The Financial Logistics of Moving a Business to Another Country

Moving a business to another country or expanding into the global market may make sense for a company’s setup. If a company has decided to make this big move, they’ll need to understand the financial consequences of moving a business internationally. It’s best to work with a professional who has experience in international business finance to make the most of their new opportunities. Here are details about the financial logistics of moving a business to another country.

Exchange Rates

The first thing to consider before moving the business to an international location is the local exchange rate. Generally, when a business goes from one country to another, they’ll end up having to deal with a new type of currency. Choosing a country where the dollar is worth more than the local currency can help them manage some of the startup costs if they’re bringing capital into the new location. Then, see how to make their investment money go far by doing some research on trends in the local currency’s value.

Money Transfers

Dealing with an international business also means a business needs to make some transfers of capital from their home country to the new location. If a person want to send money to Mexico, they have to follow the right procedure to help make their transfer go smoother. Services like help handle the logistics of repeat international money transfers to keep an individual focused on all of the other important tasks on their plate.

Getting a Loan

If an individual arrive at the new location and need some help with the transition, it’s sometimes possible to get a loan. Many countries have loan programs for small business owners, and if they’re not a citizen, there may be a way they can qualify. In some cases, they’ll need to demonstrate how their business will provide value and resources to the local community. They may also need to show a history of success in operating their company in their home country.

Paying Local Employees

Having and paying employees in the new location is also something to understand before making an international move. The labor laws in the U.S. are very different from other places around the world. The company will need to determine the local labor laws about minimum wage, working conditions, overtime hours, and workplace safety before bringing on staff for their new international venture.


Taxes can also be tricky when dealing with a business that starts in one country and moves to a different place. In some cases, a company will still need to pay corporate taxes to the IRS in the United States. They may be surprised to find out that their new location may require tax payments as well. Some international spots allow companies to avoid being double taxed on their earnings or help companies save money on their yearly tax bill with attractive incentives.


Importing and exporting goods through different countries may also require a business to pay tariffs. Tariffs are put onto products either being exported or imported into other countries. They may be required to pay an exit duty and an entrance duty on the same product, so have a good understanding of the costs of these duties before committing to a specific country for their new location.

Local Culture

The final financial consideration for someone moving their business to another country concerns the local culture. The cost of doing business in a less developed country may look attractive at first, with low taxes, a great exchange rate, and a low cost of living, but if the political situation is unstable and a major crisis happens, the investment could end up being a loss.

Taking a business across borders gives the company access to new ways to build profits and make connections. Be sure to know what will be necessary to do with finances before making the big commitment to move to another country.

Melissa Thompson writes about a wide range of topics, revealing interesting things we didn’t know before. She is a freelance USA Today producer, and a Technorati contributor.