New Articles

Is Europe The Best Place to Set-up your Business? Benefits and Pitfalls To Look Out For.


Is Europe The Best Place to Set-up your Business? Benefits and Pitfalls To Look Out For.

Your business is growing and successful in your country. You may have gotten to the point where you are asking yourself “What is next?

It may be the most fitting choice in specific situations to launch a new product line or service to help you develop and grow your company. In other instances, entering into a new market is the next logical step.

For companies seeking to grow their businesses abroad, Europe has always been considered a great region. Expanding your company to Europe offers plenty of opportunities outside of your home market to expand. Expanding to Europe, however, is not without its challenges. In this article, we look at the benefits and pitfalls to look out for.


First Mover Advantage

When it comes to first-mover advantage, Central-Eastern Europe (CEE) is becoming increasingly popular. CEE comprises countries such as Hungary, Poland, Slovakia, and the Czech Republic.


Businesses with the best e-commerce services can take the best mover advantage, as Forrester E-commerce Readiness Index suggests that the EU businesses lag behind in that area. Businesses can expand successfully by looking for places where established products and service levels are low, providing better alternatives.

Dreamland For Entrepreneurs

If you are an entrepreneur or the first company in your sector or market, you must consider setting up your business in Europe. This might provide you with an opportunity to earn a foothold before the market gets saturated.


Take the example of Dublin (Ireland). There are many excellent reasons to uncover your new start-up company in Dublin. Dublin offers a favorable low tax system and a supportive environment for start-ups to the availability of well-educated workers. You need to be in the best location if you want your company to flourish.


It can be a cost-cutting step to set up a business in a European country in certain situations. Compared to the U.S., it could end up costing your company less to produce goods in the EU or to have your headquarters located in a European country. It can also help you save on shipping and transportation costs by providing a home base for your company in the EU.


Pressure of Compliance

A company must adjust and function according to country regulations while expanding into a new market. These regulations may be quite distinct from your country of origin. In Europe, where employment law is concerned, each country has its own rules and regulations. Therefore, it is vital to associate with the right people who will help you stay compliant and ensure that the correct business procedures are in place from day one.

Global employee management

When it comes to employment legislation, every country in Europe has its regulations. Although some EU countries have parallels with some European laws, these directives are operated differently by each country and by the laws of their own country. A new level of HR support and administration includes the employment of foreign workers. For successful global expansion in Europe, staying compliant is key. Severe costs will result from failure to remain compliant.

Time zone issues

Your country offices can be four to 10 hours behind your European counterpart, depending on your company’s location and the location of your new venue. Differences in the time zone will make communicating a challenge. One possible difficulty of operating across time zones is that it can mean that it needs to become more coordinated and on-the-ball for your company.

How PEO Provide help

It’s just a matter of duration before you start planning a roadmap for your growth as a successful company owner. Luckily, there is a more straightforward option for companies that are trying to dip their toes into a new market without exhausting themselves with substantial investments and a set of criteria for international compliance. Engage with a PEO if you are looking to grow overseas using a lower-cost, lower-risk business model.

What’s a PEO, then?

A Professional Employer Organization works closely with small to medium-sized companies to assist with various activities, including providing access to better employee benefits, managing certain aspects of human resources, managing taxes and payroll, and other employer-specific admin positions that are required to operate a company effectively.

So, Precisely What a PEO Offers?

-International expansion

-Compliance support

-Payroll and HR

-Better recruitment options

-Risk protection

-Access to more engaging benefit packages


You may take the example of Germany PEO services that offer employers of record service for businesses who want to recruit workers and run payroll without first setting up a branch or subsidiary. The candidate for your company is hired in Germany in compliance with local labor laws through PEO and can be set up within a few days. PEO services in Germany help customers in Germany to run payroll while HR utilities, tax, and compliance management problems are eliminated from their shoulders. As global PEO professionals, they practice the best strategies in employment contracts and severance problems and even termination if needed. Also, these services keep you up to date on any changes to local jobs laws in Germany.

Final Thoughts

Expanding worldwide has its pros and cons. However, companies seeking to grow their business internationally should take advantage of the many edges that Europe has to offer. With a population of over 500 million, a diverse community of countries, and a common market, Europe gives companies plenty of opportunities to grow.