to success. From choosing a stable country with favorable tax laws and infrastructure, like the UAE, to understanding local culture and regulations, every step matters. Seek professional help if needed, explore available government support, and test the market before you dive in. With the right strategy and mindset, going global can open up a whole new world of opportunities for your business.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
Subscribe
Login
0 Comments
