Docstoc

International supply chains begin offshore

Document Sample
International supply chains begin offshore Powered By Docstoc
					Incorporating your company offshore is a viable solution for your supply chain needs.
An offshore company is just a company incorporated in a jurisdiction outside its place
of business.

Offshore company incorporation gives your company the freedom to:
    1. Find the best and/or least expensive supply solutions for your operations
       chain;
    2. Take advantage of the potential benefits of offshore corporate tax-savings;
    3. Get the world’s best business solutions without leaving home.

For instance, you could incorporate your company in Singapore, source materials
and skilled professional labour from South East Asia, manufacture a product in
China, and retail all over Europe and the UK – all with minimal tax burden.

1. Incorporating your company offshore is a viable solution for your supply chain
needs. Operating in multiple jurisdictions offers flexibility as it enables offshore
companies to make price comparisons across different markets, even if transacting
in different currencies. Overseas manufacturing allows companies to cut down on
costs and increase their savings, and offshoring skilled services can also cut costs
allowing the business to grow.

2. Select the best service providers within your quality and budget range. Going
offshore to find suppliers opens up a greater range of solutions supply. Many
companies choose the comparative advantage offshore company formation provides
for everything from expertise in production to sourcing jurisdictions with better
infrastructure. Conversely, setting up a company offshore opens it up to global clients
and creates more revenue streams than can be found onshore alone.

Many companies already employ this type of outsourcing. It can be highly cost-
effective to subcontract out parts of your business to service providers in other
nations, although you should take into account the type of business your company
intends to pursue. For fields like IT, it has become increasingly common to outsource
IT needs or aspects of businesses as they relate to technical requirements to a
variety of Asian nations. By taking advantage of the skill-sets of companies in other
countries, you can expand your business to provide services that your staff may not
be able to complete for the price you need.

3. Location – a non-obstacle. In many cases, it is standard for a company to liaise
with several sites that make up its total operation. Globalization means physical
distance is no longer a great deterrent to managing most businesses. Virtual office
services for offshore companies can provide a business address and secretarial
services, which help consolidate operation and dramatically eliminate overheads.

To facilitate a successful business, corporate leaders have increasingly reached
beyond their home country to take advantage of global opportunities. Incorporating
offshore is an effective vehicle to take advantage of these opportunities.

While the idea of offshore company formation may seem challenging, and even
unorthodox, electing to incorporate in countries such as Singapore or Hong Kong,
with their prime business reputations, can both alleviate the connotations of risk while
gaining from the efficient infrastructure and economic incentives offered by these
jurisdictions.

				
DOCUMENT INFO
Description: The article takes a look at using an offshore company to enhance supply chain operations. Offshore company formation can be an efficient strategy for expanding a business to take advantage of international opportunities.