Locating headquarters

Locating Headquarters

For your start-up you can locate your headquarters ANYWHERE you want in the world.

Where to locate your start-up  -  factors to take into consideration / account:                                                                  -  Infrastructure and transport links                              -  the pool of skilled workers                                                      -  Corporate tax rates – for example, in Ireland, corporate tax is 12.5%. This is one of the lowest in Europe.  Due to this very low rate and because certain companies are known to have negotiated special tax deals with the Irish government,  Ireland is considered by many to be a tax haven.  A tax haven is a country where taxes are very low or non-existant.  Apple only pays 2% on average in corporate tax (0.005% in 2014).  This compares favourably to the 35% corporate tax in America.  Apple’s subsidiaries in Ireland are the global hub  [central part] for its worldwide business and profits pass through these subsidiaries.  Another example of low corporate tax is Gibraltar, the British overseas territory at the tip of Spain. It operates a 10% corporate tax rate and many think that the British government will apply this rate to the whole of the UK after Brexit.  The corporate tax rate in the UK currently stands at 19%.

A British Overseas Territory with non-existant corporate tax is the Cayman Islands.   For instance, the Shell Corporation pays its corporate tax in the Cayman Islands.

Luxembourg is another country where tax arrangements are not very transparent.  The official corporate tax rate is 21%, however, multinationals can end up paying much less than that thanks to tax loopholes [niche fiscal].  

-  rental costs and availability of rental premises        -  quality of life                                                                            -  pro-business environment - little red tape [official rules]                 - the ease of doing business                                                                          -  support for entrepreneurs                                 -  political stability                                                                    -  willingness of banks to lend money                        -  proximity to customers / markets / suppliers

boasts                        behave                        worth                capita                include                                                             tip                        death                        safe                far                corporate                                                         rules                        fines                        off                island                emphasis

As _______________ as proximity to markets is concerned, Singapore could be _______________ looking into.  It is an _______________ nation with 5.4 million residents _______________ the southern _______________ of Malaysia.   Due to its geographical location it has access to 2 billion people in China and India.  It’s also one of the 10 ASEAN countries (Association of South East Asian Nations), which _______________ Indonesia, Malaysia, Thailand, Vietnam and which represent a market of 600 million.  Singapore also _______________ the largest commercial port in the world.  It has a pro-business environment with _______________ tax at 17%.  It is one of the world’s fastest growing economies with the 5th highest GDP per _______________ in the world.  In addition, it is _______________, stable and corruption-free.  It is a country with a very developed sense of law and order.  Singapore has implemented a series of strict _______________ to ensure that people _______________ well. For instance, you can receive _______________ for chewing gum in the street or eating on public transport.  For more serious crimes, the _______________ penalty still exists.  English is spoken there as it was a British colony for over 100 years.  The country gained independence in 1965.  Last but not least, Singapore provides a pool of highly-skilled workers.  Singapore places _______________ on education.[pic 1]

As we saw in our listening test, according to a recent study released during the World Economic Forum in Davos, Germany is one of the best countries in the world to locate a start-up.  The following factors were considered:  a strong economy with an unemployment rate of 4.1% and economic growth of 1.9% in 2016, connected to the rest of the world, educated population, entrepreneurial spirit, innovative, provides easy access to capital, skilled workforce, technological expertise, transparent business practices, well-developed infrastructure and well-developed legal framework [system of rules].

Denmark is often ranked as the best country for a start-up.  The following video explains why.  First of all, read the vocabulary:

a  gateway                                an opening which leads to opportunity

cutting edge (adj)                        high-tech, state-of-the-art[pic 2]

                   paving stones

to pave the way forward        to make it possible to move                                        forward (ouvrir la voie)

The findings will pave the way for more research.

a cluster                                a group of similar companies which locate near each other, a                                        geographic concentration of interconnected businesses

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