It is no longer news that business investors from around the world seek to enter foreign markets to expand their local business operations or diversify their investments and establish new operations in the international market.

Every year, hundreds of start-up and growing companies consider international expansion as a marketing and growth strategy.

If you’ve been successful in your business for some time and have already mastered everything related to running a business, expanding abroad may be the next logical step for you to take.

On the other hand, for most others, having a foreign registered company and business address makes more sense to them than moving to these foreign countries to set up a physical office.

Whatever the case, there are at least 7 reasons why entrepreneurs set up a company, subsidiary or representative office abroad.

1. EXPANSION. About 95% of the world’s consumers reside outside of Nigeria. Entrepreneurs whose vision and target market is global would consider entering new markets abroad, thereby increasing their company’s overall market share and growth potential.

2. POSSIBLE UNTAPPED MARKET. The possibility of an untapped market in foreign jurisdictions may motivate a Nigerian entrepreneur to establish an overseas company, subsidiary or representative office of his local company. Nigerian entrepreneurs who produce and package local food products for sale abroad fall into this category.

3. PROXIMITY TO INTERNATIONAL CUSTOMERS/CUSTOMERS. In truth, the Internet has done enough to bring businesses closer to buyers. However, for some reasons, various business transactions may still justify a traditional business presence in the city or country of operation. An overseas office of a local company need not be that big, and can be a home business address, a paid virtual office, or a small/liaison office just for the sake of getting customer feedback and liaising with the office from Nigeria.

4. CORPORATE IMAGE. In order to enhance their corporate image in the eyes of customers, suppliers, investors and businesses, some businessmen simply register an offshore subsidiary of their Nigerian company. This gives your target audience the impression that you are a company with international networks. In situations like this, the “international entrepreneur” does not need to establish a physical office abroad, he only pays for a virtual registered office in said country plus a mail and telephone delivery service.

5. COMPETITION. The fact that competing companies or brands enter the foreign market and do well motivates the entrepreneurs of similar companies to follow suit.

6. INTERNATIONAL PAYMENT. There are a host of international banking options available to companies registered in foreign jurisdictions, whether you are currently established in the foreign country or operate the foreign company from Nigeria. Having an offshore corporate checking account makes international payment much easier through direct deposit, check, or international bank transfer.

7. MIGRATION. Entrepreneurs considering migrating or moving to a foreign country can incorporate a company in the destination country depending on the timing of their trip.

The UK, for example, grants an Entrepreneur Visa to people outside the European Union to enter the UK for business purposes.

The initial visa will give you 3 years in the UK; and if during those 3 years you can show that you met certain criteria, you can apply for an additional 2-year visa extension. After the age of 5, you will have the option to apply for permanent residence in the UK.