More and more US or European entrepreneurs afraid to be left “taxes and bones” are considering relocating their business or part of their business overseas. In this article we will discuss corporate relocation and expatriation for individuals. Note that this article addresses the issue of relocation of Small and Medium Enterprise. Note that we have 15 years of experience in Foreign Direct Investment services assisting foreign investors to relocate their business in europe, asia and central america. Do not hesitate to contact me if you want a [email protected] more information on this subject.
Where to relocate a SME company?
Many criteria will come into play to determine the best place to relocate your business. The main criteria taken into account are
- Will you relocate your entire enterprise or part of it only?
- Are you in the service or manufacturing business?
- Where is your market?
- Where are your suppliers?
- Where are the raw materials needed for your business?
- What kind of workforce do you need?
- Are you in a low-margin sector?
- What is your budget?
Among the main relocation destination we can mention:
- Asia: Burma, China, Cambodia, Hong Kong, Singapore, Thailand
- Europe: Hungary, Poland, Russia, Switzerland
- Middle East: Morocco, Tunisia, United Arab Emirates (Dubai)
- Central America: Guatemala, Costa Rica
- South America: Chile
We can assist you in all these countries.
How much cost the relocation of a business?
Please note that
- The assumption made below is for the relocation of a SME business.
Firstly there are the legal costs attached to the relocation
The legal costs are variable and will depend of the following items.
- Are you in the service sector or in industry sector?
- Does your business require special licenses and authorizations ( industrial licenses, financial licenses, commercial licenses etc…)
- Also it will depend on the country of destination fees or the rights of government being more expensive in some countries
In general, the budget for the relocation will includes, incorporating the company, obtaining trade licenses, bank account, registration of the company with the tax authorities, visa and work permit for the foreign director. Depending of the country the legal costs are between the following brackets
- Company in the field of services: Between 7500 and 15,000 Euros
- Company in the field of industry: Between 12,000 and 25,000 Euros
Then there is the budget to start the actual business.
Here too we will only give estimates. Criteria that will determine the budget are
- the cost of investment in a given country,
- if you are in the industry sector or service sector
- if you are in the industry if the country in question allows you to import your current equipment and machines (second hands equipment), or if you need to buy new machines. Many countries require companies to invest in new and modern machineries.
- Finally, the budget will not be the same if you rent a factory building (industrial park) turnkey or if you buy land and build a factory
Services sector: The investment budget to relocate a SME service company is between 150,000 and 300,000 Euros depending on where you are relocating
Industrial sector: The investment budget to create a small production unit (SMEs) abroad can be anything between 350,000, 500,000 or 1 million euros. Being specified that we place ourselves in the context of an SME investment.
Do not hesitate to contact me if you want a [email protected] for more information on this topic