Starting a business abroad: How to choose the right visa?

Starting a business abroad: What legal structures are available?

First, determine your business's legal structure. It forms the backbone of your entire operation: tax status, whether you can take on partners, whether you need an accountant, and so on. If you're moving abroad, you'll need to check whether your legal structure can actually travel with you. And if it can, does it have the same definition in your destination country as it does at home?

Fortunately, the main business categories are generally available worldwide. It comes down to two scenarios: going it alone, or bringing partners on board.

Case 1: going into business on your own

You can choose a sole trader structure (sole trader in the UK, New Zealand, and Australia; sole proprietorship in the US), with a possible simplified tax regime if local law allows it. France (micro-entreprise) and Germany (Kleinunternehmer) are among the few countries that offer a simplified tax regime for small business owners.

You can also opt for a single-member limited liability company. The names vary by country, but the concept is widely available.

What about freelancing?

Worth clarifying: "freelance" is not a legal structure. It simply describes someone who works for themselves, usually as a sole trader.

What about digital nomads?

"Digital nomad" is not a legal structure either. It describes a way of living and working abroad: people in digital fields who spend shorter periods in a foreign country on a specific digital nomad visa. Many of them are sole traders.

Case 2: going into business with partners

This raises several questions:

• Does your destination country allow you to be the visa holder for the business?
• Are your partners citizens of that country, or foreign nationals like you?
• What legal business structures are available to you?

Three main structures exist for multi-partner businesses and are recognized in most countries: the limited liability company (LLC), the simplified joint-stock company (SAS), and the public limited company (SA). In Japan, for example, the kabushiki kaisha (or gaisha) is broadly equivalent to an SA, while the godo kaisha is closer to an LLC.

However, your visa won't always entitle you to full ownership of a business abroad. In Kuwait, for instance, you must have a local partner who holds at least 51% of the company's capital when setting up an LLC. Separate rules apply to branches and subsidiaries. Previously, a Kuwaiti professional had to sponsor the entity. A 2024 reform removed that requirement for foreigners whose branch is registered under the country's legislative codes, but the reform does not apply to subsidiaries.

Starting a business abroad: Which visa should you choose?

Your visa choice depends on both your business's legal structure and the type of venture you want to build. The Kuwait example illustrates how many options and restrictions can come into play depending on your project:

• You want to start a new business abroad.
• You've already set up a business and want to relocate it abroad.
• You're keeping your business in its home country and working remotely.
• You're expanding your existing business by opening a branch or subsidiary abroad.
• You're moving abroad to acquire an existing business in your destination country.
• You're investing in a business in your destination country.

Starting a new business abroad from scratch

This is the most straightforward scenario, since you're starting from scratch. You can go straight to researching the legal structures available in your destination country and choose the one that best fits your activity. Before you do, make sure you're allowed to operate in that field as a foreign entrepreneur: governments can restrict certain activities to foreign nationals or impose conditions, such as requiring a license to prove your qualifications.

To attract foreign entrepreneurs, several destinations offer dedicated support programs. Estonia is often cited as a leading example, having invested heavily in attracting foreign investors and entrepreneurs through initiatives like e-residency and a startup visa. Other countries provide similar guidance, including Australia, Iceland, Taiwan and Singapore.

Which visa should you apply for?

There are four main visa options for entrepreneurs moving abroad:

• The digital nomad visa: suited to sole traders whose work is entirely digital. It's designed for shorter stays abroad, though some countries use it as a pathway to long-term residency or permanent residence. It's relatively easy to obtain, as it doesn't require significant start-up capital. However, you'll need to prove sufficient monthly income to support yourself in your destination country, typically ranging from a few hundred to a few thousand euros per month, depending on local requirements.
• The startup visa: the go-to option if your business is innovative and has strong growth potential. Unlike the digital nomad visa, it requires start-up capital and your project must be validated by an official body in the destination country.
• The investor visa: aimed at those with significant capital to invest in their own business or a local company. This visa is often part of Golden Visa programs.

Can you switch visas once you've arrived?

Changing visa status is possible, provided you follow the pathway approved by the destination country's immigration authorities. Just as international students are expected to choose the right visa from the outset, entrepreneurs are also expected to choose the right one for their situation. This issue comes up most often for digital nomads. If you want to stay longer but your visa doesn't allow it (it's not renewable, you've used up all possible renewals, or there's no route to permanent residency), you'll need to return home and apply for a visa that matches your business plans.

Take Mauritius as an example. Several expat entrepreneurs stay on the island on the Premium visa, which allows a one-year stay provided your income comes from activity outside Mauritius. To extend their stay, some expats consider switching from the Premium visa to an Occupation Permit as an investor or self-employed professional. The catch: each Occupation Permit category comes with strict requirements, particularly around investment amounts and minimum income. It's not a simple visa transfer; it means building an entirely new application that meets a different set of criteria.

Relocating your existing business abroad

Thinking of taking your business with you when you move? The first question isn't which visa to get; it's whether the move is actually feasible. Some businesses are easy to relocate, particularly sole trader operations that are entirely digital. No premises to find, no local staff to hire. All you need is a laptop and perhaps some lightweight equipment. Your main challenge will be managing clients remotely across different time zones.

Things get more complicated if, for example, you want to move your shop abroad. This means transferring your company's registered office to another country and leaving nothing behind in your home country. Before you commit, ask yourself whether you'll find customers in your new city. Is what you offer something new there? Who are your competitors, and where are they based? Are your prices in line with the local market? Can you set up freely, or will you need a recognized qualification or a local sponsor?

Visa considerations and practical steps

In practice, depending on your business structure, you may need your partners' approval before starting the process. The steps involved are complex and time-consuming, since you're essentially transplanting an existing business into a new legal and administrative environment. Consulting experts in expatriation or business relocation is strongly recommended.

Keep in mind that if your business continues to generate income in the country you've left, you may still owe taxes there.

Keeping your business at home and working remotely

If your work allows it, you can absolutely run your business from abroad while keeping it registered in its home country. This is exactly what many digital nomads do: their company remains based in one country, but they work from wherever they happen to be. The digital nomad visa was created precisely for this situation.

You can also manage a business with physical premises and staff from abroad. In that case, a digital nomad visa could work for you, since you're the only one leaving: you continue drawing income from outside the country. That said, everything depends on the nature of your business and your long-term plans. As with a full business relocation, it's smart to get expert advice. Management, tax and administrative questions all need to be addressed to keep the business on solid footing. For instance, will moving abroad mean spending less time on the business? If so, will you adjust your salary accordingly?

Opening a branch or subsidiary abroad

Both branches and subsidiaries stem from the same parent company, but they differ in one key way: a branch has no separate legal identity and remains directly tied to the parent company, while a subsidiary is an independent legal entity whose capital is at least 50% owned by the parent.

These differences mean the process varies significantly depending on which route you choose. Pay close attention to the rules in your destination country. The Kuwait example shows how much host countries can restrict what foreign entrepreneurs can do. Working with professionals is advisable, especially when determining the right visa.

Buying or investing in a business in your destination country

Investor visas are increasingly popular, and governments have taken note. These visas attract wealthy foreign nationals while injecting capital into local economies. They often fall under the Golden Visa umbrella, as in Greece, the United Arab Emirates (UAE), and Hungary (Guest Investor permit). Countries also offer other options for investors: the UAE, for example, has launched visitor visas specifically for exploring investment opportunities. Unlike other visa types, the investor visa requires you to commit a substantial sum of money. Here too, advice from experts in expatriation, taxation and the target country's economy will help you make the right call.