Choose the Right Business Structure According to Your Needs and Local Requirements

Thoroughly analyze the available business structures (e.g., branch, subsidiary, limited liability company) and their legal frameworks in the target country. Depending on the jurisdiction, one form may be more beneficial than others due to tax incentives, fewer regulations, or more favorable liability conditions.

Why is this important?
Choosing the right business structure determines liability scope and allows businesses to leverage local tax benefits and optimize costs, ultimately increasing profitability. For instance, limited liability companies are often seen as the safest option due to capital protection and financial flexibility, whereas branches may be advantageous for minimizing setup costs.

Understand Local Market Standards for Products and Services

Review the technical, safety, and quality requirements for your products or services. It is also crucial to determine whether the country requires specific certifications or permits for market entry.

Why is this important?
Compliance with market standards ensures smooth access and prevents logistical disruptions. Proper preparation allows businesses to tailor their offerings to local consumer preferences. For example, Scandinavian markets place high importance on eco-friendly products, making certain sustainability certifications essential for entering these markets.

Secure and Adapt Your Trademark for the New Market

Verify that your trademark is not already in use in the target country and ensure its proper registration. Pay particular attention to so-called “green” trademarks.

Why is this important?
Proper trademark protection safeguards business identity and prevents counterfeiting. In some countries, it is crucial to avoid names or symbols that may carry ambiguous cultural meanings.

Choose the Right Legal Jurisdiction and Applicable Law

When drafting contracts, specify which legal framework will govern them and which jurisdiction will resolve potential disputes. A well-chosen jurisdiction reduces regulatory risks, and understanding the local legal system helps prevent surprises and additional costs.

Why is this important?
Failing to define applicable law and jurisdiction may result in disputes being handled by foreign courts under unfamiliar legal standards. This can increase litigation costs, extend case resolution timelines, and require compliance with unexpected legal practices—raising business risks and operational expenses.

Familiarize Yourself with Local Labor Laws and Social Security Regulations

Understand employment conditions, social benefits, and workplace standards. Many countries have specific regulations regarding working hours, leave entitlements, social insurance, and employment terms, which may differ from your home country’s norms.

Why is this important?
Compliance with labor laws prevents legal conflicts and penalties while enhancing the company’s reputation as a responsible employer. Favorable working conditions are key to attracting skilled professionals.

Develop an Effective Tax Strategy

Analyze the local tax system, potential deductions, and opportunities to avoid double taxation. Collaborate with local tax advisors to create an optimal tax strategy that ensures compliance while managing financial burdens effectively.

Why is this important?
A well-planned tax strategy reduces financial liabilities, prevents unexpected fines, and ensures smooth, profitable business operations.

Meet Local Environmental and Production Standards

Familiarize yourself with the country’s environmental regulations and check whether stricter-than-usual standards apply (especially in Scandinavia). Some jurisdictions require additional certifications or regular audits.

Why is this important?
Compliance with environmental regulations strengthens a company’s reputation as a responsible business. This is particularly critical in markets where sustainability plays a key role in corporate valuation.