The importance of Government Relations for New Ventures varies from country to country. Within a country it can vary from state to state (province to province).
Government programs, laws and regulations, and networking can strongly impact corporate growth of resident parent companies and/or their resident subsidiaries.
Relocation of Headquarters
Government programs, laws and regulations, judicial systems, and tax rates can impact where a new venture might wish to locate a worldwide or regional headquarters. These factors vary from business model to business model, from state to state in the United States and from country to country within the EU and elsewhere. Factors include:
- Access to your target market(s) both regionally and globally
- Access to venture capital both regionally and globally
- Availability of both early stage and later stage ecosystems
- “Where is the lowest corporate tax rate”. This issue is complicated by the need to have other countries respect the tax residency of your headquarters unit. Consult with your tax expert. FYI, Heritage Foundation states that “The U.S. total corporate tax rate at 39.1 percent is the highest corporate tax rate in the developed world“
Government programs, laws and regulations, judicial systems, and tax rates can impact the relative attractiveness of raising funds in a specific country; and even in specific states/provinces. These can impact both fund raises and financial exit planning.
Managing Government Relations For New Ventures
The executive task of managing government relations varies in focus and importance depending on the nature of the business and the types of Government programs, laws and regulations, judicial systems, and tax rates that bear on its activities.
Please See Also
Depending on your country of interest, Carverlon Ltd in the EU, or one of our business partners, may be able to assist you with support services or with introductions to lawyers, accountants, marketers or engineers/technical experts.