Limited liability company “Visionary” is active in several areas in the field of energy:

(a) gas trading, which involves conclusion of gas trading agreements with industrial partners, as well as ensuring gas consumption portfolio management involving balancing;

(b) electricity trading, which involves cooperation with electricity producers at the supply and consumers at the demand chain and ensuring that they can sell / purchase electric energy;

(c) solar power arm, offering installation of solar panels for domestic or industrial production of solar energy, as well as attracting financing;

(d) helping companies to deal with natural resources tax, e.g., providing services to companies generating certain types of waste and wishing to obtain exemption from the natural resources tax, which these businesses would have to pay unless they have an agreement with “Visionary” that allows to receive exemption. The types of waste collected include tyres, car lubricants and packaging.

Activities (a) and (b) require respectively electricity and gas trading licenses in the country where “Visionary” operates. Activity (d) requires a permit from the local environmental agency in the country where “Visionary” operates and “Visionary” has to comply with strict requirements regarding the amounts of waste collected from its clients and recycled in order not to lose the permit and not to subject its clients to payments of natural resources tax.

Since commencement of its operations “Visionary” intended to become a pan-Baltic company. Now this has become possible due to liberalization of energy markets within the EU. “Visionary” is looking at the possibilities to expand its operations into all the Baltic countries.

Please evaluate the options that “Visionary” has and address the following issues in your answer:

(a) What options are there to conduct business in a number of countries;

(b) How are these options suited for each type of field that “Visionary” is active in?

(c) What the pros and cons of each of the options in relation to each type of business?

(d) What information do you require to help choosing from the options?

Answer rating: 100% (QA)

a There are a few different options for conducting business in a number of countries 1 Establishing a subsidiary company in each country 2 Setting up a branch office in each country 3 Registering as a ... View the full answer