Choosing the location for your new investment

Selecting the perfect location for a company or a manufacturing plant may be a challenging task. There are many things to consider when choosing a business destination. Different locations offer various conditions of running business and come with specific legal and entrepreneurial environment.

First and foremost: taxes. Every country, region, or even city may have their own incentives for attracting investment. The most important thing to consider is the rate of the corporation tax charged on income. Dividend tax is also present in some countries. VAT tax is neutral for business entities, but not for the regular consumers; remember that it affects the final price of your products or services. You may need to pay tax on vehicles and real estate.

Another important type of cost to consider are those connected with employing personnel. Whether you plan to work with a selected group of close co-workers or build a company with many departments and teams, you need to know on what contracts to put your staff and what labour costs that will entail. As to hiring personnel, research your location in terms of qualified workforce and ease of finding a specialist in a given field, with the right qualifications and skills.

Finally, check the overall climate for business. What do local and state authorities do to attract investors? Are there any legal changes planned that would affect your business? Are the rules and regulations related to running a company simple or rather complicated? Are there many obligations you will need to meet? If the business is unsuccessful, will it be easy to liquidate it?

Starting or moving a business to a particular location is usually a decision that will have long-term consequences. Consider all dos and don’ts before you make the final call. Do not hesitate to ask for assistance from a business or legal advisor.