There are many reasons why people choose to expand their business overseas. For some, it makes more sense from a monetary perspective as they’re able to produce more for less money. For others, it’s about finding the right target market, which may not exist here in the United States, but may be overseas, so moving production there just makes sense. No matter the reason a business chooses international expansion, there are many things to consider before taking that step. Here are just a few of the considerations to be aware of when looking into international business expansion.
One of the biggest things that you have to take into consideration when looking into international business expansion is the amount of time that it will take you to get up and running. Many international locations require extensive licensing and permitting to be able to operate in their locales, meaning that if you’re going to be the employer of record, you’re looking at a process that could take upwards of one year.
For that reason, many people tend to use a local employer of record service. These companies, which will process your payroll and be the actual employer of record for your company in that locale are great for a variety of reasons, but the main reason is that they allow you to circumvent the long licensing process. These companies already have established roots in these international locations meaning that you can get to work on production much sooner than you would otherwise.
Payroll and Other Services
Another thing to consider is payroll. When you are the employer of record for an overseas business, it’s up to you to understand the local tax laws and rules, including the proper deductions. This is another reason why many companies choose to use a local employer of record when expanding their business overseas. They’re already aware of local tax laws and regulations and can ensure payroll is processed correctly.
When you go global and start your international business expansion, you want to have people on the ground in the locations that you’re choosing that can help you run the business in the way that makes sense for both your profits and the local business community. When you use a local employer of record, they understand how the business culture is at the local level and can ensure that your business fits in seamlessly from the start.