When you startup in a new country, it is generally not advisable from an employment or tax perspective to hire “contractors” who operate as individuals and have you as their sole customer. Appointing agents can also be risky, especially in Europe. Generally, you should:

	Setup a Place of Business in the new country of one of your existing entities
	Setup a Branch in the new country of one of your existing entities
	Setup a Limited Company subsidiary

We will help you decide on the correct structure taking into account a variety of factors such as your usable NOL position, the nature of the products and services you provide, whether you are in an R&D phase, a “try it and buy it if you like it” phase or an established sales mode and the extent that you wish to protect the main head office from permanent establishment risks, trading liabilities and local employment risks. Business factors will also be considered, such as whether or not your customers are willing to accept FOB shipments and/or require a local entity to contract with.

We help to ensure that the tax structure is not over-engineered for your situation and yet does not hardwire you from making
changes later (say when your NOLs have been used up, you have moved your IP offshore or need to setup non-US profit centres).

Naturally there are always exceptions to the above (e.g. registering a non-Canadian company directly for payroll in Canada or hiring PRC personnel through an RO).

Whatever your situation, in the countries where we operate, Nair & Co has a TurnKey process for quickly and efficiently working through the best solution for your needs.