Choosing the location where a future business will be based is an important decision made according to the needs of the entrepreneurs, both the current and the future ones. Investors who open a company in Seychelles can have one of the most important benefits in terms of convenient taxation as in many other offshore jurisdictions. However, one of these locations may not be suitable for the business for other reasons, for example, because it is not located close to the target market.
Choosing the right business location
The right location for the business will depend to a large degree on the sector in which the company activates. For example, an import/export company may have different needs compared to a software business. Likewise, a distinction is made between services companies and holding companies. The latter only hold shares in existing businesses and the regime for holding companies in the Netherlands can be attractive for many investors in Europe.
The business incentives and the special regimes for some business sectors, if applicable, are worth taking into consideration. These incentives, along with the general taxation regime for companies, can influence the investor’s final choice.
What to consider when locating the business
Apart from the special taxation and incentive regimes, the demographics of a location and the ease of doing business are also important when choosing a proper destination for starting a business. The demographics can be important especially for retail businesses as well as for those activating in the restaurant sector and other services providers. On the other hand, for some businesses, the proximity to the customers may not be so relevant.
The availability of a talented workforce may be the key to preferring one business location to another. Cities like Hong Kong and Singapore not only offer attractive taxation and business regimes, but they also have convenient policies for foreign employees and are, in general, home to a large number of talented workers.
When choosing a proper location for starting a business, entrepreneurs need to answer a number of questions, concerning both the current needs of their company as well as the manner in which the business can develop in the future in a chosen location. In most cases, the proper location has features that are convenient for the investors, both in terms of the business regulations and the particularities of the business climate.
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