Choosing a country for starting a business abroad?
Receiving licenses and permits for business
Be sure to check out licensing requirements for your industry in this jurisdiction!

AppLaw lawyers have prepared key tips for obtaining permits for certain business needs.

*Reading time: ~ 5 minutes
After registering a company, you may have obligations to obtain several types of licenses.

This is what may define the need to go through licensing procedures.
1) jurisdiction of your business

Depending on the country in which you registered your company, you will need to obtain permits at the country, state, provincial (regional), and city levels.

2) form of business

For example, individual entrepreneurs do not have to obtain some licenses that are mandatory for legal entities. It also matters if you open a company from scratch with no other connections or if it becomes part of your foreign corporate structure; whether the company is independent or if you open a branch or representative office.

3) industry

At this level, each type of business goes through different levels of verification and must receive different permits depending on the risk of doing business and the specifics of its opening. For example, companies in HoReCa go through security checks to obtain security certificates that confirm the right to host, serve and feed a large number of people.
Obtaining a license
For the licensing procedure, you need to prepare a set of documents that differ depending on the three following factors.
The more documents recommended for obtaining permits you present, the more chances you have for success.

So the general list includes such components:

1) information about the founders, beneficiaries, and management.

This includes personal data and documents, biography, and information about previous work experience in this field. Having expertise in a particular industry, especially in multiple countries, adds points to your application.

2) corporate structure information and business plan

You should disclose companies related to your business, founding and corporate documents, financial and business plan. A transparent structure, registration of legal entities in prestigious jurisdictions, and transparent business planning also increase your chances of successful licensing.

3) information about partners, transactions, and counterparties

Licensing authorities usually ask for previous contracts or prior arrangements with business partners to confirm the reality of the business. This is also required to check the reputation of your counterparties and your previous business activity.
Types of licenses

When you comply with the regional, corporate, and industry licensing requirements for your company and have collected a general list of documents, move on to the next step.
It is worth considering the specific types of such permits and which ones are necessary for your business.

A business license is obtained at the local government level and is often included in the tax number registration process. Sometimes TIN or its analogs are obtained separately. This document gives you the right to conduct business in the territory of a certain city or region.
A special license is provided for the payment of sales tax for trade companies. This permission is especially relevant for e-commerce businesses.
In certain industries, you will not be able to conduct business without a license, for example in such areas of activity:

  • gambling licenses – online and offline casinos, betting and betting companies
  • financial licenses – banks and neo-banks, fintech companies, Forex and other brokerage companies
  • crypto licenses – crypto exchangers and crypto wallets
Important features
And finally, we have prepared some tips that you should take into account when passing through licensing and further doing your business.
Carefully check all, even the most minor requirements for documentation and application for permits. In addition, you will be charged an administrative fee, which can vary from a few hundred to several tens of thousands of dollars.

In some cases, if you missed something in your application or did not attach a certain document, you may be denied a license. So you will have to submit everything again, and the fee may not be returned.
If you violate the local or national laws of the country in which you operate, one of the sanctions imposed on you may suspend or revoke your license. Sometimes, for certain offenses, you may not be allowed to resume activities in this area.
Carefully follow the terms and conditions of license renewal. In certain areas, in order to be eligible to continue this activity for the next term, you must not only file an application on time and pay a license renewal fee, but also show evidence of the reality of running a business.
AppLaw lawyers are ready to go with you all the way to obtaining licenses and ensure that their status is updated in a timely manner.
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