Mistakes to Avoid When Setting Up a Business in a Foreign Country
It is hard enough to set up a business in your home country and should you be planning to launch a business in a non-English speaking nation, it becomes even more complex. Not being able to speak the language puts you at a big disadvantage and you do need to seek out the services of a local law firm with English speaking lawyers.
Here are a few common mistakes that you should be aware of when setting up a business in a foreign country.
- Break Local Laws – The last thing that you need is to find out you have done something illegal and laws that govern business can be very complex. The only way to be sure of local compliance is to hire a local law firm with experience in this field. No one has the time to research every aspect of Indonesian law, which is why you should hire an English-speaking law firm to act on your behalf.
- Making Bad Choices – When registering a business abroad, you will always have a few options; some entities are trading, while others are non-trading and then there is the question of local compliance, which might be in operation. If, for example, you merely wish to carry out some market research, you probably won’t need a trading entity, rather a business that enables you to carry out as much market research as you need. If, for example, you are in need of Indonesia payroll services, there are local 3rd party providers, which is cheaper than directly employing staff.
- Not Doing Research – Every country is unique in terms of culture and your marketing approach needs to be culturally acceptable. This could be very embarrassing if you get it wrong and all promotional literature needs to be accurately translated by locals to be sure it is suitable. Failing to carry out adequate market research could be very costly and by hiring a local law firm, you can rest assured that you are compliant with all the local laws and regulations. Here are a few tips on attracting customers to a new business, which is always difficult.
- Lack of Resources – If the new business is in a far-away land, it is unlikely that you have the necessary resources, yet there will be local third-party providers that can assist you in many ways. You can outsource payroll, accounting & bookkeeping without having to directly employ people, which is a drain on your resources. Talk to a local law firm about the services you require and they can put you in touch with local companies.
The above are just a few of the pitfalls you might encounter when trying to establish a foreign business in Southeast Asia, or anywhere else for that matter. Click here for further reading on setting up a 100% foreign owned business in Indonesia. Once you have made contact with a local law firm, they can advise you on the best type of business registration, plus they can put you in touch with 3rd party providers.