The choice to expand an existing business to other countries is an important one, and it indicates that the company has moved past its incipient phase and is able to provide global services. In this article, we discuss how to expand your Hungarian business to other countries, the main issues to consider and the opportunities that an expansion decision can present to the business.
For some businesses, the expansion strategy starts with opening headquarters in neighboring countries. For a Hungarian company, regardless of the fact that it is a small or medium one or a large corporation, opening a branch in Bucharest can be a step towards moving the company to different markets. When local aid is needed for incorporation, Hungarian company owners can request the services offered by company formation experts in Romania.
A different approach that can also depend on the capital available for opening new headquarters and the business field can be to expand to a well-known business and financial center.
Hong Kong is one of the top business and financial centers in the world and in the Asia-Pacific Region. Contacting a team of experts in setting up companies in Hong Kong is recommended for those investors looking to use the city as a springboard to access other markets.
Things to consider before expanding your company
A business that has plans for expansion is generally one that has met its current plans for local development and is looking for international opportunities. It may be that the product is an innovative one and it will be well-received in other markets or it may be that the company founders are simply looking to grow revenue. Regardless of the reasons, some of the important pre-expansion issues to consider include the following:
the strategy: it is recommended to prepare a short, medium and long-term strategy for the expansion of the Hungarian company.
the market characteristics: is the market in a certain country suited to introduce the product or service offered by your company?
company formation: this is a procedure that can differ and investors can check the requirements before deciding on the country for expansion.
corporate taxation: this can be an important criterion, especially when one of the reasons for the expansion is revenue growth; in this case, countries with low corporate tax rates will be attractive.
Expanding a Hungarian business to other countries can be an exciting and interesting step forward, one for which it is recommended to prepare in advance and choose the country or countries for expansion based on thorough market research and business plan.