To find an investor is an important step for developing and growing your business. Most business owners are looking for investors if they already have a company and gain profit, or if they have an idea and need money to develop it.
Company incorporation for your future investors is not as important as the idea itself, but in practice investors are more eager to entrust their sources to companies registered in a stable legal environment that have legally friendly laws regulating specific business activities. No matter how successful your idea is, you will not be able to implement it unless you have a legal basis to do it.
In certain cases, your choice of jurisdiction can be relied on an investment friendly environment that has business incubators. Everyone knows that the USA has the largest number of accelerators and incubators. Companies of any size can find business mentors and investors for their startups there. In the meantime, with the exceptional number of investors, it is not that easy to attract investments for your company in the US. However, there are plenty of other countries to consider for your startup or business.
When thinking about a suitable jurisdiction for your company with the aim to find investors, there are a few approaches that would help you to make a decision:
1. Consider a country with a stable legal, political and economic environment
It is highly likely that investors will not invest in countries with unstable political and economic situations. Further, they will avoid countries that are under sanction lists in the US, EU, UK and other countries. When thinking about company incorporation, it is better to choose a country with a stable position such as Europe, North America and some countries in Asia, like Singapore, Hong Kong.
2. Analyze whether the type of business you perform is allowed in a country in which you want to incorporate your company
Another vital thing to keep in mind is that you need to conduct a preliminary research on whether it is allowed to perform certain types of business. It is important to check that the country you want to operate in has a modern and suitable legislation for your type of business activities. For example, such countries as Switzerland, UK, Singapore are well-known for their progressive laws and regulations in the field of fintech. Within the recent decades we saw how quickly their laws changed in order to support fintech innovation. In Estonia businesses can easily obtain licenses for online wallet business. These are only a few examples, but they demonstrate that these particular countries understand the importance of innovation and importance of an open dialogue with new industries.
Investors always check whether a business has all necessary licenses and permits to legally operate. Thus, the analysis of an applicable legislation is very important for your company.
3. Think about your personal opportunities
The benefit of creating a company in another country and receiving an investment is that you can relocate to another country in order to develop your business and find other opportunities for you and your family. There are many countries that allow you to obtain a business or investment visa with the right to permanently live in such a country.
Usually by the time you submit a business visa application, you need to have an investor that directly agreed to invest in your fantastic idea. It means that you will need to enter into an agreement with such an investor to prove your business relationship with the investor for visa authorities.
A few countries to list as an example for such visa programs are Switzerland and the UK that provide business visas to company owners wishing to develop their projects in these countries. The visa is also granted to spouses and kids. After relocation, you can incorporate your company in Switzerland or the UK.
Please contact us if you need any assistance with company formation or have any questions.