Thinking of expanding your business globally? Here's what you need to know!

International business expansion requires meticulous attention to several crucial factors. Let's explore.

Most businesses intend to benefit from business and tax-friendly countries and find the most favorable nations. Global expansion can be a game-changer, but here's the deal—it's not as straightforward as it seems, especially when you have a web of laws to decipher.

Let’s take a look at what we recently did for a YVLC.legal client:

A leading manufacturing company in India wanted to expand its distribution to multiple regions namely South East Asia, GCC, and the Far East region.
We meticulously assessed legal, financial, and operational necessities, and employed a thorough SWOT analysis of the key jurisdictions in these regions. We then provided the client with a graded Options Memo that put forth 3 approaches with a step-by-step Plan of Action along with timelines and costs to give them a clear snapshot of how their plans for a Global Distribution Network could become a reality.

The high-level structure that we decided to proceed with was, to incorporate a Dubai-based holding company, then set up an operating company in Singapore for speedy distribution as Singapore is a major shipping hub in the Far East region. In parallel, we incorporated a trading company in Ras Al Khaimah due to its inexpensive license options and provides a strategic location to ship products from the UAE.

The final piece of the puzzle was to convert the Indian Company to a subsidiary of the Dubai-based Hold Co. By establishing a Hold Co. in Dubai, the client can take advantage of Dubai's favorable tax regime, which includes no corporate income tax, no personal income tax, and no withholding tax on the repatriation of profits. Additionally, Dubai has double taxation treaties with numerous countries, which can further optimize the tax position of the business.

As you can imagine the client was extremely pleased with the structure we suggested as the operational arms of the business (ie, UAE and Singapore) would be in low-tax jurisdictions, coupled with state-of-the-art infrastructure and conveniently located providing little to no downtime in the supply chain. 

With this setup, the client would provide strategic direction, set policies, and allocate resources for their global operations from India. As a holding company, the Dubai entity would facilitate cross-border financial transactions, hold assets including intellectual property, and manage investments of the entire enterprise.

Setting up and operating such a structure would involve navigating the legal frameworks of multiple jurisdictions.

Given the complexity of international business operations, it's always advisable to seek the assistance of experts who can help you achieve your goals seamlessly with speed to action.

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