Is your company considering a move, all or in part? If so, are you aware of the costs and potential consequences? To get the answers to these and a host of other relocation-related questions, MSI strategic partner Grant Thornton’s 138-page guide to global mobility — A Global Guide to Business Relocation 2015 — is a good place to start.
Grant Thornton, a leading global audit, tax and advisory firm, has considerable experience in advising clients on business relocation. Its report notes that successful relocation requires early planning, clear commercial objectives, and careful execution. It also states: “What you can’t afford to do is simply consign relocation to the ‘too difficult pile’ as you could lose out to competitors as a result.”
The report addresses the following in a Q&A format:
What are some different types of business relocations? Examples include full corporate migration, use of intellectual property, holding companies and regional hubs, and offshoring.
What drives business relocation? This section highlights the benefits of relocating abroad, including globalization, slow economic recovery, increased compliance burdens, competitive advantage, and tax incentives.
What activities can be relocated, and how? Includes support functions (e.g., customer support), business functions (e.g., R&D), and value-add functions (e.g., IP management).
Where is the best place to relocate? There’s no right answer to this, as each organization is unique. However, the paper offers a classic supply chain model and graphic that highlights available options and gives a good overview of the central entrepreneur, the holding company location, the technology center, and more.
What is the potential impact of relocation on the business? An explanation of the most critical operational, legal, and tax issues – what companies need to know when determining costs.
In addition to the above, a Key Country Summary displays a map of the world that clearly indicates prominent/relevant countries; it’s accompanied by a handy key that provides concise pros and cons of major players in the Americas, Asia Pacific, and EMEA. Also included are 26 Key Country Profiles — detailed descriptions of individual countries with information on the investment climate and quality of living as well as a comprehensive tax profile.
You can view the entire report at http://www.grantthornton.ie/db/Attachments/Grant-Thornton-a-global-guide-to-business-relocation.pdf