For many of us, this seems a decision of little consequence. Your clients walk into your premises and they come from your local area, so registering right at the office, the shop or at home may seem the obvious and sensible choice.
However, for many of us, this is not the case, or we simply need a better solution than being local - and this also presents a good opportunity to plan your business structure and location.
Here are a few factors to bear in mind:
- first, in some cases, business registration in your country is incredibly complex and time consuming. Once you are through that hurdle, it can take up to a year to get your bank account set up. Whether this is because of inflexible rules, apathetic or corrupt staff, it puts your whole business idea on hold, and can effectively kill it dead. This of course, puts a handbrake on employment, growth, innovation. While your momentum is lost, a competitor could be filling that gap in the market for you.
- second, some business locations are not very credible if you are intending to market yourself on the global stage. It is important that your business name and bank are perceived to be safe, credible and trustworthy. Some business locations, through no fault of your own, need years or decades to restore this faith. We encourage them to catch up (and many in our consulting network are working to help them do just that) but business innovation does not need to be blocked by poor public administration, politics or fragile business environments.
- third, your business may be mobile. By this we mean your client is often based in another country or the client asks you to carry out a project in another country. Or you supply consultants who might be based from other countries. In effect, you could structure your business around one of these locations or from another credible global location.
- if you are an internet business, for example, supplying digital products, then your business is potentially more mobile and even cloud-based. there are many sectors which fall into this category
Most of Hubconsult's network falls into this group of very international freelancers and small specialist companies operating in either less-than-ideal business locations or are flexible in terms of business location.
What else might influence your choice of location?
- business environment more stable and trustworthy than that in your own country
- banks more solid than your own
- closeness to your clients, or where you would like your clients to be
- proximity to a fast growing market
- infrastructure for business set-up
- fiscal and compliance costs
- the ease of setting up a company
- the legal basis for doing business is more solid than at home
- the ability to operate in a certain currency not available to you at home
- the ability to collaborate with others in your field or industry
You may also have other reasons for choosing a particular location.
The good news is that you can access many of these advantages if you plan carefully. You can locate your business where it will have strategic competitive advantage over its rivals right from the start.
Hubconsult has a solution that helps you stay competitive, helps you reduce your costs and get your business and bank account set up very quickly.
This is really good news for SMEs or freelancers struggling to get started, and we believe will contribute to your success by making your business more rewarding and allowing you to spend far less time on the "back-end" of administration, accounts, audit etc.