Expanding overseas is an exciting time for any company.
With so much room for business growth and expansion, moving overseas is the natural next step for many businesses.
Here at activpayroll, we're speaking to lots of clients about their global expansion plans. There are plenty of exciting opportunities out there, even in these turbulent times, with a study from Deloitte finding that 68% of businesses agree that a mobile workforce enables better business and talent strategies.
However, there are many things to consider before you take the plunge, from complex tax laws to how you’re going to structure your overseas branches.
With that in mind, here are 5 important global mobility trends to keep an eye on when thinking about moving into a new location. The considerations you have will depend on your industry, your experience of growing globally and the locations you are considering, but hopefully these points give you some things to think about.
5 points to consider when expanding globally
Economic and political considerations
Expanding into other countries is thrilling, but there could be barriers that may discourage you from choosing one country over another. Take note of the political and economic landscape and consider if there are any risks to your company.
Could doing business in that location could harm your reputation? Are you comfortable that the economic and political situation is stable enough to warrant your time and efforts?
Alternatively, there could be significant positives - does the government give any non-resident businesses any incentives to do business there?
These are all questions to have in mind when considering your global move.
Entity Requirements
Do you need to have an entity in that location to get set up, meaning possible corporate tax implications, or is it possible to register there as a non-resident employer?
The answers to these questions can be tricky to find. Partnering with an expert global mobility provider helps your business free up time to focus on the bigger picture when expanding internationally, while ensuring full compliance with all the local legislation.
Talent
Hiring and talent acquisition is a huge part of global expansion. With the right people, your business can grow exponentially, which is why it’s vital you take the time to consider who you will be searching for.
What sort of talent do you want on the ground there? Do you want local employees or are you looking to second people who already know your business? Do you have to hire local employees as part of your plans to do business in that location?
Attracting the best talent for your business is critical for success, both domestically and internationally.
Risk assessment
Carrying out a proper risk assessment is a necessary step in taking your business to another country. Is the job you're asking people to do once you start working in that location going to cause you any issues, for example, in terms of permanent establishment risks?
Local employment laws
Contracts, holiday entitlement, maternity leave, and much more all vary according to local employment laws. You're going to need to consider all these types of things for your new location, but this can get tricky when multiple locations are involved.
Working with a global mobility partner such as activpayroll ensures full compliance with local employment laws, including taxes and remuneration. Legal variations can present a significant challenge, but activpayroll work with you to cut through the red tape and navigate legal complexities across the globe.
How activpayroll can assist your international growth
If you’re thinking about expanding, talk to the team at activpayroll today. The sooner you engage our team global mobility experts to streamline your expansion, the sooner we can help guide you on the global employment tax and global HR issues you might come across.
We offer a range of global mobility solutions, covering over 100 different countries and providing expert guidance and support every step of the way.
Get in touch with us today to learn more about how activpayroll can help you realise your global ambitions and provide a smooth expansion overseas.