News Coverage

5 Countries Ripe for Your Startup's Expansion

2/27/2014

Your company is doing well, hitting or even exceeding benchmarks. Maybe you’ve had some so-called “pivots” or switch-ups in strategy, but your customers are loving you. In domestic markets, that is.

At some point in a young company's lifecycle, it may consider expanding its services and products across seas. The higher the growth and the bigger the opportunities, the harder the decision-making gets. But going abroad is a different animal. Each country offers its own set of cultural and administrative challenges, not to mention the obstacles around navigating international payroll, accounting and HR practices to ensure you are meeting all legal and regulatory requirements, posits president of High Street Partners John Clancy.

"Today’s business environment requires that organizations expand internationally," Clancy told BostInno. "In order to remain competitive and meet their customers’ needs, organizations must expand overseas. However, there are many complexities that companies must address when expanding internationally … If not done properly and with the right expertise, international expansion can spell disaster for a company."

By starting out international expansion on the right foot, in the right communities, however, companies can have an edge. BostInno worked with High Street Partners to round up a list of countries ripe for blossoming businesses’ international expansion. Each nation offers its own personality and unique advantages. Take a look at the countries and their unique assets in the following slides … 

Pack your bags!

United Kingdom
-Excellent launching pad into Europe
-English speaking
-Tough data protection laws
-Getting approved for UK immigration sponsorship can be a lengthy process

China
-Enormous market potential
-Longer time to setup – often 6 months or more
-Everything is different and time consuming
-The pace of regulatory change is rapid and difficult to monitor

Hong Kong
-Excellent launching pad into Asia, specifically China
-Ranked high in ease of doing business
-Strong focus on employee protections makes hiring more expensive
-High cost of living results in high cost of employment

Singapore
-English speaking yet close proximity to China
-One of the most open and business-friendly countries in the world
-Low threshold for Permanent Establishment (PE)
-Challenges around tax clearance and deemed stock option exercise exist when foreign national employees depart Singapore permanently

Australia
-Large global economy not to be ignored in region
-Ranked high in ease of doing business
-Private retirement plans (superannuation) exist as a requirement
-The Australian Tax Office (ATO) is targeting contractor relationships as part of its 2014 compliance agenda so exercise caution