Market Entry Routes
Definitions, fit, preparation, limits, tax and risks for eight common entry routes.
1. Direct ExportThe company sells from its home entity as exporter, contracting with overseas importers without setting up a local entity.First test of an overseas marketStandardised industrial and consumer goodsEarly stage with irregular orders10 country handbooks cover this route2. Distributor / AgentA local distributor buys and resells, or an agent develops customers on commission, while the company has no local entity.Products needing local channels and serviceSectors with local licensing requirements8 country handbooks cover this route3. Cross-border E-commerceSelling to overseas consumers via marketplaces or a direct site, fulfilled by direct mail or overseas warehouses.Consumer brandsLong-tail, multi-SKU catalogues5 country handbooks cover this route4. Local SubsidiaryA separate company incorporated in the target country and owned by the parent, contracting, employing, invoicing and paying tax locally.Long-term local operationsNeed for a local contracting entity and local staffRegional headquarters57 country handbooks cover this route5. Branch / Representative OfficeA branch extends the parent without separate legal personality; a representative office is usually limited to liaison and market research.Early market research and liaisonProject-based work5 country handbooks cover this route6. Joint VentureA company jointly owned with a local business, often used where foreign ownership is restricted or local resources are essential.Sectors with foreign ownership capsProjects needing local licences, land or government relationships7 country handbooks cover this route7. Manufacturing InvestmentBuilding or acquiring production facilities abroad, involving investment approval, land, environment, labour and bonded customs arrangements.Supply-chain diversificationProximity to markets or materialsUsing rules of origin and trade agreements11 country handbooks cover this route8. Digital / Service BusinessProviding software, platforms or professional services online, possibly without a local entity, but subject to digital tax, data and sector rules.SaaS and software companiesAI applicationsConsulting and technical services7 country handbooks cover this route