Do you want to conquer new markets? The international development of your business requires some control of the regulatory aspects to be in compliance with the law and thus avoid financial penalties.
Many support solutions exist and allow you to be advised by experts who will meet your expectations and who will recommend optimization solutions for your business. This article outlines two ways to open your business internationally.
Company incorporation: a choice not so obvious
In the context of a development abroad, several solutions are possible: the tax agent / tax representative or the creation of a permanent establishment. In some cases, a company has no interest in physically establishing itself in the desired country. It is recommended to use a tax agent or a tax representative. If, on the other hand, the activity requires a physical presence in the target country, then the creation of a company is necessary. Formalities are complex: business plan creations, administrative procedures, bank account opening, tax management of operations, accounting, auditing, etc. In addition, language proficiency may be mandatory and it is often recommended to go through a trusted partner with local experience.
Other alternative: tax representation in the EU
In the other case, it may be more interesting for the company to use tax representation. This makes it possible to enter the European market without having offices or employees on site and without resorting to the creation of a subsidiary. All of your activity can be fully controlled from abroad. Tax representation is therefore a simple and economical alternative to physical implantation. Moreover, in the absence of an establishment, the profits you realize in the European Union are not subject to the income tax. On the other hand, you will in most cases have the obligation to identify yourself to VAT.
Do you have any question about the development of your business internationally? ASD Group, with its network of 30 branches in 25 countries, supports companies of all sizes in their international development through its business creation, tax representation, foreign VAT refund and posting of workers. Do not hesitate to contact our experts!
