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Setting Up A Company

If you wish to do business in a particular country, there are four main reasons for setting up a company.

  • The company structure gives you an easily recognised and readily understood local entity with which your customers and business partners can deal. It also contains built in mechanisms for the management of the business in ways that will comply with local law.

  • You may value the protection afforded by having limited liability. If so you will need to choose the appropriate form of company.

  • There may be significant tax advantages.

  • If you aspire to running a business that may later raise funds by way of the public sale of shares, the appropriate company structure can enable you to do this.

Of course, you may not need to set up a company at all. It may be possible for you to trade as a private individual, or in some other way that complies with the formalities in the country, and you may prefer to do so.

Which type of company will suit your needs?

There is no simple answer to this question. Everything depends upon your circumstances, the size and nature of the business you are trying to set up and what you wish to do in the country.

Our member in the area will be pleased to discuss your requirements with you. This can be done by face to face meeting, by telephone conference call or by video conference. It may be useful to join your own 'home' lawyers and accountants into this discussion as the twin questions often arise of how what you are proposing to do in the other country might affect what you are doing at home and how what you are doing at home should affect the structures you wish to adopt in the country where you want to do business.

One thing is very clear. Choosing the wrong type of company structure or setting the company up incorrectly will prove a very expensive mistake.

Setting up a company in a country requires a detailed knowledge of local law, local customs, local taxes and local business methods as well as the same level of knowledge about the law and tax systems in your own country. We cannot stress enough that it is the interaction - and sometimes conflict - between the two systems that creates most of the potential problems and many of the best potential opportunities for saving you time, trouble and money. The savings and improvements in business performance can be huge!

Next steps

Please look at the Legal Guides, videos, MP3 seminars and other materials set out to the right of this page.

If you would like us to help you, please complete our Client Pack and send it back to us. We will contact you to clarify your requirements and then introduce you to the person most appropriate to deal with your case.

If you do not find the information that you need, please send us an email explaining your problem and we will contact you.

© The International Law Partnership Ltd. Page last revised 8th February 2010.

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