If you are considering an offshore venture, then you want to make sure that you are able to create an effective business strategy for its success. Read on to learn three strategies for starting a successful offshore company.
1. Understand the greater reason behind the opening.
When considering offshore company formation, it is crucial that you know the answer to the “why” and “how” questions. After all, you can’t be successful with something if you aren’t quite sure why you are opening an offshore company in the first place.
As more and more companies are looking to expand their teams abroad, or to become entirely based in a foreign country, it has become a more accepted idea to start an offshore company. However, there are a variety of reasons why a firm may look to transfer their offices abroad or to begin in a different country, and you ought to be confident of those reasons for your particular business.
For some, the main reason may be the tax-free business environment or the opportunity to sell products to a broader, more eager audience. For others, low costs of labor and energy resources may be a strong pull or a convenient geographical location. Some countries have more suitable official policies that are targeted at business development, while others have a more straightforward system for incorporation of companies.
Whatever the reason, you have to be sure of it for the development of your company.
2. Work with an offshore agency.
Undoubtedly, one of the best strategies for starting a successful offshore company is to work with a team of people who are the best at getting it done. While it is natural to feel bewildered by the work that needs to get done, you can help yourself (and your business) stay on the right track by working with a business setup consultancy that offers startup business solutions.
By bringing this expertise into the equation, you can be assured that the setup is going to go as smoothly and efficiently as possible. The pros can work on the formation of the business, while you can continue with the areas of the company of which you are the expert.
3. Be aware of potentially expensive mistakes.
While setting up an offshore company can potentially result in immense rewards and profits, there is also a chance that the complete opposite will happen. Business owners who rush into this process tend to overlook some of the conceivably expensive mistakes that could transpire and, as a consequence, are unable to get their company up and running or keep it maintained.
To avoid falling prey to the same mistakes, you need to be aware of what they are.
First and foremost, having little to no understanding of running an offshore company or the particulars of the locale you are looking to set up in is the first potentially expensive mistake. Just as with the formation of any company, you want to be thorough and thoughtful in your business plan and your approach to development. In fact, opening a business in another country may require more planning as you want to have a well-rounded grasp of the country’s economy and business practices.
Research is really the key because it will also ensure that you don’t make the mistake of choosing the wrong locale to start your business in. Every offshore financial center provides its own set of pros and cons, and it is up to you to find the one that is right for your firm. Depending on your requirements, you may be better suited to a place that has simple and easy administrations, or one that provides asset protection or maximum transparency — only you know what you need.
Last but not least, you want to ensure that you are building a team on the ground that is reliable and efficient, as well as loyal to the vision of your company. You want to ensure that you are utilizing your greatest development systems concerning communication, collaboration and preparation when it comes to your offshore team. Even more than working with an onshore team, you need to remain disciplined when working with your offshore team.
Have you ever set up an offshore company? Are you considering it? Let us know your tips and experiences in the comments below!
Raj Herry is the Founder and Chairman of Flying Colour Business Setup Services. His extensive experience comes from more than 15 years in the field of company incorporation for Dubai Mainland, all Free Zones across the UAE and offshore companies worldwide. He also owns several business centres offering furnished and ready-to-move offices in Dubai.