Call it entropy, but international business feels more uncertain, more random, year on year – yet, at the same time, global trade has bounced back from major hurdles stronger than ever.
2026 might prove the best time to turn the seed of the idea you’ve been quietly nurturing into a fully-formed business, opening the doors to boundless opportunity. But, as with any big milestone, starting a business abroad brings its fair share of considerations, and challenges.
With 40+ years of expertise at UWM Accountants, supporting business development here in the UK, EU, and beyond, I’m here to help you navigate the most common ones, so you don’t fall into any of the pitfalls I’ve seen clients do.
First, though, let’s explore why doing business abroad can expand your horizons and set you up for success.
Contents
Key Takeaways
- To start a business abroad requires a robust understanding of your target market, your chosen country’s cultural and legal differences, and the financing options available at home and overseas.
- Preparation must involve insulating your organisation from geopolitical, financial and regulatory risks/challenges you may face along the way.
- Following established best practices and soliciting the advice of partners and business development professionals helps start-ups avoid costly mistakes, allowing them to grow with confidence.
Why More UK Founders are Looking Overseas
The reason behind Britain’s growing appetite for trading abroad is multifaceted, but one thing’s for certain: concerns of stagnant growth and tax hikes on the horizon are prompting plenty of UK entrepreneurs to look to pastures new.
Just last year, Santander’s latest trade barometer found that almost half (47%) of UK businesses were considering international expansion. But these troubling economic conditions aren’t the only motivations for starting a business abroad.
Entrepreneurs are eyeing up international markets for:
- Stronger governmental incentives, business services and start-up support
- Higher profit margins and cheaper labour costs
- Ready access to broader talent pools
- Opportunities to diversify teams and drive innovation
- Lower taxation and manufacturing costs
- ‘First-mover’ access to emerging or low-competition markets
- Closer audience alignment to product/service offering
- Strengthening brand awareness and trust on the global stage
- Improving customer support for the given target market
What ‘Doing Business Abroad’ Looks Like in Practice
Setting up a business is not for the faint of heart, in the UK, let alone abroad. International ventures can be risky, particularly if you’re less familiar with the customs, language, legal conventions and business landscape of your host country.
As such, it’s only a good idea to take the plunge if you:
- Need a local presence to bid for government contracts
- Are already successful in selling your product/service
- Have a network or support system in the host country
- Can speak the language and understand the fundamental cultural differences
- Have established market demand and completed a competitive analysis
- Are able to finance your venture
- Have alternatives or back-up plans in your back pocket (think: starting the business in a domestic market and then expanding overseas)
How to Start a Business Abroad: First Steps & Early Considerations
With those crucial preliminaries out of the way, I can finally dive into what budding British entrepreneurs need to do to start a business abroad, whether that’s just a hop, skip and a jump away from the English Channel or further afield. Whichever the case, it’s all in the research.
Evaluating & Choosing Your Target Market
Destination is key, and by that, I mean starting a business abroad demands extensive market research to determine the best location to set up shop, from country right down to the region.
This requires a microscopic level of detail understanding a territory’s culture, demographics and where valuable regional hubs or infrastructure could be key to your supply chain. It’s also important to mull over plans for future growth – what’s your mid- to long-term plan? Will expansion into further countries be on the cards for you in 10 years time?
Why EU Markets are Attractive
For many British entrepreneurs, the EU is the obvious first choice. Right on our doorstep, its proximity, abundance of trade opportunities, and shared cultural elements make it a smoother transition compared to nations further around the globe.
Ireland is particularly sought after for English language founders willing to relocate, given its thriving tech and pharmaceutical sectors and historically low 12.5% corporate tax rate (still applicable to many SMEs). That said, each EU member has its unique set of push and pull factors to go through with a fine-tooth comb.
Opportunities Beyond Europe
In 2026, the world certainly is your oyster, so why not make the most of the opportunities available? Reliable metrics to scout out include GDP, the number of startups, regulatory requirements for setting up a business, corporate tax rates, inflation, cost of living, quality of life and many, many more.
Outside of Europe, Singapore and New Zealand are favoured for the ease and speed at which you can establish a new business entity, and their stable growth. Other popular destinations among entrepreneurs and, indeed, The World Bank are South Korea, Malaysia and Australia, thanks to their healthy GDP and high labour productivity rates.
Settling on a Business Model & Structure
Business models tend to vary along with your target market, given that each country’s jurisdiction will have its own set of regulations and processes.
For some, a greenfield investment makes most sense as it retains full control over the brand; however, it comes at the greatest cost, resources, planning and risk. You may find that incorporation overseas also takes longer and is more expensive. Exporting, licensing and franchising are popular alternatives that tend to be faster to implement.
Similarly, the best structure entirely depends on the country, your organisational objectives, your starting point, and the degree of flexibility you wish to bake into your plans. Limited liability companies, public limited companies, joint ventures with local partners, subsidiaries, and branch offices are popular options worth your consideration.
Nonetheless, they each have their own set of pros and cons, so I recommend thorough investigation and seeking expert advice to stay legally and tax-compliant at all stages.
Financing Your Start-Up
If your research thus far has shown your start-up plans to be potentially lucrative, it can be tempting to skip over the fine details. But, without a thorough cost analysis, it will be incredibly difficult to secure useful investments or the documentation required to establish your business entity.
With a proper understanding of your cash flow, target market’s tax system, currency exchange, and risk management, you may clinch:
- Local or international bank loans
- Peer-to-peer finance
- Equity-based crowdfunding
- Venture capital investment
- Grants or governmental schemes, like the UK Export Finance or EU subsidies
Building the Infrastructure for the Move
Whether you intend to operate on the ground or solely digitally, you must equip yourself with the right tools and infrastructure to operate efficiently and cost-effectively.
This includes sourcing the appropriate documentation within your established timeframe, setting up your business as a legal entity, registering for tax purposes, and navigating the complexities of employment law as you seek out the best talent for your workforce.
For entrepreneurs selling a physical product, supply chains are a fundamental challenge; here, you will need to procure materials from trusted suppliers, establish a transport network and perhaps set up a physical workplace for your company.
Top tip: You will almost certainly require a specific business or work visa to run a company or work for yourself outside of the UK, especially post-Brexit. However, some countries – like New Zealand, Singapore, and Ireland – present more accessible and streamlined processes to do so.
Reviewing comparative regulatory and business environment indicators published by governments, international bodies, and professional advisers is massively helpful but always cross-reference with official governmental sources or consult a specialist.
Know the Risks of Setting Up a Business Abroad (In Order to Avoid Them)
Businesses, like any other investment, involve a certain level of risk. By identifying them early on, you can ensure that you make the best decisions as you proceed. Noteworthy obstacles include:
- Economic and geopolitical volatility, including fluctuating exchange rates, tariffs, inflation and natural disasters
- Market oversaturation, disruption, or customer base misalignment
- Maintaining compliance with local tax and business regulations
- Protecting your intellectual property abroad
- Recruiting, classifying and retaining local staff
- Navigating immigration laws, if relocating employees
- Ensuring social security and insurance
- Supply chain resilience and infrastructure differences
- Running out of budget or resources to build a meaningful international presence
Get Your Hands on as Many Resources as Possible
If you’re still reading, you’ll do marvellously with this final tip: Seek as much advice as you can from reputable sources. Here, you can get a good feel for a particular territory by reaching out to local ‘insiders’, other UK-owned businesses, and listening to their experiences – bonus points if you have a few elements in common.
Similarly, local government inward-investment agencies are a great shout as they might be able to offer you incentives and support. And lastly, I urge you to consider speaking with an established financial advisor, legal specialist, or accountant who can give you personalised advice to manage your tax and business affairs, whilst mitigating the risk.
