Many jurisdictions, e.g. B. Singapore, particularly those that offer special tax planning benefits, require foreign companies to hire local staff to receive the above benefits. Additionally, jurisdictions such as Latvia list the inexpensive skilled labor force as one of the key benefits of registering a business there, making hiring local staff an integral part of the incorporation strategy. These are the main reasons why local recruitment services are essential to any business planning to move to a foreign jurisdiction.
*Recruitment of highly qualified managers
Sometimes local directors and shareholders are required by law to form companies with additional tax benefits or simply to register a company in a country with a favorable tax regime. Normally, to qualify as a resident to become an officer in a start-up company, a person must either be a citizen of that jurisdiction or hold a residence permit: temporary, permanent or a special one, as in Singapore's EntrePass. In addition, the person concerned may not be eligible to hold the position of director if they have a criminal record or are bankrupt at the time a company is registered.
*Appointment of a company secretary
Another senior officer who is often required to incorporate a company and be a resident of the area is a company secretary. In this respect there are two most common situations: The secretary may or may not be the sole director of the company. If he/she can, the company needs only one local manager who acts as both director and secretary. If he/she is unable to act in this way, the Company has the option of either hiring two LN employees or hiring one LN employee as a director and secretary and then hiring another director (resident or non-resident).
The requirements for the directors of a newly incorporated company can vary greatly depending on the jurisdiction and at the same time a corporation cannot be registered without them. We strongly encourage you to contact Confidus Solutions for local recruitment services and advice as our international network of partners allows us to meet the needs of the most common jurisdictions.
*Employee
Local recruiting is relevant not only to legally mandated executive hiring, but also to employing local workers. Depending on the jurisdiction, local employees can provide the following benefits:
better knowledge of the local market and business culture better average education level compared to the company's original jurisdiction lower costs for personnel management
Apart from these benefits arising directly from the quality of the human resources itself, there also may be indirect advantages depending on the jurisdiction. Recruiting local staff may be used as part of Residence permit investment programs, requiring foreign investors creating new jobs on the local market.
Labor force availability Labor force availability heavily correlates with the total population of a country. As of now, the top 10 countries with the largest labor force are:
China India United States Indonesia Brazil Bangladesh Russia Japan Pakistan Nigeria This, however, should be adjusted for labor force participation rates, as well as the quality of the labor force and human resources, which may limit the availability of well-qualified workers with certain skills demanded by a certain industry.
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