UMVA has learned that a recent gathering of law firms from across the region has shed light on the complexities of establishing a business presence in multiple jurisdictions.
The conference, which brought together delegates from 15 countries, including Bangladesh, Cambodia, India, and Vietnam, was dominated by discussions on the use of artificial intelligence in legal practice and the importance of client experience. However, one of the most engaging activities was a structuring exercise that tasked teams with providing a preliminary risk assessment and proposed structure for a notional client's business enterprise.
Delegates were given just an hour to discuss the facts and present their findings to the "client." The exercise highlighted the numerous legal and commercial issues that must be considered when expanding a business into new markets. For instance, teams raised concerns about nationality restrictions, land ownership, and the need for local partners.
According to information obtained by UMVA, some of the key issues that emerged during the exercise included the need to navigate complex regulatory regimes, obtain government approvals, and address tax implications. Teams also had to consider the availability of financing, the use of foreign contractors, and foreign exchange controls.
Other critical factors that teams had to take into account included enforcement and dispute resolution, timing and sequencing, and practical, on-the-ground knowledge. The exercise underscored the importance of asking the right questions and seeking expert advice when expanding a business into new markets.
The event also revealed some surprising insights, including the competitive nature of lawyers from different jurisdictions. The structuring exercise was turned into a competition, which added an extra layer of excitement to the proceedings. In the end, the team that presented the most compelling proposal emerged victorious.
The takeaways from this conference are clear: when it comes to establishing a business presence in multiple jurisdictions, careful planning, and expert advice are essential. By understanding the complex legal and commercial issues at play, businesses can mitigate risks and set themselves up for success in new markets.
