Expanding Internationally Isn't Just a "Business Issue"

The world is becoming smaller and smaller from the standpoint of business-to-business communications and market access. The laws, however, are not so integrated. There are certain areas of the law where countries have tried to make it easier for companies to do business across borders and to maintain consistent standards all around the world by "harmonizing" these laws and standards. Examples include medical device & pharmaceutical laws and patent and intellectual property laws. Countries have created treaties and harmonizing task forces in these areas to try and align better the laws in the various jurisdictions.

However, most all other areas of the law are very, very different depending upon the country. One area of extensive variability among the countries that is surprising to most business executives is banking. The rules of setting up bank accounts (both corporate and individual) and the rules of how you can withdraw funds out of those accounts and how much and whether you can transfer these funds out of the country is dramatically different and can cause significant financial pain. China is a stand out in its difficulty. South Africa and some South American and even some European countries can also be difficult. These dramatic nuances in banking laws require significant upfront investigation and preparation if you're going to operate in these countries.

Labor laws and the rules around hiring and firing personnel additionally can be particularly tricky in many jurisdictions outside of the U.S. Many countries give far greater rights to employees in their employment than what is done in the U.S., and it is very important for business executives hiring local personnel in other countries to be acutely aware of these. Another common problematic area for companies doing business internationally is distribution and the rights given to distributors. This is particularly true in Latin American countries.

In conclusion, it is imperative that business executives seek the counsel of very internationally experienced personnel for law, finance and tax BEFORE you expand into any other country. Your current lawyer, CPA, banker or tax consultant is unlikely to be the right consultant. Don't let your current service provider cut their international teeth on your business. You can't afford mistakes or to pay for someone else's learning curve. The "I've done that a couple times before" consultant is not good enough. For referrals to the experts in this area, please email me at dawn.ely@palladiumclos.com

For more information from the experts, listen to this topic on our Corporate Conversations radio show here: http://corporateconversations.businessradiox.com/314. Read more from our article on Examiner here: http://www.examiner.com/business-in-atlanta/atlanta-companies-expand-int...

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