Benefits of Opening a Tech Business Overseas
Technology is met at every step we take, no matter if we are walking down the street or in our own homes. As a matter of fact, technology has made its way into our lives at a fast pace and, if 10 years ago mobile internet traffic represented below 1% of the total internet traffic, 0.9% to be more precise, now it accounts for no less than 15%. Next year, it is expected to double in figures. This is just one of the reasons the number of tech companies has increased at the same pace.
Starting a tech business does not seem like a big thing, however, there are various factors to consider when deciding where to set it up, as well as the type of structure to register it under, because many countries offer great development opportunities, especially for high-tech firms. For those who don’t want to move from their home countries, the non-resident company in the Cayman Islands can be an option for entrepreneurs who simply want to run the business remotely.
Resuming our talk about countries, setting up a tech company in a foreign country could be a good idea, and below you can find out why.
Explore less developed markets
When we say less developed markets, we are not discussing third world countries, but small economically developed states where the number of companies is not that large. This is one of the best options for those looking to start tech businesses that bring new services to the people of those countries. Untapped markets are one of the best options for tech businesses, especially when it comes to those who have not maximized their potential and the number of such companies is a low one.
Many countries offer government incentives
Tech businesses have a huge advantage over traditional ones: they can obtain various incentives under the form of tax breaks and deductions which, if found in another country than one’s own, can represent a better option for entrepreneurs. Among these, European countries, such as Malta and Luxembourg, are some of the countries which rely on technology to develop their economies. Luxembourg, for example, has even created a green stock exchange for tech companies.
A better business environment
When the government in an investor’s country does not offer incentives tailored to his/her needs, a foreign country is a better option. Apart from improved business conditions, the company registration procedure, the lack of red tape and a welcoming environment can be good incentives for some entrepreneurs. The business environment is very important for the development of a company and the countries to offer a relaxed and stable environment have also a lot to benefit from when allowing foreign businessmen to set up companies there.
The taxation system can be a good reason to start a business in a certain country
Let’s be honest, the taxation system of a country can represent one of the major advantages to set up not just a tech company, but any type of business in a foreign country. The lower the taxes, the better the chances to attract more foreign investors. Tech businesses also represent a breath of fresh air for some economies which is why the combination of technology and low taxation has always been a winning one.
Starting a new tech business or moving an existing one to a foreign country is ultimately the owner’s decision. And even if starting a business in another state is not easy, the benefits can overcome the obstacles and lead to greater profits, brand recognition and even a new and better life for the business person.
We hope you enjoyed this promoted piece as much as we did!