In terms of having problems, 2019 was not a good year. It lacked the problems that the pandemic caused in 2020. Don’t you think so? Why is this important to note? The fact is that according to a study by the Ewing Kaufman Foundation published back in 2009 (almost during the crisis), 57% of Fortune 500 companies were founded either during recessions or in falling markets. Especially interesting is that since 1855 (!), the time of the bear (falling) market was only 31%.
This suggests that if most successful Fortune companies started in difficult times and achieved success, it is possible that economic problems are not just the best, but necessary conditions for starting a successful business and registering a foreign company.
Is it worth opening a new business in times of crisis?
The business was always there. In times of crisis, the most promising projects survive. Moreover, 57% of successful companies in the Fortune 500 were founded either during times of crisis or during market downturns. At the same time, since 1855, “bearish” trends were present in only 30% of all time. This means that if you start a new business, it is during a crisis because it gives you a better chance of success in your business.
Prices for entering the market and almost all sectors of the economy are falling significantly. Therefore, despite the drop in demand, startups with a creative and non-standard approach to solving customer problems have a competitive advantage to become the future “unicorns”.
How do I choose a country to open an international business?
Look not only at the target audience of your product or service but also at the countries in which they may be interested in the future. Strategic thinking will help you determine the growth of your business and choose the countries where your product is needed initially. This will allow you to set the right path and a kind of schedule for increasing your company’s revenue, attracting investors, and improving the efficiency of all your activities.
The next important point, in our time, is to determine the place to create the main product of your company.
This is important from the point of view not only of the production process itself, but also of attracting key specialists, investors, and then protecting the generated assets from acquisitions and interceptions of your company’s management.
Therefore, it makes sense to choose countries with common (English) corporate law, which gives the greatest security to business owners conducting legal activities.
Can I open a business remotely in another country in the world?
Yes. Not everywhere, but in many countries, this is possible without a personal presence. Moreover, we believe that in the future, there will be more opportunities to register foreign companies in more countries than before 2020.
As a rule, in addition to the personal documents of the founders of the company and the constituent documents that must be drawn up in accordance with local legislation, it will also be useful to consider the goals of creating your foreign company.
This does not mean that you need to provide a business plan for a future enterprise, but you need to clearly imagine the type of activity because this often affects not only the legal form of your foreign company but also the choice of the country or region where you can do it.