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When opening a business in another country do you have to abide by the rules in your country as for as trading?

Don't know how trading works in other countries. #business #market-trading


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Leonardo’s Answer

Hi Devetra ! Hope you are doing fine!

Its awesome to see people with interest in expanding businesses. I work for a huge multinational that has business all around the globe. The quick and short answer is it depends but in general yes.

It will depend on several factors:


1) How much volume do you intend to negotiate in the country of question. You can do direct sales from another country, have a distributor or work with an in market operations. All will come down to how much to you forecast to have as business and that will dictate the level of complexity of the operation.


2) What is the industry you are working with. Countries tend to have specific legislation for some of the fields such as pharmaceutical, chemical, food & beverage, etc.

Leonardo recommends the following next steps:

Have a quick assessment on market projections for what you are selling. But my recommendation is start small, probably operating with a distributor that will know the local legislation and already has its own network of distribution.
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Plan you supply chain to attend the demand in a flexible and responsive way. That will guarantee no disruption on growth support and will avoid a lot of headache as the business evolve :)
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Blake’s Answer

Hey Devetra,

I believe the answer would be yes. You have to abide by the laws of both countries.

Thanks,
Blake

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Carrie’s Answer

A lot of factors can determine the answer to this question. You will get a better response if you outline the specific scenario. You never go wrong by meeting the most stringent requirements across all the countries you operate in. If the scenario involves ethics (bribes, working conditions, etc...) you should absolutely meet the higher standards.

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Devon’s Answer

Deverta,

This is a great question. The general answer is yes you do have to abide the trade rules of your country.


It is important to note that if your company is in another country (meaning incorporated in another country) but has a place of business in your country (example: an office building or a warehouse) then you will most likely have to register your company with your country and therefore abide by their rules.

Devon recommends the following next steps:

Step 1: Define what industry you are operating in.
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Step 2: Understand if your company is going to have places of business in multiple countries.
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Step 3: Research the rules in all countries that you are going to have places of business to understand the rules you have to follow.
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Phil’s Answer

Straight answer is Yes. You will need to abide by the laws in the countries you conduct business.


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Rachel’s Answer

It helps to find a business lawyer working in that country to guide you. To prevent getting cheated or breaking the law.

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Sunday Emmanuel’s Answer

No.
One has to follow the rules of the country he is starting a business in

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