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Why big companies open there company in other countries with different name?

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Question added by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
Date Posted: 2014/04/22
georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Laws, regulations and tax system differs from country to country and the law of the founding companies vary from one country to another as well that there are companies that anticipate possible sanctions by other countries, which calls for the establishment of the company on behalf of a person or another company's name to be synonymous with

 

Ismi Puji Hastuti
by Ismi Puji Hastuti , English Teacher , SMK Widya Taruna

Agreed with previous answers. Basically that way ease the company to penetrate in local regulations and markets. Thank you. 

cause different countries have different local market conditions, rules , Taxes , start up procedures , habits , kind of customers , and employment legislation.

Muhammad Qasim
by Muhammad Qasim , Construction Manager , H.A. J Contracting Company

This is business and businessman wants to expend his business either by same name or by other name. 

They also see the other country local market conditions, so  they follow the procedures and start a company with a name which is more attractive and acceptable in their atmosphere. 

Nasir Hussain
by Nasir Hussain , Sales And Marketing Manager , Pakistan Pharmaceutical Products Pvt. Ltd.

Good Day!!!

Mr. Georgei Assi, Mr. Kamran Anjum & Ms. SMARAGDI FILIPPAKOPOULOU has given the most satisfying answers to my opinion............. fully agreed with them.

several reasons, to appeal to host country's preferences, culture etc., to comply with local rules and regulations, to distinguish themselves from similarly named companies and competition, to allow potential partnerships with local companies, etc.

SMARAGDI FILIPPAKOPOULOU
by SMARAGDI FILIPPAKOPOULOU , Secretary , Public sector (temporary job)

I believe that the main goal is for tax reasons (less taxes for the big companies) or maybe the name's appeal/attractiveness to the new country/culture therefore for marketing reasons. 

In my humble opinion, it is not that companies change the name instead large companies as you know have sole dealers in different countries. This allows the sole dealer to have his own company name and not the main company. For example Toyota company in Beirut is BUMC, Mercedes is TGF and so on.

Large companies do not intend to be themselves available in other countries instead they depend on local investors and business men. As long as the agent is selling the product and maintaining the company's reputation no difference what is the name of the company.

Ibrahim Hussein Mayaleh
by Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed

- Local rules and regulations

- Language and cultural constraints

- Registration constraints: Copy Right issues

- Marketing startegy

souha safir
by souha safir , إدارية , قطاع التربية

I think that this is due to keep the parent company.Different standards adopted by major companies in the naming of the branches in other countries

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

They do not wish to spoil their brand image when they enter a new market.

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