1. Corporate Registration & Entity Setup
Every country has its own process for welcoming foreign companies. You may need to:
- Establish a legal entity (such as a subsidiary, branch office, or joint venture)
- Apply for a business license and tax identification number
- Appoint a local representative or director
Tip: Global expansion partners like Deel, Atlas, or Globalization Partners simplify entity management and local employment.
2. Employment & Labor Laws
Hiring staff abroad brings a different set of obligations. Key considerations include:
- Compliant employment contracts
- Local rules for termination, notice periods, and probationary periods
- Statutory benefits (e.g., health insurance, pensions, unemployment insurance)
- Collective bargaining or union representation requirements
Failure to comply with labor laws can result in audits, back pay claims, or government sanctions.
3. Tax Compliance
Countries treat cross-border income differently. You’ll need to manage:
- Corporate income tax (rates, exemptions, and deductions)
- Value Added Tax (VAT) or Goods and Services Tax (GST) for sales
- Withholding taxes on dividends, royalties, or services paid overseas
- Transfer pricing for transactions between multinational entities
Work with specialists to navigate double taxation treaties and minimize risk.
4. Import/Export & Customs Regulations
If you’re selling goods internationally, you may face:
- Import licenses or restricted product categories
- Customs duties and tariffs
- Export controls, especially on dual-use goods or encryption technologies
- Mandatory product labeling, certificates of origin, and safety compliance
Consider working with a customs broker to avoid shipment delays or fines.
5. Data Protection & Cybersecurity Laws
With increased digital regulation, businesses must follow:
- The General Data Protection Regulation (GDPR) in the EU
- Data localization laws in countries like China, India, and Russia
- Approved cross-border data transfer mechanisms (e.g., Standard Contractual Clauses (SCCs))
- Strict data breach notification timelines
Non-compliance can lead to major fines and loss of customer trust.
6. Industry-Specific Licenses or Approvals
Sectors such as fintech, healthtech, or e-commerce often require special certifications or approvals:
| Sector | Examples of Regulations |
|---|---|
| Fintech / Payments | Central bank licensing, AML/KYC, digital wallet approval |
| MedTech / Health | Clinical trials approval, product registration, HIPAA/GDPR compliance |
| E-commerce | Tax registration, consumer rights compliance, data handling requirements |
| EdTech / Media | Censorship laws, broadcast licensing, IP registration |
7. Anti-Corruption & Ethics Compliance
Even if “informal deals” are the norm in a region, companies must comply with:
- The Foreign Corrupt Practices Act (FCPA) – U.S. law against overseas bribery
- The UK Bribery Act – broader scope, stricter liability
- Due diligence on partners, including reseller vetting and third-party audits
- Whistleblower systems and compliance training for staff
A solid compliance framework builds both legal safety and market credibility.
Pre-Entry Regulatory Checklist
| Area | Questions to Explore |
|---|---|
| Entity Setup | Do we need a subsidiary, joint venture, or EOR? |
| Employment Laws | Are our contracts, benefits, and termination terms compliant? |
| Taxation | Are we exposed to withholding taxes or transfer pricing issues? |
| Licensing | Is our product regulated? Are permits required? |
| Data Privacy | Does our app meet GDPR or local data security standards? |
| Trade Compliance | Are there duties, banned items, or export restrictions? |
| Legal Representation | Do we have local counsel or a regulatory advisor onboard? |
Pro Tips
- Begin early – Entity registration or certifications can take months.
- Engage local legal firms or global compliance partners for regional expertise.
- Keep a compliance document archive for audits or renewal.
- Use tools like Diligent, OneTrust, or Ironclad for real-time compliance tracking.
Recommended Tools
- Deel – Global hiring and payroll compliance
- Globalization Partners – Employer of Record (EOR) services
- Tetra Consultants – Legal registration and compliance management
- OneTrust – Data privacy and governance
- InCorp – Southeast Asia-focused incorporation partner
Expanding internationally can unlock new growth, but regulatory mistakes can stop progress in its tracks. With clear preparation, trusted legal advisors, and technology to streamline compliance, your business can enter new markets safely, ethically, and profitably.
