Corporate essentials: four pillars of a strong global business or how to run a company

Coming back to the corporate essentials is important especially when establishing a structure is one of the goals in a business plan. Running a company or how to run a successful business depends on certain considerations that should be labeled as fundamentals. 

Corporate 101: from reporting to operations

There are many advantages to having a company abroad. Mainly these entail the possibility to access a wider spectrum of currencies, investments, and incentives. Nevertheless, running a company raises challenges and this is why Mundo decided to present the four pillars of corporate essentials. In other words, this is what we recommend you consider before choosing the jurisdiction and structure for your foreign business.

Corporate 101: Legal background and perspective

This aspect is closely related to the jurisdiction we want to choose. In this regard, it's better to go for places with a stable political history and which have had business-friendly policies for a long time. By looking back at the country's history, we can make approximate predictions as to what the future may bring, naturally with the word “approximate” being key.

At this stage, we can name a few countries that constitute a solid environment for a running company. 

Seychelles

An African territory that is known for its flexibility and incentives especially designed for those wondering how to run a successful business abroad. We've discussed Seychelles as a company hub in articles like this one, exploring its advantages and disadvantages.

Canada

A limited partnership in Canada can bring many solutions when it comes to running a company. An attractive advantage here is the country's long history as an advanced nation and its low level of corruption.

Panama

In this Latin American nation, we find a jurisdiction that brings advanced options for the nomad capitalist. Free zones are excellent for certain business fields like export and import. On the other hand, if you want more flexibility when it comes to activities, you can go for the typical corporation. We’ve discussed accounting facts and reporting conditions in previous articles.

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Cayman Islands

Many of the corporate essentials on how to run a company are contemplated in the Cayman Islands. This small nation has had a solid history as a business and corporate hub, and its reputation is still standing as a compliant and business-friendly alternative.

Corporate 101: taxation and incentives

Understanding in advance how and where your company will tax is vital. So is to know whether you're going to be liable for individual tax in the country of incorporation, in whatever country you live in, or wherever you have legal residency. Also, if the running company enjoys financial incentives this is a plus as it will contribute to its sustainability and profitability.

Corporate 101: reporting and maintenance

Although this point is usually overlooked it's one of the key corporate essentials. Usually, we concentrate on the incentives rather than the responsibilities, and these are to be assessed at an equal level. It's necessary to comply with all reporting and auditing requirements. While it is true that a good register agent will take care of this for you, it's important to hire a good one that will cover this satisfactorily.

Corporate 101: activities of the running company

For optimal results when running a company, one should understand what activities the company is allowed to conduct. One must first establish the overall objectives. Now, financial incentives in the jurisdictions are usually linked to the allowed activities.

For example, the Panama free zones offer exemptions and special policies on export and import, transportation of goods within the zones, and similar operations. Any other activity will not be contemplated when it comes to the incentives.

In line with this, some business-friendly countries offer special conditions as long as the operations are not conducted in the territory.

All of these must be factored in and assessed in line with your ultimate goal with this running company.

Disclaimer: this article presents overall information on corporate essentials, and it's based on the editorial team’s opinion. Therefore, this article does not replace legal, corporate, or financial advice. Before establishing a company abroad or domestically, make sure to conduct the proper research and do it through a certified professional or agent.

Finding the right place and running a company with Mundo 

We hope these corporate essentials have thrown light into what can be a complex matter. Luckily, there are many solutions for those wondering how to run a successful business and some of these solutions include particular countries.

In Mundo, we have connections with all the above-mentioned jurisdictions and with others, and we can help you establish the structure that best fits your needs.

We firmly believe in achieving the right combination of tax residency, second residency/citizenship, banking, trustee services, corporate, real estate, and investment. Maybe not all of these tools are for you, but it is possible to choose the optimal one or the right blend for your own financial plan. Contact us to find out more about any of these alternatives.

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