A jurisdiction should be assessed against the company’s current requirements and its anticipated development. Focusing exclusively on the initial move can result in arrangements that become unsuitable when the business begins recruiting, expanding internationally or preparing for investment.
Immigration and Residence
The first consideration is whether the jurisdiction provides an appropriate immigration or residence route for each person involved.
Founders, investors, executives and specialist employees may fall within different legal categories and may be subject to different residence and work requirements. The position of accompanying family members may also need to be considered separately.
The assessment should address:
- The legal basis on which each person will reside and work;
- Whether the proposed activities are permitted under the relevant status;
- Whether a suitable route is available for accompanying family members;
- Renewal and continuing compliance requirements;
- The consequences of a change in role, employment or corporate structure; and
- The company’s ability to relocate additional personnel as its needs evolve.
A route suitable for a founder may not accommodate the company’s wider management or technical team. Mobility planning should therefore anticipate the people the business is likely to require, rather than focusing only on its immediate needs.
Business Management and Substance
Relocating a founder does not automatically relocate the business.
The founder’s personal residence, the company’s place of incorporation, its management and its operational substance are separate considerations. Their treatment will depend on the jurisdictions involved and on how the business operates in practice.
The company should examine where its principal decisions will be made, where directors and senior executives will perform their functions and where its core activities will take place. Depending on the business model, relevant factors may include personnel, premises, management processes, technical development and commercial activity.
The selected jurisdiction should be capable of supporting a genuine commercial presence. Formal arrangements that do not correspond with the company’s actual management or operations may create corporate, tax, governance and compliance risks.
The appropriate approach should therefore reflect what the business does, where those activities take place and the people responsible for conducting them.
Access to Specialist Talent
Technology businesses frequently depend on professionals whose skills are highly specialised or internationally sought after. The ability to recruit, relocate and retain these individuals can be as important as the position of the founder.
When comparing jurisdictions, a business should consider whether it can:
- Recruit the technical, scientific and commercial professionals it needs;
- Transfer existing employees from another operation;
- Secure the required residence and work permissions;
- Develop an effective combination of local and international talent;
- Support employees relocating with accompanying family members; and
- Retain key personnel as the business develops.
Immigration is only one part of this analysis. The availability of skills, local employment conditions, remuneration expectations, professional opportunities and the wider technology or research ecosystem may all influence whether specialist employees are willing to relocate and remain in a jurisdiction.
Investment and Market Access
The selected jurisdiction may also affect the company’s proximity to investors, professional advisers, research institutions, commercial partners and customers.
The relative importance of these factors will depend on the organisation’s stage of development. A research-led company may prioritise access to universities, laboratories and technical specialists. A growing commercial business may focus more closely on investor access, management capacity, international connectivity and opportunities to enter new markets.
The assessment should therefore reflect the company’s particular business model rather than a general perception of which jurisdictions are considered attractive to technology businesses.
A suitable jurisdiction should support the company’s anticipated development, not merely its position at the point of relocation.