First of all let’s clear up what internationalization is:
It is expanding your business into new territories and new markets in foreign countries.
Why should you do that? Well some worldwide markets are bigger than the US market. I have a friend in the entertainment business, for example. Europe accounts for 70% of the sales of his rock music catalog. He was missing out on 2/3 of his income until he realized this and moved into the European market.
Even if foreign markets only accounted for a 30% or 10% increase in sales or income – it could very well be worth it. In this modern day of internet presence and telecommunications it is not as hard as you might think to have a significant presence in a foreign country. Often it is just a matter of setting up a legal presence and getting a few representatives.
The strategy includes Capital Markets as well as product markets.
In a day and age when the American economy is weaker than it has ever been in the international community, but at a time when worldwide communication is easier and cheaper than ever, companies – private or public – can expand their market by looking to the international community rather than just their home country for both capital investors and customers.
But because of the diversity of international laws and the fight against terrorism via AML (anti money laundering) and KYC (know your client) procedures it is a somewhat complex road that is best traveled with a guide.
In addition, US Citizens, living in the US are somewhat at a disadvantage internationally as AML and KYC laws that the US government has had it allies pass around the world have backfired against US citizens rights, as penalties for assisting an American with money laundering can lead to immediate extradition to the USA from many foreign jurisdictions.
Thus there are not a lot of jurisdictions that are willing to open bank or brokerage accounts for American Businessmen even when you own, for example, a UK Corporation doing business in the UK. Just try calling Lloyds and tell them the UK corporation is owned by an American and you will get a polite but firm “we can’t help you”.
So is it worth it?
Of course it is.
Sometimes you can raise money quicker and easier in a foreign jurisdiction than you can at home.
Sometimes you can launch you business and sell your product quicker an easier in a foreign jurisdiction than you can at home.
But most people don’t even look at the choice. They assume it is business as usual and you do it in your home country as usual!
Capital can be raised all around the world and there are still jurisdictions that accept Americans without penalty . There are many markets where it is quicker and easier to go public. Products can be sold all around the world – sometimes they can be launched faster and easier……If someone in the UK or Germany is using your products, might not they be interested in investing in your company? If someone in the UK or Germany has invested in your company, might not they be interested in seeing your products sold in their home market.
You bet the would!
Is it possible to be a public company listed in many countries simultaneously?
Yes it is.
Is it as simple as just getting multiple listings for the same company?
Not always. Man times their is much more advantage to using a tiered approach and getting separate listings for different tiers of your company to take maximum advantage of what each jurisdiction has to offer you.
Thus the guide….
We can guide both private and public companies through expansion of sales or into capital markets around the world.
Give us a call and we will help you navigate the world of international business.
For All of your INCORPORATING needs contact Samuel Wierdlow Inc. (www.SamuelWierdlowInc.info)
