Is your business global? International Law and other Legal Aspects for Global Businesses

Global Businesses

Today multiple nations are engaged with the preparing of one single product. Bristol-Myers Squibb, a New York-headquartered American pharmaceutical company has manufacturing plants – Ireland, China, Japan, etc. – all around the globe.

Organizations that were once limited to work in explicit regions have now extended across borders. While working universally is significant for boundary-less succession, there are certainly some elements that should be keenly researched and obeyed before doing anything practical.

Global E-Commerce

China keeps on driving the worldwide electronic commerce market, with $2.8 trillion valued completed digital business sales. Furthermore, China has 33% of online buyers of the world, totaling $792.5 million and still mushrooming.In 2021, the United States online business market is gauge to reach more than $843 billion.

In global ecommerce, services and physical products are sold into non-local business sectors by means of online deals and advertising. Organizations are founded and incorporated in one country, while offering their products/ services in the other country.

Amazon, a global ecommerce giant, serves more than 100 countries in addition to United States. 12 million products are sold by Amazon per year – and for every sale it earns about 50 cents.

There are indeed some legal/ non-legal worth-attention aspects of stepping into the global market. Before jumping to them, let’s go through some of the many benefits of entering a foreign market:

Tax relaxations For boosting international investments in the country, nations make policies to offer incentives and tax relaxations to international business investors.
Comparative advantage One country is a master of producing one product better and low-cost than the other country. This other country can import this product instead of producing it less-better and expensive!
High Sales, More Profits Market size increases and so do the sales and profits.

E.g. Gucci, a French luxury brand, racked up 7.44 billion euros in global revenue in 2020.


International Law and other Legal Aspects for Global Businesses

Working in nations where cost of labor and material is fundamentally lower can be rewarding,

Yet it’s significant that you are completely mindful of the complexities of work laws or your business could confront the outcomes; unfavorable and disbenefiting for:

  • Sales and profits short-term
  • Company name and brand image long term

Several kinds – business lawyers, court martial lawyers, tax lawyers – of lawyers are available; instead of mastering the international law aspects on your own, you may hire an international lawyer or team to take care of these factors.

But that doesn’t mean you can afford to be completely ignorant!

Getting to know the overall set of legislations of the nation is maybe the most fundamental.

Every nation has its own arrangement of by-law rules and regulations, in light of their financial circumstance that can directly affect your global business activities and therefore your business.

  1. Foreign Currency Exchange/ Payment

Payment control and financial transactions are not much of a headache in the domestic business setup. Owners are familiar with the banks and choose the convenient, safer option for themselves.In another country; however, things get a little different. Safer foreign currency exchange is prudent to zero in on getting the subtleties right.


Before stepping into the global expansion, thoroughly research the legislations, current, and past economic situation – to decode any trends benefiting your business, culture, and traditions, and political circumstances.

Anything allowed in one country may not be permitted in the other. This point is a hit or miss for any organization.

If your product/ service is incoherent with other country’s tastes, traditions, religious values, country laws – your business is at a big risk of failure.

Though sometimes, countries make some weirdo laws:

  • Chewing gum is prohibited in Singapore.
  • Flying kites is illegal in Victoria, Australia.
  • Dog parent in Rome? You are bound to take him on a walk every day.
  • You will be fined to be overweight in Japan.
  1. Employment and Labor Laws

In case you are recruiting/subcontracting in an outside country, you will have to seriously follow/ obey that foreign country’s laws regarding employment and labor.There may be rules regarding working hours, off-days, over-time, child labor, working-women laws you would have to research and respect.

  • In France, there is a 35 hrs. Workweek as compared to 40 hrs. The workweek in the United States of America.
  • Travel is a right for employees in Belgium. The worker can petition for a ‘vocation break’ of as long as one year. These leaves permit them to seek after their passion.
  • This is their time to relax from the lowly of work. Less would know, vocation breaks are paid and employees can get their position in the organization upon their return.

Regardless of what is the nature of your business, keeping these factors in consideration is substantial. Things can get smooth if you have a genuine and good team. So make your team wisely in the outside country!

  1. Suitable-most Corporate Structure

Presumably, you would have to consider the best in-country corporate structure – if you’ve decided to introduce your product or service for foreign shoppers.

Representative office, branch ownership, and subsidiaries are examples of different corporate structures. Every choice conveys its own one-of-a-kind expenses, tax policies, timetables, and capital necessities; contingent upon the country you plan to operate in.

Moreover, the governance rules too are contrasting all around the world.

Indeed, their ultimate goal is to secure investors and partners while guaranteeing the flourishing of the business, however not all follow a similar model and can prompt discrete

  • Structures
  • Succession plans
  • Authority/ spheres of control
  1. Taxes

Tax-paying procedures, tax rates, generally accepted accounting principles (GAAP) vary significantly in different countries.


Now and again, your approach to tax policies in a foreign country can be the distinction between the achievement and disappointment of your business endeavor.

  1. International Trade Compliance Regulations

Contingent upon business’s nature, you will most likely need to explore guidelines on exporting items out of one country and importing them into another.


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