THE ART OF
BEING LOCAL
WORLDWIDE
Starting a Business Abroad with InterGest
Starting a business abroad is rarely a pure formality. It decides how quickly you can serve a new market, the tax burden your company will carry and where liability risk sits for the shareholders. InterGest has guided mid-sized companies through this important step since 1972, from choosing the legal form to commercial register entry, bookkeeping, tax filings and payroll.
InterGest partners are on the ground in over 50 countries: tax advisors, lawyers, and accountants who know the local regulations and, in many cases, speak German. For you that means: one point of contact, one contract, one consolidated report. No painstaking search for individual service providers in every target country. That is what makes starting a company abroad predictable, even when the rules differ from country to country.
Starting a business abroad: our countries at a glance
Whether you are starting a company in the USA, setting up a Ltd in England, a GmbH in Switzerland or a subsidiary in Brazil, we support you locally. InterGest is active in more than 50 countries. Every country page gives you country-specific detail on starting a business abroad: legal forms, incorporation processes, authorities, deadlines and your local InterGest contact.
Why starting a business abroad makes sense
Mid-sized companies start a business abroad for four main reasons: market proximity, a more favourable tax environment, lower production costs, and risk diversification. The balance differs from company to company, but most projects we see come down to those four motives:
- Market proximity: Serving customers locally, shortening lead times, easing customs issues. Particularly in the USA, United Kingdom after Brexit or in the growth markets of Asia, a physical presence is often mandatory rather than optional.
- Tax environment: Countries such as Ireland (12.5% corporation tax), Switzerland (cantonal rates often below 15%) or Singapore offer structuring flexibility. Legally, with full documentation. Not reachable with a German GmbH alone.
- Production costs and skilled labour: Eastern Europe, Mexico or Turkey offer wage cost advantages combined with a qualified workforce. A local subsidiary secures control over quality and supply chain.
- Risk diversification: Any company that serves only its home market is exposed to recession, regulation or currency swings. A second operating base abroad noticeably reduces that dependency.
Typical triggers in practice:
- A local key account demands a direct contracting partner on the ground
- Distribution margins in the indirect channel are too low for further growth
- You need to employ your own staff in the target country on a legally sound basis
- You want to control your brand presence and pricing yourself
- Competitors already have a local presence and you do not
Are you building an international business? Do you know the new BMF (Federal Ministry of Finance) rules regarding permanent establishments?
The key point: starting a business abroad has to fit your overall strategy. Not the other way round. InterGest works out which country, which legal form and which structure best carry your goals.
Which legal forms are available
Four legal forms dominate when starting a business abroad: subsidiary, branch, representative office and joint venture. Not every market needs a full subsidiary from day one. Choosing the wrong legal form is one of the most expensive mistakes at market entry: either too much structure too early, or too little liability protection too late. Depending on the country, the options include limited liability companies (GmbH, Ltd., LLC, S.L., S.r.l.), public companies (AG, PLC, S.A.) for larger projects, and partnerships or branches that usually involve personal liability. Which form fits depends on liability, tax exposure, disclosure obligations and investor requirements.
| Legal form | Separate legal personality | Liability | Typical use |
|---|---|---|---|
| Subsidiary | Separate legal entity | Limited to the share capital | Full market build-out, own staff, own contracts |
| Branch | Dependent on the parent company | Parent company is liable | Operating presence without its own legal personality |
| Representative office | No legal personality | Parent company is liable haftet | Market observation, client relations, no revenue |
| Joint venture | Separate entity with a local partner | Limited to the share capital | Markets with high entry barriers or mandatory local partner |
GmbH, LLC or Limited in direct comparison
The three most common legal forms when starting a company abroad differ in liability, taxation and administrative effort more sharply than the names suggest.
- GmbH (Germany, Austria, Switzerland): Minimum capital €25,000 (DE), strict disclosure obligations, entry in the commercial register. For tax purposes the authorities draw a clean line between the company and its shareholders. Extra credibility with German business partners and banks.
- Limited (UK, Ireland, former Commonwealth countries): Minimum capital £1, incorporation within days online, annual filings with Companies House. After Brexit the Limited has become administratively more demanding for German shareholders. Substance requirements and permanent-establishment issues need attention. See United Kingdom and Ireland.
- LLC (USA): The most flexible of the three forms. No federal minimum capital requirement, pass-through taxation possible (profits taxed directly at shareholder level), with the individual state setting the detailed rules. Setting up an LLC in Delaware, Wyoming and Nevada are classics for holding structures.
Alongside these three, country-specific equivalents exist: SARL in France, S.L. in Spain, Sp. z o.o. in Poland. All share the basic principle of a limited liability company.
Picking the right form involves more than tax rates: double taxation treaties, permanent-establishment rules and the question of whether substance has to be demonstrated all matter. Distributed profits received by a German parent are 95% tax-exempt under the participation exemption (§ 8b KStG). InterGest clarifies these points before incorporation, not after the fact.
How InterGest helps you start a business abroad in 7 steps
At InterGest, starting a business abroad follows a clear seven-step process, with the same contacts from the first conversation through to ongoing operations. The incorporation itself differs by country: in Singapore registration takes three days, in Brazil three to six months. Our process stays the same:
- Initial consultation & market analysis. Which market fits? Before any project of starting a company abroad, we analyse potential, competitive position and the tax framework. And we tell you if the timing is not right yet.
- Legal form & location. Subsidiary, branch or representative office: the recommendation depends on your business model, not on a default answer. We also advise on transfer pricing and group structure.
- Incorporation & domiciliation. Notary appointments, dealings with authorities, commercial register entry, tax registration. All in the local language, with statutory representation on the ground. You sign, we coordinate the rest.
- Sales set-up & recruitment. We help find managing directors, sales agents and sales staff. Visit reports are translated into your own language. We can also take on the Expat Service for posted employees on request.
- Accounting & tax. Local bookkeeping obligations apply from day one. We set up the accounting structure, prepare annual financial statements and handle VAT returns. Coordinated with local auditors.
- Payroll & HR. Wage and salary processing, social security contributions, wage tax, every local reporting duty. For every employee, in every currency.
- Controlling & reporting. Monthly reports in your language, in your format. No guessing what is happening in the foreign entity.
The specific incorporation steps, deadlines and authorities differ significantly by target country. Pick your country from the overview above.
Risks and pitfalls when starting a business abroad
A project of starting a business abroad rarely fails at the incorporation act itself. It is more often the follow-on topics that surface too late: underestimated detail, not flawed strategy. Below are the six pitfalls InterGest sees most often.
- Compliance requirements are underestimated. Separate deadlines, separate authorities, separate reporting duties. In every country. The EU and OECD are also tightening substance and reporting rules (DAC8, Pillar Two). Those who do not know the rules pay penalties. Or close the company when they did not mean to.
- Wrong legal form. A branch rather than a subsidiary may sound cheaper at first. Until the parent company has to cover liabilities abroad. The reverse is just as bad: a full subsidiary during a market-testing phase generates costs no one needs.
- Local employment law is underestimated. Dismissal protection, social contributions, minimum wages: in many countries considerably more restrictive than in Germany. Anyone who only learns this when a dispute arises with an employee learns it expensively.
- Profit repatriation does not happen automatically. In Brazil, India and parts of Africa, transfers to the parent company are regulated. What the subsidiary earns does not simply arrive in the parent company's bank account.
- Transfer pricing is ignored. Without documented service relationships between parent and subsidiary, you risk back taxes in both countries simultaneously.
- Accounting starts improvised. Annual financial statements can barely be rebuilt retrospectively if the foundations are missing.
The 10 most common mistakes when starting a business abroad, and how to avoid them, are in our free book. You can request a copy here.
FREE BOOK BY PETER ANTERIST
The 11 costliest mistakes when starting a business abroad
Peter Anterist, CEO of InterGest Steuerberatungsgesellschaft mbH, has distilled the lessons from more than 50 years of international company formation practice and projects in 50+ countries into one book: Fail in Foreign Trade. 11 typical pitfalls when starting a company abroad, from bogus self-employment to transfer pricing and compliance, and how international companies avoid them.
InterGest or a large consultancy: which fits your company?
Not every project of starting a business abroad calls for a Big Four firm. KPMG, PwC, Deloitte and EY are excellent firms for large corporates. A company with €50 to 500 million in revenue setting up its first subsidiary in Spain or India faces a different situation. For that, the Big Four are usually too large, too expensive and too little interested in the operational work.
For anyone starting a company abroad, InterGest delivers what the Big Four do not in this setting: local experts who are themselves entrepreneurs, who take responsibility and run the operation for the long term, rather than advising once and leaving.
| InterGest | Big Four (KPMG, PwC, Deloitte, EY) | |
|---|---|---|
| Target group | Incorporation + ongoing BPO | Strategy, M&A, audit mandates |
| Service focus | Gründung + laufendes BPO | Strategie, M&A, Prüfungsmandate |
| Local presence | Own local units in 50+ countries | Office network with variable focus |
| Point of contact | Direct local expert | Centralised project teams |
| Cost structure | Mid-market friendly, transparent | Priced for corporate budgets |
| Relationship | Long-term, stable teams | Project-based |
Since 1972.
50+ countries. 750 employees. 1,700 companies supported.
When do you start?
How long does it take to start a business abroad?
Between three days and six months, depending on the country.
Singapore and the USA are fastest. Brazil and India are slowest. The decisive factors are notarisation requirements, processing times at government agencies, and whether all documents are complete on the first attempt. The last point is regularly underestimated.
How much does it cost to start a company abroad?
Three cost blocks: minimum capital (zero in some countries, several thousand euros in others), state fees and notary costs, plus advisory fees.
For anyone specifically asking about the cost of a Limited or LLC: state fees in the United Kingdom or the USA are comparatively low. Running costs for accounting and compliance are often more relevant in the long run. InterGest discloses every line item before work begins.
What is the difference between registering as a sole trader abroad and incorporating a company?
Registering as a sole trader abroad is only available in many countries for individuals or very small operations.
With no separate legal personality and no limited liability. A foreign company that wants a lasting presence abroad generally needs its own corporate entity: subsidiary, branch or at least a representative office. InterGest advises on which form fits your specific situation.
Can I start a company abroad without being resident there?
Yes, in most countries starting a business abroad without local residency is possible.
With some restrictions. Some markets legally require a local managing director resident in the country, or certain licences assume a physical presence. In such cases InterGest provides statutory representation on the ground. This is one of the main practical reasons to work with a local partner rather than attempting the formation alone.
What ongoing obligations does a foreign company have?
Bookkeeping, annual accounts, tax filings, payroll, commercial register duties: in most countries more than expected.
Some countries require monthly VAT returns, others quarterly. InterGest takes this on as ongoing BPO. See all our services at a glance.
At what point is your own subsidiary worthwhile instead of a distributor?
Can a foreign national be a shareholder or managing director anywhere?
Yes, in most countries foreign nationals can be shareholders or managing directors without restriction.
In some markets a local partner or a minimum local shareholding is required: in Saudi Arabia, in certain industries in China, or in parts of South-East Asia. In some places the managing director needs a local residence permit. InterGest checks this before incorporation begins.
What happens if the foreign company does not perform?
How does InterGest differ from a local tax advisor?
A local tax advisor knows their country well.
But they do not know your situation as a foreign parent company, the reporting requirements of your headquarters, or the intercompany structure their work is part of. That combination of local and international expertise is the core of the InterGest model.
Does InterGest also provide statutory representation on the ground?
Yes.
In countries where a local managing director is legally required or practically necessary, InterGest provides this representation. This is one of the key differences from purely advisory service providers. More on this under Services.