Many jurisdictions, eg. B. Singapore, especially those that offer special tax planning incentives, require foreign companies to hire local staff in order to receive the above benefits. In addition, in jurisdictions such as Latvia, low-cost skilled labor is listed as one of the key benefits of registering a business in that country, making hiring local staff an integral part of the incorporation strategy. These are the main reasons why local recruitment services are essential for any business planning to relocate to a foreign jurisdiction.

Selection of highly qualified managers
Sometimes local directors and shareholders are required by law to set up companies with additional tax benefits, or simply register a company in a country with a favorable tax regime. Generally, to qualify as a resident, in order to become an employee of a start-up company, a person must either be a citizen of that jurisdiction or have a residence permit: temporary, permanent or special, such as Singapore's EntrePass. In addition, an interested person may not be eligible to hold the position of director if he has a criminal record or is bankrupt at the time of registration of the company.

Appointment of a company secretary
Another officer who is often required to set up a company and must be a resident of the area is the company secretary. In this regard, there are two most common situations: The Secretary may or may not be the sole director of the company. If he/she can, the company only needs one local manager who acts as director and secretary. If he/she is unable to act in this way, the Company has the option of either hiring two LN employees or hiring one LN employee as a director and secretary and then hiring another director (resident or non-resident).

The requirements for the directors of a newly formed company can vary greatly depending on the jurisdiction, and at the same time, without them, the corporation cannot be registered. We strongly encourage you to contact Confidus Solutions for local recruitment and consulting services as our worldwide network of partners allows us to meet the needs of the most common jurisdictions.

Employee
Local recruitment is relevant not only for the statutory hiring of managers, but also for the hiring of local workers. Depending on the jurisdiction, local employees may provide the following benefits:

better knowledge of the local market and business culture
a higher average level of education compared to the company's original jurisdiction
reduction in personnel management costs
In addition to these benefits, which are directly related to the quality of the human resources themselves, there may be indirect benefits depending on the jurisdiction. Hiring local staff can be used as part of residency investment programs, forcing foreign investors to create new jobs in the local market.