Entering a new market can be an exciting venture for your business. You learn about new cultures, experience different ways of doing business, and try out your products or services with a fresh set of customers to increase revenue streams.
But with the excitement of a global expansion can also come red tape and legal headaches. International compliance can be incredibly difficult to manage, especially in-house. And almost no one looks forward to becoming an expert on a new country’s laws when they’d rather be working on the strategic side of their business.
This blog post outlines some best practices to help ensure your business stays compliant when your business enters a new country.
1. Understand Relationships Between Countries
Understanding and abiding by other countries laws isn’t the only challenge businesses encounter during an international expansion. You also have to recognize how the ins and outs of the new country can affect the relationship with your home country. For example, the United States, famously, employs global taxation, which means the IRS will claim a portion of the income your business makes around the globe.
It’s not just taxes, either. There are many complicated systems of government, trade, and international relationships that businesses must acknowledge and understand when operating in more than one country. Without professional help, you may face legal and financial consequences. To make sure that you’re recognizing these laws and maintaining compliance, work with an expert on international business. They can help get you up-to-speed on what you need to know, and how to implement the right solutions.
2. Be Proactive about International Compliance
Don’t wait until you encounter a problem to work on your compliance practices. Be proactive and stay up-to-date and educated on compliance to help create a culture of compliance and honesty. This can help you avoid situations that are ethically or legally ambiguous, or even just plain wrong.
Like any culture, compliance initiatives need to be supported and implemented by executives in your company. And when you develop your compliance plan, make sure that your employees follow through on it. If your compliance system is just something you create to check off a box, it will be much harder to remedy a problem before it gets too serious.
3. Partner with an International Compliance Expert
When you enter a new country, you’ll need understand many aspects of the law. These include, but are not limited to:
- Payroll and tax law
- Labor protections
- Work permits and visas
- Social Security programs
- Business regulations and incentives
No researcher or aid worker has time to study all those regulations, and you don’t either. That’s why it’s important to consult with a partner who has in-depth knowledge of local laws. Not only do you not have time to research everything you need to know, you might not even know the right questions to ask. A local partner with experience in international business can help you navigate these questions and set you on the right path for success.
Consider International PEO for Global Expansion
Choosing a partner that offers International PEO (Professional Employer Organization) can help you expand into a new country quickly and compliantly. The right provider has an established infrastructure in your target market, which you can use to hire employees and start operations—without the headaches of establishing a traditional entity yourself. To learn about this agile expansion method, contact us today.