Outward investment covers investment made from inside one country to another. Outward investment is defined by the OECD as: “Direct investments made abroad”.
When any person or businesses wishes to invest in another country there are numerous issues which should be addressed:
- Is the investment abroad to be made by way of acquiring an existing local business, or via an entirely new start-up?
- Will the investor be independent, or form a joint venture or partnership with someone already in or also planning to enter the market?
- What kind of business structure is to be used locally? This might be by registering a local branch of the UK company or by incorporating a local subsidiary. One of these routes is necessary if there is to be an established place of business locally.
- Are there to be permanent staff abroad? If so, these must either be recruited locally, or brought in from the UK or elsewhere, in which case any relevant permissions to work in the UK must be obtained.
- Is the investment to be for a finite or indefinite period? This will have implications for any exit strategy.
- Will premises be required locally?
- Will there be physical movement of assets or people into the overseas country? Specialist relocation services may be required.
Every country into which investment is planned will have its own particular requirements and the use of advisors with local knowledge is essential.
Our international team is experienced in advising on the above, often in close co-operation with our local partner firms.