Identification of common barriers to business growth.
The import and export of services, the agreements to avoid double taxation between countries, the rules for the protection of sensitive data that apply to different countries and/or geopolitical blocs, the implications of artificial intelligence in different aspects are some of the pieces of evidence that clearly show the globalization process in which we live.
Given this scenario, it is not surprising that companies see how many doors are opening and have already materialized their presence in different locations that can be profitable to their interests or, failing that, they begin to develop their expansion plans, with all that this implies, at the level of knowledge capital, intellectual property, economic and human resources.
The incorporation of a company is a striking process. This, based on the fact that, although the process may unfold in one way or another depending on the context and place in which it is intended to incorporate, it is also true that we can point out some obstacles, or rather, point out some common points that should be taken into account at the time of incorporating a company. From our experience, they would be the following:
- Determination of timelines: It is convenient to have a clear idea of the time it will take to incorporate a company, so that this aspect does not affect the execution of the company’s expansion plans, with all that this implies in terms of projections in different areas.
- Choosing an adequate legal structure: Deciding between being a limited liability company, a limited company, a corporation, an S corporation, among other options, is directly related to the flexibility of the company – the way in which decisions are made in the company (management), tax issues and / or equity. Ignorance of this represents an obstacle to the proper execution of the company’s expansion.
- Particularities: Each place has its own peculiarities when incorporating a company. There are places where the incorporation process consists of several steps that must be carried out physically. On the other hand, there are other places where the process can be carried out remotely. Details such as these must be considered and, if not, may lead to communication problems with the respective authority, generating delays or confusion in the process.
- Market context: As a tip or suggestion, we advise to conduct a market study to determine competitive aspects. This, so that it is possible to make projections regarding the growth potential and / or scope of the company in the short, medium and long term.
These are just some of the points to consider in the company incorporation process. In the desire to expand and have a greater reach, companies may overlook important considerations that can affect not only the company but also its shareholders. The risks and consequences of a poor or careless procedure can be very diverse, ranging from the non-incorporation of the company, to the impact on the shareholders’ assets or administrative, fiscal or regulatory sanctions.
Conclusion
The technology boom has allowed us to know that the world is full of opportunities. In that sense, it is totally understandable that companies, in fulfillment of their primary objectives, seek to expand. This must be done with the analysis and care required in each case and in line with the objectives they have because, if not done properly, there may be consequences. Likewise, professionals dedicated to this type of matters must recognize the importance of not falling into despair and proceed in an appropriate manner so that the incorporation of a company is successful and in line with the company’s expansion plans.