Expanding your business reach overseas has its advantages. For one, you will be able to attract new markets that will cater to your brand. But it is also a big leap of faith. Before you are able to establish your branch in a new business jurisdiction, you need to ensure that you are ready and fully capable of such a venture.
To help you decide whether you should be taking your company global, here are some factors that would help you in your decision-making:
- The purpose of expansion
There are a lot of reasons why a company expands and establishes their brand elsewhere. The most common reasons would be to attract new market segments and explore business opportunities that other locations are offering. When you are thinking of expanding your brand, you need to ensure that your reasons are valid and realistic. If your reason for forming a company overseas is just to enjoy tax haven, then it might not work. Check your business goals and objectives and see if your expansion plan is aligned with the plans and future goals of your company.
- The financial standing of the company
Although there are UAE company formation services offering low-cost company formation, you need to take into consideration other expenses when branching out your business. Which is why you need to check if the company is financially capable of executing such plans. The first thing that you need to do is to consult a firm and ask for an overall estimate of forming and incorporating a company, as well as the estimate of getting a space, hiring employees and running the operation. The estimate costing would give you a hint whether it is feasible to establish another branch overseas or any other location.
- A formation plan
Although the company formation process in business jurisdictions is pretty simple and straightforward, you need to have a solid incorporating and formation plan before you apply. A formation plan is usually provided by the consulting firm that you will employ. You need to convene with your consulting firm and create a solid plan – from collating the documents needed to looking for a local sponsor in UAE to back up your application and help you launch your brand. Be sure to ask for a copy of the furnished formation plan along with the comprehensive market study that would serve as your reference when you are deciding whether to take your brand overseas.