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The generally accepted wisdom for founders with big home markets was to win your domestic market first before thinking about going international after that. However, the most aggressive founders are now thinking about growing sales globally from day one.Judging the right moment to go international is going to be a big moment for a leader and a daunting decision to make. You have to take all the different elements of your company into consideration but there are some general rules we can look to start that might help tell you, you are on track.The 25% RuleThis one is fairly straightforward. When 25 percent or more of your business is coming from international markets, it’s time to scale outside your home country.The Scale RuleThe Scale Rule can help founders to decide if they are ready or too early to scale by defining it. For this, we turn to Steven Carpenter, former Global Sales & Operations at Dropbox and exec at Accel.“I define scale as when your company has reached “product/market fit” in tandem with “business model fit.” It’s the moment when your customer acquisition growth rate is increasing while your acquisition costs are decreasing, AND the unit economics of the business are moving in your favour. You aren’t yet profitable but you understand your cost levers.”The Go-Fast RuleThe founders that follow the Go-fast rule know that they can sell internationally with minimal incremental cost and that if they were successful, they would increase their growth rate and demonstrate that their addressable market extends beyond their home country, the goal being to drive valuation.If your business can use its existing logistics or pass along new delivery costs to the customer to service in the new market then it can generally be a no-brainer to run an AdWords or Facebook campaign in your new market very early on and see what takes. You shouldn’t even need to localise your offering for these tests. If the proposition is going to fly internationally then some customers will convert even when the pricing isn’t a local currency. If you are in a position where you are going to need people on the ground to sell and deliver your product then you need to consider the scale rule.There is also an argument for expanding early that you can pre-empt copycats, American investors looking for ideas from European or Asian markets, etc., and vice versa.The model is working well enough ruleThere’s often no clear moment when your business model is ‘working’. So, you can ask yourself does it if feel like the management team has moved its focus from continually fighting fires to optimisation? If you are still fighting fires it might be too early but if you aren’t then your business model is probably working well enough that you can handle the fires of an international office.Some considerationsStart-ups from countries with a population of less than 50 million go international twice as fast as start-ups from countries with a population of more than 50 million: 1.4 years as opposed to 2.8 years.Smaller countries need to think internationally from an early stage. A founder in the U.S. or China can focus 100 percent on their home market and comfortably build a $billion business. That’s the upside for bigger countries. The downside is that they may only think about the international market at a late stage and may struggle to adapt their business accordingly. Whereas a founder in Sweden or Ireland knows from day one that their business needs to be international, if it is ever going to get really big, and builds accordingly.As a general rule, the return on investment (ROI) of expanding internationally is usually less than the ROI of expanding domestically. Typically, with a business that is going well in its home market, €1 invested in local growth will increase user and revenues more than €1 invested abroad. Eventually, though, a company will reach saturation point in its home market and need to expand elsewhere, at which point this equation might switch around. But usually, it is cheaper to expand at home than abroad.While the advice may be to go international as early as you can - If possible, start by selling internationally from your home base.Centuro GlobalExpanding a business to a new international market is a big challenge to tackle for any company. Depending on which market your start-up wants to enter, you will not only face new business challenges but also cultural differences that can lead to further hurdles. The endeavor requires a lot of commitment and many dedicated resources. The good news is, that you’re not the first one starting this undertakingAt Centuro Global, we strive to assist companies of all sizes at every stage of their journey and growth. We simplify the scaling process for businesses by offering a clear strategy and roadmap for new market entry and business growth. We then connect clients with the right local resources and experts furthering efficiency in scale, within the strategy.Find out more: https://www.centuroglobal.com/ 

So you’re ready to expand your business abroad. You’ve done your due diligence and carefully selected your country of choice, you’ve identified an opportunity and a favourable environment to expand your business to. So now what? How do you get the ball rolling? A recent survey found that nearly six out of ten UK SME’s are considering establishing their business overseas to drive growth, so you're not alone! To help you on your journey here are 5 areas to get right when you expand your business abroad, whatever country that might be.Define your goals and develop a strategy for your global expansion! Like any big, overwhelming goal it's always best to break it down and set clear objectives. First of all, what are you trying to achieve with this expansion - access to better infrastructure or business environment? Increasing your customer base? Diversifying your risk? - There are many reasons to expand internationally, having a clear understanding of what you are trying to achieve will help you make better decisions along the way regarding your strategy. Second of all, review the assets you have in-house and identify what’s missing. Where do you lack in-house expertise? Can you find a mentor or a partner to help with this? How are you going to finance the expansion - do you need to go out and seek funds? And finally, information - what do you know and what do you need to find out about to embark on this expansion. A simple way to approach this is to start with a list of questions, some you have the answer to, some you will need to research.Tip: Download our global expansion checklist here to give yourself a structure to your global expansion and pose questions you may not have thought about. Get to know the legal system! In a recent survey, legal advice was identified as the most useful form of guidance when it comes to setting up overseas by 46% of respondents. This comes as no surprise as the impact of getting this wrong can come with terrible repercussions. There are normally 3 main considerations - company and employment law, intellectual property and data protection. Understanding these three areas will help you identify the disparities from your current location and will affect decisions such as who or how many people you employ, what company set-up you choose, what intellectual property protection you will need in place and how to set up your data handling systems. Tip: Do your desk research first to flag any imminent obstacles that will affect your entrance strategy - it will give you a basis when you seek specific legal help further through your journey. Decide what method of global expansion is the best fit for your business!Consider your market entry options, you may want to set up an overseas office, franchise, direct export, license or even buy a local company. This is where knowing your business's expansion goal is key and understanding the local environment is crucial to see what the implications of this decision might be.You will also need to decide what entity you want to set up in the new country, what company set-ups are available to foreigners - and what the tax or legal implications are of those company structures might be. This is country by country specific.Tip:  Specific details on company set-ups for each country can be found on our free platform - Centuro Connect, with detailed information on over 100 countries. Explore here! Get your business finances global expansion ready! With a new country comes new requirements for tax & accounting, as many companies already do in the UK, outsourcing taxation, payroll and business accounting is a smart move. However with something as delicate as your finances you want partners you can trust. It is also wise to see what financial incentives may be available to companies looking to set up in the new territory. Some countries offer incentives to encourage entrepreneurs and businesses to expand to their region. With the total cost of expansion often unclear, it is important not to miss out on extra funding if available! Tip: International global expansion often costs more than expected. Make sure you have a contingency fund to ensure you can complete the expansion. Establish a team - global expansion HR!  Depending on the market entry method you have decided to pursue you will have to create an employee strategy. Local employee’s come with an invaluable understanding of the local culture, methods of doing business and potential connections in the industry. However, with this comes the challenge of employing the right people, staying on the right side of local employment law and trying to ensure the new venture is carried out in line with your existing businesses strategy. Which if you aim to disrupt may be highly important. Using existing employees involves managing the visa process to ensure that they can legally work in the country you are expanding too whether that's temporary or long term. Plus ensuring they have applicable skills to succeed in the new country. Tip: Whatever your employment strategy, make sure you have a clear idea of what decisions or actions need to be made locally and what decisions will be made centrally - then make sure you have the right people in the right locations to facilitate success. Gather detailed information for your global expansion! This is just an initial look at some of the considerations when expanding your company abroad! To help with this mammoth task we have launched a new platform - Centuro Connect, that dives into specifics for each country helping you do your research all in one place! It is completely FREE - no hidden costs - just the ultimate tool for understanding market entry options, HR, Immigration, Legal Requirements, Tax & Accounting and much more …. with 100 + countries it has the specific information you need from global expansion experts. Take a look at the platform here!  

Expanding your business in any capacity is a challenge that takes knowledge, willing and time. Successful global expansion will provide you with a new economy to work within, a wealth of industry resources that may not be available to you in the UK, and other new profitable opportunities.Germany’s economy is currently ranked as the 4th healthiest country in the world. The UK is currently ranked 1 place behind in 5th. Because of its steadily growing and healthy economy, Germany is a fantastic option for those looking to expand their own business overseas. Whilst all the signs point towards Germany being a great place to expand your business, that doesn’t mean it’s a simple process. There is time, planning, and red tape to overcome before this dream becomes reality. That is why we created Centuro Connect to help streamline the entire global expansion process.Explore Centuro Connect, a FREE platform tailored to businesses and industries of all types, with a bank of valuable information and guidance all on expanding your business to a choice of 100+ countries.Below, we’ve detailed some of the key factors and reasons why setting up a company in Germany is a fantastic idea. All of the country-specific data and information used in this blog comes from the Centuro Connect platform, giving you an idea of just how in-depth this resource really is. Life in GermanyBusiness aside, relocating yourself and/or your assets to another country can be a daunting prospect. It’s important to understand from the beginning whether or not Germany suits you personally, and not just your company.There is considered to be a much more compartmentalised approach to life in Germany than we’re used to in the UK. There are stricter rules on hours worked, with the official limit being set at 40 hours a week - five days a week. In the UK the limit is 48 hours, but employees can opt to work more than that.This ‘hours per week limit’ means more leisure time for those living in Germany, with a general attitude that distances socialising hours from working life. Living in central Europe means that, naturally, you’re central to many other countries. Whilst very beneficial from a commercial point of view, this is also a personal benefit to many that would otherwise not experience this in the UK. There’s the option for plenty of traveling in your additional leisure time!Germany is also considered a particularly metropolitan country. If you don’t quite have the dialect fine-tuned yet, know that over 70% of the population also speak an additional language as well as German!Notable Benefits of Expanding to GermanyThis is the part that is perhaps most crucial in determining the next steps for your business. You want to ensure that expanding makes financial sense first and foremost and that Germany is providing you with something different from the UK.We’ve already touched upon the economic strength in Germany, but what else is there to know? The 4 focus industries in the country are Automotive, Mechanical Engineering, Chemical, and Electrical. The governmental support for SMEs is much higher than other countries in the EU. Benefits include;Low-interest business loans of up to 10 million eurosRecruitment and training supportWage subsidies for entrepreneurs that register a German company.Doing business in Germany requires less backing than many other locations. Only one director and one shareholder (from anywhere in the world) are required to set up a company in the country. In terms of the marketability of your services or products, Germany has a population of 82 million people. This makes it the biggest market in all of Eastern Europe, with only Russia having a higher population on the continent. This continues to be one of the key drawing points for those looking to expand their company from the UK, where the market is a much lesser 68 million residents. Germany also has a highly educated population, with 81% having a recognised professional qualification or entitled to register at university. With a highly educated population comes a highly educated workforce.How to Get the International Expansion Ball RollingCreating a German startup is actually much simpler than many realise. Expanding internationally is a challenge, but when done correctly, it can be a streamlined process that enhances your business hugely. Want to learn more about how to expand your business to Germany? If you would like to learn more about expanding your business to Germany, or 100+ other countries the Centuro Connect platform has details on tax, immigration, market entry points, HR, marketing, and real estate - plus contactable reliable experts to help you ace your expansion. This means that no matter what stage of the expansion journey you’re at, support is there if you face a challenge. Start your global expansion journey to Germany. You can sign up for the FREE Centuro Connect platform today! There’s no risk, no hidden costs, and no endless documentation to fill out. Just a wealth of guidance and support, here to aid you and your business throughout your international business expansion.Sign up today by clicking here. 

1. Lithuania’s regulatory adaptation and transparencySince early 2017, the Bank of Lithuania has instigated the rapid development of a FinTech-conducive regulatory and supervisory ecosystem, which continually fosters innovation in the financial sector. The two most notable events were: first, by opening a regulatory sandbox in late 2018 to allow startups and FinTechs to test their innovative products in a live environment under the guidance and supervision of the Bank of Lithuania.5 Second, as a result of the UK’s EEA departure and in the absence of an agreement on financial services cooperation between the EU and the UK, some UK companies with licensed activities subsequently passported into the EEA not wanting to be locked into only one single market. Lithuania has led by example, by inviting financial service institutions under their roof with an appealing and easily understood regulatory regime, attractive marketing plan, convincing regulatory supervision, as well as rapidly adapting national regulations for FinTechs, InsurTechs, RegTech, and other startups. One of the most recent examples is Revolut, which transferred its EU customers from its UK-based company to a Lithuanian company. After setting up a Lithuanian company and acquiring a license for its activities, Revolut’s Lithuanian company has passported its licensed activities based on the provision of services without a branch in the other 29 EEA Member States, providing clients uninterrupted services. Revolut went even further by establishing and acquiring a Special Purpose Bank (“SPB”) license. The latter license permits Revolut to receive deposits and other repayable funds from its clients (Revolut currently provides this service in a total of 13 Member States). In terms of numbers, Lithuania edges ever closer each year to the level of the UK within The World Bank Ease of Doing Business rankings. While Lithuania continues to improve its regulatory regime, in some areas (ahead of the EU), the existing transparent regulator and ‘easy on the eye’ regulations, Lithuania is leaning towards becoming the dominant “Fintech Hub” in the EU. The most popular licenses in Lithuania Almost half of the FinTech companies in Lithuania hold an Electronic Money Institution (“EMI”), Payment Institution (“PI”), or SPB license. A majority of these companies can also issue prepaid cards and digital wallets for the benefit of their clients, in addition to making money transfers. E-money and payment licenses The respective provisions of the Lithuanian Law on Electronic Money Institutions defines “electronic money” as a monetary value as represented by a claim on the issuer which is issued on receipt of monetary funds by the electronic money issuer from a natural or legal person and has the following characteristics: (i) stored electronically (incl. magnetically); (ii) is issued for the purpose of making payment transactions; and (iii) is received by persons other than electronic money issuers. For any FinTech company to be able to accept money from clients in the ‘electronic domain’ and to hold it in payment accounts for a relatively long time, issuing electronic money and then redeeming it, prior to being able to do, it is first necessary to become an electronic money issuer. The Bank of Lithuania supervises and authorizes electronic money and payment institutions within Lithuania. The authorization process usually includes: (i) submitting an application for an EMI license to the Supervision Service of the Bank of Lithuania; (ii) an assessment of the application for a license of an EMI and attached documents; and (iii) issuance of a license or refusal to issue a license. The entire authorization process, depending on the completeness of the documents submitted, usually takes around 6 to 12 months. If, however, a FinTech company already holds an EMI license and respective documentation in the UK it is considered to be an advantage in producing the necessary documents, as well as saving time during the authorization process. An SPB license A key feature of an SPB is the minimum capital requirement of EUR 1 million, while for traditional banks, it is EUR 5 million. In terms of timing, it is possible to acquire an SPB license within 9 to 12 months. An SPB differs from a traditional bank and comes with a number of restrictions attached to the services which an SPB can provide. An SPB is subject to limitations in investment and other financial services of a similar nature. The respective services an SPB can provide are the following: 1) acceptance of deposits and other repayable funds; 2) lending (including mortgage loans); 3) financial lease (leasing); 4) payment services; 5) issuance and administration of travelers' checks, bills of exchange, and other means of payment, if these activities do not include payment services; 6) provision of financial sureties and financial guarantees; 7) financial intermediation (agent activities); 8) money management; 9) creditworthiness assessment services; 10) rental of safe deposit boxes; 11) currency exchange (in cash); and 12) issuance of electronic money. One of the notable benefits of holding an SPB license is the deposits of any one individual may reach up to EUR 100,000 and are insured under the deposit insurance scheme. SPBs are participants of the deposit insurance system and are obligated to make regular (ex-ante) and special (ex-post) deposit insurance contributions to the Deposit Insurance Fund of Lithuania. Importantly, an SPB license is valid across the EEA and activities can be passported to the other Member States enabling access to the EEA financial services market. As previously mentioned, a good example is Revolut. CENTROlink The Bank of Lithuania operates a CENTROlink system designated for processing and executing payment orders between Single Euro Payments Area (“SEPA”) participants. The Bank of Lithuania provides technical access to SEPA schemes (credit transfers (“SCT”), direct debit (“SDD”) and instant payments (“SCT”)) for all types of payment service providers – banks, credit unions, e-money, or payment institutions – licensed in the EEA. Any EEA licensed payment service provider has an option to access CENTROlink, given there is no mandatory requirement to establish an entity in Lithuania to access CENTROlink. A recent example of a financial service institution accessing CENTROlink is TBI Bank EAD. The latter is registered in Bulgaria and has passported its activity to Lithuania and the Bank of Lithuania has approved its access to CENTROlink system. Employee Stock Options On 1 February 2020, new tax-favorable legislation for the treatment of employee stock options came into effect in Lithuania. Employee stock options can be exercised at no cost or for lower than their fair market value price, but no earlier than three years of holding stock options, from the date they were granted, are treated as non-taxable income for personal income tax purposes. Access to capital markets and alternative sources of financing To encourage the development of capital markets in Lithuania, micro, small, and medium-sized enterprises (“SMEs”) can reimburse the costs incurred in acquiring third-party advisory services necessary exclusively for the listing of shares and/or bonds. In such a way, SMEs can access alternative sources of financing with initially lower cost, for example, by receiving advisory services on setting set up a compliant and viable structure and on the respective financial instruments to be provided in the marketplace. In recent years, the government has paid a lot of attention to the development of capital markets. Legislation has been adopted to develop alternative sources of financing: (i) a legal framework for crowdfunding and peer-to-peer lending has been established; and (ii) private limited companies have been allowed to issue bonds publicly.

Estonia’s e-government and embrace on digital platforms In 2014, Estonia became the first country in the world to offer electronic residency to individuals from outside the country. The E-residency program equips e-residents with a digital identity and the status provides individuals access to Estonia’s transparent digital business environment. With the e-residency kit, an e-resident can sign documents and can establish a company online from anywhere in the world, access banking, payment processing, as well as settle tax-related obligations.21 A great benefit that comes with e-residency is the network of already existing e-residency entrepreneurs ready to share their experiences with outside companies who are interested in joining the community. E-money and payment licenses In order to obtain a license to operate an EMI or for the operation of a PI, the company must submit a relevant application to the Estonian Financial Supervision Authority (“EFSA”). Depending on the licensed activities, the minimum capital requirement for an EMI is EUR 350,000 and for PIs starting from EUR 20,000 to EUR 125,000. The EFSA shall take a decision on the issuance of a license or refusal to issue a license and inform the applicant within three months after receipt of all the necessary documents, as well as detailing the reasons in the event of a refusal, but not later than within six months after receipt of the application. The seat and the principal place of business of a PI or EMI entered in the commercial register shall be located in Estonia.22 Start-up status and visa Once a startup has decided to relocate its founders and/or employees to Estonia, the first step would be to apply for the ‘Startup Status’. Once the startup holds the Startup Status, the company can hire global talent with ease and the founder can apply for a visa or a temporary resident permit.23 Estonians are open to attract non-EU founders via the startup visa, which is also designed for start-ups to ease the process to hire non-EU talents. To be eligible for the startup visa a founder must have a technology-based, innovative and scalable business in mind, at least EUR 160 per month available for day-to-day needs and to receive approval from the Startup Committee. In light of recent amendments, if approved, as of 19 February 2021 the same visa will be granted to family members – spouses and children.24 Stock options Currently, Estonia does not hold any specific incentive scheme for start-ups, and issuance of employee share options is provided based on existing general regulations. Rules regarding the offerings of transferrable securities are used to facilitate the need and together with the tax regime currently in force (applicable to all private companies), there are favourable options. Tax exemptions for share options can be applied if an employee holds stock options for at least three years. Most of the terms and conditions attached to stock options are established within a stock option agreement between the company and the option holder. Access to capital markets and alternative sources of financing While the issuance of bonds and/or shares is a regulated market in Estonia (similarly as in Latvia and Lithuania), Estonians have taken a big leap and in late 2017 passed legislation with the aim to regulate cryptocurrency trading. The latter gained popularity in the amounts of initial coin offerings (“ICOs”) and token generation events (“TGEs”).25 The structures of ICOs and TGEs vary and may be used to raise capital for different kinds of projects, for example, creating new coin, app or service launches. These structures provide for an alternative source of financing and are more frequently used for seed/early-stage financing, instead of the ‘traditional’ initial public offering (“IPO”) where the financing is company-based and usually is used as an exit after venture capital funding. Any ICO or TGE should be assessed on its substance to define whether they should be treated as an issuance of a security instrument or not and which corresponding regulation should be applied.26 Where to go…? Well, it depends. There is no right or wrong answer. With certain limitations now visible for certain UK-based FinTech businesses trying to reach EU customers, detailed and clear thought needs to be given as to how to potentially widen the options in a fast-growing and developing industry. In the event the EU holds UK rules as equivalent to EU rules, as a result of further discussions, passporting considerations may not be necessary. Without access to the EU marketplace, it significantly reduces the actual or potential customer headcount and therefore limiting prospective growth opportunities. The Baltic States are leaning towards providing somewhat of a City ‘complement’ for FinTech businesses who wish to serve customers throughout the EEA. Regardless of the vision taken, it is important to carry out the necessary due diligence and preparations before engaging any of the regulators in either of the Baltic States.Right from pre-launch planning to initial setup and registration; Centuro Global will work with you, offering end-to-end assistance in navigating complexities by activating the local business ecosystem and offering a coherent roadmap of actionable solutions. Start on your global expansion journey with us today! Enquire today or feel free to send us an email.  

As a result of the United Kingdom (“UK”) exiting the European Union (“EU”) on 1 January 2021, a number of financial institutions in the UK lost their “exclusive” right of access to utilize the European Economic Area (“EEA”) passporting rules. These changes have also been felt by financial institutions based in Gibraltar.Back in 2016, it was reported around 5,500 UK companies with licensed activities which have passported their authorization (i.e., a licensed activity) into the EEA are impacted as a result of the UK exiting the EEA bloc.While the UK certainly has a more favorable corporate tax regime when compared to the other Member States, wider access to a larger marketplace seems to be the more favorable option in the long run for most companies. It is also without a word of doubt, the UK’s focus on retaining its presence as a financial services leader is ever strong, for example, the recent relaxation of some of the eligibility requirements for companies seeking to IPO.3Following the recent memorandum of understanding agreed between the EU-UK, concerning financial services cooperation, no visible guarantee was given to hold UK rules as equivalent to EU rules.4 While this mist of uncertainty hovers above the UK financial services industry, institutions are gearing up for plans B and C.Seeking the necessary permissions and compliance via each individual Member State’s national regimes adds complexity and substantial costs for FinTech companies based in the UK. This is something that all FinTech companies would ideally like to avoid or circumvent. WATCH OUR WEBINAR ON DOING BUSINESS IN A POST-BREXIT EUROPE.In the last couple of years, the Baltic states (i.e., Latvia, Lithuania, and Estonia) have geared up and responded by implementing favorable regulatory frameworks for all FinTech institutions. With this FinTech focus and benefits stemming from the passporting rules, the Baltic states are slowly driving the industry and attracting all the major market players, including Revolut.In this series of articles, we outline the important practical considerations one needs to consider for each of the Baltic states; their regulatory advancements, licensing benefits, stock options, capital markets, and alternative financing mechanisms. These tools provide a beneficial and attractive environment for financial service institutions to either start out in life or continue growing their business.LATVIALatvia’s regulatory regime supporting FinTechsIn terms of numbers, one in five new Latvian startups belong to the Financial Technology sector.15The Latvian Financial and Capital Market Commission (“FCMC”) has made available the Innovation Hub and Regulatory Sandbox to any market player for professional support and consultancy services in relation to existing and upcoming regulation.16A good example of highlighting the FCMC’s readiness and competence to supervise the financial services industry is in relation to the upcoming EU crowdfunding rules. The European Parliament has recently adopted the Regulation on European Crowdfunding Service Providers (“ECSP”) for businesses.17 The ECSP is already in force and is applicable from 10 November 2021. The ECSP is binding in its entirety across the EU and will provide a new and comprehensive set-up for crowdfunding platforms to operate under. In Latvia, the FCMC has already begun working and consulting with companies establishing or established to correspond with the upcoming rules in the ECSP.Several of the largest European peer-to-peer marketplace platforms have originated in Latvia, such as Mintos and Twino, which are currently adapting to the recently adopted regulatorychanges, by either acquiring an investment firm license and/or electronic money institutions license.18E-money and payment licensesIn order to obtain a license to operate an electronic money institution or for the operation of a payment institution, the company must submit a complete application to the FCMC.Depending on the licensed activities, the minimum capital requirement for an EMI is EUR 350,000 and for PIs starting from around EUR 20,000 up to EUR 125,000.The FCMC shall take a decision on the issuance of a license or refusal to issue a license and inform the applicant within three months after receipt of all the necessary documents, as well as detailing the reasons in the event of a refusal. If all relevant documents are not submitted or submitted incomplete, the FCMC can prolong the duration for an additional three months, and therefore the licensing process can take up to 6 months (and as we have seen in practice, sometimes even longer).In the event, a FinTech company already holds the respective documentation for a UK-issued EMI or PI license, it could save time in adapting the documents and reduce the assessment period before the FCMC.For FinTechs who intend to provide innovative payment services, FCF reduces state fees for the examination of documents submitted for the respectively chosen license of either electronic money institutions or payment institutions. Following the registration or authorization, the annual charge is also set lower than average for the first three years.19 In other words, these instruments assist with limiting the financial burden (i.e., licensing and maintenance costs) at the early stage.Attractive employee stock optionsThe main demand for employee stock options originates from FinTechs and other start-ups, which attract strong and high-level candidates for skyrocketing their ideas into a profitable company with promising equity.Employee stock options, if developed thoughtfully, can attract employees for the long-term and set the ownerships’ mindset. Especially within the startup community, stock options are also used in cases when a company is not able to afford the increases in employees’ salaries at the time.At the beginning of 2021, the Latvian Personal Income Tax Law and Commercial Law brought about favorable changes. These changes expanded the possibilities to grant stock options not only to joint-stock companies but also to limited liability companies’ employees, board and supervisory board members, and other related companies’ employees.The minimum holding period has been reduced from 36 months to 12 months and in addition, it is possible to exercise the option within 6 months after employment is terminated without losing the tax exemption.Access to capital markets and alternative sources of financingThe FCMC has undertaken (until 31 December 2021) to create a development and support model enabling enterprises to prepare for their participation in the capital market in case of the issuance of shares and/or bonds.20Similar to Lithuania, Latvian SMEs can apply to reimburse the costs incurred by acquiring third-party advisory services necessary exclusively for the listing of shares and/or bonds.  Expanding into Latvia or any other Baltic country can be a challenging process, but we have the technology to make it a streamlined and much simpler journey.Explore Centuro Connect, a FREE platform tailored to businesses and industries of all types, with a bank of valuable information and guidance all on expanding your business to a choice of 100+ countries. There’s no risk, no hidden costs, and no endless documentation to fill out. Just a wealth of information and like-minded experts to help you throughout your international business expansion.Sign up today by clicking HERE.