Waterfall market entry strategy is sequential business expansion to foreign markets. Its main characteristic is the use of clearly defined entry stages and the sequential use of experience: the knowledge obtained during one stage is used to enact the next one.


In this case, each stage is represented by a single foreign market. First, a company enters one foreign market, establishes itself, promotes the product and builds a client base. When the company feels comfortable in this market and its position is stable, the business can be expanded into the next market, using the previously gained knowledge. This reminds of a multi-layered waterfall, where water passes through each stage before it reaches the final destination, hence the name of the market entry strategy.

Implementation
The waterfall market entry strategy is best suited for companies, who produce products with a long life cycle or whose products are in the maturity phase. As the waterfall market entry implies longer time of establishing and building up a client base, long life cycle ensures that the product is not removed from the market before the prospects of the business are stable. A product in the maturity phase, on the other hand, ensures that by the time a company enters a foreign market, the product is ready to be sold. If it gains enough popularity, the product's life cycle across all the markets will be prolonged.

Another point to consider with waterfall market entry strategy is the choice of foreign market. Initially, it is advisable to chose a foreign market that is very similar to a company's domestic one. This minimizes a number of risks, such as consumer purchasing culture discrepancy risk and the risk incurred by different currencies. After establishing itself in this foreign market, a company can take the next step and incorporate in another market, that can be similar to either the domestic one, or the previous one. Such a gradual approach ensures smooth transition, as the business environment of a new market will never be drastically unfamiliar. Exotic foreign markets are a lot more understandable, if they are approached through other markets, gradually transitioning from familiar to unfamiliar.

Advantages
The waterfall market entry strategy allows revitalizing products in the maturity stage, prolonging their life-cycle, while maintaining a stable position within the market. As only one market is entered at a time, all the business expansion resources are concentrated there, which minimizes risks. Besides that, as markets are chosen so that each next one resembles the previous one, the transition to farther, more exotic markets happens more gradually, without incurring additional risks connected with unfamiliar business environments.

The waterfall market entry strategy is also distinguished by the accumulation of business expansion knowledge. Business skills from domestic market are used to incorporate in the first foreign market. The additional knowledge gained there is used in the market, and the process is repeated for as many times as there are foreign markets entered. Such an accumulation of knowledge of business expansion knowledge allows making the risks smaller for each entry, which makes the waterfall strategy especially advantageous in the long run, being suited for businesses who plan to enter a significant number of markets.

Disadvantages
As the waterfall market strategy implies entering only one foreign market at a time, it leaves little room for failure. If a business is forced to withdraw from a foreign market at the initial entry stages, the losses are comparatively small. If the company, however, has already invested significant resources in establishing itself, the costs of withdrawing increase significantly, and at the same time the company has no alternatives in other foreign markets. This is somewhat compensated, if a new foreign market is not the first, and the company has a solid background in other foreign markets, but this applies only to highly internationalized companies.

Another disadvantage is that a business potentially loses its first-mover advantage on other foreign markets, as it simply does not enter them. Competitors can enter other markets faster than the business in question establishes itself in a certain foreign market and is ready to expand elsewhere.

Other market entry strategies
The waterfall market entry strategy is only one of the possible options for expanding your business, which is why you might also want to read about other approaches:

sprinkler strategy
wave strategy

British Virgin Islands is a British overseas territory in the Caribbean. The islands make up part of the Virgin Islands archipelago. The official language is English. British Virgin Islands are not a part of the EU, but local citizens are regarded as citizens of the European Union.

Company requirements
The type of company incorporated in British Virgin Islands is a Business Company. These types of companies are very popular as offshore companies because of their taxation exempt status, easy administration and their flexibility. Main reasons for choosing British Virgin Island Business Company as your offshore are:

No corporate tax
Company formation in British Virgin Islands takes around 2-5 days
There are shelf companies available
The director does not have to be a resident or reside in the BVI
A local office must be maintained
Board meetings can take anywhere in the world
Secretary is optional
Minimum share capital is 0.73 EUR and the usual number of issued shares is 50,000
Maintaining a company
Annual license fee must be paid according to the following rules:

Companies with less than 50,001 issued shares pay 260 EUR per year.
Companies with more than 50,001 issued shares pay the sum of 805 EUR per
No yearly documentation must be provided for the authorities, but it is mandatory for a company to keep reliable accounting records for a minimum of five years. The documentation must be sufficient enough to determine accurate financial position of the company.

Tax system
No corporate tax is paid in the British Virgin Islands on worldwide profits to the BVI authorities. The British Virgin Islands has double taxation agreements with Japan and Switzerland, although they have almost no benefit and are not applicable to offshore business.

Purchasing real estate is a serious process, which requires consideration of a great deal of legal matters. Taking into account things such as that, all documents must be filled in latvian, and the many issues that require specific knowledge in order to make things move quickly, we highly recommend you to hire professional, who will help you with the procedure. If you want to save your time and money, you can make a power of attorney, so that another person can take care of everything on your behalf. However, in this case, you will still need to visit Latvia in order to submit your documents to the Land register department personally.

What you should do before purchasing real estate?
This step is optional, however, we highly recommend you to do so. Before signing a purchase contract it is best to check real estate for any liens orrestrictions (servitutes, loans, credits e.t.c.). This formal procedure will ensure you that your chosen real estate does not come with any nasty financial surprises, and it is safe to purchase. Also, this can prevent you from having legal issues or judicial claims brought against you in future. This procedure can be done for you by the companies providing legal services.

Also, you better make sure, that the seller has the right to sell this property. You can also inquire about utility payments (are they all paid) and declared persons (if this is flat).

The procedure of purchase of real estate
This is step by step procedure of purchasing real estate in Latvia.

STEP 1 – Purchase contract
In order to purchase real estate property you do need to sign purchase contract. This must be done in written form with a notarial assurance.

STEP 2 - Request for corroboration for сhange of ownership
This document must be signed with notarial assurance as well. This is a standard document, which is submitted to Land register department, requesting change of ownership rights. Notarially assured purchase contract – is ground for doing so.

STEP 3 – Payment for the real estate
There are seveal models of payment:

Payment at the moment of signing the contract;
Payment at the moment of signing request for corroboration for сhange of ownership;
Partial payment before and partial payment after corroboration of ownership rights;
Opening an escrow account in the bank.
STEP 4 – Payment of processing fees and real estate tax
Processing fees estimate around EUR 21. Real estate tax estimates 2% from the cost of real estate. It has to be paid by the buyer.

STEP 5 – Submit of the documents
At this point, all the aforementioned documents and payment bills must be submitted to the Land register department.

STEP 6 – Results
It usually takes 14 working days to get the request for corroboration for сhange of ownership approved or cancelled. Normally, in 14 working days, your ownership rights will be corroborated and you can come and receive your Land Register certficate.

Introducing the Czech Republic, colloquially known as the Czech Republic, a country that can be described as an average-sized European country, can be described as a medium-sized European country with a rich cultural heritage with influence from many countries that surrounded and occupied it area historical. Statistics show that the population of the Czech Republic is currently estimated at around 10.6 million people. The largest ethnic group are Czechs (63%). The official language is Czech, but there are 14 officially recognized minority languages.

Czech nominal GDP per capita is estimated at around USD 24 938. The official currency is the Czech koruna (CZK). The Czech Republic is a proud member of the European Union and the Schengen Area, which offers many benefits to its residents.

Immigration legislation states that if you are not a citizen of the European Union and intend to stay in the Czech Republic continuously for more than 90 days or if you wish to engage in business or work, you must apply for a long-term visa or a residence permit.

The waterfall market entry strategy is a sequential business expansion into foreign markets. Its main feature is the use of clearly defined entry levels and the sequential use of experience: the knowledge acquired in one level is used to implement the next.In this case, each tier is represented by a single foreign market. First, a company enters a foreign market, establishes itself, promotes the product and builds a customer base. When the company feels comfortable in that market and its position is stable, the business can be expanded to the next market with the insights gained previously. This is reminiscent of a multi-layered waterfall where water goes through each stage before reaching the final destination, hence the name of the market entry strategy.

Implementation
The waterfall market entry strategy works best for companies that manufacture products with a long lifecycle or whose products are in the maturity phase. Because waterfall entry means a longer time to build and build a customer base, a long life cycle ensures that the product is not withdrawn from the market before the business prospects are stable. A product in the maturity phase, on the other hand, ensures that the product is ready for sale by the time a company enters a foreign market. If it gains enough popularity, the product's life cycle will be extended across all markets.

Another point to consider in the waterfall market entry strategy is the choice of foreign market. First of all, it is advisable to choose a foreign market that is very similar to a company's home market. This minimizes a number of risks, such as B. The risk of the discrepancy in consumer buying culture and the risk created by different currencies. After a company has established itself in this foreign market, it can take the next step and integrate into another market, which can either be similar to the domestic one or the previous one. Such a phased approach ensures a smooth transition as the business environment of a new market will never be completely unfamiliar. Exotic foreign markets are much more understandable when approached through other markets, gradually transitioning from familiar to unfamiliar.

Advantages
The waterfall market entry strategy makes it possible to revitalize products in the maturity phase, extending their life cycle while maintaining a stable position in the market. Since only one market is entered at a time, all business expansion resources are concentrated there, minimizing risk. Because markets are chosen so that each next one resembles the previous one, the transition to more distant, exotic markets occurs more gradually without incurring additional risks associated with unfamiliar business environments.

Disadvantages
As the waterfall market strategy implies entering only one foreign market at a time, it leaves little room for failure. If a business is forced to withdraw from a foreign market at the initial entry stages, the losses are comparatively small. If the company, however, has already invested significant resources in establishing itself, the costs of withdrawing increase significantly, and at the same time the company has no alternatives in other foreign markets. This is somewhat compensated, if a new foreign market is not the first, and the company has a solid background in other foreign markets, but this applies only to highly internationalized companies.

Another disadvantage is that a business potentially loses its first-mover advantage on other foreign markets, as it simply does not enter them. Competitors can enter other markets faster than the business in question establishes itself in a certain foreign market and is ready to expand elsewhere.
The waterfall market entry strategy is also characterized by accumulating knowledge for business expansion. Business knowledge from the domestic market is used to integrate into the first foreign market. The additional knowledge gained there is used in the market and the process is repeated as often as foreign markets are entered. Such an accumulation of knowledge about business expansion allows to reduce the risks of each entry, which makes the waterfall strategy particularly beneficial in the long run, as it is suitable for companies planning to enter a significant number of markets.

Conditions on investing in real estate:

the total amount of transaction (involving one or several real estates) must be at least EUR 250 000 Latvia wide;
with the official cadastral value at least EUR 80 000;
state fee of 5% from the real estate value must be paid to the government upon receiving the residency permit;
only a bank transfer may be used for purchasing a real estate;
the foreigner does not have and has never had any real estate tax debts in Latvia;
the transaction is concluded after 1 September 2014;
real estate acquired from a legal person registered in the Republic of Latvia or a natural person who is a Latvian citizen, Latvian non-citizen, citizen of the European Union;
a residence permit is issued after registering the ownership in the Land Register.

Practically the best option is investing in Latvian real estate. When investing in real estate, other regulations apply and foreigners only have to pay property tax. In addition, it is not mandatory to actually live in Latvia, so the property may be rented out and thus the return on the investment is possible.

Foreigners usually choose to obtain a residence permit by buying a property (apartment) in Latvia. The apartment is often bought as a buy-in, especially for families with children over the age of 18. The Latvian Migration Law provides that spouses and adolescent children (children under 18 years old) are entitled to a residence permit together with the main investor and do not need to make additional investments.

The process of obtaining a residence permit is relatively complicated and requires knowledge of local legal and procedural issues. Baltic Legal lawyers are experienced in this field and offer constructive advice to choose the best type of investment and take care of preparing all the necessary documents before submitting them to the Migration Office of Latvia.

What are the conditions for obtaining a residence permit in Latvia through investing in real estate?
In order to apply for a temporary residence permit in Latvia, the foreigner can buy real estate, for example, an apartment in the city, a summer house near the sea, a house in the country, etc.

The investment must meet the following conditions:Apartments in Latvia

the total amount of transactions must be at least EUR 250,000 and the official cadastral value must be at least EUR 80,000;
Transaction must be realized only by bank transfer;
the foreigner has and has never had property tax debts;
the transaction will close after September 1, 2014;
Real estate acquired by a legal entity registered in the Republic of Latvia or an individual who is a citizen of Latvia, a non-citizen of Latvia or a citizen of the European Union;
Real estate registered to foreigners in the land register of Latvia.
If you are interested in immigration, visit this website to find the required documents to apply.

If you need advice on immigration issues or a practical opinion on the case, please email us (see our contact page). We always appreciate respect and helpful advice, so we will reply to you as soon as possible!

Remember that Baltic Legal's role is to support the whole process. We can arrange professional help to find a property that suits your needs as well as prepare the necessary paperwork for submission to the state authorities. If you are interested in buying an apartment or house in Latvia, you will probably want to arrange a viewing first. We provide the list of required documents and information for the invitation application and the place where the customer can get a short term visa. Alternatively, we can act on your behalf under a power of attorney and complete all the formalities without your presence; However, your personal presence is mandatory on some stages.

We offer a wide range of offshore services such as: B. Starting and maintaining a business, setting up and maintaining bank accounts, etc. The most common reasons for choosing offshore are tax optimisation, asset protection, self-insurance, intellectual property protection, confidentiality and privacy.