7 Things to Know Before You Expand Your Business in the European Union
The EU represents one of the biggest markets in the world. The main advantage of running a business in this area is the open market because there are no taxes needed when it comes to the export and import of goods between member countries. It provides the company with excellent potential because you can target customers from all member countries, and the prices can be the same as well, without any additional expenses.
If you are interested in opening or expanding your business to the EU, you should find an effective location, people with proper knowledge and experience, and infrastructure along with the settled strategy that will help you to run your business in the right way. In case that you want to start a business in France, you can check out nordfranceinvest.com, which represents the group of experts who can help you with resources and strategies related to properly expanding your business to this area.
Moreover, it is essential to find out more about the active regulations that will help you to comply with official laws related to any branch. Here are the most important things to know about expanding a business in EU.
1. Don’t Rush With Your Decision
The first thing to know about European Union is that there might be some particular laws and regulations in each country. They can be related to taxes, quality of goods, additional expenses, and more. It is essential to learn more about these factors since making even a small mistake and avoiding considering some important things might make your business less effective.
2. Best Countries to Consider
As we already mentioned, there are some differences present from country to country, which can make each one of them better or worse for choosing it as a location for your business. Some of the best countries to consider are Sweden, Denmark, Lithuania, Greece, Estonia, Ireland, and Finland. Sweden is on the top of the list when it comes to countries that provide advantages for new businesses.
The main benefit is easier access to Scandinavian countries who are known as the best-developed part of Europe, and citizens have higher incomes, which leads to improved chances to sell your goods in higher quantity.
Denmark is known for flexibility and, especially when it comes to the process of opening a company, which can be quite frustrating in many other countries.
The main reason to consider choosing the Chezh Republic is the fact that it is placed in the middle of Europe, which offers a possibility to target more countries at the same time. Also, it is known for lower taxes for business owners. Moreover, Ireland is one of the fastest progressing countries in the EU, and one of the main reasons is related to lower taxes and other expenses for companies.
That is the main reason why some of the biggest tech companies like Microsoft, Apple, Dell, and Alphabet have their head offices in this country. The process of starting a business is less complicated in Greece and Lithuania as well.
3. Find Local Partners
The best solution for effectively expanding to this market is to start collaborating with local companies and experts who can help you throughout the process. For example, if you are from the US, you should keep in mind that people in Europe might have different needs. Also, there could be different regulations for sizes, packaging, transport, and more.
4. Learn the Requirements
In most cases, the rules are pretty simple. You can finish the whole process in only a couple of days. However, you should have a prepared strategy. It will cost you around $100 to open a business. Moreover, it is crucial to pay attention to legality and collect all required documents. The great thing is that you can now register your company online as well.
5. Main Benefits
We already mentioned the main advantage, which is the possibility to target customers from all member countries. That is the market with over 700 million people. Also, you can still import products from all over the world.
After you finish with a legal importing process and pay the required taxes, you can freely distribute the goods all over the EU. However, keep in mind that there are special laws related to the quality of products that you must comply with. The most important laws related to products are focusing on quality, impact on the environment, public health, and more.
6. Transparency is Very Important
Another crucial thing to know is that people in Europe demand transparency, which means that there must be a clear label on your products where they can find out more about your company, product, how it is made, what materials or ingredients it contains, are there are potential side-effects, and more.
7. Find Your Target Group
It does not matter where you are planning to expand your business as long as you have a clear plan about which group of people you are going to target. It largely depends on the industry where you are operating, and whether you are offering products or services, and public customers or other businesses.
For example, if you are offering new solutions for start-ups, choosing Ireland or the Chech Republic is a much better option than Spain or Italy since Ireland and the Chech Republic are known as start-up-oriented economies, while Italy and Spain are more focused on tourism and service branches.
The Bottom Line
First of all, you should define the area where your business will be operating, and it must include a proper strategy as well. Moreover, you should consider different regulations and tax rates, along with your branch, which is the best way to determine the location.
Also, you should find experts from the local country you have chosen because they will make it easier for you to start your business. Besides that, you should find out more about the culture, needs, and other features related to people living in EU.
