What does cross-border business mean? Why not just stay domestic?
Doing business across the border means, simply put, going international. It could be just one other country than the country of incorporation, or more.
Going international not only increases the probability of higher earnings, it also brings in business growth via collaboration, ability to leverage local talents and deploy them across countries, focus on strategic operation instead of the vanilla operations management, share and gain knowledge, grow not in one country but in many, and yes, gain recognition as a global brand instead of being a purely domestic player.
However, it’s crucial to acknowledge the diverse legal landscapes of each country. While navigating these differences poses significant challenges, it also presents invaluable opportunities for companies aspiring to establish a truly global presence.
What is compliance? Why is it important?
Literally, to be compliant is to meet or be in accordance with rules or standards.
In cross-border business, being compliant is not merely important, it is indispensable and paramount. Without compliancy, all the good work done could be laid waste in a blink, legally.
Every country has its own set of employment/labor laws and legislations, trading regulations, regulatory adherences, taxation rules, financial regulations, legal limitations, policies to be adhered to and much more.
On one hand, compliancy is a basic requirement, while non-compliance could lead to penalties that could do irreparable damages to both the financial and the legacy well-being of a company. Non-compliance leading to penalties is par for the course for even MNC giants.
With this as the basis, welcome to the world of Cross-Border Businesses!