If you’re working on a growth strategy, consider European expansion to kick off your global initiative. Small to mid-size firms opt to jump over the pond for their first international journey because European’s familiar culture and the benefits associated with operating in a similar market.
Benefits of European Expansion for Firms
Operating in the European Union is an amazing opportunity for small to mid-size firms. There are more than 480 million consumers and a free flow of goods that can result in lucrative results for your company. Laws that reduce bureaucracy and a singular currency across member states make it easier for outside firms to begin operations. Plus, the consumer base is similar to the US market, which means that if your services or products sell domestically, you should perform well in the EU.
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Requirements for Setting Up your Operation in an EU Country
Visit your target market and take the time to research the area before setting up shop. You should fully understand the market, its people, culture and laws before diving into the operation to ensure you’re prepared.
Contact the local foreign exchange agency in your target country to learn about the dollar-to-euro conversions. Local development agencies can also provide you with information about regulations for working in their markets. Other requirements include:
- Checking authorizations and qualifications for the specific EU country
- Meeting the country’s tax requirements
- Following the professional ethics codes
Additional Requirements for Opening a Subsidiary in the EU
If you plan to establish your entity or branch, there are more steps to your registration process. You need to work with the following offices:
- Tax and VAT Authorities
- Social Security Authorities
- European Business Register
For a complete listing of the permits and licenses required in each EU state, visit the European Commission’s page.
How FSaaS Helps with these Requirements
Foreign Subsidiary as a Service allows businesses to expand internationally without managing the overwhelming details. The service we provide gives your company the opportunity to employ an international team and sell services overseas while remaining compliant. We set up a taxable presence in your target market without the exuberant costs and time constraints.
If you’re considering European expansion, this may be the best option for your team. It reduces the risk of overlooking labor laws and requirements because we take care of that on our end. Plus, you can save time and money and start working overseas leaving your team to focus on strategy to grow into even more countries.
