As more and more jurisdictions open to foreign trade, companies can gain access to large pool of resources abroad. They can establish relationships with foreign partners and move their production to foreign locations or simply export their products to new markets. IT and software development businesses also seek to benefit from moving the production to foreign jurisdictions.
Generally, the main benefit for moving the software development abroad is lower costs in comparison to the home-country. For example, the cost of developing exactly the same software is 50% less in India if compared to the US. The savings generally come from lower labour costs, but moving the IT and software production abroad can also broaden company’s access to a wider pool of labour with higher skills and expertise. This might explain why 50% of American Fortune 500 businesses are using offshore IT and software development. Let us look at some of the jurisdictions where opening a software development business might be more beneficial in comparison to others and discuss the reasons why.
India India has long been one of the preferred outsourcing software development destinations for leading multinational companies around the world. This means that one of the biggest benefits of choosing India for your IT and software development business would be a multinational demand for outsourced software development services. Meanwhile, the company would enjoy relatively lower labour costs, wide pool of skilled labour and business-friendly environment with the government that promotes start-ups and small businesses. Additionally, due to favourable policy and economic initiatives by the Indian government, IT industry is expected to grow in early to mid-teens for the next few years.
United Kingdom London was recently described as the city that offers the most opportunities to businesses and ranked first for technology readiness. While low labour costs will not be one of the benefits of setting up a software development company in London, there are several other benefits that might compensate for relatively higher wages. Numerous hubs and incubators offer an environment for new start-ups and small businesses with all the necessary functions and support for less than 300 GBP per month. Also the government is committed to support software development and technology sector with such organizations as Tech City UK and Innovate UK with an aim to accelerate the growth of IT businesses. Meanwhile, various tax benefits are available to IT and software development companies in London. Other benefits to consider are skilled workforce and high-speed internet access.
Poland Eastern Europe is becoming increasingly attractive for IT and software development companies with Poland ranking as the number one Eastern European country. While Poland cannot offer as low labour costs as those in India, it can offer other benefits such as proximity to Western Europe and ability to find common working hours with the rest of the world. Poland also shares a cultural affinity with the Western world as well as other Eastern countries. It is also believed to provide better product quality and business environment in comparison to lower-cost destinations for software development businesses.
More jurisdictions to consider for registering an IT business can be found on each continent – each with their own benefits and peculiarities:
Americas: Brazil, Argentina and Chile; Asia/Pacific: China; Europe: Romania, Belarus and Ukraine. Above countries have large enough populations to have wide labour pool and good education systems to produce skilled software developers. Business risks in these countries are manageable and costs are reasonable in comparison to US, Canada and Western Europe.
It is important to remember, that while a particular jurisdiction can be considered to be the best place for incorporating an IT company for one entrepreneur, it may be unsuitable for another one. Consider the necessities that your business is most interested in. It can be a language, geographical location, regulation of particular activities, skilled workforce or costs.
Asia has a very rich cultural heritage that has been carefully carried out throughout the centuries of history. Today, Asia is very attractive to international investors as it has several major economies as well as several special areas with thriving economies and favorable tax regimes.
Below is our top list of international investment jurisdictions in Asia.
Hong Kong Modern Hong Kong can boast a free market economy that relies heavily on international trade, the financial sector, the volume of exports/imports including a fairly large proportion of re-exports. Hong Kong imposes zero tariffs on imported items. In addition, only four categories of goods are subject to excise duty: strong liquor, tobacco, hydrocarbon oil and methyl-based alcohol. Currently, Hong Kong has no quotas on import/export of anything. The Hong Kong government continues to peg the local currency (Hong Kong dollar) closely to the US dollar, supporting an agreement dating back to 1983.
The local government is actively developing the Special Administrative Region (SAR) to make it a desirable target for the mainland Chinese renminbi to achieve its internationalization in the business world. Local residents are allowed to open savings accounts in RMB currency; In addition, corporate and Chinese government bonds were publicly issued in RMB currency in Hong Kong; and currently in the private and public sectors, settlement of RMB agreements is permitted. The Hong Kong government is currently trying hard to increase the additional RMB investment in Hong Kong’s financial markets and is looking for a way to greatly increase the RMB quota.
Macau Since establishing its local casino industry hotspot in 2001, Macau has managed to attract tens of billions of dollars in international investment and fully transform the area into one of the largest global gambling hotspots. Macau’s gambling and tourism industries have been heavily impacted by China’s decision to ease travel restrictions on Chinese nationals looking for an opportunity to visit Macau. In 2016, Macau’s gambling taxes were estimated to account for over 76% of total budget revenue.
Macau’s economy suffered quite a bit in 2009. It was the result of a global economic crisis, but rapid economic growth continued somewhere into 2013. In 2015, Macau hosted about 31 million tourists with a city population of 646,800 people. About 68% came from mainland China. Services rendered, mainly gambling, have boosted Macau’s economic output several times. Recently, however, the anti-corruption campaign carried out by the Chinese mainland government has slightly affected Macau’s gaming industry.
Singapore Singapore currently has a prosperous, well-developed, free-market oriented economy. The Singapore government has done very little to achieve an open and almost 100% corruption-free governmental and business environment, as well as a strong economy and a fairly competitive (even by Western standards) per capita GDP. Employment rates are extremely high, while Singapore’s budget mainly relies on exports, particularly consumer goods and electronics, IT software, medical technology and devices, pharmaceuticals, as well as a buoyant business, banking and finance industry.
Singapore is a popular destination for many international investors and entrepreneurs, especially in certain industries. According to financial analysis data, it will continue to develop and become the most important business and high-tech hotspot in the Pacific Rim. Singapore is a proud member of the 12-nation Trans-Pacific Partnership Free Trade Agreement. It is also part of the Regional Comprehensive Economic Partnership Agreement. Singapore founded the ASEAN Economic Community together with the other ASEAN participants in 2015.
China Starting back in the late 70s, China has been working on it’s economy and market, rapidly going from internal government controlled closed market, to more liberal, open government planned system with profoundly internal market-oriented economy, leading to an increase of China’s impact on the global market. By year 2010, China has turned into the largest global exporter. Changes and reforms have started with slowly abandoning collectively planned agriculture, developing to introduce free-market pricing, decentralizing taxation, granting more autonomy for government-owned companies, expansions of the private sector, fast development of stock markets and introduction of a modern banking system as well as China’s access to international trade and investment.
China did undergo a number of reforms lately. During last few decades, Chinese government has renewed its support for government-owned companies in industries, which are strategic for country’s security and development. Such decision was made specifically to boost certain industries and make them more competitive on a global market. Such change of economy and the following benefits have dramatically impacted to a China’s GDP making more than ten times increase since year 1978.
Taiwan Modern Taiwan has a prosperous free-market economy with overall decreasing government control over international investment and trade industries. Strategic production industries, such as production of electronics, machinery and petrochemicals, have given the major boost and factors necessary for rapid growth of economy. However, such factors as Taiwan’s diplomatic isolation, extremely low birth rate, and quickly aging population are several major long-term challenges that Taiwan’s government needs to face and solve.
The development of telecommunications and economic globalization has made it possible for interested investors to form companies around the world. With proper research, financial investments, and legal backing, business ventures can safely be established in almost all of the world's countries. While it was once a complicated corporate endeavor to establish an international business, it is now commonplace with the help of experienced legal and economic advisers.
The advantages of forming a company in a foreign country are as numerous as they are obvious. Many countries offer specific location-based benefits, ranging from natural resources and established infrastructure to favorable laws and regulations that encourage growth in a specific industry. Likewise, it may be difficult to establish a venture or acquisition in one's home country because of disadvantageous situations: political or regulatory environments, lack of resources, and more. In this situation, it is useful to consider an overseas option that offers greater opportunities for growth, development, and success.
Company Registration in Barbados When establishing a company in Barbados, an interested investor must do due diligence with regard to legal processes, international regulations, and sufficient investment for success. It is critical to understand cultural, social, and political factors that will affect the establishment and growth of one's business; failure to do so could result in unintended consequences. Poorly-researched and tone-deaf international launches often end in disaster, as time, money, and energy is lost because of poor planning.
Legal documents Each country of the world presents its own set of intricate challenges with regard to forming, developing, and sustaining a business. Owners, financiers, and investors must enter into these engagements with the support of a knowledgeable and experienced legal team. Only someone with detailed knowledge of local and international corporate law will be able to set up an overseas business while avoiding the pitfalls that affect many new companies.
Additionally, shrewd businesspeople may consider opportunities to invest in overseas businesses without actually forming their own companies. In these situations, it still benefits the investor to team up with a knowledgeable adviser in global economics and litigation. International investments create a truly diverse portfolio that offers opportunities for growth that were unthinkable just decades ago.
Potential investors, venture capitalists, and entrepreneurs should consider existing infrastructure in Barbados when planning the launch of a new business. While substantial infrastructure and systems can help to make the business establishment a smooth process, it could also represent market saturation and diminished potential for growth. On the other hand, a lack of infrastructure often serves as a major hindrance to growth; however, lack of infrastructure indicates a clear market opening for a creative and efficient new business.
Some business people find that office virtual offices are an easy and inexpensive way to go global. Others feel that it offers the ability to maintain the most important thing required for successful e-commerce and marketing today - a business presence that can be established in any market.
According to Wikipedia and Investopedia, the virtual office offers address and communication services for a fee without providing dedicated office space as it is a business location that only exists in cyberspace and allows employees and business owners to work from anywhere using technological means to work – personal computer, laptop, notebook or tablet.
Benefits of using a virtual office A full application of a virtual office term can include live professional communication. This means that all business appointments can be conducted online via telephone and video conference. Business documents can be shared, signed and sent electronically. There are some significant benefits of doing business in cyberspace.
Most important might be the fact that if the company has several or more employees, each of them can do their work from the place that is most convenient for him or her, while having the right to their own lifestyle, sleeping and resting Habits and other requirements, which can be individually adapted, are preserved. This means the company is not limited to hiring by expanding employee employment opportunities and corporate hiring opportunities.
This way of transacting and arranging business is creating new professional fields as professional as remote receptionists who can use high tech computer phone integration software to communicate with customers, virtual assistants who don't have to meet their customers in person and assist them instead virtual and other members of the virtual team.
Virtual teams can offer services such as answering machines and call centers operating from a central location to receive and transmit large numbers of inquiries over the phone, voicemail, which is basically a low-cost technology service that stores voice messages electronically , Voicemail messages can also be converted to e-mail letters to ensure high virtual mobility, virtual office space, ensuring a chance to own a high-profile, respected address in a city of the employee's choice, telephone answering service providing the Gap between the employee and bridges his or her customers.
In general, the creation of virtual offices aims to increase and increase efficiency while combining home and work together. It saves money, increases mobility and allows for cost-effective expansion without long-term commitments, keeping office costs to a minimum.
Disadvantages of using a virtual office The other side of a virtual office is that it lacks centralization, which creates difficulties when daily work meetings and appointments are reduced. Employees have to be very proactive here in order to maintain the existing structure. The lack of interaction can also increase when there is no planned everyday communication. These are the interactions that come with a traditional work environment, like lunch breaks and conversations with coworkers about work, life, and relationships. When working remotely, communication in general can also be difficult.
The lack of a face-to-face meeting increases the likelihood of misunderstandings and misinterpretations, since in this case words sent via email or written can lack the non-verbal cues and tone of voice that could make it easier to understand what the person said and how he said it or she feels.
There is also a lack of opportunities to plan and schedule meetings, for example to meet a client at short notice, as it is not possible to arrange meetings in a specific location called an office space or office building.
Company types The sociedad de garantia reciproca and sociedad anónima are frequently encountered company types throughout South America. All South American countries are independent from each other, which makes it difficult to offer specific guidelines for registering a company. Please bear in mind that if you need to incorporate a company in Brazil, make sure you contact us first. There are fundamental differences between private (fundação privada) and public (fundação pública) entities in Brazil.
However, if you are looking for an easy-to-follow tutorial on the major legal structures for companies in South America, please continue reading, as there are a number of factors that may present significant challenges and risks. Confidus Solutions’ top-choice suggestions are Argentina, Chile, Colombia, Ecuador, Paraguay and Peru.
Argentina A view in ArgentinaIn Argentina, you can incorporate an S.R.L., an S.C.S., an S.C.p.A., an Soc.Col. or one of several other legal entities. S.R.L. in Spanish stands for sociedad de responsabilidad limitada, which closely resembles the United Kingdom’s Limited Company (Ltd) or the US limited liability company. The S.C.S., or sociedad en comandita simple, is almost identical to a limited partnership. S.C.p.A. stands for “sociedad en comandita por acciones” and is a limited partnership with shares, whereas a Soc.Col. or sociedad colectiva is general partnership similar to those found in the United States of America. Argentina also has several other legal entities that we have not listed here.
Brazil A view in BrazilIn Brazil, you can incorporate an Ltda, an S.A., a sociedade simples or one of several other types of legal entities. Ltda in Portuguese stands for sociedade limitada, which is similar to a limited company (Ltd) in the United Kingdom. An S.A. is a sociedade anônima which is equivalent to a UK plc. Finally, the sociedade simples is exactly the same as a PLLC. Brazil also has a number of other legal entities not listed here. Contact us if you need help deciding on the most suitable company type for your corporate needs.
Chile A view in ChileIn Chile, the options are SpA, LTDA. or few other company types. SpA in Spanish stands for sociedad por acciones, which is essentially a limited partnership with shares. LTDA. stands for sociedad de responsabilidad limitada and is equivalent to the United Kingdom’s limited company (Ltd). More and more business leaders are shifting their focus from China to Chile — a country that attracts a substantial amount of foreign investment. This is mainly due to its growing economy and dynamic business regulations. Incorporating a company in Chile can bring many benefits.
Colombia A view in ColombiaIn Colombia, the available company types are S.A., S.A.S. and Ltda. S.A. in Spanish stands for sociedad anónima which is quite close to a plc in the United Kingdom or a corporation in the United States. S.A.S. stands for sociedad por acciones simplificada, which is a similar concept to the French S.A.S. (societé par actions simplifiée). Finally, an Ltda in Colombia is a sociedad de responsabilidad limitada, equivalent to the idea of a limited company (Ltd) in the United Kingdom or an LLC in the United States.
Ecuador A view in EcuadorIn Ecuador, you can incorporate a C.A., a Cía, an Ltda or an E.P., among other options. A C.A. in Spanish is a compañía anónima; A Cía Ltda is a compañía limitada, which means limited liability company; while an E.P. is an empresa pública.
Peru A view in PeruPeru, among many other options, offers the chance to register an S.A.A. (sociedad anónima abierta in Spanish). This is a specific type of legal entity that must meet one or more conditions, set out in Article 249 of the General Corporation Law. Remember, an S.A.A. is audited by the Comisión Nacional Supervisora de Empresas y Valores (CONASEV). Forming a company in Peru gives you a ready-made solution for doing business all over South America, legitimately.
The main purpose of any business is trading, which means making a profit. One of the most important tools of any business, without which it would not be able to conduct any type of business activity, is a bank account. Whether you're an individual looking for ways to invest and keep your money safe, or a business looking for a corporate account, there are a number of different types of accounts and it's important to choose the one that works best best suits your needs.
Before registering a company, make sure you are fully aware of the pros and cons of each option in the Middle East and nearby islands like Bahrain and Socotra (Yemen). Bahrain is currently thriving as one of the most prosperous countries in the Middle East, offering an open-minded environment for international entrepreneurs and investors to set up a business. It is possible for a foreign company in Bahrain to incorporate a limited liability company (LLC), partnership or branch of a foreign company. Qatar has many foreign companies operating within its borders, mainly in the oil, mining and engineering industries. However, Qatar supports all foreign companies willing to invest and operate in its territory.
A personal banker is a bank employee, usually in retail banking, who assists clients in managing their funds and providing various solutions to their financial needs, such as taking deposits or other commercial banking products and planning for retirement or children's college expenses.
Personal bankers typically work with retail clients to help them with their banking-related questions or problems. On the other hand, a private/investment banker's main objectives are also related to sales performance and they mainly work with companies or high net worth individuals. In addition, private and investment bankers get to know their customers very well, but personal bankers do not usually work with a specific list of customers.
Benefits of a personal banker A personal advisor can help you with almost any question about banking services and can help you with anything that is unclear. Personal bankers can also give you tips on which services are best for you. However, when applying for a new service via your online banking, you are on your own. There are still many people who do not feel comfortable on the Internet and prefer personal communication.
Disadvantages of a personal banker Looking at the disadvantages of personal banking, there are two main reasons why online banking is preferable to visiting a personal banker in a branch. First, like any other industry, bank employees who work in the front office and meet their existing or potential customers on a daily basis are salespeople. This means your personal manager has sales quotas and most of his salary is based on commission. Personal bankers are evaluated primarily on their sales performance, and this is an important factor when branch managers consider potential promotions or job cuts. Ultimately, all personal managers will try to sell you as many banking services as possible, and if they are good salespeople, they will succeed. If you want to avoid aggressive sales strategies, you might even be well advised to keep branches away at the end of the month and especially at the end of the quarter.
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Mon Jun 24, 2024 11:09 am
