Local Entity Setup: What's Involved

Part 2 of a 3-part series on evaluating local entity setup against ongoing cross-border fees

LOCAL ENTITY OR CROSS-BORDER FEES SERIES · PART 2/3

Local Entity Setup: What's Involved

Part 1 of this series covered when a local entity makes sense. Here's what actually goes into setting one up — and why the cost and timeline vary so much from company to company.

Incorporation is just the starting point. What actually drives the variance:

1. Physical presence

Some jurisdictions require an actual workplace. Others allow a home office or registered address.

2. Local representation

Some require a local agent. Others allow a remote principal. This changes both cost and who's accountable for local compliance.

3. Banking

Often the least predictable step. Timelines vary sharply by market and by local KYC requirements, and by whether you already have any local presence to point to.

4. Tax registration

VAT, GST, or the local equivalent — plus the ongoing filing obligations that come with it, not just a one-time setup step.

5. PSP comparison

Going back to your PSP (or a prospective local one) for their actual proposed requirements and fees, and comparing that against what you're paying today. This is where the Part 1 math becomes real numbers instead of a framework.

Some companies handle all of this in-house. Others bring in a firm like BDO or a specialized advisor to manage or assist in the process.

The Takeaway

Either way, the companies that move through this fastest — and land on the right outcome, whether that's proceeding with the entity or confirming cross-border is still the better call — are the ones with someone who's done this before guiding the process. That's true regardless of which way the decision ultimately goes.

Coming next in this series: Part 3 works through an actual cost comparison between local entity setup and cross-border fees.