Taking your business offshore is one of the best methods for fast growth; call it the gateway to becoming a global brand. While it is true that going offshore is a major decision and requires significant investments, you stand to reap many benefits. Keep reading to understand some of these benefits and taking advantage of them.
Is Opening an Offshore Business Legal?
Before looking at the main advantages of taking your business offshore, it is important to answer the big question, “Is it legal?” Yes, opening an offshore business is legal. All that you need to do is follow the recommended process of registering a company offshore. Take the example of Hong Kong. To operate a legit company, all you need to do is follow the Companies Ordinance.
Depending on the selected jurisdiction, you should also look for other legal requirements, such as the need for permits, filing of annual returns, taxes, and employment policies. Most of the investment jurisdictions are very supportive to investors and will go to any length to ensure your business becomes successful.
Special Advantages of Taking Your Business Offshore
Now that you know opening an offshore company is legal, we will now list the main benefits to anticipate.
- A Good Way to Grow Your Business
To grow your business, the most critical factor is the size of the market and the profit you can make. By going offshore, it implies that you get to access a bigger market in the new jurisdiction. If you select a good jurisdiction in Asia or the EU, it might be possible to also access the neighboring markets.
- You Get to Take Advantage of Bilateral Trade Arrangements
Today, most countries have entered into bilateral trade agreements to help investors take advantage of the global markets. For example, most of them sign bilateral trade agreements to help businesses avoid double taxation. This implies that in addition to using the agreements signed by your home country, your enterprise will also take advantage of those signed by the offshore jurisdiction.
- Setting Up Your Company is Easy
The first step when taking your business offshore is incorporating it into the targeted jurisdiction. Well, the process can indeed be lengthy and complicated depending on the selected country. However, this does not have to be the case because there are investment destinations where the process is pretty straightforward. Indeed, you can simplify the process so much by working with an agency of experts. In some jurisdictions, it might even be possible to register a company offshore without traveling there.
To grow your business fast and expand globally, you should consider taking it offshore. In a good foreign jurisdiction, you not only access a bigger market but also take advantage of the highly developed infrastructure, such as Inland Container Depot (ICD), roads, and good internet penetration. Instead of limiting your business by only operating locally, consider expanding it offshore to access a larger market and start the road to becoming a multinational.