He has written on politics, the arts, travel and society for publications such as "The Big Issue" and "Which? By Michael Roennevig. Large Corporation Taxation Vs.
Taxes Companies can realize huge savings in corporate taxes by funneling their profits through overseas countries that have a more lenient tax regime for businesses than the U. Labor Costs The U. Market Seeking Businesses sometimes set up operations abroad to drive growth. Skip to main content. Ideas Library Ideas by Institutions. Search form Search. This is one of our free-to-access content pieces.
Key Concept The internationalization of markets and industries means executive offices and core functions are being moved abroad. Interdependencies between leaders.
In some circumstances, the removal of an individual from HQ will threaten the cohesion of the top team. Fiscal and legal constraints. For example, rules requiring top managers to be based in the home country and tax penalties imposed for leaving. The percentage of total assets and employees abroad. Volume of sales abroad.
Do your research! You can realize big corporate tax savings when you funnel profits through overseas countries who may boast more lenient tax policies for businesses than the United States. Corporate taxes in Bermuda , for example, are at zero percent, which can be a very attractive option when faced with paying higher rates here. It just makes good business sense to move to another country with a much lower tax rate.
The United States, in comparison, now has a 21 percent corporate tax rate, down from 35 percent previously. When you move your business to a country with more relaxed regulations, you are in a better position to be innovative, grow and take risks — more so than you might feel comfortable at home.
Economies that allow companies to operate with minimal interference are attractive to all kinds of businesses. As such, you may be able to avoid things like price-fixing rules or anti-competition and labor laws. Moving internationally puts you in a position of increasing your prestige as a trusted brand globally. Going the extra mile to increase your reach and showing your customers that care about their needs, cultures, etc.
Think about globally popular brands now and how much more exposure they get. Because they are so big, they are seen as trustworthy entities. Tip: look into this first, before you take any other steps, there may be restrictions that prevent your company from setting up in certain countries.
If you are relocating your business to a country with an alternative language you have to take in to consideration the impact the language barrier may have on the running of your day-to-day business.
Productivity in staff can be seriously affected due to a language block. What might seem like a completely natural gesture within the Western World can cause all sorts of offence in the Eastern Hemisphere. Be sure to source an expert, as getting this wrong could have dire consequences. Tip: Visit your desired destination as many times as possible before you set up your company there.
You can do all the research in the world, but nothing will give you a better understanding of the place, people and problems of a country than visiting the place in person. International market research must be carried out within your planned destination to ensure you gain a solid knowledge of your target audience.
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