Taking Your Business Global
International expansion offers tremendous growth opportunities—access to new markets, talent pools, and customers. But it also brings complexity: different legal systems, tax regimes, employment laws, and business cultures.
The challenge: Financial mistakes in international expansion can be costly and difficult to unwind. Poor structure leads to unnecessary tax, compliance failures create liability, and lack of control allows problems to grow unseen.
At Oppenheim Advisory, we’ve guided numerous UK businesses through successful international expansions. Our practical, hands-on approach ensures you capture the opportunity while managing the risks.
Our Approach to International Expansion
Phase 1: Planning & Strategy
Before committing resources, we help you think through the key decisions:
Market Selection:
- Which markets offer the best opportunity?
- What’s the competitive landscape?
- What local requirements exist?
- What’s the realistic timeline and investment?
Structure Design:
- Entity type (subsidiary, branch, partnership)
- Ownership structure and financing
- Transfer pricing framework
- Tax implications in both jurisdictions
Resource Planning:
- Finance function design (local vs centralised)
- System requirements
- Local advisor selection
- Budget and timeline
Phase 2: Entity Establishment
Setting up your international presence:
Corporate Setup:
- Entity incorporation/registration
- Constitutional documents
- Director appointments
- Share structure
Financial Infrastructure:
- Bank account opening
- Accounting system setup
- Reporting integration with group
- Chart of accounts alignment
Compliance Registration:
- Tax registration (corporate, VAT/GST, payroll)
- Employment registration
- Industry-specific licences
- Data protection registration
Phase 3: Operational Setup
Making the entity functional:
Finance Operations:
- Bookkeeping arrangements
- Month-end processes
- Intercompany procedures
- Payment and treasury
People Operations:
- Employment contracts
- Payroll setup
- Benefits arrangements
- HR compliance
Control Environment:
- Approval authorities
- Expense policies
- Reporting requirements
- Audit and review
Phase 4: Ongoing Management
Maintaining control and compliance:
Regular Oversight:
- Monthly reporting review
- Compliance calendar management
- Local advisor coordination
- Issue resolution
Annual Requirements:
- Statutory accounts preparation
- Tax return filing
- Transfer pricing documentation
- Audit management
Key Considerations by Region
United States
The US offers enormous opportunity but significant complexity:
- Entity choice: C-Corp vs LLC, state of incorporation
- State taxes: Nexus rules, apportionment, multiple filings
- Employment: At-will vs contracts, benefits expectations, state variations
- Banking: Challenging for foreign-owned entities, plan early
European Union
Post-Brexit, UK businesses face new requirements:
- Entity type: Varies by country, some require local directors
- VAT: Registration thresholds, reverse charge mechanisms
- Employment: Strong worker protections, works councils
- Data: GDPR implications for customer and employee data
Asia Pacific
Growing markets with distinct requirements:
- Singapore: Business-friendly hub, straightforward setup
- Australia: Similar legal system but distinct requirements
- China: Complex, usually requires local partner or WFOE
- India: Rapidly growing but bureaucratic, needs experienced guidance
Transfer Pricing
A critical area for international businesses:
Why It Matters
Tax authorities scrutinise transactions between related entities. They want to ensure profits are taxed where economic activity occurs, not artificially shifted to low-tax jurisdictions.
Our Approach
- Policy Development: Create defendable transfer pricing policies
- Documentation: Prepare master file and local files
- Benchmarking: Support pricing with comparable analysis
- Implementation: Ensure policies are followed in practice
- Review: Regular review and update as business evolves
Common Intercompany Transactions
- Management fees for central services
- Royalties for IP usage
- Cost-plus arrangements for services
- Resale arrangements for products
- Intercompany loans and interest
Case Study: Multi-Country Expansion
We supported a B2B marketing agency’s expansion from UK-only to operations in 4 countries:
Challenge: Rapid growth required international presence but the finance function was UK-focused with limited international experience.
Our Role:
- Designed group structure for USA, Singapore, and Germany entities
- Established each entity including banking, payroll, and compliance
- Implemented transfer pricing policy for intercompany services
- Created reporting framework integrating all entities
- Ongoing oversight and coordination of local accountants
Countries Established:
- USA (Delaware C-Corp)
- Singapore (Private Limited)
- Germany (GmbH)
Outcome: All entities operational within 6 months. Clean audit opinions in first year. No compliance issues. Finance function managing international operations from UK HQ.
The Hidden Challenges
Areas often underestimated in international expansion:
Banking: Opening accounts takes longer and is harder than expected. Start early and be prepared for extensive documentation.
Payroll: Employment law varies dramatically. What’s normal in the UK may be illegal elsewhere. Get local HR/legal advice.
Tax Timing: Different filing deadlines, fiscal years, and payment schedules. Calendar management is essential.
Currency Management: FX exposure grows quickly. Have a policy before it becomes a problem.
Control Distance: Harder to maintain oversight of distant operations. Build in regular review and clear escalation.
Getting Started
Planning international expansion? We offer:
- Initial assessment: Review your expansion plans and identify key considerations
- Structure recommendation: Propose optimal approach for your situation
- Implementation support: Guide you through setup and establishment
- Ongoing oversight: Maintain control and compliance as you grow
Ready to take your business global? Book a free consultation or call us on 07990 835891 to discuss your expansion plans.