When a startup sets its sights on global expansion, there must be an emphasis on local compliance in each country and in each functional operation to avoid significant legal and financial risk. There are numerous regulatory and compliance concerns that must be addressed when moving into any new market, and the laws can vary widely between countries and regions.
Some of the most important areas of compliance include employment law and the local regulations surrounding labor, hiring and termination practices, employee benefits, and employer/employee contracts. Data protection and privacy laws also differ widely based on where you are doing business. Regulations such as GDPR in Europe can have costly consequences for violation, so ensuring you are in compliance across the board is key.
There are also regulations surrounding licensing and permitting within new markets, and of course, there are laws surrounding taxation and financial reporting or filing requirements that must be considered.
Working with legal advisors who focus their practice on bringing companies from garage to global will mean they anticipate issues and avoid accidents.