Setting up a company abroad: a decision guide for founders

Many founders consider incorporating abroad, especially when targeting global investors or international customers. This decision has lasting consequences for tax, law, financing and operations, so do not rush it and always assess it with legal and tax advisors. The content below is a general decision frame; it gives no firm conditions or figures for any specific country.

Why incorporate abroad?

1. Investor expectations: Some foreign investors prefer companies under familiar legal structures. See pitch deck for global investors.
2. International customers and payments: Easier to take payments and sign contracts in foreign markets.
3. Partners and team: Bringing a distributed team under one roof.
4. Market proximity: A legal presence and trust in the target market.

But not every startup needs it

If you serve the local market and neither investors nor customers require it, a local company is often simpler and cheaper. Evaluate the local structure first; see company type selection.

Country selection criteria

1. Legal system and investor familiarity
2. Tax structure and double-tax treaties
3. Set-up and running cost
4. Ease of opening a bank account
5. Payment and collection infrastructure
6. Language, bureaucracy and digitisation of public services
7. Employment and visa conditions
8. IP protection

Risks to watch

• Tax residency: The company's place of effective management and the founder's country of residence can affect tax duties.
• Dual structure: Companies in two countries mean double accounting, compliance and cost.
• Regulatory compliance: Learn the rules on capital, currency and profit transfers.
• Founder shares: Moving from an existing company to a new structure can have share-transfer and tax consequences; see the cap table guide.
• IP: Properly assign code and brand to the new company; see the IP guide.

Step-by-step preparation

1. Clarify the goal: for investors, customers or team?
2. Compare 2–3 countries.
3. Get tax and legal advice.
4. Research banking and payment options in advance.
5. After set-up, build the calendar of accounting, tax filing and annual obligations; see accounting and tax basics.

Software and service exports

If you sell software or services abroad, exports can also be done from a local company; see the software export guide and e-export.

Common mistakes

• Deciding only on a promise of low tax
• Not checking in advance whether a bank account can be opened
• Ignoring tax-residency consequences
• Incorporating without clarifying founder and IP structure