Are you considering expanding into new jurisdictions? Are you aware which foreign laws and legal issues matter most? Have you prepared a detailed statement of facts, plans and questions for counsel?
The latest edition of our Field Guide to Going Global helps you examine foreign law issues for taking business models, products and technology international. Our guidance should be helpful whether you are working for a start-up company or a large multinational enterprise that is broaching new frontiers.
Which foreign laws and legal issues matter most to a company expanding into new jurisdictions depends on the degree of nexus it has or will establish abroad. Companies should prioritize their consideration of particular areas of law based on their phase of global expansion:
Passive Phase |
Companies are passively accepting orders from abroad. Particularly relevant areas of law are intellectual property, export controls and sanctions, and choice of law and dispute resolution. |
Active Online Phase |
Companies are actively selling online to customers abroad. Companies sometimes refer to virtual global expansion as soft launches when they intentionally start targeting particular markets in other countries. Rules for e-commerce, data privacy and cybersecurity, and product and regulatory compliance are becoming more important. |
Intermediary phase |
Companies are appointing distributors, resellers, sales representatives, or other intermediaries abroad. Companies now need to focus on distribution law, franchise law and competition law. |
Boots-on-the-ground Phase |
Companies incorporate subsidiaries and hire employees. Now they have to fully comply with all foreign laws applicable to their new presences and consider rules for foreign incorporations, employment and global equity. |
All Phase |
Companies have to consider tax compliance and planning and corporate development. |
