Establishing a presence in or breaking into a foreign market cannot be done overnight as it can represent a real risk for any company that is not adequately prepared or that has not chosen the legal structure or approach best suited for its expansion project and the target market.
Expanding internationally is most of the time critical for businesses wishing to break into other markets. However, international expansion is not without its share of risks, in particular legal and financial ones, that need to be identified and addressed upstream when designing the overall expansion strategy.
While the choice of the most appropriate legal structure or export business model is essential, companies must also keep in mind other legal considerations.
Establishing a presence in, or breaking into, a foreign market is not something that can be done overnight as it can represent a real risk for any company that is not adequately prepared or that has not chosen the legal structure or approach best suited for its expansion project and the target market.
Any business operator wishing to expand internationally has a wealth of possibilities, but to ensure a successful expansion, it is necessary to identify the key factors and to properly delineate the project to subsequently determine the best structure to be put in place.
1. The choice of the structure depends on the objective pursued by the company
The choice of the structure that will be used by the company requires above all the proper identification of the project and the pursued objectives.
Indeed, does the company wish to engage into prospecting activities, to sell or buy products - in a specific market, or even to manufacture its products directly in such market? Is the contemplated expansion part of a short-term or long-term business project? Moreover, does the company already have relationships with local partners and does it intend to set up a partnership or a joint venture with one or more of these partners?
This story is from the May 2019 edition of Legal Era.
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This story is from the May 2019 edition of Legal Era.
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