5 Challenges To Face When Expanding Your Business To A Foreign Country & Ways To Overcome ThemHarry Carter March 22, 2022 0 COMMENTS
Fortunately, entrepreneurs who wish to expand their business abroad have digital tech at their disposal, yet entering a strange business arena is not without its challenges. It is likely a totally different culture and that may also extend to language. With that in mind, here are a few typical challenges you are likely to face when expanding into a foreign market.
Complex Business Laws
Every country has its own set of laws, rules and regulations to regulate foreign businesses and with top lawyers for BOI application Thailand or the foreign country you want to do business in are offering, you can take maximum advantage of the many incentives. English is not widely spoken in the Kingdom of Thailand and that means you need to engage the services of an English-speaking local lawyer.
For a relative newcomer to a foreign market, the first thing to do is carry out extensive market research in order to determine whether or not there is a demand for your products/services. The ideal business to register is a representative office, which is a non-trading entity that enables you to work on market research. After a year or so, you can upgrade to a trading entity.
If you are planning to do business in a non-English speaking country, this presents an extra obstacle and while you can learn the language in a few months, that won’t help you with legal issues. You do need to engage the services of a leading English-speaking lawyer, one who is fully familiar with the local laws and they can assist you in other ways. They can find local services such as bookkeeping and accounting, plus help to connect you with local businesses. How you communicate with local employees might be impacted, unless, of course, you have a local translator.
Of course, every nation has its own unique culture and when setting up a business in a foreign country, you need to take into account cultural aspects. Take the Thai culture as an example; direct confrontation is not recommended and if you treat your employees like you would at home, you probably won’t get the best out of them. There are online resources to help you gain a deeper understanding of a foreign culture and the more you know, the better.
As you would expect, a foreigner is not able to work unless they have the right visa and in Thailand, you would also need a work permit issued by the Ministry of Labour. To apply for a work permit, you need to provide a mountain of paperwork and there are no short cuts. Using a local law firm ensures that your paperwork is complete and the process is usually smooth and uneventful.
While it might prove challenging to set up a company in a foreign country, the rewards can be very high and with a local law firm in your team, you can move forward with some confidence. Fortune favours the brave and if you are confident that your products or services are in demand, a new and exciting foreign marketplace awaits!