International Trade: Set up overseas to beat ‘glass ceiling’
BUSINESSES enjoying overseas success should consider setting up a permanent presence in key markets.
Experts say that companies who send goods from the UK to an overseas distributor will eventually hit an export ‘glass ceiling’.
But establishing an operation in another territory can bring its own challenges, in particular understanding local regulatory requirements.
In the United States, for example, each state has a different tax regime and advisers stress it is as important to understand the cultural nuances as the letter of the law.
Paul Langhorn, international development partner at RSM Tenon, says: “Tax has become politicised, both here and in the US, although in the US there is a different view of success.There is tax law but also a moralistic dimension to tax now.”
The options for companies looking to set up overseas are considered in more detail in a new supplement on international trade from TheBusinessDesk.com, in partnership with RSM Tenon and DLA Piper.
One significant hurdle can be cost but experts argue that in reality it is a route that can produce significant savings.
Josh Wong, partner at law firm DLA Piper, says: “The cost of setting up an entity overseas is always falling because of decreasing regulation – for example, it’s much easier to set up in China now.
“A few years ago it would routinely take six months to create your own company, now it takes three months at half the cost and you can now have a lean operation with two or three members of staff.”
