In recent years, entrepreneurs have resorted to new ways of starting or expanding their businesses in foreign territories. Since most of it is because of the growing market, another important reason is to cater to overseas communities and clients. As a result, new businesses are opening their new branches in several European countries. This provides entrepreneurs with considerable opportunities to expand and work with innovative ideas.
In specific situations, where you want to establish your multi-million strategy and find the Silicon Valley to be a bit saturated for you to operate, move to some of Europe’s massive industrial hubs. You can opt for cities like Berlin, London, Amsterdam, Paris, Madrid, Barcelona, Dublin, Stockholm, Milan, Copenhagen, Munich, Helsinki, Warsaw, Lisbon, and Zurich. One of the EY surveys ranks England’s capital to be second for tech investment after Silicon Valley. Meanwhile, Dropbox, Facebook, HubSpot, and several other tech giants have established their branches in Dublin. Furthermore, Swedish startups, such as Candy Crush, Minecraft, and Skype, have pitched themselves in the Swedish capital, Stockholm.
Another vital aspect behind moving your business to Europe is its booming startup sector. But, in case you are not familiar with the European cultures and workability, it might get difficult for you to survive and thrive. So, get accustomed to their regulations and working style before you plan on moving in. Considering all these points, let’s do a quick rundown of some of the essential things you need to know before starting a business in Europe.
1. Secure international trademark protection.
One of the most important considerations for you, as an entrepreneur, should be to protect your trademark internationally before starting your work within the European territories. Moreover, you should know that every European country has a distinctive series of processes to register trademarks. These trademarks need to be acknowledged and registered before you get legally certified as the trademark owner.
The European Union (EU) provides a service named – intellectual property protection service, which makes the entire application procedure easier for every member state of the European Union. Such a method goes through a process that is online automated.
2. Know the most tax-friendly European country for small businesses.
For any business to thrive in its initial phase, its entrepreneur should know all types of VAT rules of European countries. Such a step helps them to formulate and develop a specific market strategy, keeping the country of operation in mind. For instance, if you’re into providing digital services to people, the EU VAT regulations brought into place in the year 2015 require you to submit the VAT amount as per the rate of a buyer’s country instead of the rate that you have back in your country. Also, study and get to know how a euro currency account work.
Since more than seventy VAT rates are applicable all over the EU countries, you need to be well-versed with them. Moreover, you need to know how many days it takes to complete the VAT registration.
3. Get accustomed to the culture.
At times, entrepreneurs tend to go all-out while establishing their new business in European countries, forgetting to get accustomed to their cultures and aesthetics. Since this is one of the essential aspects you need to keep in mind, try to blend in as much as possible. Furthermore, Europeans do not like to showcase their wealth. So, refrain from being lavish. Aim for minimal accessories, subtle elegance, and lose that opulent bling as soon as you can.
Get to know the people, their cultures, and interests as these things will make your understandability stronger and stay longer.
4. Deals usually take place at a diner.
One needs to understand that work and deal culture in the US and UK are completely different. While you had to conduct a business meeting on the golf course back nine in the US, prepare to dine in Europe for a meeting or to discuss a deal. Remember, most of the decision-making and trust-building over a plate.
5. Time is vital in Europe.
If you are coming from the United States, you might be accustomed to meeting limitations, focussing on limiting the duration of all the meetups. However, in Europe, people pay more attention to the ideas, concepts, and discussion in a meeting. Europeans tend to allow ample time to digest every discussed aspect of a meeting. So, you do not have to micromanage time.
Final Thoughts
There are several challenging aspects of establishing or operating your new business in European countries, but you need to be ready as an entrepreneur. Understanding the country’s culture, people, traditions, and interests, you are moving to help your business considerably. So, do your research well and plan every move before you proceed to Europe.