Ukrainian citizens are increasingly interested in agrarian business abroad. This is one of the most interesting and, at the same time, difficult types of foreign investment. Opening a vineyard, winery, dairy farm, or, for example, export of agrarian products, machinery and other farms requires the same serious and professional approach as, for example, registration of an IT startup or a crypto-company. To make the registration of agribusiness abroad as comfortable as possible, we recommend contacting the Lawrange attorney’s association. Our team consists of various narrowly specialized specialists, who using deep knowledge of international law and extensive experience in opening agribusiness companies, will provide you with the opportunity to quickly and, most importantly, legally run your own business in the jurisdiction of interest.

 

Abroad, agribusiness is characterized by the use of new technologies, developments and innovations, thanks to which this area is in many countries at a fairly high level. Significant efficiency of this industry is provided by numerous agricultural enterprises. However, before registering agribusiness abroad, it is important to determine the jurisdiction and collect a package of all necessary documents. All this is much easier to do with the help of Lawrange specialists. It is also necessary to familiarize yourself with the peculiarities of agricultural business in a particular country, costs, the cost of production, the degree of government support and a number of other issues.

 

Why you should choose to register your agribusiness abroad

The main advantage of this type of business is the support of the state. Almost every country at the legislative level provides various options for supporting entrepreneurs working in this sector. As a rule, farmers have access to special loans, credits or even specialized equipment, which depends, of course, on the jurisdiction. For example, in the United States they offer marketing support schemes that provide for various kinds of compensation when prices for crop products fall or when farmers’ incomes fall below the national average.

 

There is no doubt that agriculture plays a huge role for society. In this regard, another advantage of agribusiness abroad becomes obvious – the ever-increasing demand for natural, environmentally friendly products. By opening a farming enterprise in a particular country, you definitely get access to a developed market for agricultural products. In other words, the agribusiness sector is virtually unaffected by fluctuations in demand.

 

Opening an agro company abroad has other advantages:

 

  • The possibility of obtaining a residence permit in the chosen country.
  • Access to developed logistics and infrastructure – the agro sector of most countries provides for the efficient movement of agricultural products at all stages of production.
  • Ability to implement biotechnological developments and software much more easily, thereby increasing the profitability of your enterprise.
  • Ability to buy small plots of land for agricultural use regardless of citizenship (in certain jurisdictions).
  • Lower business start-up costs compared to Ukraine.
  • Favorable tax regime – many countries have low or no corporate taxes.
  • The possibility of relatively quick business registration, many jurisdictions provide for the possibility of carrying out this procedure remotely.
  • Foreign nationals can own and operate the business, but depending on the country, it may be necessary to hire a local director or partner.

 

Market research and selection of the country of incorporation

The decision to open an agri-company abroad can be extremely lucrative. According to the UN, the agricultural sector employs up to 67% of the world’s population. Globally, it accounts for almost 40% of GDP and 43% of global exports. To access all the benefits of running an agribusiness abroad, it’s important to understand which country is right for your operation.

 

United Kingdom

Well known for efficient management and mechanization of the agricultural sector. All medium and large farms here are equipped with milking machines. There is 1 tractor for every 4 hectares of arable land. British farmers are also characterized by the use of a large amount of commercial fertilizers per hectare, the cost of which is subsidized by the state. Government subsidies also apply to the costs of:

 

  • soil liming;
  • eradication of livestock tuberculosis;
  • construction of capital farm equipment;
  • voluntary association of small farms into cooperatives.

 

If you are looking to start an agri company in Europe, the UK should definitely be on your list to consider, as there is a strong focus on innovation in the agricultural sector here.

 

The bulk of the profits from the entire agricultural industry come from:

 

  • Livestock – cows, pigs, poultry are raised. Meat, milk are sold on the domestic market and for export. Most farms are concentrated in the west of England, where the climate is more humid.
  • Crop production – the main crops for breeding are wheat and barley, used for the production of beer, whiskey and as fodder for animals. There are also favorable conditions for growing potatoes, flowers and horticulture.

 

The main risks of agribusiness are related to weather phenomena, especially excessive moisture can bring a lot of problems to agrarians. For this reason, it is essential to treat the land with fungicides and use other appropriate agro-technologies in order to expect good results.

 

Important! The British actively use the mechanism of forward contracts, due to which agricultural producers can revise the price for 2 years in advance, and sell their goods without risks with maximum profit.

 

Cyprus

Agribusiness in Cyprus is characterized by diversity. In this country, both large and small farms play an equally important role in the economy. And although agribusiness on the island from a technical point of view is not exactly easy to conduct, plant growing is flourishing here. This industry is represented by the cultivation of:

 

  • legumes;
  • grapes;
  • gourds;
  • cereals;
  • citrus fruits;
  • almonds;
  • olive trees, etc.

 

Important! Olive oil from Cyprus is not exported, but small farms actively sell it to tourists and other large farms.

 

In the mountainous regions of Cyprus livestock breeding is developed – goats, sheep, cattle and pigs are raised here. Every large city in this jurisdiction holds large farm fairs at least twice a week, attracting tourists from all over the world.

 

Relatively recently, Cypriot agriculture began to receive financial assistance from the state for development. Such measures are taken in order to increase the profitability and sustainability of the agricultural sector. The main risks of agribusiness in Cyprus are related to climatic peculiarities – the region is periodically exposed to drought.

 

  • In Cyprus it is possible to register enterprises of different forms of ownership:
  • Private company – minimum 1 director, shareholders can be from 1 to 50.
  • Public Joint Stock Company – with a mandatory authorized capital of 25630 euros and with a minimum of two directors.
  • Partnership – full or limited liability.
  • Branch office of a foreign company – one taxable entity with the company it represents, no residency status.

 

Poland

In this country, the agro-industrial complex is leading. In recent years, many agrarian reforms have been implemented here, as a result of which Polish agrarians were able to compete with European agricultural producers. Today Poland occupies the top positions in the lists of world exporters of fruits and vegetables. European market infrastructure functions here and agrarian innovations are actively implemented.

 

The basis of the agrarian industry in Poland is made up of small enterprises that cultivate no more than 7 hectares of land. The majority of the state’s territory is occupied by agricultural land, of which the majority is privately owned. The majority of farming enterprises are narrowly specialized.

 

If you are interested in registering an agribusiness in Poland, then take into account that in this jurisdiction there is a specialized agricultural sector. For example, in the east of the country and near Warsaw, agricultural activity is represented mainly by horticulture. In the southern part they develop sheep breeding and poultry farming. In Poland you can find specialized areas for the production of certain agricultural products. That is, one region is mainly engaged in the production of milk and dairy products, while another, for example, grows sugar beets and potatoes.

 

Important! A farm of any size in Poland cooperates closely with processing companies, so Polish agribusiness is not afraid of problems with the sale of goods.

 

Polish legislation obliges only farms with an annual profit of more than 1 million dollars to keep accounting records. If we take into account that most farmers in the country own 7-10 hectares of land and receive an average of 10,000 euros per month, the need for cooperation with an accountant here is eliminated. Which is also worth considering as an important advantage for those wishing to open an agro company abroad.

 

Bulgaria

This country has a high percentage of agricultural land in the EU. Agribusiness here is favored by a mild climate with a large number of sunny but not dry days. In Bulgaria it is profitable to grow vegetables, fruit crops, flowers, and to engage in animal husbandry. The most attractive niches for opening agribusiness in this jurisdiction:

 

  • Growing wheat, rye, sunflower, and rapeseed.
  • Cultivation of fruit trees – the harvest can be sold fresh, or open on the basis of garden farming enterprise for the production of jams, confitures, pastilles, compotes, etc.

 

In addition, excellent opportunities for the development of agricultural business in Bulgaria are noted in the sector of export of grapes, oriental tobacco, apricots and other agricultural products to European markets. It is possible to create a whole production chain by combining individual companies in clusters that cover the primary sector, processing and redistribution. It is noteworthy that this country already has well-established research and development institutes in the food industry.

 

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Important! Up to 50% of agricultural projects in Bulgaria are supported by a special EU support program (SAPARD). Economists predict a rapid growth of the Bulgarian agro sector in the next decade, so those who are interested in registering an agro company abroad, we recommend to pay attention to this rather attractive investment sector.

 

It is also possible to establish the supply of products from Bulgaria of various interesting positions and groups of agro-commodities. Even taking into account transportation costs, this business option will allow you to get a fairly high profit.

 

Hong Kong

Although the agricultural industry in this country is experiencing a period of decline, still the conduct of agribusiness here can be successful. Given the large population and active government support, the registration of agro companies in Asia will allow you to get good profits. At the same time, it is worth paying attention to the characteristic features of the Hong Kong economy:

 

  • Inflation at one of the most them levels in the world.
  • Virtually complete freedom of action for business with minimal government oversight.
  • The world’s largest duty-free container port is located here, which opens up huge prospects for exports and imports.
  • There are insignificant restrictions in the banking and financial sphere.

 

Registration of an agro company in Hong Kong opens access to the international market. Here you can formalize a company and obtain a license for all kinds of export/import operations:

 

  • For import/export of pesticides.
  • Import of plants.
  • For import/export of rice, etc.

 

It is important to be guided by the Import-Export Registration Rules. Every natural or legal person who is engaged in export of any goods or items is required to apply to the Commissioner of Customs and Excise with an import-export declaration. It can be submitted electronically within 2 weeks of importing or exporting agro-products.

 

Important! Hong Kong has no sales, value-added, dividend or capital gains tax, so you can significantly optimize your agribusiness in this jurisdiction.

 

Serbia

If you want to open an agribusiness in the EU, then pay attention to Serbia. Here it is profitable to engage in both the cultivation of various cereals, industrial crops, and their export to other countries. The latter option is especially attractive because Serbia has access not only to the European market, but also to the US market. This state is subject to a number of benefits in the market of the Customs Union, which greatly accelerates the opportunities for the sale of any agricultural products.

 

For citizens of Ukraine, investment in Serbian agribusiness can be attractive due to the favorable tax regime – one of the lowest tax rates in Europe on company profits (10%) and value added tax (18%) is applied here. Imported equipment is exempt from customs duty, and financial incentives are available for investments in production, including in the agribusiness sector.

 

UAE

Agricultural start-ups or those engaged in innovative developments in this sector are recommended to pay attention to this country. To attract foreign investment in agribusiness, the UAE government offers many significant benefits:

 

  • Absence of income taxes.
  • Obtaining a visa for 3 years in case of company registration.
  • Maximum financial support.
  • Well-established logistics sector.
  • Access to markets in neighboring countries with growing economies and food consumption.

 

The UAE plans to compete in the agro-industrial and agricultural complex with major players in the international arena. For this purpose, a $273 million incentive program for agrarians has been launched. This approach is designed to increase the inflow of foreign investment in the UAE agricultural sector.

 

Registration of an offshore agro company

The peculiarity of offshore jurisdictions is their low tax burden and strict confidentiality. For any business, including agro business in offshore countries there are quite attractive conditions, usually represented by:

 

  • Minimal taxes on profits, income.
  • Absence of capital taxation.
  • Simple registration procedure.
  • Simple reporting scheme.
  • Protection of assets from lawsuits and other legal prosecutions.

 

In most offshore jurisdictions it is possible to open agribusiness with a limited number of directors and shareholders, which makes it much easier to manage the enterprise. As a rule, offshore companies are usually formalized in the form of a limited liability company, a joint stock company and a partnership. Lawrange attorney’s association will provide detailed advice on all the most favorable offshore areas for the development of your agribusiness, as well as help to quickly and easily complete the registration process.

 

Peculiarities of legal aspects of registration of agribusiness abroad

Registering an agribusiness abroad is an effective way to take your business activities to an international level. However, strategic plans require a deep dive into a number of legal issues. The laws applicable to any agribusiness can vary greatly depending on the chosen jurisdiction. In some countries, there may even be differences between individual administrative units.

 

Registering an agribusiness abroad is necessarily subject to:

 

  • taxes;
  • intellectual property rights
  • the political climate in the country;
  • the organizational and legal form of the firm (corporation, limited liability company, etc.).

 

Tax and financial issues when registering an agribusiness company abroad

One of the important advantages of opening an agribusiness abroad is the possibility of tax optimization. In each country, taxation conditions may differ significantly, so it is extremely important to be able to determine the real tax benefit, as well as the upcoming financial costs for the registration of the agro company. Assistance in solving such important issues can be obtained in the company Lawrange. Our experts will advise you which jurisdiction is better to choose for the successful development of agribusiness, and will undertake the solution of all tasks for the correct entry into the tax system of the state of interest.

 

Support and consulting during registration

Those who wish to open an agribusiness abroad, we recommend you to use the consulting services of our company. We will assist you in making your business activity a systematic and profitable enterprise that will operate strictly within the laws of the country of interest. We provide comprehensive assistance not only in the registration of agrarian enterprise, but also in matters of:

 

  • selection of the organizational-legal form of the company;
  • preparation of a package of documents;
  • at each stage of incorporation of a legal entity.

 

Consulting support may also include banking services in the chosen jurisdiction and advice on the need to obtain a license, taking into account the type of activity of the future enterprise.

 

Registration procedure for agribusinesses abroad

Registration requirements for agrarian companies are the same as for other types of business. Depending on the jurisdiction, some stages of registration may differ, but the general scheme is as follows:

 

  • Determine the number of founders, employees (focus on the requirements of a particular jurisdiction).
  • Find out what authorized capital is required by the form of business organization you are interested in.
  • Prepare statutory documents, as well as the procedure for accounting and other organizational aspects.
  • Prepare a package of personal documentation to confirm the identity of directors and beneficiaries – data on the management and founders are submitted to the country’s registration authority.
  • Apply for registration – depending on the chosen jurisdiction, this can be done online, by power of attorney or in person.
  • Open a corporate bank account.

 

The Registrar will issue a Certificate of Incorporation after a detailed review of your Application (which may take several months in some countries). After that, you will be required to keep and file tax returns on a regular basis. In solving all these and other issues related to the registration of agribusiness abroad, the specialists of Lawrange SA are ready to assist you.

 

Why you should contact Lawrange

Regardless of whether you are interested in registration of an offshore agro company or registration of agribusiness in the EU, Asia, our team will be able to organize this process taking into account all legal, tax, accounting and other aspects. We have extensive experience in solving such tasks, and are familiar firsthand with the registration nuances of many jurisdictions. Contact our company if you are interested in professional registration of agribusiness abroad.

 

FAQ

How long can it take to register an agribusiness?

Depending on the chosen jurisdiction, the process can take from 2-4 weeks to several months.

 

What to consider when choosing a country to open an agribusiness?

There are many factors to take into account. First of all, decide on the type of activity of the future company. Then take into account, for example, the climatic features of a particular country and the demand for products that you are going to import or export. Pay attention also to government programs of assistance to the agricultural sector. And be sure to draw up a business plan.

 

Is it possible to register an agro company abroad without my presence?

Yes, in most jurisdictions it is possible to do it without your personal presence.

 
 

 

 

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