For anyone thinking about setting up a business in a high-risk location, there are many things to consider. Is the country you are considering is at a higher risk of political violence or is about to submerge into conflict? Is it a place where conflict is already a part of daily-life or is the country considered to be a ‘post-conflict’ environment?
Whilst the financial gains of setting up an operation in a high-risk location may well be attractive, it is vital you are adequately prepared to run your business safely and legally abroad. The considerations in this list are by no means exhaustive however they are a good starting point of what to consider when planning such a move.
- What sort of control do you want over the company? Decide if being a branch-office or stand-alone head office is important; depending on which country you operate in, will depend on what requirements each type of set-up imposes
- Be aware that some countries require part ownership by a local national
- What local regulatory (voluntary or mandatory) requirements will be required to be in operation?
- Are there any tax (Income or Corporation) implications in setting up abroad?
- Will your international staff require visas and are there any additional requirements for leaving and remaining beyond a time period, such as reporting to a local police station?
- Know the difference between contracts issued for consultants and employees – there is a difference.
- What are the local employment laws and how will they affect your business?
- Duty of care – when is enough, enough? Duty of Care is nothing new and the law is well developed. However if you are sending international experts into high risk jurisdictions then you need to ensure you understand who owns the ‘risk’ when it comes to duty of care.
- What international (UK, US & EU) sanctions/embargo’s are in place in the country? Are they government / country wide or simply individual/financial ? Read More: Consolidated List of Targets
- How will you send/transfer money to your new office/staff? What sort of relationship do you have with your bank? Now more than ever explaining to your bank and your company activities is even more important.
- What local equipment licenses are required? For instance do your staff require driving national driving licences? Are you using radio communications and therefore require a licence to use a specific frequency?
- What would you do if one of your locally employed staff or international consultants was arrested for a criminal offence? What are your standard procedures for this situation and would these still be effective/appropriate in the new country?
- Do you have the correct insurance to operate overseas? Ensure your policy accurately reflects the risk in the country and make sure you are fulfilling all the requirements of the policy
- Are your Anti Money Laundering and Counter Terrorist Financing Process adequate enough to ensure you don’t fall foul of extra territorial law covering these subjects?
- How will you transfer money overseas? Do you understand the increased monitoring of US Dollar transactions as a result of OFAC activity? Read More: OFAC FAQ’s
- Should you decide to cease trading, how would you close your business down? Would you be left with legacy liabilities?
If you are thinking of setting up an office in a ‘high risk’ environment and would like help with any of the above, please contact us.
If you’d like further information, or to discuss working with us, you can get in touch via our Contact Us page
