After working in Mexico City as a representative of the manufacturer for two years, Elizabeth Helsley thinking about back to his hometown of San Diego to start his own company. Then he ran the numbers and found that bootstrap their business in Mexico will greatly reduce the overhead costs. He decided to stay.
"The cost of living here is cheaper," said Helsley, who launched
Global Luxe
, A company that helps manufacturers to enter the Mexican market, this spring. "I recently moved to a really good place with three rooms, and I paid less than $ 800 in San Diego, where the same is $ 2000 per month ..."
But he only saves room and board. Also very low operating costs.
"Here, I can hire an accountant to $ 20 per month," says Helsley. Also more expensive: legal services, printing costs, trade costs and, most importantly, the corporate tax. (According to KPMG's latest
"Competitive Alternatives" report
, Mexican business tax is 40 percent less than in the United States.)
For Helsley, financial boon not only details that tipped the scale to support Mexico. He speaks the language, has a large network of professional contacts and had no trouble getting a long term visa.
Of course, not all regions of the roll out the red carpet for U.S. employers. Depending on your location, you may face difficulty in obtaining long-term visas, cut regulatory red tape and keep as much of your income as you want.
Emigration 101
Among the major concerns you have if you can legally emigrate to the country you are considering.
"Most countries are more advanced industries are unlikely to let people come in and set up shop," says Christopher Uzpen, a partner in the international tax group of the law firm
Withers Bergman LLP
.
In other words, unless you've lived first established by living or working in the country of your choice, nabbing long-term visa may be easier said than done.
Cory Kidd, co-founder and CEO
Intuitive Automata
, A medical startup Robotics based in Hong Kong, know this firsthand.
While getting a work visa first then do the legal structure of the company in the year 2008 was a snap, renewed each year are asked to jump through hoops.
"Hong Kong Immigration seems to be used for the provision of visas for employees of large, well-established companies but not for beginners," said Kidd - this despite the fact that his company deliver 11 man, received a $ 250,000 interest-free loan from the government, including business incubation programs locally and raised a small angel round of investment.
Be Lay Land (Foreign)
Resource for expats with hope
Competitive Alternatives 2010
: Recent KPMG study of international business taxation
Doing Business 2010
: Ranking easier doing business in 183 countries around the world
Global Entrepreneurship Monitor
: A study of business activities around the world
Transparency International
: Resource in the international area subject to corruption
U.S. Commercial Service
: Global business information to exporters and importers
U.S. State Department
: Information for U.S. companies doing business abroad
China, India, Brazil, Russia and some parts of Africa is one of the startup locations more difficult for Americans, says Larry Harding, founder and president
High Street Partners
, An international company business services. And with the exception of Britain, he added, doing business in the EU can be expensive. (On the other hand, Harding calls started business in Hong Kong, Singapore or Japan "pretty easy.")
Even if a place does not welcome the foreign entrepreneurs, local infrastructure can not meet the standards of the U.S., especially in developing countries.
"Here, we take it for granted that our business is broken, we can call the police," said Bruce Bachenheimer, clinical professor and director of program management
Pace University Entrepreneurship program
. "But in other countries, the rule of law can not be what we expect."
Also, added Bachenheimer, some local, roads, electricity, telephone service, internet service, shipping company and the court system can be much more.
For Danny Wong, a partner at
Blank label
, Based in Shanghai dress custom shirt company, doing business in China means accepting that local governments restrict Internet access to many of the blogs and social media sites.
"We're fine that," says Wong, who originally came from Boston. "But if your business relies heavily on interaction with the blog, Twitter and Facebook, then China is not the perfect location for you."
Play Location Scout
Obviously, the reconstruction is required before you move should be. Embassies and trade missions in the United States is a good place to start. Thus Chamber of Commerce and the U.S. embassy in your target locations, many of them, you can mine for introductions to other business expatriates, as well as referrals to local attorneys, accountants, business advisers and banks.
But employers say nothing beats visiting your target and immerse yourself in the culture before making permanent measures.
"I came here three or four times before starting the company," said Kidd, who began to visit Hong Kong five years ago. "The first is the second holiday is to begin to consider the location of the startup ... I live in an apartment instead of a hotel to get a better feel of what it would be like to live here. Last visit or two is to set up corporate networks. '
Learning the local tongue can only help open doors to professional, said Helsley, who is fluent in Spanish.
"You definitely have a deeper understanding of the culture when you learn a language," he said. "You can take things that you would otherwise miss." For example, he says, "In Mexico, a lot of times when people say 'yes' they really mean 'no.'" ;
Adopting Local Business Practices
Along with the necessary permits, registration and business license, you need to suss the local labor laws and practices before.
"In some areas, relatively cheap labor, but the churn factor is 100 percent," said Harding.
For insider information, he suggests asking questions such as expatriate business: How challenging the enforcement of local people? Where is a good place to find them? What is the cost of labor? What is the turnover like?
"It's about finding out all the details and nuances - simple things like the structure of the agreement, how to recruit candidates, how to motivate employees and incentives," said Kidd.
Cultural attitudes and rules surrounding work-life balance is another consideration, said Harding. Working 80 hours a week to launch a startup can seem quite natural to you. However, the quality of life-conscious France, he said, expect many employees overtime does not fly.
Follow the Trail of Finance
Low overhead interested you to start your business in foreign countries will not do you much good if you sacrifice your savings unfavorable exchange rates, rules and regulations repatriation tax. For this reason, says expat Entrepreneurship, enlisting the services of a tax professional is very important areas.
"You have to pay taxes to a foreign country reduces the tax you pay to the United States whenever possible," said Uzpen. What's more, he adds, you want to keep your tax bill in mind when choosing a legal structure for your business, as the structure of your choice is likely to affect the amount you owe.
"In the end, you do not want taxes to drive how you do business," warned Uzpen. "But as an American, you have two ranges of worry, not many entrepreneurs from other countries."
Michelle Goodman
is a freelance writer and author of the so-called freelance my Life: How to Survive and Thrive as a Creative Professional for hire.
"The cost of living here is cheaper," said Helsley, who launched
Global Luxe
, A company that helps manufacturers to enter the Mexican market, this spring. "I recently moved to a really good place with three rooms, and I paid less than $ 800 in San Diego, where the same is $ 2000 per month ..."
But he only saves room and board. Also very low operating costs.
"Here, I can hire an accountant to $ 20 per month," says Helsley. Also more expensive: legal services, printing costs, trade costs and, most importantly, the corporate tax. (According to KPMG's latest
"Competitive Alternatives" report
, Mexican business tax is 40 percent less than in the United States.)
For Helsley, financial boon not only details that tipped the scale to support Mexico. He speaks the language, has a large network of professional contacts and had no trouble getting a long term visa.
Of course, not all regions of the roll out the red carpet for U.S. employers. Depending on your location, you may face difficulty in obtaining long-term visas, cut regulatory red tape and keep as much of your income as you want.
Emigration 101
Among the major concerns you have if you can legally emigrate to the country you are considering.
"Most countries are more advanced industries are unlikely to let people come in and set up shop," says Christopher Uzpen, a partner in the international tax group of the law firm
Withers Bergman LLP
.
In other words, unless you've lived first established by living or working in the country of your choice, nabbing long-term visa may be easier said than done.
Cory Kidd, co-founder and CEO
Intuitive Automata
, A medical startup Robotics based in Hong Kong, know this firsthand.
While getting a work visa first then do the legal structure of the company in the year 2008 was a snap, renewed each year are asked to jump through hoops.
"Hong Kong Immigration seems to be used for the provision of visas for employees of large, well-established companies but not for beginners," said Kidd - this despite the fact that his company deliver 11 man, received a $ 250,000 interest-free loan from the government, including business incubation programs locally and raised a small angel round of investment.
Be Lay Land (Foreign)
Resource for expats with hope
Competitive Alternatives 2010
: Recent KPMG study of international business taxation
Doing Business 2010
: Ranking easier doing business in 183 countries around the world
Global Entrepreneurship Monitor
: A study of business activities around the world
Transparency International
: Resource in the international area subject to corruption
U.S. Commercial Service
: Global business information to exporters and importers
U.S. State Department
: Information for U.S. companies doing business abroad
China, India, Brazil, Russia and some parts of Africa is one of the startup locations more difficult for Americans, says Larry Harding, founder and president
High Street Partners
, An international company business services. And with the exception of Britain, he added, doing business in the EU can be expensive. (On the other hand, Harding calls started business in Hong Kong, Singapore or Japan "pretty easy.")
Even if a place does not welcome the foreign entrepreneurs, local infrastructure can not meet the standards of the U.S., especially in developing countries.
"Here, we take it for granted that our business is broken, we can call the police," said Bruce Bachenheimer, clinical professor and director of program management
Pace University Entrepreneurship program
. "But in other countries, the rule of law can not be what we expect."
Also, added Bachenheimer, some local, roads, electricity, telephone service, internet service, shipping company and the court system can be much more.
For Danny Wong, a partner at
Blank label
, Based in Shanghai dress custom shirt company, doing business in China means accepting that local governments restrict Internet access to many of the blogs and social media sites.
"We're fine that," says Wong, who originally came from Boston. "But if your business relies heavily on interaction with the blog, Twitter and Facebook, then China is not the perfect location for you."
Play Location Scout
Obviously, the reconstruction is required before you move should be. Embassies and trade missions in the United States is a good place to start. Thus Chamber of Commerce and the U.S. embassy in your target locations, many of them, you can mine for introductions to other business expatriates, as well as referrals to local attorneys, accountants, business advisers and banks.
But employers say nothing beats visiting your target and immerse yourself in the culture before making permanent measures.
"I came here three or four times before starting the company," said Kidd, who began to visit Hong Kong five years ago. "The first is the second holiday is to begin to consider the location of the startup ... I live in an apartment instead of a hotel to get a better feel of what it would be like to live here. Last visit or two is to set up corporate networks. '
Learning the local tongue can only help open doors to professional, said Helsley, who is fluent in Spanish.
"You definitely have a deeper understanding of the culture when you learn a language," he said. "You can take things that you would otherwise miss." For example, he says, "In Mexico, a lot of times when people say 'yes' they really mean 'no.'" ;
Adopting Local Business Practices
Along with the necessary permits, registration and business license, you need to suss the local labor laws and practices before.
"In some areas, relatively cheap labor, but the churn factor is 100 percent," said Harding.
For insider information, he suggests asking questions such as expatriate business: How challenging the enforcement of local people? Where is a good place to find them? What is the cost of labor? What is the turnover like?
"It's about finding out all the details and nuances - simple things like the structure of the agreement, how to recruit candidates, how to motivate employees and incentives," said Kidd.
Cultural attitudes and rules surrounding work-life balance is another consideration, said Harding. Working 80 hours a week to launch a startup can seem quite natural to you. However, the quality of life-conscious France, he said, expect many employees overtime does not fly.
Follow the Trail of Finance
Low overhead interested you to start your business in foreign countries will not do you much good if you sacrifice your savings unfavorable exchange rates, rules and regulations repatriation tax. For this reason, says expat Entrepreneurship, enlisting the services of a tax professional is very important areas.
"You have to pay taxes to a foreign country reduces the tax you pay to the United States whenever possible," said Uzpen. What's more, he adds, you want to keep your tax bill in mind when choosing a legal structure for your business, as the structure of your choice is likely to affect the amount you owe.
"In the end, you do not want taxes to drive how you do business," warned Uzpen. "But as an American, you have two ranges of worry, not many entrepreneurs from other countries."
Michelle Goodman
is a freelance writer and author of the so-called freelance my Life: How to Survive and Thrive as a Creative Professional for hire.
No comments:
Post a Comment