It is no longer news that business investors from all over the world are looking to enter overseas markets in order to expand their domestic business operations or diversify their investments and establish new operations in the international market.
Each year, hundreds of entrepreneurial and growing companies consider international expansion as a marketing and growth strategy.
If you have been successful in your business for quite some time and you have already mastered everything related to running a business, then expanding abroad might be the next logical step for you to take.
On the flip side, for the majority of others, simply having a company registered abroad and a business address makes more sense for them than moving to these foreign countries to set up a physical office.
Whatever the case, there are at least 7 reasons for entrepreneurs to set up an offshore company, branch or representative office.
1. Expansion. About 95% of the world’s consumers reside outside Nigeria. Entrepreneurs whose vision and target market are global are considering entering new markets abroad and thus increasing their overall market share and growth potential.
2. Possible untapped market. The possibility of an untapped market in foreign jurisdictions may motivate a Nigerian entrepreneur to incorporate an offshore company or a branch or representative office of his home company. Nigerian entrepreneurs who produce and package local foodstuffs for sale abroad fall into this category.
3. Proximity to international clients/clients. Truth be told, the internet has done enough to bring businesses closer to buyers. However, for some reasons, many business transactions may still warrant a traditional business presence in the city or country of operation. The overseas office of a local company need not be that big and may be a home business address, a paid virtual office or a small liaison office just in order to get customer feedback and link back to the Nigerian office.
4. Company image. In order to enhance the image of the company in the eyes of customers, suppliers, investors and businesses, some entrepreneurs just register an offshore subsidiary for their Nigerian company. This gives their target audience the impression that they are a company with international networks. In such cases, the “international businessman” does not need to set up a physical office abroad, he/she just pays for a virtual registered office in such a country as well as mail and telephone dispatch service.
5. Competition. The fact that competing companies or brands are entering the foreign market and doing well motivates entrepreneurs in similar businesses to follow suit.
6. International payment. There are a large number of international banking options available to companies registered in offshore jurisdictions – whether you are currently resident in an overseas country or operate an offshore company from Nigeria. Having an offshore corporate checking account makes international payments much easier through direct deposits, checks, or international wire transfers.
7. Immigration. Entrepreneurs who are considering immigrating or relocating to a country abroad can incorporate a company in the destination country pending their travel time.
The UK, for example, grants a business visa to people outside the EU to enter the UK for business reasons.
The initial visa will give you 3 years in the UK; And if during those three years you can prove that you have met certain criteria, you can then apply for an additional two-year extension visa. After 5 years, you will have the option to apply for permanent residence in the UK.
