HR Consulting and Expansion Advisory Solutions
When creating an expansion plan, it is important to:
Conduct market research to identify promising international markets
Consider regulatory and legal requirements such as tax, labor, and immigration laws
Determine staffing needs for recruitment, relocation, and management in international locations
Create and implement HR practices for scalability
Decide on the best entry strategy, such as acquisition or joint venture
Incorporate your entity through an established partner network
Consider cultural and language barriers and plan accordingly
We can assist with any of these factors.
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Certain aspects to consider before global expansion is:
- Market environment
- Cultural understanding
- Legal compliances
- Familiarity of service/product in the market
- Entry and exit costs
- Operational set-up, liabilities and costs
Even though the tax laws and rates may vary from country to country, international expansion involves consideration of three kinds of taxes:
- Value-added tax (VAT)
- Corporate Income tax
- Payroll tax
Therefore, when a company expands its functioning to international markets, it needs to invest considerable time and resources in formulating new transfer pricing policies. If these policies are actioned properly, its operation would be less of a burden to the company.
International expansion may or may not be a good idea for every business. Each business must ponder upon three major questions to take a step towards international expansion. These are:
- What potential benefits are there for the company?
- Is the company equipped with pertinent management skills?
Will the costs overweigh the benefits? Depending on the answers derived from these questions, international expansion may or may not be a good idea for the company.
A business expansion involves large risks. In case an expansion turns out to be unfeasible in a particular location, the business must:
- Study – Analyze and understand the market again, figure out what went downhill from the company’s end.
- Plan – Strategic planning is required to improve the errors made and polish or freshly create new products/services.
- Adapt – Adaptation to the current scenario helps in understanding the market better.
The benefits of an increased volume of business worldwide result not only from larger production plants or runs but an efficient organization and operation of logistics networks, keeping in mind the economics of the business. In such cases, high competition in the market is natural. It may curb the profits coming in the company’s way or lead to losses. Thus, before entering into a global space, it is necessary to understand whether the company’s industry will be favor a significant competitor in the market. The company must characterise itself solidly in terms of low unit costs or superior reputation of product/service to beat the significant competitor in the market.
Global PEO eliminates the need for a legal entity, thereby helping companies hire the right talent for newer markets. Global PEO not only saves an enormous amount of cost but ensures quick onboarding, access to the latest technology, compliant EOR, insurances, taxations, punctual payrolls, and fulfilling social missions. The biggest risk of expanding without the support of a Global PEO is missing out on all of the above that plays a key role in an enhanced global expansion.