Catering to overseas markets can take place in a wide range of ways as every market has its own compliances and regulations that need to be explored before making any final decisions.
Regardless of jurisdiction, there are usually 5 options that an organisation can choose from when expanding into a new market. This will act as a basic guide to companies that are considering their options for expansion overseas.
- Independent consultants: Consultants can be hired on a part-time basis who work from their own practice and use their own equipment. Not only does this mean that they work with more than one client at once, but they have the freedom to work towards their client’s goals in whatever way they want. Humentum is one example of an independent consultant: ‘I am honoured and excited to lead Humentum at a time when our industry is adapting to the new realities of international development and the challenge of meeting the Sustainable Development Agenda,’ said Dr Sow, Chief Executive Officer at Humentum. ‘Humentum plays a unique and critical role in supporting partners to do their best quality work, and we look forward to expanding upon this promise to new geographies in the Global South. Equally as exciting, I look forward to leading Humentum to increasingly serve as an advocacy platform for improved ethical and impactful practice across the sector.’
- Joint ventures and in-country partnerships: These permit two or more organisations to merge their expertise and resources and work towards one unanimous goal. This helps you expand your brand while entering a foreign market.
- PEO (professional employer organisations), employers of record, and staffing agencies: Provide an employer-employee framework and the cost of keeping their employees, but besides that has no employment or legal status.
- Foreign offices: The branch offices, project offices, or liaison offices will vary depending on the area. This allows you to have a local presence while you’re being managed by the main organisation that has its headquarters in another country. These foreign offices have both a local bank account and a legal presence.
- Subsidiary entities: You can create a distinct country that is owned by the organisation. They’re financially and legally separate from the parent company, so they’ll need to make sure that they budget their operational costs.
To help decide which of the 5 options is best for you, consider the following:
- Account for all your organisation’s objectives. This includes short, medium, and long-term objectives.
- Consider where the funding is coming from. Many jurisdictions have many regulatory requirements around bringing funds from another country
- Analyse the tax implications of developing a global footprint.
Each market that you’re considering has its own nuances. However, we’re confident that this article will get you started. Feel free to consult with local experts to make sure that your organisation is fully prepared to comply with all the necessary regulations while meeting your company’s key objectives.
About this article: This article was originally published by Humentum in collaboration with Sannam S4. View the original post here.