Are you looking to expand your business? If so, you might be looking to start a company in a foreign country. Starting a business in a foreign country can actually be simpler and more beneficial for your company in the long run. According to industry expert Darren Kaiser, “Starting a business overseas might actually be much easier, less risky, and more economically sound than setting up a business in your home country.” So if you’re looking for steps to set up a business in a new country or the best industry to start a business, read on.
Setting Up a Company in a Foreign Country
Whether you’re starting a brand new business or opening a new branch in a new country, it’s important to understand the industry and expectations in your new environment. Some industries perform better in certain countries than others. You’ll want your business to match those industries or adjust it enough to cater to that. These are some questions you may want to consider when setting up a business in a foreign country:
If you’re starting a brand new business, you may want to consider choosing an industry that is up-and-coming or is highly successful in your chosen country. These are some of the best industries to start a business in:
Technology and Innovation
As technology becomes increasingly crucial, businesses in the technology and innovation industry are going to flourish. Starting a business that solves complex and pressing problems with innovative and technological solutions can help set your business up for success. In a country such as Bahrain, our technology and innovation industries are growing and flourishing at an incredible rate. Cybersecurity is expected to grow at CAGR of 20% by 2022. Bahrain also has the world’s highest cloud traffic growth rate at 41%. The MENA region boasts the world’s highest gaming and e-sports CAGR of 9.79% with revenue of $3.9bn by 2023. Technology and innovation companies have come to Bahrain to take advantage of the region’s growth.
MENA is home to 4 million online shoppers with 83% of regional traffic is done on the cloud. That’s why Amazon Web Services (AWS) came to Bahrain. AWS is a widely-known company that provides flexible, secure, scalable and cost effective IT infrastructure on a ‘pay as you go’ basis – allowing businesses to securely store and manage data without the need to own and maintain expensive mainframe servers or other IT hardware. AWS started its operations in the Middle East by choosing Bahrain as its hub. The access to the rest of the GCC and flexible business environment have made Bahrain the ideal location for AWS in the Middle East.
Logistics
Businesses and organisations need a smooth system of acquiring, storing, and transporting products. Because every organisation needs efficient supply chains, there will always be a demand for logistics businesses. Starting a business that effectively transports goods can set your company up for success in your industry. In a country like Bahrain, logistics companies benefit from an ideal location in the Gulf, which provides easy access to major markets like Saudi Arabia. Operating costs for the logistics sector in Bahrain are 30–50% lower than in neighbouring countries. In addition, the Bahrain Logistics Zone provides competitive lease rates with no additional fees or service charges. Logistics companies also benefit from Bahrain’s economical ports, subsidised interest rates, and lower cost of living.
One company that has taken advantage of the Bahrain Logistics Zone is DHL. DHL is an international leader in logistics, and Bahrain has been its regional hub for over 40 years. Bahrain provides DHL with many reasons for success, but the following are of the most important. The workforce in Bahrain is prepared for logistics, manufacturing, and many more industries and provides unparalleled market access to customers. In logistics, a company needs to cover every inch of the globe. Setting up in Bahrain helped DHL get one step closer to that by giving them unique access to the Gulf areas. DHL has gotten access to 220 markets since starting in Bahrain. Finally, DHL benefits from the business-friendly regulations, like 0% corporate tax, to set their business up for success.
Manufacturing
Manufacturing is the heart of many businesses. So many companies create products designed to make people’s lives easier and better overall. There will always be a need for businesses with innovative and creative products. In Bahrain, manufacturing businesses benefit from the Free Trade Agreements (FTAs), business-friendly environment, and 0% corporate tax.
For manufacturing businesses, logistics and location are key. Without unparalleled access to markets and efficient shipping, it’s hard for manufacturing companies to get off the ground. That’s why Mondelez International chose to make Bahrain its home since 2008. Mondelez International is a leading company in manufacturing snack products. In Bahrain, the company built manufacturing facilities for Kraft and Tang and have shipped their products all across the Gulf.
Mondelez International benefits from its location in Bahrain for a few major reasons. The US-Bahrain Free Trade Agreement allows for unbeatable access to American markets without tariffs burdening shipping. Mondelez also benefits from access to the Saudi Arabian market—it’s only a bridge away. Finally, Mondelez benefits from the highly skilled workforce available in Bahrain. Bahrain employees are some of the most educated in the area, and they provide Mondelez with the people key to success.
Every new location for your business will have a new environment. Companies that truly understand the location they’re setting up in will be more prepared for success later. When looking to relocate your company, these are some of the most important aspects of a new business environment to understand:
Every country has its own set of regulations businesses need to follow. There are taxation, immigration, financial, and employment laws that can affect your business operation. Before you start, you’ll want to have a clear understanding of all regulations that might affect your business, such as these Bahrain business laws.
In addition to regulations, each country has its own culture and complex set of politics. While these may sound separate from your business, these factors are important to understand when you’re moving a business into a new country. Handshakes and gifts can all mean different things in a new context. Before setting up your company, take some time to understand the politics and culture in your country.
Economics can also very directly affect starting a business in a foreign country. When deciding to relocate, you’ll need to know the economy you’re starting up in inside and out. You’ll want to understand the current and future state of the economy and the spending habits of the locals. You’ll also want to know about any economic regulations and tax incentives.
Every country has slightly different tax laws and tax considerations when it comes to businesses. Those looking to start a new business should be prepared to meet these tax regulations and requirements. Tax laws will affect your business directly and significantly. Don’t start your business without gaining a firm understanding of the new tax laws you’ll find. In a country like Bahrain, the tax laws favour businesses with benefits like 0% corporate tax.
Nobody needs to start a business alone, especially if they’re starting up in a new country. That’s why every entrepreneur needs to find a local advocate who’s familiar with the process of starting a business as well as the country you’re looking to cultivate a presence in.
In Bahrain, we can fill the role of your local business advocate. Our team understands the ins and outs of expanding a business in Bahrain, and we can guide you through each of the steps. We know the environment and the tax regulations, and we can help you get started right here in Bahrain. Our team can also point you in the right direction of any other local advocates that may provide useful insights to you.
Setting Up a Company in Bahrain
Many businesses have started in or expanded to Bahrain. Bahrain offers the complete package for businesses looking to expand in a foreign country with its business-friendly environment and excellent access to markets.
You don’t have to set up a business here alone. Reach out to learn more about setting up a business or expanding in Bahrain.
