How to open a company in a foreign country

  • 2019-04-26
  • Vlad Cuc

Numerous countries across the world provide attractive markets for the registration of a business. Investors generally seek jurisdictions where the registration itself can be completed in a simple manner, where the corporate tax system is a competitive one and, of course, where the field in which they activate has relevant growth opportunities.

Businessmen who want to invest in Asian countries can choose jurisdictions such as Malaysia or Singapore, two neighboring countries that offer some of the most competitive advantages for business purposes. However, significant differences can be found between the two countries. For example, businessmen who want to start a business in Malaysia will benefit from better conditions (in terms of the costs associated with developing a company) as running a business in Malaysia is considerable cheaper than in Singapore. Investors should know that they can obtain a set of loans and grants, created in order to sustain the development of foreign direct investments, through programs such as Market Readiness Assistance Grant or the Internalization Finance Scheme.

If choosing the neighboring country, Singapore, foreign investors can easily start a business. However, as a foreigner, a person setting up a company in Singapore needs to obtain the EntrePass, a document which grants the right of opening a business here. The document is not required in the case in which the investor does not want to relocate in Singapore, but in this case it will be necessary to appoint a local representative. Singapore, one of the main economies of the Asian regions, allows foreign businessmen to register a wide range of legal entities, including sole traders.

Businessmen may also opt to register a company in Europe, in its Western and Eastern regions. Although the Western countries are more developed from an economic point of view, Eastern European countries are on the rise in various economic sectors and they may provide very attractive conditions. For example, in Romania, the IT sector stands out as a very appealing industry, which is said to increase to 12% of the country’s gross domestic product by 2025. Just like in any other European country, the limited liability company is the most common way to start a company here; the local regulations, as well as any other matter related to the registration of a local business, can be presented by a law firm in Romania.

On the other side of the continent, investors can incorporate a business in the United Kingdom, which is one of the leading economies of Europe. Those who want to invest here, but have been accused of committing various crimes (fraud, theft and others) can find suitable representation from London based defence solicitors.

Foreign investors interested in starting businesses in other countries, for example in Montenegro, can receive company formation assistance from our partners.