In terms of business, the world has gotten smaller. Global expansion is now the rule and not the exception for modern businesses. While expanding into foreign countries offers new markets, an increase in customer base, and opportunities for strategic alliances, but there are a number of other things that you should take into consideration before making the move. They include taxes, staffing, language challenges, and location. While the internet, improved international trade agreements, and video teleconferencing, helps, use caution before setting up overseas.

1. Get Top-Notch Professional Assistance

As you consider setting up operations overseas, it's essential to get the best professional assistance possible. While doing some of the initial work yourself helps you to get a better understanding of what it takes to complete the project, it requires accountants, attorneys, and other consultants with international experience to make the move a success. Failure to do so may lead to some small savings in the short term, but can lead to chaos, massive financial losses, misunderstandings, and many other problems in the long run.

2. Properly Vet The Move

There are several questions one must answer before making the decision to take your company into a foreign country. It's important to ask yourself why you want to undertake the move, the benefits of doing business in this new country, where the business will be located, the people that need to play a role in the operation's planning and execution, when the move would take place, and what steps you'll need to take to meet your objectives? Answering those questions will give you a roadmap to creating your infrastructure.

3. Tax Issues

It's essential to get the proper information about how taxation in the foreign country will be handled. It's important to understand whether federal and local taxes will be collected in the foreign country, how they will be calculated, and the payment and filing requirements. It's crucial to know if regular audited statements will be required and when the beginning and ending of the fiscal year in the foreign country is. The business owner must also find out whether deduction and appreciations allowances will be allowed.

4. Language Barrier

The language spoken in the foreign country must also be considered. The business owner must know whether subtitling services and interpreters will be necessary, how much it will cost, and how that will affect the bottom line. They'll also have to consider how a language difference may impact marketing and overall communications between the company and potential customers and the general public. Plus with language differences often comes cultural differences that must also be considered. In some cultures not bringing a gift, attempting to shake hands, or sending a woman to negotiate can be deal breakers. It's essential to get information on what's acceptable and desirable in the foreign culture.

5. Lots of Research and Preparation

Before heading to a foreign country to open a business, there are several things you should make sure you have in place. You should make contact with government officials to find out about incentives for doing business, building permits, licensing, limitations on imports or exports, and to ensure you know the environmental regulations for waste disposal. You also need to know about the requirements for product registration, copyright, trademark, and intellectual property. Finding out about the financial system, banking, lines of credit, payroll, pensions, and social insurance contributions are crucial as well.

Proper planning is essential for business success in foreign countries. Companies must be prepared to deal with human resources issues like terms and conditions for firing employees, compensation, stock plans, time off, maternity leave, and other statutory benefits. Just as important is being prepared to deal with immigration issues, unions and works councils, and data privacy. Lots of other challenges will arise; but with adequate research and the right team you can make your company's foray into a foreign country smoother and easier.