Open a European Company https://www.openaeuropeancompany.com/ European Company Formation & Incorporation Tue, 29 Nov 2022 23:22:01 +0000 en-GB hourly 1 https://www.openaeuropeancompany.com/wp-content/uploads/2021/06/globe_glass.png Open a European Company https://www.openaeuropeancompany.com/ 32 32 How to Set up a Sports Agency in the UK, France, and the Netherlands https://www.openaeuropeancompany.com/blog/how-to-set-up-a-sports-agency-in-the-uk-france-and-the-netherlands/ Tue, 29 Nov 2022 23:11:34 +0000 https://www.openaeuropeancompany.com/?p=57796 Sports agents play a vital role in scouting athletes and promoting them to companies and sports teams. Such agents eventually go on to launch...

Read More

The post How to Set up a Sports Agency in the UK, France, and the Netherlands appeared first on Open a European Company.

]]>
Sports agents play a vital role in scouting athletes and promoting them to companies and sports teams. Such agents eventually go on to launch their own sports agencies that manage a number of professional players. This profession is perfect for anyone who is truly passionate about sports and knows how to recognise and promote talent.

If you are an aspiring sports agent who is struggling to succeed in your home country, you may have considered the possibility of opening a sports agency in another country. This is a great idea as it allows you to access a different market with a new talent pool and better prospects.

Many sports agents set up sports agencies in European countries such as the UK, France, and the Netherlands for this very reason. If you decide to pursue this strategy, this guide can help you in your journey.

Here is how to set up a sports agency in the UK, France, and the Netherlands.

  1. Select the Right Agency Name

The first step in starting a sports agency is to select a good name. It’s tempting to go with the first generic title you come up with. However, you need to remember that your agency name will be vital in your branding efforts and can impact your promotional abilities in the future.

For this reason, you should focus on finding a name that is both unique and memorable. This name should also align with the sports fields you will be focusing on. For example, if you intend to focus on primarily football players at your sports agency, it is best to include something football related in your title.

If you plan to amass a clientele that covers different sports, you can go with a more general name such as X Sports Management.

Once you have found a suitable name, you should research whether there is another company with the same name in the country you intend to set up your agency. You can do this by checking the government websites dedicated to this in the UK, France, and the Netherlands.

  1. Create a Robust Business Plan

The next step is to create a robust business plan for your sports agency. Such plans are important as they will serve as a guide to help you set up, structure, and eventually grow your company in the country you have chosen.

A well-made business plan conveys your competency in setting up and running your business. Therefore, it will also be vital if you intend to pitch your business to investors for funding. 

Your sports agency business plan should include information such as:

An Industry Overview

Your business plan should include information about the size of the sports agency market in the country you have chosen. It should also mention how this market size is projected to increase in the future. You can attach information from industry reports to reports to give your claims greater backing

Executive Summary

An executive summary is designed to provide an overview of what your report contains. Therefore, it should start with a brief portion that discusses the sports agency industry before delving into your intended business and how you intend to run it in your chosen country.

Your Services

This section will discuss what services you intend to provide for athletes as well the companies and organisations you intend to match them with. 

Agency Structure and Roles

In this section, you can go over your agency’s intended managerial structure. This should provide an overview of your management hierarchy and also provide information about the duties that people in each role will be expected to perform.

SWOT Analysis

The SWOT analysis lists your agency’s strengths, weaknesses, opportunities, and threats.

Target Market

This section should include information on your target market. In this case, you will be targeting both athletes and sports companies and organisations. You should determine how big the market for both these are based on your sports focus area.

Sales Forecast

Once you know you know your market size, you can forecast your sales for each year. This sales figure should project larger earnings for each successive year as your agency gains more attention and builds up a favourable reputation in the country you have chosen.

Budgeting and Expenditures

This section should discuss how much startup capital you have and how you intend to manage your expenses in different areas.

Expansion Strategy

Your expansion strategy will include information on your intention to expand your business after establishing it in a particular city. This is the eventual goal for many sports agencies as expanding allows them to reach clients in different cities and boost their total revenue.

  1. Register Your Company

The next and most important step is to register your company in your chosen country. The UK, France, and the Netherlands all have different registration processes for sports agencies, so you should understand each one thoroughly.

Registering Your Sports Agency in the UK

Registering your sports agency in the UK is a multi-step process. You must first register as an intermediary. Next, you must register with the associations that govern different sports. So if your sports agency intends to focus on football, you will need to register with the English Football Association.

In some cases, you may be required to pass an exam to call yourself a sports agent in certain sports fields.

Registering Your Sports Agency in France

Before registering your sports agency in France, you must first understand French laws in this area. For example, foreign-born citizens who intend to become football agents are not allowed to apply to the French Football Federation. However, you can apply for the right to practise with the Commission of Sports Agents if you have a licence from another European Union country.

Registering Your Sports Agency in the Netherlands

The Netherlands no longer requires sports agents to take an examination to work as intermediaries. However, they must still register with the appropriate organisations governing their focus sport.

For football, you will need to register your company with Koninklijke Nederlandse Voetbal Bond (Royal Netherlands Football Association) or KNVB. You must also register every agent in your company with KNVB.

  1. Set Up Your Office

Once you are done with the sports agency registration process, you can focus on setting up your office. Be sure to choose a location in a city where you expect to find local talent and are close to sports organisations.

You should also choose this location based on the amount of startup capital you have. So it might not be worth renting out a large office space if you don’t expect to have a large number of staff at your agency in your first year of operations.

  1. Start Hiring Staff

Next, you should start hiring staff based on your intended company structure. This includes other sports agents, accountants, HR managers, etc…

You can bring some people over from your home country for this purpose, but it is generally better to hire locals due to their familiarity with the country you have chosen.

  1. Network

Now you can finally start the process of finding potential clients. You should definitely focus on marketing your business in different ways. This includes newspapers and sports magazine advertisements. You should also create an SEO-optimised website and promote your agency on social media platforms.

Networking is a vital promotion tactic that can help you in multiple ways. You can go out and meet representatives from sports teams at industry events. This is a great way to get your name out there and make contacts who may be interested in acquiring new players.

You can then attend sports games to scout out potential athletes who may be interested in joining a different team or league.

  1. Expand Your Business

Once you have established your business in the country and have amassed a large number of clients, you can start focusing your efforts on expanding your business in different cities. 

This process should be easier than the one you went through to set up your initial agency. This is because you won’t have to register your agency multiple times and will already be familiar with the other set-up steps. You can also rely on the positive reputation you have built to help you find new clients in other cities.

How OpenAEuropeanCompany Can Help

As you can see, setting up a sports agency in the UK, France, or the Netherlands is a multi-step process that requires plenty of work. You will need to perform adequate research and ensure you understand local laws before attempting to do this.

It will be easier for you to navigate such hurdles under the guidance of the professionals at OpenAEuropeanCompany. We have helped many clients set up sports agencies in different European countries. Please reach out to us for guidance or to learn more about our services.

The post How to Set up a Sports Agency in the UK, France, and the Netherlands appeared first on Open a European Company.

]]>
8 Benefits of Starting a Business in Germany https://www.openaeuropeancompany.com/blog/8-benefits-of-starting-a-business-in-germany/ Sun, 06 Nov 2022 23:14:04 +0000 https://www.openaeuropeancompany.com/?p=57017 Germany is the seventh largest country in Europe and is known to have one of the strongest economies in the region. This nation is...

Read More

The post 8 Benefits of Starting a Business in Germany appeared first on Open a European Company.

]]>
Germany is the seventh largest country in Europe and is known to have one of the strongest economies in the region. This nation is home to some of the most iconic companies in the world. This includes car manufacturers such as Volkswagen, Mercedes- Benz, BMW, and Audi. The country. 

Germany is also known for its advanced technology companies such as SAP and Siemens. Such companies have thrived because the country offers a great business environment for business owners. Let’s examine some of the benefits of starting a business in Germany.

  1. Strong and Stable Economy

Germany has one of the strongest and most stable economies in Europe. This can be attributed to the country’s heavy focus on exports and innovation. In fact, Germany is the EU country responsible for 29% of all exports to non-EU countries. It remains an open economy with a foreign trade quota of 84.4%. By contrast, the United States’ foreign trade quota is only 26.7%.

Germany’s continual progress in the manufacturing sectors has also ensured that plenty of countries will always be dependent on its exports. This leads to the country’s stability and ensures that its economy will always be a key player on the international stage.

  1. Access to a New Customer Base

Germany is one of the wealthiest countries in Europe with a GDP per capita of $50,800. The average gross annual salary in the country varies from $63,000 to $80,000. This means that Germans have plenty of money to spend on goods and services.

Entrepreneurs who start a business in Germany will have access to a consumer base with lots of disposable income and high spending power. This means they can offer a variety of premium goods and services without worrying whether people can afford them. 

This is one of the main reasons why entrepreneurs from countries where the average citizen has poor spending power opt to start businesses in Germany instead of their home country. However, it is important to note that certain German industries such as the automotive industry and manufacturing are highly saturated, so business owners should think twice about starting a business in these industries in the country.

  1. Access to a Highly Skilled Labor Pool

Many businesses set up shops in Germany to take advantage of the country’s highly-skilled labour pool. The country has some of the most distinguished facilities for higher learning. This includes places such as Technische Universität München, Ludwig-Maximilians-Universität München, and Ruprecht-Karls-Universität Heidelberg.

Such higher-educational institutions churn out tens of thousands of highly-educated individuals with desirable skill sets each year. Some of these graduates move abroad and find high-paying jobs in other countries. However, the vast majority stay in Germany and become part of its 42 million-person-strong workforce.

Entrepreneurs and business owners who start businesses in Germany will therefore have access to this pool of highly-skilled workers. This makes Germany a great choice for businesses seeking workers with degrees in mathematics, engineering, natural sciences, statistics, and computer sciences.

  1. Excellent Protection for Ideas and Concepts

Every business owner should understand the importance of protecting their ideas and concepts. After all, someone may have a million-dollar idea for their business, but others could steal this idea and profit off it if there aren’t any legal protections in place. The good news is that Germany offers many protections for such ideas and concepts.

Intellectual property is protected under many acts such as:

  • The Copyright Act (UrhG),
  • The Trademark Act (MarkenG),
  • The Patent Act (PatG),
  • The Utility Model Act (GebrMG),
  • The Act Against Unfair Competition (UWG).
  • The Designs Act (GeschMG),

In addition to this, Germany’s civil code is embedded with many provisions pertaining to protecting intellectual property. All these provisions mean a business idea or concept will be well-protected in Germany and that any person or entity that attempts to steal and profit off them will be heavily penalized.

Germany’s Competition Laws also mean that people cannot make false claims about a business. Any individual or entity that does so will be charged with a crime.

  1. Existing Startup Culture

The recent surge in startups globally has altered the trajectory of many industries and spurred many different types of innovation. It is estimated that 26,000 startups are registered in the EU each year. Around 2,600 of these are registered in Germany.

NimbleFins, a research and analysis group that conducts studies on businesses in Europe ranked Germany as the #1 place for startups in 2019 and 2020. The group conducted their assessment based on factors such as economic health, cost of doing business, business climate, and labour force quality.

The organization cited Germany’s excellent access to venture capital as the main reason for its top ranking. There are estimated to be over 764 venture capital funds in the country, which means startup founders should have no problem approaching various fund providers to invest their ideas.

  1. Investment Incentives

Venture capital fund providers aren’t the only way for new businesses to get funding in Germany. There are also numerous public funding instruments that business owners and entrepreneurs can rely on. This includes:

GRW Cash Grants

Gemeinschaftsaufgabe Verbesserung der regionalen Wirtschaftsstruktur, or GRW, is a special investment program aimed at creating new jobs and supporting economic development in the country. It provides grants for businesses in the manufacturing and service sectors to help cover part of their setup costs. 

This includes funding to cover their capital expenditures such as purchasing machinery, equipment, and new buildings within the business’s first three years. It also covers personnel costs for businesses that have created new jobs for two years.

Research and Development Grants

The German government has also committed to spend approximately 3% of its GDP to fund research and development. It has created numerous programs explicitly for this purpose. 

For example, KMU-innovativ is a funding scheme that offers funding for small and medium-sized businesses that focus on high-tech strategy technologies. The scheme provides funding on an ongoing basis and isn’t limited to any specific research areas.

Hiring Grants

The German Federal government has included many labour-related incentives for businesses. This includes:

  • Support when businesses are searching for staff
  • Grants to support employee training programs
  • Wage subsidies after hiring unemployed workers
  1. Greater Exposure

Setting up a business in Germany is also a great idea for businesses that wish to gain more exposure. As mentioned earlier, the German population has high spending power. However, the country also receives a large number of tourists.

It is estimated that Germany was receiving up to 39 million tourists per year before the COVID-19 pandemic hit. The average tourist in Germany spends approximately $1,475 on their trips, meaning that businesses can expect tourists to contribute to a significant part of their revenue. This also gives local businesses greater exposure, which may help them attract business if they set up shop in other countries.

Germany is also considered the #1 location for trade shows. There are an estimated 160 to 180 national and international trade fairs held in the country each year. These attract ten million visitors and serve as excellent locations for businesses to get greater exposure. Business owners should therefore strive to exhibit their business at these shows to benefit from the special exposure they provide. Such exposure can boost their chances of succeeding internationally in the future.

  1. No Language Barrier

The language barrier can be the source of many problems for foreign entrepreneurs and business owners who wish to set up businesses in European countries. It can be difficult to understand laws and regulations written in a foreign language as well as interact with locals who don’t speak English.

Such problems aren’t likely to be an issue for people who start a business in Germany. Around 56% of Germans speak English, and business activities are often conducted in English in the country’s metropolitan and tourist areas. This means foreign business owners won’t need to worry about the language barrier when they set up shop in Germany.

Any language barrier issues are also likely to get smoothened over as the business hires more local workers who speak both German and English. 

Why Choose OpenaEuropeanCompany?

As you can see, there are plenty of benefits associated with starting or expanding a business in Germany. However, the process of setting up a business properly while navigating through the country’s various business laws can be challenging to do on your own. Entrepreneurs and prospective business owners who need assistance with this should reach out to OpenAEuropeanCompany for assistance. We understand German business laws and can guide you through the business setup process correctly. Please contact us today to learn more about our services.

The post 8 Benefits of Starting a Business in Germany appeared first on Open a European Company.

]]>
Benefits of Expanding a Recruitment Agency in Multiple Countries https://www.openaeuropeancompany.com/blog/benefits-of-expanding-a-recruitment-agency-in-multiple-countries/ Sun, 06 Nov 2022 22:37:23 +0000 https://www.openaeuropeancompany.com/?p=56716 Recruitment agencies are among the first places leading enterprises to turn to when seeking to fill positions at their offices. Such agencies are highly...

Read More

The post Benefits of Expanding a Recruitment Agency in Multiple Countries appeared first on Open a European Company.

]]>
Recruitment agencies are among the first places leading enterprises to turn to when seeking to fill positions at their offices. Such agencies are highly valued and many industries would likely collapse if it weren’t for the recruitment assistance they provide. 

If you have been operating a recruitment agency for many years, you might be interested in growing your business in a new location. You can try setting up more offices in other parts of the country. However, you might be able to enjoy far more benefits by expanding your business to another country.

In this guide, we will go over the many benefits of expanding a recruitment agency to other countries.

  1. Getting New Clients

Running a recruitment agency in your home country can be especially challenging if there are numerous other agencies offering similar services. You can advertise your services on multiple platforms such as social media, websites, and on television. However, the presence of competitors will still limit your chances of getting new clients, and this can slow down your business’s growth.

You can avoid this issue by expanding your agency to another country where there is less competition. For example, you might be able to find dozens of businesses seeking a recruitment agency in a small European city. If you successfully manage to help these businesses, they may recommend your recruitment agency to other business owners. This will further boost the demand for your services and allow your business to grow.

  1. Access to a Fresh Labor Pool

Businesses trust recruitment agencies to provide them with qualified staff to fill job vacancies. However, this can be difficult to do if the labour pool in your current country lacks qualified workers with the skillset the business is seeking.

For example, one of your clients may urgently need to hire someone with specialized knowledge of artificial intelligence (AI). You can spend many hours scouring your database, but you might be unable to find anyone who possesses this specialized skill set.

This problem is less likely to occur in other countries where there are colleges and universities that offer programs related to AI. Such educational institutions produce many graduates with the skills your clients are seeking. Therefore, you will benefit from having access to a more valuable labour pool if you choose to expand your recruitment agency to another country.

  1. Tax Benefits

Running a recruitment agency can be a lucrative business, especially if you have a large pool of clients. However, such agencies are still liable to pay corporate taxes. Such taxes cut into your profits, leaving you with less at the end of the year.

If your recruitment agency is located in a country with a high corporate tax rate, your profit margins are likely to be slim. For this reason, you should consider expanding your business to a country with a more favourable corporate tax rate.

For example, Bulgaria has a corporate income tax rate of only 10%. This means you can benefit from lower taxes by expanding your business from a country such as America, which has a 21% corporate tax rate, to Bulgaria.

  1. Diversification

Many recruitment agencies expand to other countries for diversification purposes. This is a common tactic with businesses that do not want to be wholly dependent on the conditions of their current country. After all, it can be difficult to predict how market conditions will be in the future. It’s not uncommon for recruitment agencies to go out of business when the country’s economy is doing poorly. Therefore, having a set of operations going in another country can help keep the business going when times are tough in your home country.

You could also consider sending some of the staff at your local business to help run the one abroad temporarily. This can speed up the foreign business’s growth and help it achieve new milestones.

  1. Improving Your Agency’s Reputation

One of the most overlooked benefits of expanding a recruitment agency abroad is getting opportunities to improve your business’s overall reputation. Every business strives to build up a good reputation because it makes it easier to get more clients. However, your recruitment agency may have made some missteps in the past that negatively impacted its reputation. 

You can certainly focus on attempting to improve your reputation by going above and beyond for clients in the present. However, few people are willing to give a recruitment agency a second chance after a poor first experience. In this situation, the best way to improve your business’s reputation is to expand it to another country and do a good job there.

If you manage to build up a great reputation in another country, you can count on it having a positive impact on your agency back in your home country. You can then start promoting your agency as a multinational company to further boost its popularity.

  1. Lower Operating Expenses

Another great reason to consider expanding your recruitment agency abroad is to benefit from lower operating expenses. This advantage can be quite significant if your recruitment agency is currently operating in a country with a high minimum wage and rent rates.

There are plenty of European countries such as Hungary, Bulgaria and Latvia with low minimum wage rates and thriving economies. Consider expanding your business to one of these countries if you’re concerned about being able to pay your staff.

Similarly, European countries such as Denmark, Portugal, and Slovakia are known to have low office rental prices. This means you can reduce your operating expenses significantly by setting up an office in one of these countries.

Deciding Which Countries to Expand Your Recruitment Agency To

Now that we have seen the various benefits of expanding your recruitment agency to another country, you might be wondering which country to pick. Assuming you have chosen to limit your options to just Europe, you will still have dozens of countries to choose from including China, Germany, Hong Kong, Malaysia, Poland, Singapore, the Netherlands and the United States.

Some considerations to keep in mind when choosing the right country for your recruitment agency are mentioned below.

  1. Language

European countries are among the most developed in the world. However, there are very few where people speak English as a first language. You might be able to move to a European country and get by as a foreign worker with a limited understanding of the local language. However, setting up and operating a business in a country where you don’t speak the local language can be much trickier.

For this reason, it is best to choose a country where business is conducted in English. This includes Ireland, the United Kingdom, Germany, and the Netherlands.

  1. Tax Rates

European countries vary greatly when it comes to corporate tax rates. Germany has a corporate tax rate of 30% while Bulgaria has a corporate tax rate of only 10%. Knowing this, you might be tempted to expand your business to Bulgaria. However, it is important to note that less than a quarter of this European country’s population speaks English. 

For this reason, you should consider multiple factors in addition to the tax rate when you set out to pick a European country for your recruitment agency.

  1. Ease of Business Registration

You will need to ensure your recruitment agency acquires the right licenses and permits for the country you expand to. However, this can be more difficult to do in certain European countries.

For example, France forces business owners to jump through many hurdles to get a business license. Denmark on the other hand has streamlined the business licensing process to encourage people to start new businesses in the country.

  1. Competitors

If you’re planning to expand your business to another country to get away from the competition back home, you should ensure the country you intend to set up operations in isn’t already saturated with recruitment agencies. However, you should note that these agencies could also be concentrated in certain parts of the country.

So one major city in the country may already have half a dozen recruitment agencies, while another major city could have only one or two. Therefore, you should research what the competition will be like for various cities in the country you are considering.

  1. Work Visa Availability

If you intend to transfer staff members from your recruitment agency’s local office to the new office in another country, you will likely need to obtain work visas for them. Some countries readily give out work visas to foreign nationals, while others make the process challenging to protect local workers. 

How OpenaEuropeanCompany Can Help

As you can see, there are many benefits associated with expanding a recruitment agency to another country. If you plan to grow your recruitment agency by opening up an office in a European country, consider asking OpenAEuropeanCompany for guidance. We have helped many business owners expand their operations to Europe and can guide you through the process easily.

The post Benefits of Expanding a Recruitment Agency in Multiple Countries appeared first on Open a European Company.

]]>
Why You Should Expand Your Business in the Netherlands https://www.openaeuropeancompany.com/blog/why-you-should-expand-your-business-in-the-netherlands/ Mon, 24 Oct 2022 22:11:18 +0000 https://www.openaeuropeancompany.com/?p=56649 Want to expand your business into a European country known for its scenic beauty and strong economy? Then the Netherlands is the right choice...

Read More

The post Why You Should Expand Your Business in the Netherlands appeared first on Open a European Company.

]]>
Want to expand your business into a European country known for its scenic beauty and strong economy? Then the Netherlands is the right choice for you. You can read more about expanding a recruitment or logistic business in the Netherlands.

Hundreds of business owners and entrepreneurs have expanded their businesses to the Netherlands, which happens to be the sixth largest economy in Europe. The country has plenty to offer in terms of business opportunities and pro business laws. So, let’s examine some of the many reasons you should expand your business to the Netherlands.

  1. Central Location

The Netherlands sits roughly between Europe’s North and South portions. It is also situated on the shores of the Northern Sea. This means it is easy for the country to transport goods to different countries in mainland Europe. The country’s coastal position also means it serves as an important trading hub for commerce with the United Kingdom.

If you choose to set up your business in the Netherlands, you will benefit from the country’s geographical location. You will be able to ship goods to other European countries and also receive supply materials from other European countries quickly.

  1. Many Well-Developed Cities

The Netherlands has plenty of well-developed cities that are ripe for business. This includes:

Amsterdam

Amsterdam is the Netherlands’ biggest city, with a population of around 880,000 people. The city’s multicultural and diverse feel makes it a prime tourist spot, and it isn’t uncommon for tens of thousands of visitors to visit it each year.

This city is a prime place to expand a foreign business into. Many multinational companies such as Tesla Motors, Nike, and Adidas have headquarters in Amsterdam thanks to the city’s highly skilled workforce and close proximity to one of the biggest airports in Europe.

Rotterdam

Rotterdam is the Netherlands’ second-largest city and another major urban centre. This city is known for its modern architecture and its large seaport. In-fact, this seaport is the largest in Europe, with 14.5 million shipping containers passing through the port each year.

Rotterdam’s major industries are shipping, logistics, and trade. This is definitely the place to expand your business if you are interested in joining any of the aforementioned industries.

The Hague

The Haque is the Netherlands’ third-largest city. The region has plenty of historical architecture and is commonly referred to as the country’s administrative royal capital. Many international organisations such as the UN’s International Justice Court, The Dutch Parliament, and the International Criminal Court are situated in The Hague.

This city’s major industries include information technology (IT), creative studios, energy, and chemicals.

Eindhoven

Eindhoven may not be as big as the other cities we have mentioned. In fact, the city was a relatively small village in the early 20th century. However, its population skyrocketed after annexing five surrounding municipalities.

In recent years, Eindhoven has become a huge hub for start-ups and tech companies. This makes it a great place to expand your business if it is in the tech sector.

Utrecht

Utecht is one of the more overlooked Dutch cities. It is only 20 minutes away from Amsterdam so it is often lumped in with the major city. Many of the businesses in Utrecht focus on sustainable development and have contributed to the Netherlands becoming one of the European countries leading march in sustainability.

If your business also prioritises sustainable development, it will feel right at home in Utrecht.

  1. Access to a Highly Skilled Labour Pool

The Netherlands is known to have a labour pool that is highly educated, productive, and skilled. It has some of the best workers making great strides in the information technology, chemicals, life sciences, and electronics fields.

Much of this can be attributed to the European country’s world-class education system that produces tens of thousands of highly educated and skilled workers each year. This means you will have access to a large pool of workers to draw from to help run your business operations.

The Dutch are also known to be fluent in English, so you won’t have to worry about language barriers impeding your business if you choose to expand to this country.

  1. Easy Migrant Visas

Another great reason to consider expanding your business to the Netherlands is the ease with which the government issues work visas. Thousands of people come to the country and work under such visas each year. This includes businesses that have recently expanded to the Netherlands and wish to bring over staff to help run operations.

To apply for a work visa, all applicants need to provide is:

  • A valid passport
  • A police certificate demonstrating that their criminal record is clear
  • Documents backing up the information contained in their work visa application
  • Tuberculosis medical test results
  • Proof of employment in the Netherlands

All these requirements are easy for most workers to fulfil, so you shouldn’t have any problem bringing workers from your business in your home country over to the Netherlands.

  1. Stable Economy

The Netherlands is known to have a stable economy that has seen steady growth for many years in a row. The Dutch economy is categorised by remarkably low inflation and unemployment levels.

The country also has a well-developed transportation system. This means your business’s employees and products can get around easily with minimal issues. All this is thanks to the country’s stability and focus on continual development and innovation.

  1. Favourable Tax System

The Netherlands also has a tax system that is favourable to businesses. There is a 15% statutory corporate income tax rate on the first 395,000 Euros of profits and 25.8% on the next 395,000 Euros exceeding this amount.

The Dutch government has also made the country’s tax system attractive to foreign businesses by:

  • Being transparent about the tax consequences associated with making major investments in the country
  • Offering a 30% personal income tax advantage for skilled foreign workers
  • Maintaining dozens of bilateral tax treaties to avoid issues of double taxation on foreign businesses that have expanded to the country.

All these factors mean you can expect the tax system to favour you and business when you choose to expand to the Netherlands.

How to Expand Your Business to the Netherlands

Expanding your business to the Netherlands is a multi-step process. These steps are summarised below:

Step 1: Determine If You Can Legally Expand Your Business to the Netherlands 

The first step is to determine if you can legally expand your business to the Netherlands. If you are a European Union (EU) national, European Economic Area (EEA) member, or a Swiss national, you shouldn’t have any problem expanding your business to the Netherlands. However, if you don’t belong to any of the above categories, you may need to check with a professional to learn if you are eligible to expand your business to this country.

Step 2: Refine Your Business Plan

A business plan is critical when you are developing any business or expanding one to another country. You should create this plan after researching your target market, proposed sales activities, and forecasting your profits. You should also look into funding options at this stage.

Step 3: Choose Which Business Structure Your Business Should Take

Next, you will need to decide which legal form your business should take. There are four main types to choose from:

  • Sole proprietor or sole trader (eenmanszaak)
  • Professional or public partnership (maatschap)
  • General or commercial partnership (vennootschap onder firma)
  • Limited partnership (commanditaire vennootschap)

Each of these offers specific advantages and drawbacks so you research each one to determine which is right for your business expansion plan.

Step 4: Acquire the Necessary Licences and Permits

Next, you will need to acquire the necessary licences and permits to operate your business in the Netherlands. Some industries tend to be more heavily regulated than others, so you should ensure you have all the right licences and permits before attempting to operate your business.

This is also a good time to familiarise yourself with Dutch labour laws.

Step 5: Register the Business

Next, you must register the business with the Netherlands Chamber of Commerce. This organisation will then pass your details onto Dutch Tax and Administration.

Step 6: Start Hiring Staff

The final step is to start hiring staff for your business in the Netherlands. As mentioned earlier, you can get workers from your business in your home country to apply for work visas and have them work at the new branch in the Netherlands. You can also hire local workers from the country’s highly skilled labour pool.

Why Choose OpenAEuropeanCompany?

Expanding your business to the Netherlands can be a complicated task and you will need the guidance of experienced professionals to do it properly. Consider hiring OpenAEuropeanCompany to assist you through this process. We have helped many business owners expand their businesses to the Netherlands and are familiar with local business laws and regulations. Please contact us to start business expansion process as soon as possible or read more about company formation FAQs.

The post Why You Should Expand Your Business in the Netherlands appeared first on Open a European Company.

]]>
How to register a company in multiple countries https://www.openaeuropeancompany.com/blog/how-to-register-a-company-in-multiple-countries/ Wed, 19 Oct 2022 15:44:09 +0000 https://www.openaeuropeancompany.com/?p=23048 Registering a company in multiple countries like France, Italy, Germany, Spain, the Netherlands, UK, Europe, USA and Worldwide may seem daunting but it is...

Read More

The post How to register a company in multiple countries appeared first on Open a European Company.

]]>
Registering a company in multiple countries like France, Italy, Germany, Spain, the Netherlands, UK, Europe, USA and Worldwide may seem daunting but it is possible to get this done efficiently if you have the right expertise behind you.

What do I need to do to register a company in multiple countries?

Firstly, you need to ensure that your product or service is branded correctly for the country you are looking to target. Have you looked at buying patterns in Italy or Germany for example? Do you know if your customers will like the product in its current form or do you need to adapt your product to the market that you are selling to?

Once you have decided that your product or service is correctly positioned for market entry you need to look at how you sell into that marketplace. You may want to consider a branch in Europe, the USA or worldwide to get your products or services into your client base.

Alternatively, you may want to set up a subsidiary in Europe, USA or worldwide dependent upon your company structure. For those companies looking to set up a subsidiary in Europe, USA or worldwide it is worth considering who will be the main director of the subsidiary or representative of the branch and who is able to be more flexible in terms of travelling.

Covid-19 has seriously affected company travel plans and this, in turn, has affected how companies are being set up in Europe, USA and Worldwide in terms of banking, notary visits and face-to-face incorporations.

There are ways around the travel issue and incorporations can be undertaken, in many cases, on power of attorney with a local representative acting on behalf of the client to set up the company.

Banking is one of the mainstays to setting up a company in Europe, USA and worldwide. Most countries will accept some form of online banking solution but countries such as Denmark need a local to open the account.

This means that if you have no director that has a local ID then it’s going to be very difficult to open. The alternative is to set up an online banking solution in DKK so that invoices and taxes are paid. Countries such as Italy, France, and Germany require only an account in Euros in the name of the company.

It is hugely important to consider the communication elements of setting up in each country and to ensure that you have all the correct documents ready for submission. Having a second language or a company that has language expertise to help you with this is a plus point.

The Risks of Incorporating Your Business in Multiple Countries

One of the biggest risks is that you may become subject to laws in multiple jurisdictions. This can be costly and time-consuming, as you will need to ensure compliance with all applicable laws. You may also be exposed to political risk if you operate in multiple countries with unstable governments. Additionally, it can be difficult to manage a business across multiple jurisdictions, and you may face language barriers and cultural differences.

Before expanding your business internationally, it is important to carefully consider the risks and benefits of incorporating your business in multiple countries.

We can help to expand your business internationally

OpenAEuropeanCompany.com is always on hand to guide you through all of the stages of forming a new enterprise or expanding an existing company in multiple countries or UK companies that need to set up an EU base. Please don’t hesitate to call us on +44 (0) 20 8421 7470 or contact us via the website for help and advice.

You might be interested in this article: Setting up several businesses at once throughout Europe

The post How to register a company in multiple countries appeared first on Open a European Company.

]]>
8 Advantages of Setting Up Multiple International Entities https://www.openaeuropeancompany.com/blog/8-advantages-of-setting-up-multiple-international-entities/ Mon, 05 Sep 2022 11:58:09 +0000 https://www.openaeuropeancompany.com/?p=54608 It will come as no one’s surprise to learn that growing a business can be challenging for business owners and entrepreneurs. Depending on the...

Read More

The post 8 Advantages of Setting Up Multiple International Entities appeared first on Open a European Company.

]]>
It will come as no one’s surprise to learn that growing a business can be challenging for business owners and entrepreneurs. Depending on the country your business is in, you may experience many difficulties related to government regulations, taxes, and local competition.

The good news is that it is possible to expand your business and boost your profits by setting up or expanding your business in multiple countries. In this guide, we have compiled eight great advantages of setting up multiple international entities.

    1. Access to a More Favorable Economy

      One of the best reasons to set up a business or expand your existing business to another country is to get access to an economy with more favourable conditions. We live in a more globalized society thanks to international trade and increased connectivity in the digital era. However, each country’s economy still varies in terms of performance.

      This could be due to a number of reasons such as the number of corporations that exist in each industry, the relative wealth levels of the local population, or the international prices of the different natural resources.

      In either case, if your country’s economy is currently in a downturn, you can definitely benefit by setting up or expanding your operations in a different country.

      For example, certain South American countries such as Ecuador and El Salvador have economies that are currently in decline. The people in such countries are reluctant to spend money on goods and services due to this uncertainty. As a result, businesses in these countries are suffering.

      Business owners in Ecuador and El Salvador should therefore attempt to set up businesses in countries with more favourable economic conditions. This includes EU nations such as Germany, France, and Italy. Doing so will give them access to a new set of potential customers with greater spending power.

    2. Offering Goods and Services in a More Politically Stable Country

      Many countries across the globe have unstable political climates. This instability may be driven by the political parties or the electoral structures that exist in these countries. Either way, running a business in a country where the local government’s makeup changes each year can be difficult.

      Business owners and entrepreneurs must operate their businesses without any assurance the next government won’t pass laws that make their operations more difficult or even illegal. This prevents them from making any long-term investments or commitments that would be necessary for growth and expansion.

      Such business owners and entrepreneurs can avoid these issues by expanding their existing business or opening up a new business in a different country with a more stable political climate. European countries such as Switzerland and Finland are known for their political stability and are therefore great choices for people who wish to move or expand their business to a region where the future is more predictable.

    3. Gaining a Competitive Advantage

      No two countries’ economies are ever alike. This is because each economy has a different makeup in terms of industries. For example, Canada’s biggest industries are banking, oil and gas, and automobiles. This is very different from a country such as France whose biggest industries are energy, manufacturing, and transportation.

      Understanding the major industries in different countries is important because it offers information about how saturated each industry is. Opening or expanding a business to a country where the local industry is saturated is a bad idea because there is likely to be high competition and low profits.

      Conversely, setting up or expanding your business to a country where the local industry is still growing is a great idea. Business owners and entrepreneurs may be able to gain a competitive advantage in such industries due to their experience and speciality product or service knowledge from running their business in their home countries. They can therefore take advantage by expanding or setting up shop in a different country.

      For example, you may benefit by setting up a retail outlet for a streetwear store in Europe due to the limited number of existing streetwear manufacturers in the country. If you already have an established streetwear brand in your home country, expanding your business and selling your products in Europe could be a smart move.

    4. Getting Access to a New Labor Pool

      One of the biggest advantages of setting up a shop in a different country is getting access to a different labour pool. Business owners and entrepreneurs operating businesses in their home country typically need to rely on locally sourced staff. Such staff may be difficult to acquire if the business requires specialized skills that are rare in the country.

      For example, a company that builds artificial intelligence software may find it difficult to find software engineers with experience in this cutting-edge niche. Such companies may have to pay a high wage rate to get a few software engineers with this specialized knowledge to come work for them.

      If this company set up operations in a country with more AI software engineers such as the United Kingdom, German, or France, they would have access to a wider labour pool. This higher supply of engineers means each one could be hired for a lower rate than in the company’s home country. Therefore, business owners and entrepreneurs could find specialized staff and save on labour costs by expanding or setting up in a different country.

    5. Experimenting With Different Ideas

      Setting up multiple entities in different countries also gives business owners and entrepreneurs a chance to experiment with different ideas. This can be advantageous if the business has already established a name for itself in its home country and is reluctant to offer wildly different products or services.

      For example, a company that is known for producing fertilizer might be taking an unnecessary risk by introducing ice cream products in its home market. After all, people are likely to be sceptical about trying an ice cream product from a company with a reputation for producing fertilizers.

      In this scenario, the company may benefit by trying its hand at producing and selling ice cream products in a foreign market where people are unaware of its reputation as a fertilizer company.

      Business owners and entrepreneurs can therefore try wildly different ideas in foreign markets without worrying about a failure impacting their home business’s reputation. If they find the move yields success, they can then attempt to bring such ideas to their home  market and boost their profits even further

    6. Collaboration Opportunities

      Setting up a business in different countries can be beneficial for the collaboration opportunities it opens up. Business owners and entrepreneurs with limited collaboration opportunities in their home country may find plenty of businesses willing to collaborate with them in other countries. This could be mutually beneficial for both businesses.

      For example, fashion brands Alexander Wang & H&M collaborated in 2014 and produced a line of shoes. Alexander Wang is based in New York and is known for creating high-end fashion products. H&M, on the other hand, is a Swedish clothing and accessories company that makes more affordable fast fashion products.

      The cross-country collaboration was successful because it offered H&M customers on a budget access to an affordable offering from a high-end fashion brand. Alexander Wang was also able to expose its products to a new generation of customers with this move.

      For this reason, business owners and entrepreneurs can take their businesses to the next level and unlock untapped potential by setting up operations in other countries and collaborating with the businesses there.

    7. Lower Taxes

      It’s no secret that business tax rates vary greatly from country to country. For example, businesses in the UAE with annual revenues exceeding 5 million AED or $1.5 million must pay a corporate tax rate of 55%. By contrast, the Republic of Georgia in East Europe has a modest corporate tax rate of only 15%.

      Business owners and entrepreneurs who are tired of their profits being reduced due to high corporate tax rates could therefore benefit by starting operations in countries with lower corporate tax rates. In this situation, they may find it is more profitable to expand their operations in a different country than in their home country.

    8. An Easier Incorporation Process

      Many countries are notoriously difficult to incorporate a business in. For example, Brazil has many complicated regulations and laws governing its business environment. The lengthy bureaucratic process makes it difficult for entrepreneurs to start new businesses in this South American country.

      Prospective business owners and entrepreneurs in such countries may find it easier to open up businesses in other countries with easier incorporation processes. For example, it is possible to open a limited liability company in Hungary in just two or three days. This is possible because businesses don’t have to complete the lengthy process of applying for an EU VAT number, as this number is provided to them automatically.

Maximizing the Benefits of Opening Multiple Entities in Different Countries

As you can see, there are many potential benefits of opening multiple entities in different countries. However, business owners and entrepreneurs will need to be careful in their approach for a few reasons. This includes:

Choosing the Country With the Right Combination of Benefits

Choosing the right country to expand your business to can be tricky because there will always be a tradeoff between advantages and disadvantages. For example, a country with a low corporate tax rate and a speedy incorporation procedure may have an unskilled labour force that doesn’t offer the type of labour you require for your operations. Similarly, a country with an unsaturated industry may not have a sizable customer base for the type of products or services you offer.

For this reason, business owners and entrepreneurs should carefully weigh up the pros and cons of each country before deciding which one to set up operations in.

Setting Up the Right Number of Entities

Business owners and entrepreneurs may have high hopes of setting up a shop in another country. However, they will need to determine the optimal number of entities to set up. The safest option is to stick with one brand and outlet before gradually expanding and increasing locations. This approach helps minimize potential losses if the initial outlet fails.

More mature companies may be able to risk a more aggressive approach in which they set up multiple outlets in major cities across the new country. This allows them to make an impact in the industry and muscle out existing businesses that can’t keep up.

Knowing Whether to Change the Subsidiary Name

As mentioned earlier, some brands may set up businesses in other countries to experiment with new products and services. This approach sometimes works because consumers in the new country aren’t familiar with the original brand and what they are known for.

Business owners and entrepreneurs setting up a business in a different country also have the option of setting up a subsidiary under a different name. This allows them to completely separate their new venture from their existing brand and take more risks. This approach may be useful if people in the new country are already familiar with the original brand.

Establish Entities in Other Countries With OpenAEuropeanCompany.com

Setting up multiple entities in other countries can be challenging to do on your own. You will need to familiarize yourself with the business environment and incorporation processes in each country you decide to do business in. This is where hiring professionals such as OpenAEuropeanCompany.com can be beneficial.

Our experts understand the ins and outs of setting up several businesses at once throughout Europe. We can help you in setting up multiple international entities and find success. Contact us today to learn more about the benefits of doing business in different countries.

The post 8 Advantages of Setting Up Multiple International Entities appeared first on Open a European Company.

]]>
The Benefits of Establishing a Branch or Subsidiary in Italy https://www.openaeuropeancompany.com/blog/the-benefits-of-establishing-a-branch-or-subsidiary-in-italy/ Wed, 31 Aug 2022 22:02:47 +0000 https://www.openaeuropeancompany.com/?p=54569 Are you interested in expanding your company in a European country that boasts iconic culture and rich history? Then consider establishing a branch or...

Read More

The post The Benefits of Establishing a Branch or Subsidiary in Italy appeared first on Open a European Company.

]]>
Are you interested in expanding your company in a European country that boasts iconic culture and rich history? Then consider establishing a branch or subsidiary in Italy.

Many business owners and entrepreneurs have considered business expansion in Italy because it is the third-largest economy in the European Union and the eighth-largest economy in the world. However, there are plenty of other reasons why you should expand your business to Italy.

Some of the general benefits of establishing a branch or subsidiary in Italy include:

  1. Investor-Friendly Culture

    Italy welcomes investors from across the world with open arms. Its open economy is hospitable to those with the funds and resources to set up businesses that help boost it. The country’s government has taken many steps to make the business environment more friendly to foreign enterprises.

    This includes establishing a special committee in its Ministry of Economic Development that focuses on attracting new businesses from outside. The Italian Trade Agency is also actively assisting foreign investors in expanding their operations and supporting them throughout their investment’s lifecycle.

  2. Gateway to the European Union

    Italy is unique because of its strategic placement. The idiom “All roads lead to Rome” is a subtle reminder that Italy has well-established connections with other countries, particularly across the European Union.

    The country’s strategic position along the Mediterranean sea makes it an ideal trade hub for businesses seeking central access to North Africa and the Middle East. Approximately 20% of global maritime traffic occurs along its Mediterranean port.

    If you set up your business in this European Union country, you will receive duty-free access to tens of millions of customers across the economic region.

  3. Large Manufacturing Industry

    Italy’s manufacturing industry is one of its largest GDP contributors. The only EU country with a bigger manufacturing industry is Germany.

    Like Germany, Italy is also known for manufacturing high quality items and with cutting-edge designs. This makes it the perfect place to source metals, plastics, paper, plastics, ceramic, and textiles for your business.

  4. Heavy Focus on Innovation

    Italy has remained one of the most developed countries for thousands of years thanks to its heavy focus on innovation. This innovation continues today in the form of research and development.

    The country spends tens of millions of Euros on technological research and development. This has led to numerous digital innovations in its manufacturing industries. Such developments also benefit other businesses as the knowledge is often shared and helps reduce manufacturing costs.

  5. Access to a Skilled Workforce

    Italy is known for having high-quality education. It has two dozen world-class Universities. These educational institutions help produce skill workers in the Italian workforce.

    It is estimated that 300,000 students graduate from Italian universities each year. These graduates then go on to work in the country and drive its economy. If you establish a branch or subsidiary in Italy, you will definitely have ample skilled workers to choose from.

  6. A Unique Cultural Brand

    Like France and other European countries, Italy has a rich history that has shaped its current culture. Its unique art, food, and music culture attracts thousands of visitors each year. All this tourism benefits businesses in the country.

    This means your company can also benefit if you provide products or services for these tourists. Setting up a branch or subsidiary in Italy is therefore a great way to make your products and services available to a wide range of customers of different backgrounds.

  7. Numerous Policies and Investments to Improve Competitiveness

    Italy’s government has helped drive competitiveness among companies by putting many policies and incentives in place. This includes a 50% tax credit for private investments in research and development. They also offer a 40% deduction for those who invest in capital goods.

    Such policies encourage companies to innovate and grow. The end result is a better business environment where companies are at the top of their game.

Setting Up a Branch vs. Subsidiary in Italy

You might have used the terms “branch” and “subsidiary” interchangeably when referring to the idea of setting up business operations in another country. However, these terms differ in many ways so you should understand them before choosing what kind of entity to set up in Italy.

What is a Branch?

A branch is an independent business entity that performs operations under its own name but still functions under the company it is owned by. It is legally considered a part of its parent company and is therefore legally obligated to follow the local laws that govern said parent company.

In Italy, branches must be registered, even if they are conducting business activities independently. Their business name must also contain their parent company’s name.

Benefits of Setting Up a Branch in Italy

Some of the benefits of setting up a branch in Italy include:

  1. Understanding the Business Environment

    Many business owners set up branches in Italy because it helps them gain a good understanding of the local business environment. They can then decide whether they wish to set up more operations in the country. Branches are therefore considered a low-risk venture compared to subsidiaries.

  2. Cost-EfficiencyBranches are also believed to be more cost-efficient than subsidiaries. They have smaller annual turnovers and therefore have less tax liability and smaller overhead costs. This makes branches a great choice for business owners who wish to explore the Italian market while under tight financial constraints.

How to Set Up a Branch in Italy

You can set up a branch in Italy using the following steps:

  1. Register the branch with the Italian Registrar of Companies.
  2. Choose a branch representative. This representative’s name will be added to the Italian Registrar of Companies’ directory.
  3. Provide a business address in Italy. Alternatively, you may be able to use a virtual address.
  4. Obtain your Italian VAT number

What is a Subsidiary?

A subsidiary is a company that is controlled or owned by another company. An Italian subsidiary would be an incorporated entity that was created inside the country. All of this subsidiary’s capital could be owned by its parent company.

Alternatively, the subsidiary could be controlled by its parent company with the help of local partners.

Benefits of Setting Up a Subsidiary in Italy

Some of the benefits of setting up a subsidiary in Italy include:

  1. Being Legally Independent of the Parent Company

    The most upfront benefit of setting up a subsidiary is that it remains independent from its parent company. This separation means that the parent company is protected from any and all financial liabilities of the subsidiary.

  2. Easier Relations With Local Banks and Service Providers

    Many banks and service providers prefer to do business with subsidiaries than with branches due to financial and legal reasons. This means it is easier for subsidiaries to establish relations with banks and service providers.

How to Set Up a Subsidiary in Italy

If you intend to set up a subsidiary in Italy, you should first ensure you choose the right location. This is because different cities have different laws governing subsidiaries. So you should pick the location that offers the right balance of laws, supply chain, and market benefits.

You will also need to decide which type of business form your subsidiary should take. The common type is called societá a responsabilitá limitata (S.r.l.). This is the Italian equivalent of a limited liability company.

Once you have completed the initial planning and preparation, you can set up a subsidiary in Italy using the following steps:

  1. Execute your business’s public deed of incorporation and by-laws before a recognized public notary.
  2. Pay your registration tax
  3. Purchase corporate and accounting books
  4. Send your government grant tax amount  to the post office’s current account
  5. Register your subsidiary via Comunicazione Unica
  6. Inform the competent Labor Office (DPLMO) once you have begun hiring workers

Establish a Branch or Subsidiary in Italy With OpenAEuropeanCompany.com

Setting up a branch or subsidiary in another country can be a tall task. You will need to know the local laws and how to work with them to ensure your business is set up properly. The good news is that you can get through these hurdles with the assistance of an experienced professional company formation agent in Italy.

We have assisted numerous business owners set up branches and subsidiaries in Italy and are familiar with the registration process. Please contact us if you need guidance to expand your business to Italy.

The post The Benefits of Establishing a Branch or Subsidiary in Italy appeared first on Open a European Company.

]]>
Setting up several businesses at once throughout Europe https://www.openaeuropeancompany.com/blog/setting-up-several-businesses-at-once-throughout-europe/ Mon, 27 Jun 2022 21:08:39 +0000 https://www.openaeuropeancompany.com/?p=51883 Setting up several businesses at once throughout Europe is a difficult experience if you have no previous understanding of the processes, specific culture of...

Read More

The post Setting up several businesses at once throughout Europe appeared first on Open a European Company.

]]>
Setting up several businesses at once throughout Europe is a difficult experience if you have no previous understanding of the processes, specific culture of the countries involved and language nuances.

Before setting up in several countries in Europe or indeed throughout the world, you will need to look at your goals not just for the short term but medium to long term so that you can ensure the company you establish in Europe or worldwide is fit for the long term.

Shareholders and  directors

Of course, your business may change, and you may need to add additional shareholders and/or directors but this can be done without a problem if the business has been set up with limited liability in the country of choice, either as a subsidiary or a stand-alone company.

Usually, when adding or taking off directors and/or shareholders the business will need to draft a board resolution and the changes may need to be made through a notary depending upon the country in which the business is set up in.

Quickest countries to incorporate in

Interestingly, some countries in Europe are more forward-thinking and speedy in the way that they incorporate so timescales can vary from country to country. France, UK, Sweden and Denmark are amongst the quickest countries to incorporate in. However, practically speaking, the issues then occur with banking as, for example, Swedish and Danish banks expect to have a local director on the business and to meet with the directors of the business. However, a Swedish shelf company would be sufficient to set up and then share capital would be deposited into a lawyer’s escrow account and then transferred to an online Euro account and this is also the case for the French company.

Banking in multiple countries

UK companies can be set up without share capital deposit and an online bank account could be set up in the name of the new UK company. All banks will need to understand the nature of the business and identify directors and shareholders for compliance purposes. It is important to ensure that you have the correct documents to hand so that you can provide these.

Banking has also evolved with the appearance of a glut of fintech companies that are now becoming the accepted norm within the e-commerce environment such as WorldFirst – WiseMultipass. Please research carefully before making a decision as to which company you opt for as tariffs and terms and conditions will differ.

Market research and Recruitment

It is also important to ensure that you know your market and undertake market research within the country or countries of operation so that you are aware of the potential commercial issues that await you. Some of the obstacles that companies come across are the lack of talent within a region of the country in which the business has been set up. Additionally,  licensing issues need to be considered if you are in a specific industry specifically relating to businesses within the recruitment and financial sectors amongst others.

Recruitment consulting firms looking to set up in Europe would need to factor in AUG licences for Germany, APL for Italy and a lighter version for The Netherlands. Some countries within Europe have no requirement for a licence for recruitment. The licences tend to be needed for temporary staffing and temporary contracting. One-off fees that are invoiced to the client don’t tend to fall into the licensing category.

Final Thoughts

To summarize, please do your independent research before entering into a new business in Europe or worldwide and take relevant advice and support to ensure that costly mistakes are not made. For help and advice on multiple company incorporations or one-off setups, please don’t hesitate to call us on +44 (0)208 421 7470 or contact us via the website.

The post Setting up several businesses at once throughout Europe appeared first on Open a European Company.

]]>
Business Expansion into Europe – Is the time now right in 2022? https://www.openaeuropeancompany.com/blog/business-expansion-into-europe-is-the-time-now-right-in-2022/ Sun, 24 Apr 2022 22:28:41 +0000 https://www.openaeuropeancompany.com/?p=49784 If figures that are emerging from the European Union are to be believed then in the first quarter of 2022 this is exactly the...

Read More

The post Business Expansion into Europe – Is the time now right in 2022? appeared first on Open a European Company.

]]>
If figures that are emerging from the European Union are to be believed then in the first quarter of 2022 this is exactly the right time to expand into Europe. Covid has been a factor in slow growth in the last year or two but the European Union’s Winter 2022 economic forecast looks set for a growth in the European Economy in Spring 2022 and “remain robust until 2023”.

According to  Voxeu.org, following a strong rebound in 2021, growth in the EU is now forecast at 4.0% in 2022 (down from 4.3% in the Autumn Forecast) and 2.8% in 2023. The euro area inflation forecast for 2022 is revised up on the expectation that energy prices will stay high for longer. Inflation is expected to return to just below 2% in 2023.

Key figures from the Winter 2022 Forecast

This could be a good time for expanding your business into Europe as GDP in the European Union is expected to reach 16200.00 USD Billion by the end of 2022, according to Trading Economics global macro models and analysts expectations. In the long-term, the European Union GDP is projected to trend around 16800.00 USD Billion in 2023 and 17500.00 USD Billion in 2024, according to its econometrics. This means that available spending on goods and services is phenomenal and represents a great opportunity.

Let’s look at some of the countries within the European Union that are doing better than others in 2022.

Italy’s GDP was expected to bounce back 6.5% this year but the EU has revised this down to 4.1% – still represents a healthy increase in growth just above the average economic forecast for the European Union in total. The political outlook at present seems stable with Sergio Mattarella being elected as President for a second term. Covid has increase e-commerce in Italy as well as opportunities to set up recruitment businesses specifically in health care and IT.

France and Poland also look decent despite uncertainty caused by the war in Ukraine. Unemployment has fallen to a 13 year low in France to 7.4% which has been a boost to Emanuel Macron for his re-election. Poland’s unemployment rate is around 5.5% which has significantly reduced since the previous year.

These three countries are a few of those countries including the United Kingdom predicted to grow in GDP this year according to statista.com.

Despite the threats to stability in the European economy there are still plenty of avenues to explore to expand your business in Europe. IT and Healthcare staffing agencies as well as E-commerce and selling international products into the Italian, French and Polish market places as well as United Kingdom and other countries within the European Continent.

For help and advice on multiple company incorporations or one-off setups, please don’t hesitate to call us on +44 (0)208 421 7470 or contact us via the website.

The post Business Expansion into Europe – Is the time now right in 2022? appeared first on Open a European Company.

]]>
The Advantages and Disadvantages of International Business Expansion https://www.openaeuropeancompany.com/blog/the-advantages-and-disadvantages-of-international-business-expansion/ Thu, 13 Jan 2022 08:32:23 +0000 https://www.openaeuropeancompany.com/?p=15695 You may have an existing business but are looking for ways to tap into the potential for building success in Europe or worldwide or...

Read More

The post The Advantages and Disadvantages of International Business Expansion appeared first on Open a European Company.

]]>
You may have an existing business but are looking for ways to tap into the potential for building success in Europe or worldwide or even expanding your business into multiple countries. This then leads to several questions that may or may not have been considered up to this point. Where do I locate the business? Do I need a licence to trade in my business sector? Do I need an office? Do I need immigration support? What about banking? What about language expertise – will I need to learn a new language?  Expansion internationally carries risk but if you mitigate these risks and ask these questions before you launch then you will be less likely to come up against unknown obstacles.

Advantages of doing business in Europe and worldwide

  1. New customer engagement

    As a successful business you understand how your business performs in its home country, but who knows how many more consumers and clients you could reach in a new location?  With the right amount of research and investment, you will reach a new potential pool of prospects who are enthusiastic to purchase your products or services. It is important to take some time to look at the demographics and tastes of each country to ensure that you are selling your product and service to the right market.

  2. Spreading business risk

    As a multiple business owner with companies in various locations in Europe and Internationally it may relieve some pressure should one location suffer from recession or crisis such as the epidemic we are coming through. The more countries in which you have a presence, the more the ups and downs of business fortune will become smoothed out and easier to manage. Sometimes, setting up a business in multiple locations brings economies of scale to the start-up process.

  3. Recruiting new staff

    Your company’s success may depend as much on the people you work with as the actions and decisions of you personally. Expanding to an international location could give you access to talented, invaluable new employees and business partners who would take your enterprise to the next level. Please consider issues such as employment figures and skillsets when looking to set up your business in Europe or Internationally. High unemployment rates may mean better access to skilled workers.

  4. Increasing brand awareness

    Expanding your business out from its home country will have the effect of increasing the visibility and therefore brand equity of your name, logo and ethos. You can enjoy a reputation boost from international growth, and your new customers in the target location may perceive your products or services as a novelty or even prestigious.  You will also have a great opportunity to extend the reach of your intellectual property, trademarks and copyrights to new regions. You just need to be aware of cultural differences in taste, behaviour or attitude and alter your product or service to reflect this.

  5. Securing foreign investment

    Investment firms and individuals are not distributed evenly across the globe, with large concentrations of investment money available in some areas and little in others. Depending on the target country for expansion, you may find that growing your business internationally gives you access to investment capital far beyond that which is available in your original location. Fortunately, data is easily available to identify which countries are the best and worst for investment fund opportunities.

  6. Lowering costs

    The economic landscape has changed and some countries are more expensive to set up and run than others – it is important to look at this as an exercise as you are making decisions to enter the market. However, operating in multiple locations will quite naturally increase the number of products and supplies you need to order, allowing you to negotiate lower prices for your growing bulk purchases. Essentially, there is an inversely proportional relationship between the size of your operation and your per-item costs. Additionally, If you are looking to enter into Europe, Asia, the USA or Dubai for example then there could be one port of entry through one consignment which will allow for split and ease of distribution across continents.

  7. Increased immunity to trends

    No business wants to be in the situation of realising that its main product or service has gone out of style. Having a presence in more than one country can help you to ride out the winds of trends, fashions and fads – a product or service that has become dated in one location may still be going strong in another, buying you time to rethink your approach.

  8. Improved consumer confidence

    An advantage of a physical expansion against selling things to the target country from afar via e-commerce is that your customers are likely to have increased trust in the company if you have a registered, localised office or stores in the country – particularly if after-sales support is an important factor in your industry. The Fall 2020 FedEx Trade Index says that in 2020, small businesses are adapting rapidly to embrace e-commerce and extending their reach to new consumers beyond their borders. Small businesses believe in the benefits of modern free trade agreements to enable their growth.

Disadvantages

  1. Foreign rules and regulations

    International business expansion certainly isn’t short on confusing paperwork, as every country has its own tax and employment laws as well as business registration and trademark considerations and papers that must be filed in a foreign language. The good news is that we are always on hand to help with these situations. We are happy to review your requirement in a free initial consultation whether one specific company or another would be more suitable practically based upon your current needs.

  2. Handling logistics

    An unavoidable consequence of any business expansion is that many logistical considerations will quickly become more complicated with questions about how to efficiently handle communication and organise the shipping of physical goods between sites. Of course, shipping from one country to another can take a long time, and what do you do in the event of delays (or even missing shipments)? Another consideration is that not every country has the same resources and infrastructure, and it may be best not to make any assumptions about the things you need to operate in the new country. We have access to warehouse and logistics networks that may support you when transporting or storing in the country.

  3. Speaking the language

    More than three-quarters of the world’s 195 countries don’t speak English as their primary language, and even if you are expanding to one of the many nations that speak it as a secondary language you will need to get to grips with the local tongue if you intend to communicate properly with your new customers. Don’t skimp on localisation and translation services – countless stories abound of high-profile business humiliations due to badly translated slogans and product names. If you do not have language expertise then hire a trusted individual in-country to ensure that you have a manager who can look after your interests and ensure that your business goes smoothly.

  4. Coordinating time zones

    Another consequence of expanding internationally is that you can introduce a time zone disconnect between your sites – as an example, an American company expanding to India might find themselves in a predicament, as the 9 am-5 pm office hours in America would correspond to 6:30 pm-2:30 am Indian time! Not all time zone conflicts are this severe, but it’s important to minimise inefficiencies; if each site has to wait until the following morning for a reply to an important email, everything slows to a crawl. Make sure you have a co-ordinating team on the ground that are aware of the timings and hire accordingly should this be the case.

  5. Monitoring currency fluctuations

    The value of your home currency relative to your target location at any given moment can have huge significance for the success of your business. If your home currency is weak by comparison, this can allow you to offer competitive pricing in the secondary location – it is actually a strong home currency that is worse for international business (in simple terms, customers with a weaker currency will struggle to afford your products). This may force you to either drop your prices or make fewer sales, both of which will hinder your bottom line. On the other hand, a shrewd business owner may be able to time their purchase orders to make their money go further during a favourable moment in the currency fluctuations.  Alternatively, you need to build in a percentage to take into account currency fluctuations. FX exchanges help to hedge those currency fluctuations such as Wise.

  6. Mitigating credit risk

    A domestic customer who defaults on their bill can represent serious trouble, but that goes double for foreign clients, as depending on the location there may be no guarantee at all you will be able to recoup outstanding debts from non-paying customers. This is known as credit risk, and the solution may be to identify the credit rating of new prospects upfront or to take out trade credit insurance. You may also want to look at invoice financing which will support you when you have clients who are paying you on 30-60 day terms.

  7. Following foreign politics

    Assuming that your target country has the same political environment as your own nation could be a recipe for disaster. Staying abreast of developments is crucial, as political events can affect your business dramatically – what are you going to do if the foreign government embargoes or outlaws something you rely on? As with credit risk, securing political risk insurance is an excellent idea, as is establishing backup plans for your most crucial supply chains. Having access to local news helps to understand whether there is a risk to your business and if there is a trend that you can take advantage of.

  8. Gathering market research

    Depending on your business, you may find it necessary to rebrand your company or rethink your products for best results. This could potentially involve expensive market research to discover what the locals in the new country respond to best and to understand the needs of a completely different culture. However, there are many ways of studying a foreign market on a budget, and creative thinking can help to keep the costs down.

Final Thoughts

Ultimately, there are pros and cons with any business expansion, and international growth is no exception. With careful forethought and planning, your business can go to the next level and take advantage of a whole world of opportunities. Read about the advantages and disadvantages of foreign-owned subsidiaries

For help and advice on multiple company incorporations or one-off setups, please don’t hesitate to call us on +44 (0)208 421 7470 or contact us via the website

The post The Advantages and Disadvantages of International Business Expansion appeared first on Open a European Company.

]]>