How to Set Up an Entity Abroad: A Step-by-Step Guide
Expanding your business internationally is exciting, but it also comes with challenges. Setting up a legal entity abroad requires dealing with complex regulations, cultural differences, and administrative tasks. To help you navigate this process, we’ve created a clear step-by-step guide. With Parakar as your partner, you’re supported every step of the way.
Step 1: Define Your Expansion Goals
Before starting the paperwork, define why you want to expand. Do you want to access a new talent pool, serve clients locally, or test a new market? A clear purpose helps you decide the right structure for your entity.
Parakar tip: Our local experts advise you on the best way to go based on your goals, so you can expand with confidence.
Step 2: Choose the Right Entity Structure
Each country offers different legal setups, such as a subsidiary, branch, or representative office. Choosing the wrong structure can lead to unnecessary costs or legal complications.
Parakar tip: We guide you through the legal frameworks of each country, ensuring your entity matches your business needs.
Step 3: Register Your Business
This step involves paperwork, local authorities, and sometimes language barriers. You’ll need to submit official documents, company statutes, and sometimes proof of local presence.
Parakar tip: Parakar manages the registration process and coordinates with local authorities, saving you valuable time.
Step 4: Open a Local Bank Account
A company bank account is usually required for payroll, taxes, and supplier payments. The process can take weeks, depending on the country.
Parakar tip: With our experience, we know the fastest routes to opening your account smoothly.
Step 5: Handle Tax and Compliance
From corporate taxes to social security contributions, compliance rules differ per country. Missing deadlines or filings can result in heavy penalties.
Parakar tip: Our payroll and compliance specialists ensure you meet all requirements from day one.
Step 6: Set Up HR and Payroll
Once your entity is live, you need to employ and pay your team locally. This includes employment contracts, payslips, and benefits according to local law.
Parakar tip: With our HR and payroll services, you can onboard employees quickly and guarantee a smooth experience for your new hires.
Step 7: Grow Your Business
With your entity established, you can focus on what matters most: growing your business. The foundation is there, and Parakar stays by your side to support your long-term expansion.
Why Choose Parakar?
Setting up an entity abroad is a big step, but it doesn’t have to be overwhelming. At Parakar, we combine local expertise with a hands-on approach. From entity setup to payroll and HR management, we make sure you stay compliant while focusing on your growth.
Ready to expand your business abroad? Get in touch with our experts and let’s make your international journey easy.
