It isn’t any longer news that business investors from world wide have a look at entering foreign markets as a way to expand their local business operations or diversify their investments and establish latest operations within the international market.
Every 12 months, lots of of entrepreneurial and growing firms consider international expansion as a marketing and growth strategy.
If you might have been successful in what you are promoting for a while and you might have already mastered the whole lot about running a business, overseas expansion could be the logical next move you might have to make.
On the flip side, for a majority of others, just having an overseas registered company and business address makes more sense to them than moving over to those foreign countries to ascertain a brick-and-mortar office.
Whichever the case is, there are no less than 7 reasons entrepreneurs incorporate an overseas company, subsidiary or a representative office.
1. EXPANSION. About 95% of the world’s consumer’s reside outside Nigeria. Entrepreneurs whose vision and goal market is a world one would consider to enter latest markets abroad thus increasing their company’s overall market share and growth potentials.
2. POSSIBLE UNTAPPED MARKET. The opportunity of an untapped market in foreign jurisdictions may motivate a Nigerian entrepreneur to include an overseas company, subsidiary or representative office of his/her local company. Nigerian entrepreneurs who produce and package local foodstuffs on the market abroad fall into this category.
3. PROXIMITY TO INTERNATIONAL CLIENTS/CUSTOMERS. Truth be told, the Web hs done enough to bring businesses closer to buyers. Nonetheless, for some reasons, several business transactions should still warrant a standard business presence in town or country of operation. An overseas office of a neighborhood company needn’t be that big, and should be a home based business address, a paid virtual office, or a small/liaison office only for the sake of getting customer feedback and linking back to the Nigerian office.
4. CORPORATE IMAGE. With the intention to boost their corporate image within the eyes of shoppers, suppliers, investors and businesses, some entrepreneurs just register an overseas subsidiary of their Nigerian company. This provides their target market an impression that they’re an organization with international networks. In situations like this, the “international entrepreneur” needn’t arrange a brick-and-mortar office abroad, he/she only pays for a virtual registered office in such country plus a mailing and telephone forwarding service.
5. COMPETITION. The incontrovertible fact that competing businesses or brands are entering the overseas market and are doing well motivates entrepreneurs in similar businesses to follow suit.
6. INTERNATIONAL PAYMENT. There are quite various international banking options available to firms registered in overseas jurisdictions – whether you’re currently established within the overseas country or operating the overseas company from Nigeria. Having a company checking account abroad makes international payment way more easier by direct deposits, cheque or international wire transfers.
7. MIGRATION. Entrepreneurs considering a migration or move to an overseas country may incorporate an organization within the destination country pending the time of their travel.
The UK, as an example, grants an Entrepreneur Visa to individuals outside the European Union to achieve entry to the UK for business reasons.
The initial visa gives you 3 years within the UK; and if during that 3 years you may show that you just met certain criteria, you may then apply for an extra 2 years extension visa. Following the 5 years, you’ll need the choice of applying for everlasting residency within the UK.