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International entity, tax optimization

Does anyone highly recommend a service firm that specializes in advising on evaluating and further establishing a global structure, considering tax, legal/regulatory, HR elements?  A couple of the companies we're looking at include Nair, as well as, High Street Partners and wondering if folks have specific feedback on either of them, or others.  Thanks.

Answers

Topic Expert
Jake Feldman
Title: Managing Director
Company: Global TaxFin Advisory Group LLC
(Managing Director, Global TaxFin Advisory Group LLC) |

Hi Ed,

This is just one opinion based on having worked with over 50 countries related to both establishing new operations and dealing with existing operations abroad. It may be a little too ambitious to find one service provider that can "do it all" for you. You will more likely need an operational coordinator who would assist with implementing local operations, legal advisors (who can also handle legal HR matters) and last but not least tax advisors. For the legal advisor, the local advisor is more critical but you will naturally also need a US advisor. For tax, it's probably the opposite -- the US advisor is likely more critical for a US parent company, as in your case, but, of course, you must also have a local tax advisor.

It's not likely that you will find one service firm, even with many different specialties, that is best for all these needs. Just ask any multinational company whether they have a single service provider taking care of all their needs in even a single country, let alone many countries.

Typically, tax tends to be the initial driver in how to structure a foreign entity, ownership of the entity, its functional characteristics (e.g., IP ownership, limited risk) and intercompany arrangements (transfer pricing and agreements).

I will modestly claim that I can assist with some of the above. Someone who tells you they can do it all should be challenged with some healthy skepticism.

Jake

Topic Expert
Joan Varrone
Title: CFO
Company: Cloud Cruiser
LinkedIn Profile
(CFO, Cloud Cruiser) |

Hi Ed

I am familiar with both High Street and Nair and view them as tactical resources to help you manage the administrative issues of setting up and running a foreign operation rather than strategic decisions regarding how you set yourself up. They are very costly to utilize and at some point it makes sense to hire your own local advisors.

Your chosen structure will take into account tax, go to market plans as well as local considerations (for example, in some countries customers want to buy from an in country provider). I know a fantastic non Big 4 accounting firm with a very practical and straightforward advisor. I have found that some of the larger accounting firms may suggest complicated structures which are not appropriate for initial set up. If you would like the referral let me know.

(Agent, JKS Solutions, Inc.) |

Hi Ed,

I know of both HSP and Nair quite well - I have worked with a number of organizations that supposedly specialize in being able to do this work well - in the past 18 months I have referred the same company into every one of my clients that have expanded overseas. The Company I have referred in is Crowe Clark Whitehill (CCW) - they are based in the UK (but have US based employees who are doing only this task) but have helped me with companies expanding into other regions of the world other than Europe.

My contact is Stephen Wares - a link to his Linked in profile is below - I have had nothing but positive responses from every client so far (over 10 clients in 18 months) - I dont make recommendations to my clients unless I am confident of the quality. Their fees seem more than reasonable for what they are undertaking.

Hope this helps.

Michael

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