How to start a business abroad: tips and features for investors

Motives of investors for starting a business abroad

Investors are eager to implement their business ideas beyond their homeland for various reasons. In addition to the desire for financial gain, key motivations include the simplified process of obtaining long-term visas or the possibility of acquiring citizenship in different countries. Starting a business abroad has become accessible in many nations, ranging from familiar European countries to exotic destinations. In particular, Russian entrepreneurs are interested in countries such as those in Europe, certain regions of Asia, as well as the United States of America.

Categories of investors

The CEO of Housage, Yuri Kamaev, identifies several groups of investors who are considering the possibility of international investments.

• Large investors:The first category includes those who are ready to invest in large projects, such as purchasing specialized assets. For these individuals, an important aspect is entering foreign markets.
• Investors for fund withdrawal:There is another category of investors for whom foreign business represents a way to move funds out of Russia. It is important for them to have assets abroad that provide a stable return of 5-10%. Typically, these investors choose already established companies.
• Immigration investors:Those who have amounts up to 5 million euros are often interested in options that can lead to immigration, and they tend to choose small business centers or commercial spaces for shops, restaurants, and mini-hotels.
• Small and developing businesses:Investors with smaller budgets start by purchasing small companies that they can develop as they grow.

The need for professional support

Yulia Titova, the director of the international real estateagency Rentsale, notes that starting and running a business abroad inevitably requires the involvement of external specialists, such as consultants, lawyers, accountants, and auditors. These professionals are essential at every stage—from the idea phase to its implementation.

Comparison of starting a business in Russia and abroad

However, is there a difference between the process of starting a business in Russia and abroad? Many experts believe that there are no significant differences in this regard. Svetlana Timashova, the leader of Red Feniks, emphasizes:

Working abroad can come with challenges in finding personnel. It is often more convenient to deal with fellow countrymen, but not everyone has the right to work in another country, and finding qualified specialists in a specific field can be problematic. Interacting with local workers can also be complicated by cultural and mental differences.

Advertising strategies

It is also worth mentioning the differences in advertising approaches: in Russia, the focus is on internet marketing, while in other countries this method is not always the most effective. Therefore, it is important to carefully plan a marketing strategy in advance to effectively promote your business in the chosen country.

Business opening timelines

The CEO of "Indom," Elena Utyumova, also notes that the processes of starting a business in Russia and abroad are quite similar, and the time required for registration depends on the specific conditions in each country.

Starting a business abroad: difficulties and challenges

In different countries around the world, it can be much more challenging for foreigners to set up their own business than in others. A good example of this is Norway and Denmark. According to Albert Kasperchik, who oversees business development at Extra Sales Consulting Ltd, the process of initiating and running a business in these Scandinavian countries is significantly different from the situation observed, for instance, in Russia or Ireland. Albert notes that in Ireland, there are minimal restrictions, which creates a more comfortable environment for entrepreneurs.

Factors influencing business success

Before diving into business activities abroad, it is important to consider many aspects. This involves not only legal nuances but also cultural traditions, consumer preferences, and the life stereotypes of the local population. The following factors should not be overlooked:

• tax system;
• banking conditions;
• level of bureaucracy;
• the likelihood of corrupt practices;
• the simplicity of business registration.

For some entrepreneurs, the language barrier can become an insurmountable obstacle.

Political and religious situation

Elena Utyumova emphasizes the importance of the political situation in the country for business success. She expresses the opinion that starting a business in Egypt at this time can be risky. Additionally, religious factors also significantly influence the adaptation of entrepreneurship in different regions.

Economic reputation of the country

The financial reputation of the country where one plans to invest is also a top priority. For example, although Cyprus was once considered attractive for business, its reputation has recently been shaken due to the difficulties in capital withdrawal. Nevertheless, there are opportunities for real estate investments, such as purchasing apartments and villas.

As practice shows, the legal systems of countries like China and Thailand can be less predictable when it comes to withdrawing funds. However, it is still possible through official business registration, although such steps will require additional investments.

Taxes and optimization

Analyzing the tax system in the chosen country is an important step in preparing for business activities. Profit taxes and available methods of tax optimization play a critical role in the decision-making process regarding business operations.Elena UtyumovaIt emphasizes that the corporate tax can raise certain concerns among investors. For instance, in Belgium, the rate is 33.99%, while in France it is 33%. However, in France, there are various legal mechanisms that allow for the optimization of tax expenses.

Abilities and market analysis

It is equally important to consider the demand for your product or service in the new market.Albert KasperchikIt emphasizes that, in addition to tax issues, the level of competition is also important. Therefore, before starting a business in another country, it is necessary to conduct a detailed analysis of the local market to determine how successful the implementation of your product will be.

Business legislation

Svetlana TimashovaIt reminds of the specifics of business legislation in a particular region. It states that it is important to understand whether the involvement of a local citizen as a co-owner, holding a 51% stake in the company, will be necessary, as this could complicate the process of starting a business. However, as is the case everywhere, there are ways to address arising issues in various situations, which allows for overcoming challenges when starting a business abroad.

Undoubtedly, the local co-owner of a business is often just a symbolic figure provided by legal and law firms. This implies that you won't see them in real life, as all official documents and legal procedures are handled by lawyers who manage the company's affairs and its annual reporting.

Business opportunities abroad

Now let's turn our attention to the opportunities that open up for doing business outside the Russian Federation.

Choosing a location for a business

Svetlana Timashova emphasizes that the choice of location for conducting business largely depends on its type. For example, in the hotel industry, the most preferred areas are those located near the sea and major tourist centers. When it comes to opening beauty salons, it is essential to research the needs of the target audience and the specifics of the region. Nevertheless, the tourism and commerce sectors can provide stable income for those who possess entrepreneurial skills and creative thinking.

The impact of country selection on business

Elena Utyumova emphasizes that the choice of country for business can significantly impact your financial opportunities. For example, with a capital of around 250,000 euros, it is difficult to implement large-scale projects in Switzerland. In contrast, in Spain, one can actively consider the possibility of acquiring a café or restaurant on the coast, keeping in mind the risk of financial losses. The Greek market presents an attractive opportunity for those planning to start a business in the hospitality sector.

Investment projects in Switzerland

In Switzerland, you can also find interesting investment opportunities, including the reconstruction of hotels in ski resorts, which can then be converted into hotel apartments. The expected cost of such properties can range from 3 to 4 million euros.

Buying real estate in Germany

In Germany, it is possible to purchase real estate specifically designed for elderly residents, which opens up investment opportunities in this demographic sector. Finland, on the other hand, offers opportunities for establishing supermarkets and chain stores, especially in small towns where such activities can be more profitable due to affordable land prices.

Multifunctional projects

There are also interesting multifunctional projects that allow for the realization of various ideas, such as opening a villa by the sea with its own plot and vineyards, which provides the opportunity to create an elite restaurant, a beach, or a rental business.

Business rental abroad

Many Russians are considering renting as a way to do business abroad. Elena Utyumova noted that renting commercial real estate is common and not dependent on the location. For example, there is an opportunity to acquire property for subsequent rental to restaurant establishments. The expected return in such cases can be around 4-5% per year.

Rental restrictions

However, it should be noted that such a business does not provide grounds for obtaining a residence permit in Europe, as it can be difficult to justify the necessity of one's stay in that country. Additionally, it is worth mentioning that the interest of Russians in acquiring office spaces has significantly decreased since the economic crisis of 2008.

Financial aspects of starting a business

When it comes to financial aspects, the costs of starting a business depend on the country, the chosen niche, and many other factors. Yulia Titova notes that expenses when starting a business abroad can vary significantly depending on the economic sector and the specifics of a particular region. For example, in the hospitality sector, the amount of investment can vary depending on whether you plan to open:

• A small family hotel
• A large-scale five-star resort

The amount of required investment may also vary depending on the economic situation in the country where the business activity is planned.

Conclusion

In concluding my article on the prospects of starting a business abroad, I want to emphasize the importance of thorough preparation and analysis when making such a decision. Contrary to popular belief, starting a business outside of Russia is not that difficult if you approach the matter with the necessary seriousness and attention to detail.

I understand that when dealing with immigration issues and obtaining foreign citizenship, many entrepreneurs are looking for not only profit but also stability for their future. Therefore, it is important to remember the necessity of consulting services from professionals in the fields of law and accounting to avoid pitfalls and unnecessary risks.

Comparison of conditions in different countries

A comparison of the chances of success in different countries shows that in several regions, it is indeed easier and more profitable to develop a business. For example:

• InIrelandmore favorable conditions for doing business compared to other countries like Norway or Denmark.

At the same time, it is important not to forget about factors such as the mentality of the local population and the specific requirements for starting a business, which can vary from country to country.

Taxation

Moreover, it is quite obvious thattaxationIt plays a significant role in choosing a location for business investments. One should approach this topic with all seriousness and thoroughly study the tax laws of the countries you plan to invest in. The ability to minimize tax risks and know how to act in a constantly changing political and economic environment can be a key factor in the success of your business abroad.

Result

I hope that the information provided will help our readers confidently pursue their business ideas beyond Russia. Don't be afraid of new opportunities and be ready to adapt to the conditions of a new country for you. Only a deep understanding of the local market, legislation, and culture will help you not only survive but also thrive.to succeedon the global business arena.