Most first-year difficulties trace back not to weak demand but to untested assumptions: a collection cycle longer than expected, localisation costs that were never budgeted, and a legal structure chosen quickly that turns out not to suit the activity.
Decisions that precede incorporation
- Entity form: a branch, a wholly owned company, or a partnership with a local party.
- The activity scope on the licence, and its effect on what can later be invoiced.
- A cash flow model with collection assumptions realistic for the local market.
- Financial and operational assessment of the local partner before signing any commitment.
- The transfer pricing structure between the local entity and the parent.
