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Press ReleaseCenturo Global Appoints New Community Manager
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Centuro Global Appoints New Community Manager

We are pleased to announce the appointment of Emily Stewart as our new Community Manager.   A highly accomplished, client & engagement executive, Emily has over 15 years of experience in the Global Mobility space. Her experience ranges from relocation management to professional services, to advisory & consulting, and Global Mobility data. In her role as Community Manager, Emily will report to CEO Zain Ali, driving Centuro Global’s innovation strategy, product vision, relationship building, and collaboration with global network members. She will play an essential role as Centuro Global continues to evolve its innovative Global Expansion platform to meet rapidly growing client demand. “I’m looking forward to celebrating the diversity of thought and breaking down silos to support regional teams grow in our global network,” said Emily Stewart, Community Manager, Centuro Global. Before Centuro Global, she held the position of Client Engagement Manager at AIRINC. Prior to that, she held various positions at Deloitte, Graebel Relocations, and Cartus, where she specialized in global mobility consulting and expatriate compensation. Emily holds degrees in French and Spanish from Oklahoma State University. Originally from the U.S.A., Emily has lived in the Czech Republic, Brazil, and Belgium. She is now based in Centuro Global’s London office.  Please join us in welcoming Emily!  You can connect with her on LinkedIn or via email at emily@centuroglobal.com.   About Centuro Global  Centuro Global is the world’s first market network designed to help companies expand internationally via a SaaS platform. A dynamic combination of real-life, real-time advice and a broad digital knowledge base empowers a company’s leadership and its people to take global growth into their own hands.The overarching aim of the platform is to allow businesses to expand into new territories in a seamless and compliant way while bringing down costs and breaking down barriers for less established companies.  To learn more, please visit: Our Website or connect with us via Twitter, LinkedIn, Facebook, or check out our Media Center.

May 23, 2022
Press ReleaseCenturo Global Appoints New  Head Of Global Alliances
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Centuro Global Appoints New Head Of Global Alliances

We are pleased to announce the appointment of Simon Ward as our new Head of Global Alliances. Simon brings extensive experience in client consultation and project & client relationship management for SMEs and large-scale organisations across multiple industry sectors worldwide. Reporting to CEO Zain Ali, Simon will play a key role in Centuro Global’s strategy to develop and leverage a robust, collaborative network of internal and external partners in achieving SMART, quantitative business objectives and KPIs. As part of the core executive team, he will engage on Centuro Global’s broad business vision - to craft corporate strategies to overcome potential obstacles and build contingencies as the company expands its Global Expansion platform to new markets and users while ensuring world-class tax, immigration, legal, HR and compliance standards. “I am delighted to join the amazing team at Centuro Global and hope that my experience earned over the years will help," said Simon Ward, Head of Global Alliances, Centuro Global. I have run partnership programs globally for 20 years for some of the largest organisations in the world. I am looking forward to sharing the passion and drive that Centuro Global has with potential partners globally, and demonstrating a product that I am truly excited about, especially as it's supported by such a focused and results-driven team.” Before joining Centuro Global, Ward served as Global Alliance Manager at Elements Global Services. Previously, he served as Strategic Channel Manager for PCCW Global Networks. Prior to that, he served as Strategic Account Manager and Senior Channel Account Manager for Glide UK and TalkTalk Business respectively. In his private life, Simon Ward is a professional racing driver and currently competes for Team Great Britain in Triathlon, recently winning a Bronze Medal at The World Championships. “Although I compete alone, the team around me; coaches, nutritionists, doctors, and mechanics all contribute to any medal. I had not felt that unity outside of my sport until I joined Centuro Global, and the can-do attitude will put us in a winning position always”. Please join us in welcoming Simon! You can connect with him on LinkedIn or via email at simon@centuroglobal.com. About Centuro Global Centuro Global is the first market network designed to help companies expand internationally via a SaaS platform. A dynamic combination of real-life, real-time advice and a broad digital knowledge base empowers company leadership and its people to take global growth into their own hands. The overarching aim of the platform is to allow businesses to expand into new territories in a seamless and compliant way while bringing down costs and breaking down barriers for less established companies. To learn more, please visit: Our Website or connect with us via Twitter, LinkedIn, Facebook, or check out our Media Center.

May 18, 2022
BlogTop reasons to set up a business in Cyprus
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Top Reasons To Set Up A Business In Cyprus

Throughout the past 30 years, Cyprus has developed to become a high-quality centre for international business and investment. The past decade has witnessed a steady stream of companies choosing to set up their headquarters in Cyprus.Many industries have chosen to invest in Cyprus, with notable upsurges in the pharmaceutical, shipping, fossil fuel, investment, and renewable energy sectors. Many consider Cyprus a vacation island and do not immediately think of the business rewards.However, there are many benefits to setting up a business in Cyprus. For those wondering what the business attraction is, consider the following:  Cyprus Business Location Highlights  A modern stable democratic state with EU and Eurozone membership and a 'can-do' attitude.   Cyprus is considered to be recently independent, after gaining its independence in 1960. Historically, Cyrus was best known as being an island which was lacking in natural resources and predominantly dominated by agriculture and tourism.  However, the 2022 version of Cyrpus is better recognised as being a member of the European Union (since 2004) and Eurozone (since 2008). It is considered a modern and fully transparent international centre for business and finance, and home to one of the largest merchant shipping fleets in the world.  It also offers investors and companies an oasis of calm in what is known to be an otherwise turbulent region. When excluding the COVID-19 pandemic and Cyrpus's large tourist sector, the country recorded GDP growth of 4.5% in 2021.  A strategic geographical location The island is ideally located in between three continents and functions as a natural conduit for investment both into and out of the European Union.  Cyprus is also placed in a convenient time zone for conducting business worldwide.It falls into the Eastern European Timezone category, making it a favourable location for companies within the European Union. Cyprus holds historic ties with Eastern Europe. It manages positive relations with North Africa and the Middle East, and Cyprus enjoys good relations with its neighbours.  The island is served by two international airports, and modern seaports and is home to the third-largest merchant fleet in the European Union.Access to local and EU talent: Dynamic, young, affordable employees For non-resident companies, accessing local and international talent may seem daunting. However, there are numerous benefits to opening a company in Cyprus and hiring a local or foreign workforce. This includes the availability of relatively low-cost, talented, and multi-lingual skilled workers, who are keen to work and can do so across multiple economies and in many languages.Numerous major ICT businesses have established headquarters or a Cyprus company to conduct a variety of operations including sales and marketing, software development, and disaster recovery. Cyprus has also recently launched more liberal immigration policies, in a bid to attract more top talent to the island. This has helped to attract foreign direct investment and bring in foreign investors.This compares to many other European countries, which may be perceived as relatively restrictive with their immigration procedures.Attractive corporate and income tax regulations: offers over 65 dual taxation agreements  The current Cyprus corporation tax rate for resident companies is 12.5% on worldwide income. This will increase to 15% for MNE in line with OECD rules but any potential negative impacts are offset by government tax policies that favour high quality, sustainable businesses and business sectors such as multinationals, shipping, pharmaceutical, fintech, gaming, and digital marketing corporations.Cyprus provides an ideal environment for group holding and finance companies, offering a tax-free flow of dividends from Cyprus to non-tax resident entities under certain conditions while there is a full participation exemption and no tax on capital gains apart from gains derived from the direct and indirect sale of real estate in Cyprus.The network of double taxation agreements provides excellent safeguards vis-à-vis double, or no taxation, and unilateral relief is available for taxes paid overseas if no double taxation agreement applies. The EC Merger Directive has been fully adopted and therefore mergers and approved restructurings can be carried out with full exemption from any form of taxation in Cyprus.  Special income tax incentives are in place for new tax residents of Cyprus with up to 50% tax relief for high earners. Although Cyprus does not have the lowest corporate tax rates, they offer reasonable corporate tax incentives.Tax incentives for investment and innovation including a highly favourable IP Box regime  The Cyprus government is keen to build a cluster of  ICT, high technology, and innovative companies.  To this end, it operates a European Union-approved IP Box regime that utilises the ‘Nexus’ fraction approach. The Cyprus IP Box basically provides a tax exemption of up to 80% of profits for expenditure concerning research and development from qualifying intangible assets.The government has proposed changes to the scheme which if adopted will further enhance its attractiveness.  Natural persons can benefit from a 50% tax deduction for investing in certified innovative companies. The government intends to expand this to include corporate investors.  Attractive European Union approved sector-specific tax regimes Cyprus operates the first EU-approved shipping ‘tonnage tax’ scheme. This approval has recently been extended to 2029.  Under the scheme, subject to qualification, shipowners, ship managers and charters in qualifying shipping activities have the option to be taxed based on the tonnage of the vessel rather than on income or profit. This offers the owner the advantage of certainty.  The scheme has played an important part in the development of a shipping cluster in Cyprus which now includes the largest 3rd party ship management centre in Europe and the largest crew management centre in the world.  Special schemes also exist for the Insurance and Film sectors.  A legitimate, transparent business eco-system that includes a strong competitively priced professional service sector with English widely spoken as the established business language  Cyprus is primarily a common law jurisdiction with courts bound by the doctrine of precedent. This offers the parties with an intended commercial action the advantages of consistency, predictability, and efficiency.  Intellectual Property rights are well protected, and European Union laws are fully applicable. Most business activities are conducted in English, although some other languages may also be used given Cyprus's strategic location.English is widely spoken and will be approved as an official language for use in soon-to-be-established Commercial and Admiralty Courts. If you require any assistance with intellectual property rights or more advice, please do not hesitate to get in touch.Cyprus has a competitive international tax environment, which is fully compliant with international best practices and many foreign companies appreciate the standards of transparency and fairness.The EU Anti-Tax Avoidance Directives ATAD I and ATAD II are in force, and it is expected that the ATAD 3 provisions will take effect from 1 January 2024. Cyprus is also a signatory to the Multilateral Convention on Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.New and updated double tax agreements are aligned with the latest OECD standards and, in compliance with the 4th and  5th Anti-Money Laundering Directives, the different UBO registers have been established.  There is a relatively low-cost, large, highly-skilled, and experienced professional services sector which is familiar with complex and multi-jurisdiction transactions.  The larger international accounting firms have bases in Cyprus and law firms such as Elias Neocleous & Co LLC frequently work in conjunction with the ‘Magic Circle’ of law firms.Low set up costs, low office rents, and competitive commercial real estate prices  A surge in interest in locating in Cyprus has spawned a large number of multi-use office and commercial developments in the two main business cities of Limassol and Nicosia. Office accommodation is readily available to suit all needs and budgets – often with a breathtaking view of the Mediterranean.  Outside of this, costs for establishing a business are low and a Business Facilitation Unit has been established to assist with the practicalities of moving a business to or starting up a business on the island.  A government that is consistently pro-business and pro foreign investment Since 1960, irrespective of political leanings, successive Cypriot governments have been keen to promote a business and tax environment that will encourage foreign investment in the country.  For the past decade, this has evolved into a desire to promote Cyprus as a sustainable business and trade centre.  Recent policy has focused on the introduction of new incentives targeted at the areas of high-technology, innovation, pharmaceuticals, shipping, and foreign interest-owned companies.  Many of these incentives were put in place at the start of 2022 the remainder are expected to follow in short order.  They include the establishment of a Business Facilitation Unit to assist with the relocation and establishment of businesses in Cyprus, changes to migration rules to facilitate the entry of skilled third-country nationals, and numerous individual and corporate tax incentives to encourage a ‘brain drain’ into the country.  In addition to all of above Cyprus is rated as one of the safest countries in the world to live in with excellent education and health facilities. It offers a more relaxed environment with good cuisine and a welcoming population. Is it any wonder that so many businesses are now choosing to make it their home?  Migration & Substance  2022 Government investment strategy facilitates the employment of third-country nationals (TCN) in targeted sectors and gives them family reunification rights.   It is now much easier for foreign interest companies, or foreign investors, to relocate key workers to Cyprus and establish economic substance on the island as required under ATAD3.  Digital Nomad Resident Visa Scheme   From March 2022 the government is allowing, subject to certain conditions, 500 visas to be issued to TCNs able to work remotely through telecommunications technology. The initial visa is for one year. Possibility of renewing for a further two years. They may be accompanied by family members who will not have the right to work in Cyprus. They become Cyprus tax residents after 183 days in any year unless they can prove tax residency elsewhere.  Capital Gains  Capital Gains Tax is only imposed on gains made from;  - The sale of immovable property in Cyprus, and  - The sale of shares of unlisted companies directly or indirectly owning immovable property in Cyprus.  Gains are taxed at 20%. An exemption exists for the sale of property originally purchased on an ‘arm’s length’ basis between 16 July 2015 and 31 December 2016.  Withholding Taxes (WHT)   There is no WHT on dividends, interest, and royalties paid to non-residents of Cyprus except in the case of royalties earned on rights used within Cyprus. WHT on royalties for rights used within Cyprus may be reduced or eliminated by double tax treaties entered into by Cyprus or by the EU Interest and Royalty Directive as enacted in the Cyprus tax legislation.From 31 December 2022, Cyprus will apply WHT on dividend, interest, and royalty payments to EU Blacklisted jurisdictions.  Incentives for expatriate workers   Persons considered to be Cyprus tax residents may benefit from a 50% deduction (expatriate relief) on personal income tax if they:   ·Were not a tax resident of Cyprus in the previous tax year; ·Were not a Cyprus tax resident for any three of the past five years prior to commencement of their employment in Cyprus; and ·Have annual gross emoluments ≥€ 100,000.  This relief is currently available for 10 years. The government intends to reduce the qualifying threshold in 2022 to ≥€ 55,000 with a retroactive effect. It is also proposed to extend the period of relief to 17 years for existing beneficiaries. Lower paid expatriates becoming tax-resident in Cyprus can claim an annual exemption equal to the lesser of €8,500 or 20% of their income from employment in Cyprus.The exemption commences 1 January following the year of employment. The exemption is available for a period of 5 years with the last eligible tax year being 2030.  There are many benefits to setting up a Cyprus company or moving some of your operations to Cyprus.  If companies wish to receive advice on legal support, business incorporation support or receive market entry advice, it is best to contact an expert. Experts will be able to advise on country-specific processes including how to do the following:- Open a bank account- How to action company registration or establish an entity such as a; limited liability company, private limited company, public limited companies- Advice on obtaining a physical address, registering your business name, action any relevant document submission, and much more.- Work with both local companies ( Cypriot company ) as well as provide access to an international network- Access a wide variety of markets that may have the right consumer base for your product or servicesIf you are interested in setting up a business in Cyprus, get in touch. Our experts are on hand to support you.  How to Get the International Expansion Ball Rolling Setting up a company in Cyprus 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 Spain?    Sign up to the Centuro Connect platform today and start your global expansion journey to Cyprus and 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.  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.            

May 13, 2022
BlogHow to acquire a Romanian company
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How To Acquire A Romanian Company

If a company has made the decision to purchase an asset in Romania, whether it be a Romanian company, or simply shares in a Romanian company, it is crucial to factor in some key considerations. As many lawyers and general counsels will know, commercial decisions are made, and then implemented by lawyers.  Companies often ask themselves whether they should conduct specific research before acquiring a company, however often lean on the knowledge and expertise of their lawyers to solve any problems or issues they are facing.Although lawyers may help to solve many challenges, companies should have legal provisions in place to reduce their risk, and ultimately help to ensure their success. It is an imperfect world for many Romanian transactional lawyers and therefore potential purchasers in Romania need to be aware of certain issues which have been outlined below.What legal challenges can be expected? This article is intended to review some of the initial problems that organisations should consider from a legal perspective.  The first question is what type of transaction is your firm trying to conduct.  Is your organisation looking to make an asset purchase, or are you purchasing shares within a company?  For buyers who have no legal entities or presence in Romania at the time of the purchase, the transaction may raise some concerns. If a foreign company is looking to acquire a company in Romania, they will need to financially register themselves before the transaction can be compleated. This includes opening a bank account, setting up an entity, and establishing a legal entity.  Once a company is financially registered, they immediately have a permanent establishment in Romania. This means that tax authorities can now charge the purchaser as they are now a taxable, Romanian entity. All relevant assets can therefore be taxed. This often leads to a popular question; should companies set up or incorporated a business before they proceed with an acquisition?Registering an entity, such as limited liability companies, or private limited companies may help to simplify the incorporation procedure. Ultimately, a tax implication will apply to the purchaser as to whether they acquire a local company, or set up their own entity, they will need to complete legal formalities and confront taxes potentially payable.To prevent complications and foreign ownership restrictions, the simplest route for companies could be to incorporate a local company in Romania. Additionally, incorporating a company may allow for the acquirer to benefit from a number of tax exemptions, including a double tax treaty. Setting up a local entity also helps to tap into the local Romanian market, and can help to offer increased representative offices for your services or product within the region. Corporate entities with offerings in other EU member states often consider establishing Romanian companies.What tax challenges and exemptions apply Tax exemptions are often relevant to the corporate taxes companies need to pay. However, there are exemptions that apply to income payments between the parent company and the subsidiary. For example, dividends received from a Romanian company or paid to it, provided that a dual taxation agreement is in force, will not have to pay withholding tax if the company has at least 10% of the issued shares and has been established for at least one year.The same type of exemption applies if there is income from a valuation, revaluation sale, or transfer of shares of either a Romanian company or subsidiary in another jurisdiction provided the transaction is in relation to companies in states where Romania has a Treaty against Double Taxation. Other tax considerations that sometimes arise relate to the shared exchanges or mergers that assist in facilitating the acquisition.Shared exchanges do exist in some cases, however, mergers and demergers are more likely. In these cases, there are limited taxation issues. However, it is always advised to consult a specialist to fully understand the main transfer tax exemptions. The outcome may change on a case-by-case basis.Taxation of a target company in Romania Romania follows the more popular approach when it comes to the taxation of a target company during a transaction. Because the target company is a legal entity, the taxation applies within the trade registry of that location. more normal routes in relation to the taxation of the target company during any transaction.  The taxable position of the company will not be altered by the change of ownership of the shares of the company.  Cost of acquisition transactions The costs of the transaction will also need to be reviewed in relation to the taxes which might be payable as a result of the acquisition. For the acquisition of shares or social parts the only tax payable will be that charged by the Official Gazette for the publication of the shareholders’ resolution. These are not calculated on the value of the transaction and are minimal. However, if there are assets being transferred and these assets are real estate then there will be notary fees and land registration fees.  The notary fees are charged based on the value of the real estate. The minimum value is set by the Notary table of real estate values. Another matter that might be considered by the acquiring company is the question of the deductibility of interest on the funds used to finance the purchase.  Exemptions for independent taxpayers As a general rule, the interest will not be deductible and is generally applied to all companies and is related to the implementation of anti-tax avoidance directives.  There is however an exemption relating to independent taxpayers permitting full deductibility of interest and foreign exchange losses.  The question of the availability of any tax exemption needs to be examined carefully in respect of any acquisition and the buyer's finance department or independent advisors need to consider this question. As matters in relation to taxation can arise after the closing of the purchase of a company or the assets it is also prudent for the acquiring company to consider there is a retention of part of the purchase consideration until such time as the total tax liability of the parties has been ascertained.  The question of any outstanding ability to mitigate tax liability will become apparent during the due diligence phase of the transaction and will therefore need to be covered in the transaction documents.  Depending on the nature of the retention any withholding may be treated as conditional payment of the purchase consideration and dealt with accordingly.Final considerations; expertise matters When working with companies as a Legal Romanian counsel for these types of transactions, we have found that the matters are often resolved during the negotiation process and when the purchase has successfully been completed.  However, the key takeaway for any purchaser should that quality legal and tax advice should be a priority before commencing with an acquisition in Romania. This will help to ensure that the whole transaction is conducted with the minimum tax liability for both parties as permitted by law.  How to Get the Acquisition Ball Rolling Acquiring a company in Romania is actually much simpler than many realise. Doing 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 acquire a company in Romania?    Sign up to the Centuro Connect platform today and start your global expansion journey to Romania and 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.  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.

May 13, 2022
BlogThe Remarkable Netflix Global Expansion Journey
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The Remarkable Netflix Global Expansion Journey

Netflix is a prime example of a company that has successfully expanded its operations internationally. Starting out in just one country, the United States, Netflix has expanded into over 190 countries in just seven years!Despite the current challenges Netflix is facing concerning new subscribers, the company managed to successfully expand globally due to careful planning and execution. This article will explore three key areas that helped the streaming service achieve success, namely:1. Market choice;2. The Role of Data and Localisation; and3. How the company overcame Challenges.So let's get started!1. How Netflix Carefully Chose Its International Markets When entering into new countries, Netflix initially chose its next markets based on similarities, in order to limit potential cultural and geographical challenges.Canada One of the countries Netflix first considered for its global expansion was Canada. This was because the market was very similar to the United States in terms of culture, language and geography. This made it easier for the company to expand into Canada and tailor its content offerings to suit this new market.Netflix officially launched into the Canadian market in September 2010, kickstarting its first foray into international markets. Pricing was an important consideration in order to win market share and the initial subscription fee was priced at $7.99 per month, which Netflix CEO Reed Hastings referred to as "the lowest, most aggressive price we've ever had anywhere in the world." This was a key initiative as part of Netflix's business model to attract users quickly.Even with the low price tag, Canadian content availability was extremely limited. According to Canadian Business Online, in the United States by 2012 there were 10,625 distinct Netflix titles, whereas in Canada there were only 2,647.However, despite the initial relative lack of content, it took the company less than a year to attract one million subscribers, which is roughly three percent of Canada's population. This was an impressive feat!The choice of Canada proved to be a great success for Netflix. It exemplifies how choosing a similar market to your home country can be a relatively easy first step in your international expansion plans.Latin America & the CaribbeanOnce it had expanded into Canada, the next logical step in the Netflix global expansion journey was to expand into Latin America and the Caribbean due to the region's geographical proximity to the United States.At this point in time, the business had around 23 million subscribers across the United States and Canada. Successful expansion into the Latin American market would provide Netflix access to over 600 million potential new subscribers.On announcing its international expansion into the region, Netflix's share price surged by 8% taking it to record levels.From there, in September 2011, the firm began its expansion to 43 countries and territories in Latin America and the Caribbean, with content available in Spanish, English, and Portuguese. Brazil was the first country in Latin America to go live with the service on September 5th. The streaming service was priced at around $9.10 making it more expensive than in North America.Following Brazil, Netflix continued its expansion in Latin America, and the company launched in Argentina, Chile, Colombia, and Mexico in the subsequent days before expanding into a further 38 countries in the subsequent weeks. The company partnered with the likes of CBS, Miramax, and Showtime to share local content in the region.However, there were challenges in Netflix's global expansion into Latin America and the Caribbean. The lack of high-speed internet compared to the US and Canada proved to be an initial setback.For example, in Brazil, only 20% of the population had an internet speed greater than 500 kB/s a second in 2011. This proved to be an issue as Netflix required speeds of 800 kB/s a second in order to stream its content.A second major challenge was that the banking system in Latin America was not used to monthly recurring payments for a service, and given that this was the first streaming service to launch in the region, with no competitors, there was a reasonable degree of initial apprehension around the concept.Nonetheless, whilst this did hinder rapid growth, there was enough uptake to consider the expansion into the region a success.Europe Following the above-mentioned successes with global expansion, Netflix then turned to Europe in 2012. The expansion into the United Kingdom was a great success and by 2014 one in ten British households were subscribed to Netflix.Netflix developed a great strategy in relation to its international expansion based on its choice of content in new regions. "They start with a tiny offer that doesn't cost them much money and lowers their risk. Then they collect very specific information about what people enjoy, and programming and investment around consumer behavior are organized," according to Christof Baron, CEO of the world marketing firm Mindshare.In the UK, they started with content from the BBC, Channel 4, and ITV to gain initial traction and then started to review the type of content people actually enjoyed.2. The Role of Data and Localisation in Expanding Internationally Tailored Thumbnails Netflix has great attention to detail and even considered how viewers from different geographies would react to different imagery on the thumbnail of images.People are far more likely to view something if the thumbnail shows something that appeals to them. The old saying goes that a picture is worth a thousand words and in Netflix's case, the more you watch, the more likely you are to keep your subscription.  Based on this, Netflix very cleverly generates many possible thumbnails for each piece of content. The Netflix algorithm then looks at your viewing habits to match up the most relevant thumbnail.If you watch a lot of romantic comedies, Netflix will show you a Stranger Things thumbnail with Winona Ryder and David Harbour to capture your interest. If you watch more comedy content, then the Netflix algorithm will instead show you a Stranger Things thumbnail with the kids dressed up as Ghostbusters.Personalization algorithms Netflix used data to carefully select its next markets and to tailor content based on the regions they were targeting.Netflix personalization algorithms enabled the company to understand global user behaviour and preferences. This allowed them to create a content strategy that was tailored to each individual market, which was key to their success.When entering Asia, the company learned that Asian audiences were more likely to watch shows with subtitles rather than dubbed versions. In contrast, Latin American audiences preferred dubbed content. This data proved invaluable in Netflix's international strategy for localising content.Language Considerations To ensure that its content was accessible to as many people as possible, Netflix also translated its content into local languages and introduced subtitles and dubbing. Viewers in different countries could now enjoy Netflix's wide range of content.In English-speaking countries, Netflix aims to localize foreign titles via English subtitles, while in other important markets, such as France, Germany, Italy, Spain, and Japan, the company opts to subtitle or dub content based on local content preferences.In India, Netflix offers content in Hindi, Tamil, Telugu, Marathi, and Bengali.In China, it offers content in Mandarin and Cantonese.By localising its content, Netflix has been able to achieve global growth and become one of the most popular streaming services in the world.Original Content Not only does Netflix localise content but it also makes original content based on local preferences.  When expanding into Japan, Netflix saw that Japanese users were watching a lot of anime. In response, Netflix created an original anime series called "Devilman Crybaby" which was extremely popular.  More recently, Netflix began to take this strategy of making local content and tweaking it in a way to help its content simultaneously go global. For example, when the Korean movie Parasite made history by becoming the first non-English language movie to win the Oscar for Best Picture in 2020, Netflix took real notice. K-Pop was globally successful and on reviewing its data to see what sort of content global audiences were interacting well with, Netflix noticed a lot of success with Hunger Games.Netflix took this analysis and created content in the form of the Korean show Squid Game, resulting in mass international success. In fact, Squid Game became the most-watched show in the history of Netflix within a mere 6 weeks of launching.3. Challenges in entering new markets Despite the phenomenal global success discussed above, Netflix's expansion was not trouble-free and it faced a number of challenges when entering new markets. We have already touched upon some of the issues it faced in Latin America in relation to internet speed and the novelty factor. but what other challenges did it face?Legal Issues In Australia, Netflix fell into hot water with local laws. TV Stations in Australia rejected Netflix's classification as a technology company rather than a broadcaster as this allowed it to avoid having to comply with certain local regulations. In response, the Australian government considered introducing a law forcing streaming companies such as Netflix to invest in the local market.Censorship Issues Netflix also faced censorship challenges in markets including China, North Korea, and Saudi Arabia. Based on values held in different regions, certain content relating to the consumption of drugs, alcohol, or of a sexual nature would have to be adapted or removed completely in order to satisfy local societal values and rules.Netflix is currently not available in China but continues to explore options for entering the market.Despite these challenges, Netflix has been able to achieve global growth and become one of the most popular streaming services in the world. As of the beginning of the second quarter of 2022, Netflix has around 222 million international subscribers in over 190 countries making the business a fantastic success.Lessons from Netflix's Global Expansion Journey  The Netflix global expansion journey into over 190 international markets is a phenomenal success. This growth would not have been possible without Netflix's careful planning and execution. So what are the key lessons that expanding companies seeking to have similar success on a global scale can take from this?- You can't be in every country at once - start with those countries whose markets are most closely aligned to yours to ensure minimal cultural, language and regulatory complexity.- Test the market initially and gather data to help you make decisions before fully committing and going all in.- Even the most successful companies can face setbacks - don't be disheartened by any challenges.- Localisation is key to success in new markets - if you don't adapt your product, service, or offering to local markets you have little to no chance of success.Ultimately, by understanding the needs and preferences of its target market, Netflix was able to create a service that people loved. And by making their content accessible to as many people as possible, they were able to rapidly conquer foreign markets.Get started with your global expansionIf you are an expanding business looking to enter new markets, then sign up to Centuro Connect now. Our platform provides companies with information on how to expand into over 170 countries, setting out how to hire and relocate staff, local laws to consider, entity setup options and requirements, and a whole host more.Build your international expansion strategy, connect with local experts and track and manage your expansion in one single place.Sign up now to truly simplify your global expansion plans. 

May 05, 2022
BlogExpanding into Spain: Everything You Need to Know
Start A Company, Hr +2
Expanding Into Spain: Everything You Need To Know

Growing a successful business requires hard work and dedication. Once it takes off in your home country, the opportunities for wider success become even more clear. If you are wanting to reach a larger audience with your products and services, Spain may be the ideal location to grow your business.  Spain makes the top three list of excellent countries to establish a business in Europe. The Spanish market is categorised as a high-income economy because it is the 14th largest globally. As the 4th largest country in Europe, Spain has a very competitive economy with close ties with European and Latin American nations, a convenient location occupying Africa and Europe, and has a growing interest in constant research and technology.  How to expand your business into Spain In most cases, expanding a business to a foreign country can be pretty daunting. More so if you lack adequate information on some issues such as the country's business structures, legal processes, and regulations, to aid the smooth running of your business. Along with a structured business plan, our useful resources should ensure you get a successful foothold in the Spanish market.Setting Up an Entity in Spain The country of Spain is an ideal place to set up a business as an expat.  There are different business structures in Spain. A popular setup option in Spain is the Limited Liability Company (Sociedad de Responsabilidad Limitada/SL) which many small and mid-sized companies in Spain utilize.  Steps you must take to set things in motion include:Get Your NIE Number  Getting an NIE (Número de Identidad de Extranjero) number is a vital step toward setting up in Spain. It is an identification number given to non-Spanish citizens, enabling them to conduct activities legally. It is a straightforward process, taking a few days for EU citizens to acquire and a slightly longer time for non-EU citizens.Next Up, Registering Your Company  The next thing to do is to register your company's name with the Registro Mercantil Central (RMC). This registration process confirms that the name you have decided for your own company doesn't already belong to an existing company. It isn't time-consuming and can be done online.  Receive Your Bank Certificate  Opening a bank account should be your next move in setting up a company in Spain. It will prompt the receipt of a bank certificate. Also, you may need to deposit a sum in the account. It is 3,000 euros for a limited liability company.  More Registrations The registrations may appear never-ending for a new company, but going through with them is necessary. You can choose to get all the registration out of the way by applying for social security considerations simultaneously. For this registration, you will need all the documents you have acquired so far and TA 0521, which you can get at a local security office. You will need to register for a tax identification number (CIF) online or at the Tax Agency. Filling the Seats of the Shareholders and Directors  As a business owner, the last move will be establishing the shareholders and deciding on the directors. You will need to determine how many people will hold shares and their percentage in your new business. To fill the position of the director, you could pick two different people or a single person (Spanish resident) to have both corporate and operating functions.  What Is the Corporate Tax Structure in Spain?  Corporate tax in Spain is no joke, and defaulting on payment will attract strict penalties. The Spanish financial year is the same as a typical calendar year, and residents are taxed on their global earnings, while non-residents enjoy having only their Spanish income taxed. Another thing non-residents enjoy is a flat rate of 24%. As for residents, their taxes are charged progressively.  Taxes in Spain are a lot covering state and regional ones. As an expatriate, there are biases in your favour. It is standard for an expat who becomes a resident to pay income tax. However, under the special tax regime otherwise known as Beckham's Law by the Spanish government, you can be treated as a non-resident for five years, excluding the year you move.The downside is that as expats taking advantage of the special tax regime, you don't get to enjoy the full benefits a typical non-resident would. The exemptions in the non-residents' income tax are unavailable to you. What Visas Are Available to Those Wishing to Relocate?  You can apply for a Spanish visa tailored to suit the activities you want to conduct in Spain from the variety of available long and short-term visas.Let us get it down; you don't have to bother with this if you are an EU/EEA national because you won't need a visa, only a national identity number NIE (Número de Identidad de Extranjero) if you decide to stay for more than three months. However, if you don't belong to the EU/EEA region but wish to relocate to Spain, you need a D-type visa and other documents.  Work Visa  If you will be relocating for business purposes, a work visa is the correct choice. It is granted by Work and Immigration Offices available in the various regions. However, before you apply for a work visa, if it is a must, you have a work permit. Employees can't apply for a work visa; the process will have to be handled by their employer. The exception to this is if you are self-employed.The lifespan of a work visa is a year. However, it can be renewed for an additional five years, after which you can get permanent residency.Student Visa  You can only apply for a student visa if you have received an offer from a school in Spain. The lifespan of this visa is as long as the study program. During your stay in Spain, you have the freedom to work and indulge in other activities.Non-lucrative Residence Visa  This visa is perfect for those who are financially capable of not having to indulge in any lucrative activity for as long as they remain in Spain. No form of work is allowed even remote jobs. It is the perfect visa for retirees.Family Visas Your family can apply to join you in Spain if you have been a resident of Spain for a minimum of one year. They are also free to work without a work permit for the duration they'll be there.   Other available visas include a golden visa if you'd like to make investments and the digital nomads and remote workers visa, which hasn't been passed into law.   Ease of Entry into the Spanish Market: Good Options for Expanding Companies  Spain bounced back from its recession in 2007 and has had steady growth since then. It is an excellent place to set up your business, but it could be daunting for foreign companies if you go in without a plan. There are specific initiatives you could take to ease your market entry.Arrange for Physical Meetings   It is crucial to know the preferences of the market you will be going into if you wish to expand abroad. When it comes to Spaniards, they value physical meetings; it could be what could change their status from potential investors to investors, especially if you plan to operate locally. Also, it is essential to know that even at these physical meetings, Spaniards are typically formal, so formal attire is recommended.  Take Advantage of the Recession Spain has come a long way since the recession. They have recovered, but not entirely. Due to the downturn, they faced over a decade ago; many skilled people are without a job. To ease your expansion into Spain, take advantage of the talent pool and recruit highly skilled workers.  Understand Spain's Diversity  Under the umbrella of Spain are 17 autonomous communities. Every community has its strong suits and distinct identities, with Barcelona and Madrid as the major economic hubs. So, spreading your business across all the districts is advisable, beginning with the famed business hubs.  Prepare Yourself for Delayed Payments In Spain, credit is regular in the markets. Customers can make purchases on credit, and you have to be able to accept this, too, if you want to stand toe-to-toe with your competitors. Sometimes, it takes up to three months before payments are made.  Be a Problem Solver  Be prepared because it won't be easy to make customers out of Spaniards, except your products are unique and solve a problem. After all, they are conservative buyers. They stick to who companies they trust. Final WordsDeciding to do business in Spain will have you beaming in the long run if you do the due diligence on your part and employ the services, advice, and support of experts. Don't struggle with the entire process on your own; we are happy to help. Get in contact with us today!How to Get the International Expansion Ball Rolling Setting up a company in Spain 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 Spain?    Sign up to the Centuro Connect platform today and start your global expansion journey to Spain and 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.  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.                        

Apr 22, 2022
BlogTop 5 compliance mistakes to avoid when hiring internationally
Start A Company, Hr +2
Top 5 Compliance Mistakes To Avoid When Hiring Internationally

Ignorance is bliss, but not in all situations. When running a business, especially internationally, you should do due diligence by familiarising yourself with the laws that govern your business in foreign countries, as not knowing this could cost you a great deal. With the ever-increasing access to new and conventional ones, more regulations are being put in place, proportional to compliance risks.Understanding Compliance Risks  Compliance risks, similarly referred to as integrity risks, are the financial, legal, and reputational dangers a company exposes itself to by failing to abide by laws, regulations, and standard practices. To fully understand and address the issues that are compliance risks, companies need to put more effort into thoroughly assessing risks because missing any could deal a significant blow to the company.  It is not a rare occurrence for companies expanding to other countries or recruiting remote workers in different regions to make some errors in the process or after the process has been completed. Some of the most common mistakes companies make when hiring abroad include:  Erroneous classification of a worker’s status  When hiring, it is essential to clarify the agreement terms to qualify the employee under the country’s local and tax laws. The status of an employee affects things significantly. As an employer, you may think you are hiring an independent contractor, for instance, but you are employing the person as a part-time employee.It is good to carry out your research diligently and get these things straight because by making a mistake or doing this intentionally, you could avoid paying taxes and the like, which could attract severe sanctions. Failing to grasp the local laws required to set up in a new country   When expanding globally, ensure all key stakeholders across your business understand the in-country employment and labour laws. In many countries, the regulations and governments often favour local employees over foreign employers.Hiring local employees may require a local legal entity, a registration of your company, and a clear understanding of the local labor laws, and employee rights. The lack of adequate knowledge makes the hiring process daunting for many firms expanding into new markets. One of the surest and easiest ways to get this done is to seek expert help. Contact us for setup advice. A problem with employee benefits Employee benefits differ in various jurisdictions. So, to make an irresistible offer and recruit some of the best talents, it is pertinent to understand the benefit entitlements of employees in certain jurisdictions are entitled. Some of these benefits may include health insurance, pension funds, a 13th-month salary, and fully paid maternity leave (in some European countries).Also, it would be best if you didn’t attempt to kill all birds with one stone by dishing out the same benefits to all your global workforce; it’ll only bring about catastrophic results.  Issues meeting the requirements for international employees' relocation Meeting and taking care of the immigration and visa requirements is tasking. The problem associated with this is failure to meet the preconditions and the penalty is the rejection of the application. As an employer, if you desire to bring foreign employees to your home country, you automatically become their sponsor, and it is not a walk in the park.  Not adhering to compensation laws and minimum wages for international workersIt is common to seek to hire international employees because this gives you access to an infinite pool of talent and, to an extent, reasonable compensation. However, one thing you must consider when hiring from a foreign country is that various jurisdictions have their minimum wage laws.These laws differ on the state and even regional levels, but one thing is constant, there are strict penalties if you, by any chance, fail to comply with the laws.Managing Compliance Risks Making sure your business complies with the rules and regulations of the various countries you are hiring from is essential to the growth of your business. It is also crucial to know what to do when compliance risks surface.  Some of the best practices by which you can manage compliance risks include conducting a risk assessment and having a structure that carefully spells out your organisation’s duty to all the parties involved.You must consider the parties, from the government down to the customers, and also endeavour to update the structure often to accommodate new laws and regulations that may come up. Also, you have nothing to lose by making sure your business is an ethical one where people can speak up if there are any issues.Managing compliance risks is not an easy task, but it is something you must be done. If you don’t have the personnel or time to do the job carefully, as is usually the case, it is advisable to automate the process with our AI-Powered global expansion platform.   Final Words Do not assume a country’s laws when hiring from there; make sure you do proper research because you may unknowingly be violating laws and creating errors for which you could be significantly penalised.Also, in any case, where you are indulging compliance risks to escape some financial duty, desist from it because it comes back to bite. Contact us for advice and support when hiring internationally. 

Apr 22, 2022
BlogAn international expansion case study: Deliveroo
Start A Company, Hr +2
An International Expansion Case Study: Deliveroo

Origins of DeliverooAfter making the move from New York to London, Co-Founder, and CEO Will Shu was astounded to realize that it was very difficult to get ready-made food delivered to consumers. As a result, he made it his personal mission to bring restaurants closer to their customers. This led to the launch of Deliveroo in February 2013. Before going global, Deliveroo started as a small company in the US with very few sales and minimal stock listings. In its 3rd year, revenue grew to £18 million and the company began to grow and develop significantly.  How much has Deliveroo grown?  In 2021, Deliveroo won Best Beats First Category Company in the Real Innovation Awards. Moreover, it was crowned the fastest growing technology firm in the UK by Deloitte. Over the last 4 years, it has achieved an incredible growth rate of 107,117%. This year, the company is in the rankings again, proving that it has the momentum to maintain its steep growth trajectory.Currently, the company is valued at US $2 billion (£1.5 billion), making it one of Britain’s most valuable private companies despite having recorded a gross profit of less than 1% in 2021. In addition, Deliveroo has raised over $900m since it was established, and this has given it the opportunity to expand in other countries. The company is growing at an extraordinary rate, partnering with thousands of popular restaurants to deliver great food to customers’ doorsteps.  What led to Deliveroo's global expansion success?  Without a doubt, Deliveroo is ahead of the competition since it heavily invests in resources that afford it a competitive advantage. To be precise, the crux of its success lies deeply in its prompt responses to customer demands and concerns, and this is made possible by its data-driven decision-making process.  The firm was also able to raise over $200 million (£132 million) last year, and this has partly contributed to its meteoric rise. Unlike its competition, Deliveroo has transformed the way consumers order food by making it possible for its customers to indulge in-home delivery from restaurants that were not making deliveries. Today, customers can get reliable and quick deliveries from more than 750 premium London hotels thanks to its massive network of 300 freelance drivers.  The efficiency and adeptness of the company can also be attributed to big data and machine learning. Dan Webb, the company’s VP of engineering, says that "ever since the company was established, the use of data has been pivotal to ensuring that riders, customers, and restaurants get the best possible experience."  Deliveroo uses data in 3 key ways:  - To support team decisions. Constant experimentation has enabled the company to comprehend product changes. According to Webb, graphs and data help their operations team to comprehend and react to trends.  - To provide support for recommendations and decisions. The company uses machine-learning models that need to be retrained to make sure that the company is making decisions and recommendations using relevant and up-to-date information.  - To provide ‘real-time operational monitoring. Since Deliveroo’s operations are mostly in busy cities, connecting customers to restaurants and riders is always unpredictable. To overcome this, the company uses real-time data to identify and react to challenges that may arise.  By leveraging on data, their dispatch engine, ‘Frank’ is able to continuously calculate and match the ideal combination of riders and restaurants with customer orders. These predictions and calculations are based on machine learning algorithms trained to identify and react to challenges that may arise.  How many countries does Deliveroo operate in?  Deliveroo has transformed itself into a global company that operates in over 800 cities and towns across 12 markets. These include Hong Kong, Belgium, France, the United Arab Emirates, Italy, Ireland, the Netherlands, Singapore, the United Kingdom, Spain, Kuwait, and Australia.  How many employees does Deliveroo have?  Deliveroo has partnered with more than 140,000 takeaways and restaurants. It also boasts over 110,000 riders that provide food delivery services across the globe. Moreover, it has over 2,000 employees in offices around the world.  Challenges Deliveroo faced  Shifting customer preferences  The main aim of Deliveroo was to grow its market share by offering the best possible deals to its customers at an affordable price. Unfortunately, players in the food delivery niche have elevated the marketing game to such a level that customers are spoilt for choice. This made it hard for the company to build brand loyalty.  Volatile Market Prices  Apart from growing its customer base, the company has also decried the high volatility of food prices. The company says that it has been hard to track and keep up with market prices, and this has made it difficult to implement an ideal pricing strategy.  Observance of Food Quality Standards  Due to a massive demand for orders, delivering food to customers who are far away from restaurants while maintaining quality has been a challenge for Deliveroo. The problem is that the food served in restaurants and the one being delivered to customers create a significant loophole that the company is striving to overcome.  Managing Customer Expectations   Regardless of the success that Deliveroo has had, it has been finding it hard to satisfy customer demands. The company has publicly stated that customer satisfaction is not just a matter of their delivery partners but also those working at the point of origin. As a result, it has been a challenge for the company to fill the gap that exists between restaurant workers and delivery partners. Conclusion  Despite the challenges faced by Deliveroo, it has established itself as a big wig in the food delivery industry. And though it is yet to make substantial profits, we should expect the company to continue its growth, largely due to its business model and its ability to raise funds for expansion,

Apr 22, 2022
BlogHow to successfully expand into Germany
Start A Company, Hr +2
How To Successfully Expand Into Germany

Looking to expand your business into Germany? Well, that's a noble business move for several reasons. First and foremost, Germany is a global powerhouse boasting the largest economy in Europe. Moreover, it has a highly skilled workforce, over 450 million consumers, an innovative business culture, 45 preferential international trade agreements, and manufacturing dominance responsible for 22% of Europe’s GDP.Even though it is this lucrative, there are several business and regulatory factors you need to take into consideration before expanding into Germany. To help you out, we have created this comprehensive guide to assist you to establish any kind of entity in Germany be it a sole proprietorship, partnership, or corporation.  How to set up an entity in the German market  Before setting up a business in Germany, it’s imperative to be aware of what form of entity you are looking to start. There are 3 types of entities you can establish. Let’s have a look at each.  1. Sole Proprietorship (Einzelunternehmen)  This is the most popular option for people looking to start personal companies or businesses. In Germany, a Sole Proprietorship is commonly referred to as a Gewerbe. As a sole proprietor, you will be responsible for all business debts and actions. In case the company makes less than 22000 Euros in its first year and not over 50000 Euros in the second year, you can opt to re-register it as a small business (Kleingewerbe) and benefit from less bureaucracy  2. Business Partnership (Personengesellschaft) Partnerships in Germany are described as sole proprietorships with 2 or more actors. There are different forms of partnerships but the most common include:  - General commercial partnerships OHG (offene Handelsgesellschaft)  - Civil law partnerships  GbR (Gesellschaft bürgerlichen Rechts)  - limited partnerships KG (Kommanditgesellschaft)  Apart from limited partnerships (KG), all others are liable for business actions and debts.  3. Corporation (Kapitalgesellschaft)  Corporations are the most favorite entities among funded companies and startups. There are 2 types of corporations you can establish in Germany. These are: - Limited liability companies GmbH (Gesellschaft mit beschränkter Haftung). These require 250000 Euros as capital but your personal finances are protected. - UG (Unternehmergesellschaft). This is an ideal option if you don’t have enough capital to start a limited liability company since you only need 1 Euro as a starting capital.   How to register an entity in Germany  When establishing an entity in Germany, the process will vary depending on the type of business. However, it is typically similar in most cases. The most important milestones you need to complete will be something like this.  Obtain a Business Visa for Germany  A business visa grants you up to 6 months of stay as you establish your business and complete necessary paperwork. To get one, you will need to declare your address, prove financial support, and have short-term health insurance  Register Your Address  Once you have arrived in the country, you will be required to register your address with the local Bürgeramt.  Get Your Trade License  After registration and permission to stay in Germany, you will be required to register your entity with the trade office (Gewerbeamt) so that you can be granted a trading license. The trade license (Gewerbeanmeldung) permits you to get involved with business activities. To get registered with the trade office, you are required to fill out an online form, sign it, and send it to a local Gewerbeamt.  Register With The Tax Authorities  Once you have a trade license, you will be required to register your entity with tax authorities. This can be a tedious task since it requires you to complete a 7-page questionnaire. Fortunately, we can help you with the process.   Tax Structure in Germany for Foreign Companies  Germany’s taxation system is grounded on over 40 types of taxes established under strict rules. The tax burden also varies depending on the taxpayer's benefits from various deductions and exemptions. However, foreign investors and non-resident individuals are only levied income tax on the income they generate. The same applies to foreign corporate entities which are levied corporate tax and municipal trade tax depending on where they have been registered.  Corporate Tax Rules for Germany  Foreign entities in Germany are categorized under the foreign tax act which was put into effect in 2010. These regulations apply to German resident taxpayers with over 50% stake in a foreign company and to foreign entities established in Germany that receive passive income.  The German corporate income tax is charged to corporations at a 15% flat tax rate but an additional 5% solidarity tax may apply. Moreover, foreign companies or German subsidiaries are levied a 25% withholding tax on their dividends.  However, in case there is a double taxation agreement between another country and Germany, this dividend tax may be reimbursed.  The trade tax applied to foreign companies in Germany  Foreign corporate entities are required to pay municipal trade tax if they generate income this also applies to foreign entities that have been permanently established in the country and the municipal tax trade ranges from 6% to 17% depending on the location of operation.  In case capital gains are repatriated to another corporation, the foreign entity may benefit from tax exemptions for trade tax purposes. This exemption is effected by reducing the tax burden to about 1.5%. To qualify for this exemption, the foreign entity needs to have about 15% of shares in a permanent German establishment.  What Visas are available to expanding companies? (Work Permits vs. Business Visas)  Work Permits Germany Anyone can live in Germany and conduct business activities even if they are not EU citizens as long as they meet eligibility criteria. To be allowed to work and live there legally, you will need a residence and work permit. You don’t have to apply for each individually since they are granted together.  Categories of Work Permits in Germany  Based on your employment type and qualifications, there are different types of work permits. These include:  General Work Permit – if you have found a job in Germany that could not be filled by an EU national, you can apply for this type of work permit. There are no requirements for extraordinary skills. All you need is to be qualified for the job.  Highly Skilled Worker Permit – if you are a highly skilled worker with a lot of experience and high income, this is the work permit to apply for.  The EU Blue Card for Germany – if your annual salary ranges between €44,304 and €56,800, you can apply for the EU Blue Card more so if you are in a shortage occupation.  Work Permit for Freelancers- If you are self-employed or a freelancer, you can apply for this type of visa. However, you need to prove that you have prospective clients.  Visa options for Germany  The Germany Employment Visa provides an opportunity for foreigners to settle and establish entities in Germany in any given field. It offers an individual the chance to work, enter, and reside in the country for 2 years with the possibility to extend the stay with an EU blue card or other work permits.  Long-Stay Visa Types for Working in Germany  The Germany Long-Stay Visa can be used for the following purposes:  Employment – if you have landed a job in Germany  Self-Employment – if you want to open an entity or work as a freelancer  Jobseeker – if you are looking for a job while staying in Germany.  Working as an Au Pair – for people looking to immerse themselves in the German language and culture.  Working Holiday Visa – for young people from countries that have working holiday agreements with Germany.   Reasons to expand to Germany  Prosperous economy  Germany is the largest economy in Europe and ranks among the top 5 economies of the world. In 2020, it accounted for about a quarter of the EU's gross domestic product. Since its economic crisis ended in 2019, the GDP has grown in bounds making it an ideal to expand your business or start a new one.  Largest consumer market  Besides having the largest GDP in Europe, its population of 83.2 million tops the population of all other EU countries. This implies that it is the largest consumer market in Europe both in terms of purchasing power and number of people.  Skilled German Workforce Germany's reputation for innovation and productivity is largely owed to its highly skilled workforce. It boasts a robust vocational and education system and over 50% of upper secondary graduates have a vocational qualification. This means that you will always have qualified employees in the business that you want to set up in Germany.  Investment incentives  The country offers a wide array of incentive programs and funding instruments that can be very beneficial for expanding businesses. The most common are:  - GRW cash grants  - Research and development grants  - Grants for hiring   Top challenges of expanding to Germany  Though there are several benefits of doing business in Germany, there are also several drawbacks. The social market may be prosperous but expanding businesses come across extensive regulations and high labor costs. Some of the challenges include:  Lengthy process for starting a business  The biggest challenge of expanding into Germany is the complicated and long process of starting a business. Germany ranks 125th on the World Bank’s starting business index and this accounts for procedures, time, and cost.  Robust employee protections  Individuals looking to tap into the German market need to be aware that Germany has the strongest employee protections in the world. Employment laws set strict requirements that employers should enforce on their employees. For instance, employees in Germany are entitled to 20 days of paid holidays and 13 public holiday offs.  High cost of labor  Germany’s competent labor force is a draw to many investors but the cost of labor is not. The average hourly rate in the country is 35.6 euros which is higher than the EU average of 27.7 euros. The minimum wage is currently 9 euros but is bound to increase to 10 by the end of 2022.  Complicated tax laws Setting up a business is not the only complexity. Notably, the fiscal system is very convoluted so anyone looking to set up a business needs to partner with local finance experts to help them file taxes and organize their finances.  Conclusion  Despite these challenges, Germany is still a global powerhouse that is very lucrative for international investors. The bureaucracies of doing business might be harsh but once you are established, you are bound to reap the benefits. To help investors get a share of the German market, we have a German company formation service that simplifies the process of establishing entities. Please contact us for further details on how we can help you set up a business in Germany.How to Get the International Expansion Ball Rolling Setting up a company in Germany 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?    Sign up to the Centuro Connect platform today and start your global expansion journey to Germany and 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.  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.      

Apr 21, 2022
BlogHow to expand your business to the USA
Start A Company, Hr +2
How To Expand Your Business To The USA

Is your business contemplating expanding into the USA? The United States of America is the world's largest economy, and many businesses are drawn to the opportunity of establishing a presence in the profitable market due to its rich talent and ease of entry.However, there are many pain points that companies need to consider as the process can be labor-intensive and costly. To help you determine whether the USA is the right target market for your global expansion, we have compiled a definitive guide to inform you of the key business incorporation steps.    What are the benefits of expanding into the US market?   1. Skilled workforce  The US reputation for innovation and productivity is largely owed to its highly skilled workforce. It boasts a robust vocational and education system and over 50% of upper secondary graduates have a vocational qualification. This means that you will always have qualified employees in the business that you want to set up in the USA.    2. The US access to funding  The US has the largest foreign direct investment (FDI) initiatives in the world. This implies that the country heavily invests in international businesses. In 2020, the FDI initiative was valued at $4.6 trillion, while in 2021, the US venture capital firms invested $160 billion in over 10,000 businesses.  3. Entrepreneurial mindset  The US ranks among the top 3 most entrepreneurial markets in the world. In the country, entrepreneurs are forward-looking and this is captured vividly by Allyson Stewart-Allan, author of Working with Americans.  4. The US market size  The US is the world's largest economy with a Gross Domestic Product of over $20 trillion. The GDP growth in 2021 was 5.7% and the trend is expected to continue upward. It also boasts a 330 million population and this makes the USA an ideal country to invest in.   What are the top challenges of expanding to the US?    Though there are several benefits of doing business in the US, there are also several drawbacks. The social market may be prosperous, but expanding businesses come across extensive regulations and high labor costs. Some of the challenges include:  1. Lengthy process for starting a business  The biggest challenge of expanding into the US is the complicated and long process of starting a business. The US ranks 46th on the World Bank's starting business index and this accounts for procedures, time, and cost.  2. Robust employee protections  Individuals looking to tap into the US market need to be aware that it has some of the strongest employee protections in the world. Employment laws set strict requirements that employers should enforce on their employees.   3. Complicated tax laws  Setting up a business is not the only complexity. Notably, the fiscal system is very convoluted, so anyone looking to set up a business there needs to partner with a local tax consultant to help them file taxes and organize their finances.   How do companies set up an entity in the US?   Choose Your Company Structure   Depending on the nature of your business, there are several legal entity types you can choose from. These include:  Sole Proprietorship: In the US, this is a company that is owned by a single person and is not separate from its owner in terms of legal representation. This means that the owner bears full responsibility for any debts or obligations of the company. Moreover, the owner of such a business enjoys all the profits that the company earns, and any generated income is added to the owner's personal tax returns.  Partnership: A partnership is similar to a sole proprietorship, with the difference being that it is owned by more than one person.  Limited Liability Company: An LLC is a company with multiple owners, but it is a separate legal entity from its owners. A document known as an operating agreement governs Limited Liability Companies. This document outlines how the company will be governed. Under US corporate law, an LLC is the most flexible business structure since they are easy to manage.  C-Corporation: A C corporation is a legal entity where the shareholders or owners are taxed separately from the company. C-corps are the most prevalent corporations and they are subject to corporate income taxation. Taxes on profits from these companies are both from personal and corporate levels creating a double taxation situation.  S-Corporation: This is a type of corporation that meets certain Internal Revenue Code requirements. If it does, the company can pass credits, income, losses, or deductions on to shareholders without having to pay federal corporate taxes. This type of entity is associated with small companies that have less than 100 shareholders. The S corp status gives the business benefits of incorporation while enjoying tax-exempt privileges.   How to register a company in the USA?   Once you have decided on the type of entity you wish to establish, you will be required to formally register your business. The process will vary depending on the entity type you have selected. Below are the primary steps and requirements. 1. Choose a unique name as a trademark   You will be required to choose a unique trade name that is not currently registered in the US. If you are still undecided about a suitable name, be sure to consult the US Patent Trademark database to view trademarks that may no longer be available  2. Register with state agencies   Once you have a name, you will be required to register your business in the state where you intend to conduct your business. To do this, you need to:  · Have a physical address in the relevant state  · Conduct in-person business meetings in that state  · Prove that most of your income comes from that state  · Hire employees from your chosen state  3. Get a registered agent   A registered agent is an individual or business that is responsible for receiving Service of Process (SOP) when a business entity is in legal action, such as a summons or lawsuit. In all states, it is a mandatory requirement when forming a new company.  4. File for Foreign Qualification  Filing for Foreign Qualification refers to registering your entity with the secretary of the state office of another state. It facilitates your company to pursue growth opportunities in other states without having to incorporate a new business entity. This is usually the first step when expanding your business operations in a new state. Once you have filed for the qualification, you may receive a certificate of authority which makes it possible to obtain state-level business licenses and tax registration.   5. File state documents and fees   The necessary documents will vary depending on your business structure and where you want to register it. However, the most common requirements include:  Business location  Business structure  Registered agent information  Value and number of shares  Management structure, ownership, or directors  6. Register with local agencies  For LLCs, corporations, and partnerships, you will be required to file for city or county licenses. If you are using a trading name, you might also be required to register it with the local county or city.  7. Open a Business bank account   You will also be required to have a business account to run your entity's financial transactions. This is mandatory if you are starting an LLC or corporation. There are several options to choose from, but it will pay to conduct some research for more affordable bank providers.   If you require assistance with setting up an entity in the US, please Contact Us.  What is the Tax structure in the USA?  Taxation of income earned by non-US citizens is dependent on whether the income has a nexus with the US and the extent and level of the non-citizen's presence in the US. There are many tax benefits for companies looking to set up in the US. However, it is key to understand the tax structure first. It can be broken down as follows:  Alternative minimum tax (AMT)   AMT is imposed on LLCs, C corporations, and S corporations with an average 3-year gross revenue not exceeding $7.5 million. This tax is computed by adjusting the company's regular taxable income by specific adjustments and tax preferences. Adjustment items or tax preferences arise if a company has substantial accelerated depreciation, intangible drilling costs, percentage depletion, or non-taxable income.  S corporations  Corporations with 100 or fewer shareholders are taxed under Subchapter S of the Internal Revenue Code. These companies are taxed in a manner similar to but not identical to partnerships. This implies that all taxable items, such as deductions and income flow through the owners of the entity. Therefore, S corporations are not subject to US federal tax income.  Gross transportation income taxes   Nonresident individuals and foreign companies are subject to an annual 4% tax on gross transportation income (USSGTI). However, there is an exception for income associated with a US trade or business. Transportation income is defined as any income resulting from or connected with:  • The use, leasing, or hiring of an aircraft or vessel  • The performance of services related to the use of an aircraft or vessel.  State and local income taxes  In addition to the federal income tax, some states impose a state income tax. Local governments also levy income taxes based on state income tax calculations. State income tax is imposed at a graduated rate on the taxable income of every corporation, individual, trust, and certain estate. These rates will vary by entity type and state. However, they conform closely with federal taxable income.   If you would like to discover more about the tax structure in the US or have any questions, please Contact Us.    What Visas are available to employees looking to immigrate?   There are 4 visa categories available to companies with employees who are looking to relocate to the US. These include:  Visa options for the USA   1. Temporary Investor Visa: E1 & E2 Visa   Candidates who are looking to establish a company in the US may be eligible for an E1 or E2 visa. Although not all candidates will be eligible for this visa category, those who do qualify are able to register entities in the US. Spouses, employees, and children of these visa holders may also qualify for a visa.  2. Permanent Investor Visa: EB-5 Visa   The EB5 Visa allows the candidate to live, work and register as an entity without having an employer in the United States. To qualify for this visa, substantial investment is required. Candidates need to invest at least $900,000 in a US enterprise that creates at least ten or more jobs for American citizens. Successful candidates for the EB-5 visa may receive a green card, which could eventually lead to citizenship.   3. Business Expansion Visa: L-1 Visa   The L1 visa is also known as a business expansion visa. It offers temporary residence for employees of international companies with offices in the US. This visa is available to employees working for companies outside the US that have subsidiaries, branches, affiliates, or joint ventures with companies in the US.   4. US Corporate Immigration   If you have a business and would like to expand your operations in the US, the Corporate Immigration visa is your best option. It is precisely designed for small to medium-sized enterprises (SMEs) and may apply to large companies that are looking to seamlessly transfer their employees to the US.   Conclusion   All in all, the United States is a perfect country if you are looking to expand your business. However, the process can be taxing more so if you are a foreigner. Fortunately, we are here to help you. Contact Us so that we can advise you accordingly on what you need to have your business set up in the USA.How to Get the International Expansion Ball Rolling Setting up a company in the USA 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 the USA?    Sign up to the Centuro Connect platform today and start your global expansion journey to the USA and 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.  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.                      

Apr 20, 2022
Press Release
Start A Company, Hr +2
Centuro Global Appoints New Community Manager

We are pleased to announce the appointment of Emily Stewart as our new Community Manager.   A highly accomplished, client & engagement executive, Emily has over 15 years of experience in the Global Mobility space. Her experience ranges from relocation management to professional services, to advisory & consulting, and Global Mobility data. In her role as Community Manager, Emily will report to CEO Zain Ali, driving Centuro Global’s innovation strategy, product vision, relationship building, and collaboration with global network members. She will play an essential role as Centuro Global continues to evolve its innovative Global Expansion platform to meet rapidly growing client demand. “I’m looking forward to celebrating the diversity of thought and breaking down silos to support regional teams grow in our global network,” said Emily Stewart, Community Manager, Centuro Global. Before Centuro Global, she held the position of Client Engagement Manager at AIRINC. Prior to that, she held various positions at Deloitte, Graebel Relocations, and Cartus, where she specialized in global mobility consulting and expatriate compensation. Emily holds degrees in French and Spanish from Oklahoma State University. Originally from the U.S.A., Emily has lived in the Czech Republic, Brazil, and Belgium. She is now based in Centuro Global’s London office.  Please join us in welcoming Emily!  You can connect with her on LinkedIn or via email at emily@centuroglobal.com.   About Centuro Global  Centuro Global is the world’s first market network designed to help companies expand internationally via a SaaS platform. A dynamic combination of real-life, real-time advice and a broad digital knowledge base empowers a company’s leadership and its people to take global growth into their own hands.The overarching aim of the platform is to allow businesses to expand into new territories in a seamless and compliant way while bringing down costs and breaking down barriers for less established companies.  To learn more, please visit: Our Website or connect with us via Twitter, LinkedIn, Facebook, or check out our Media Center.

May 23, 2022
Press Release
Start A Company, Hr +2
Centuro Global Appoints New Head Of Global Alliances

We are pleased to announce the appointment of Simon Ward as our new Head of Global Alliances. Simon brings extensive experience in client consultation and project & client relationship management for SMEs and large-scale organisations across multiple industry sectors worldwide. Reporting to CEO Zain Ali, Simon will play a key role in Centuro Global’s strategy to develop and leverage a robust, collaborative network of internal and external partners in achieving SMART, quantitative business objectives and KPIs. As part of the core executive team, he will engage on Centuro Global’s broad business vision - to craft corporate strategies to overcome potential obstacles and build contingencies as the company expands its Global Expansion platform to new markets and users while ensuring world-class tax, immigration, legal, HR and compliance standards. “I am delighted to join the amazing team at Centuro Global and hope that my experience earned over the years will help," said Simon Ward, Head of Global Alliances, Centuro Global. I have run partnership programs globally for 20 years for some of the largest organisations in the world. I am looking forward to sharing the passion and drive that Centuro Global has with potential partners globally, and demonstrating a product that I am truly excited about, especially as it's supported by such a focused and results-driven team.” Before joining Centuro Global, Ward served as Global Alliance Manager at Elements Global Services. Previously, he served as Strategic Channel Manager for PCCW Global Networks. Prior to that, he served as Strategic Account Manager and Senior Channel Account Manager for Glide UK and TalkTalk Business respectively. In his private life, Simon Ward is a professional racing driver and currently competes for Team Great Britain in Triathlon, recently winning a Bronze Medal at The World Championships. “Although I compete alone, the team around me; coaches, nutritionists, doctors, and mechanics all contribute to any medal. I had not felt that unity outside of my sport until I joined Centuro Global, and the can-do attitude will put us in a winning position always”. Please join us in welcoming Simon! You can connect with him on LinkedIn or via email at simon@centuroglobal.com. About Centuro Global Centuro Global is the first market network designed to help companies expand internationally via a SaaS platform. A dynamic combination of real-life, real-time advice and a broad digital knowledge base empowers company leadership and its people to take global growth into their own hands. The overarching aim of the platform is to allow businesses to expand into new territories in a seamless and compliant way while bringing down costs and breaking down barriers for less established companies. To learn more, please visit: Our Website or connect with us via Twitter, LinkedIn, Facebook, or check out our Media Center.

May 18, 2022
Blog
Start A Company, Hr +2
Top Reasons To Set Up A Business In Cyprus

Throughout the past 30 years, Cyprus has developed to become a high-quality centre for international business and investment. The past decade has witnessed a steady stream of companies choosing to set up their headquarters in Cyprus.Many industries have chosen to invest in Cyprus, with notable upsurges in the pharmaceutical, shipping, fossil fuel, investment, and renewable energy sectors. Many consider Cyprus a vacation island and do not immediately think of the business rewards.However, there are many benefits to setting up a business in Cyprus. For those wondering what the business attraction is, consider the following:  Cyprus Business Location Highlights  A modern stable democratic state with EU and Eurozone membership and a 'can-do' attitude.   Cyprus is considered to be recently independent, after gaining its independence in 1960. Historically, Cyrus was best known as being an island which was lacking in natural resources and predominantly dominated by agriculture and tourism.  However, the 2022 version of Cyrpus is better recognised as being a member of the European Union (since 2004) and Eurozone (since 2008). It is considered a modern and fully transparent international centre for business and finance, and home to one of the largest merchant shipping fleets in the world.  It also offers investors and companies an oasis of calm in what is known to be an otherwise turbulent region. When excluding the COVID-19 pandemic and Cyrpus's large tourist sector, the country recorded GDP growth of 4.5% in 2021.  A strategic geographical location The island is ideally located in between three continents and functions as a natural conduit for investment both into and out of the European Union.  Cyprus is also placed in a convenient time zone for conducting business worldwide.It falls into the Eastern European Timezone category, making it a favourable location for companies within the European Union. Cyprus holds historic ties with Eastern Europe. It manages positive relations with North Africa and the Middle East, and Cyprus enjoys good relations with its neighbours.  The island is served by two international airports, and modern seaports and is home to the third-largest merchant fleet in the European Union.Access to local and EU talent: Dynamic, young, affordable employees For non-resident companies, accessing local and international talent may seem daunting. However, there are numerous benefits to opening a company in Cyprus and hiring a local or foreign workforce. This includes the availability of relatively low-cost, talented, and multi-lingual skilled workers, who are keen to work and can do so across multiple economies and in many languages.Numerous major ICT businesses have established headquarters or a Cyprus company to conduct a variety of operations including sales and marketing, software development, and disaster recovery. Cyprus has also recently launched more liberal immigration policies, in a bid to attract more top talent to the island. This has helped to attract foreign direct investment and bring in foreign investors.This compares to many other European countries, which may be perceived as relatively restrictive with their immigration procedures.Attractive corporate and income tax regulations: offers over 65 dual taxation agreements  The current Cyprus corporation tax rate for resident companies is 12.5% on worldwide income. This will increase to 15% for MNE in line with OECD rules but any potential negative impacts are offset by government tax policies that favour high quality, sustainable businesses and business sectors such as multinationals, shipping, pharmaceutical, fintech, gaming, and digital marketing corporations.Cyprus provides an ideal environment for group holding and finance companies, offering a tax-free flow of dividends from Cyprus to non-tax resident entities under certain conditions while there is a full participation exemption and no tax on capital gains apart from gains derived from the direct and indirect sale of real estate in Cyprus.The network of double taxation agreements provides excellent safeguards vis-à-vis double, or no taxation, and unilateral relief is available for taxes paid overseas if no double taxation agreement applies. The EC Merger Directive has been fully adopted and therefore mergers and approved restructurings can be carried out with full exemption from any form of taxation in Cyprus.  Special income tax incentives are in place for new tax residents of Cyprus with up to 50% tax relief for high earners. Although Cyprus does not have the lowest corporate tax rates, they offer reasonable corporate tax incentives.Tax incentives for investment and innovation including a highly favourable IP Box regime  The Cyprus government is keen to build a cluster of  ICT, high technology, and innovative companies.  To this end, it operates a European Union-approved IP Box regime that utilises the ‘Nexus’ fraction approach. The Cyprus IP Box basically provides a tax exemption of up to 80% of profits for expenditure concerning research and development from qualifying intangible assets.The government has proposed changes to the scheme which if adopted will further enhance its attractiveness.  Natural persons can benefit from a 50% tax deduction for investing in certified innovative companies. The government intends to expand this to include corporate investors.  Attractive European Union approved sector-specific tax regimes Cyprus operates the first EU-approved shipping ‘tonnage tax’ scheme. This approval has recently been extended to 2029.  Under the scheme, subject to qualification, shipowners, ship managers and charters in qualifying shipping activities have the option to be taxed based on the tonnage of the vessel rather than on income or profit. This offers the owner the advantage of certainty.  The scheme has played an important part in the development of a shipping cluster in Cyprus which now includes the largest 3rd party ship management centre in Europe and the largest crew management centre in the world.  Special schemes also exist for the Insurance and Film sectors.  A legitimate, transparent business eco-system that includes a strong competitively priced professional service sector with English widely spoken as the established business language  Cyprus is primarily a common law jurisdiction with courts bound by the doctrine of precedent. This offers the parties with an intended commercial action the advantages of consistency, predictability, and efficiency.  Intellectual Property rights are well protected, and European Union laws are fully applicable. Most business activities are conducted in English, although some other languages may also be used given Cyprus's strategic location.English is widely spoken and will be approved as an official language for use in soon-to-be-established Commercial and Admiralty Courts. If you require any assistance with intellectual property rights or more advice, please do not hesitate to get in touch.Cyprus has a competitive international tax environment, which is fully compliant with international best practices and many foreign companies appreciate the standards of transparency and fairness.The EU Anti-Tax Avoidance Directives ATAD I and ATAD II are in force, and it is expected that the ATAD 3 provisions will take effect from 1 January 2024. Cyprus is also a signatory to the Multilateral Convention on Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.New and updated double tax agreements are aligned with the latest OECD standards and, in compliance with the 4th and  5th Anti-Money Laundering Directives, the different UBO registers have been established.  There is a relatively low-cost, large, highly-skilled, and experienced professional services sector which is familiar with complex and multi-jurisdiction transactions.  The larger international accounting firms have bases in Cyprus and law firms such as Elias Neocleous & Co LLC frequently work in conjunction with the ‘Magic Circle’ of law firms.Low set up costs, low office rents, and competitive commercial real estate prices  A surge in interest in locating in Cyprus has spawned a large number of multi-use office and commercial developments in the two main business cities of Limassol and Nicosia. Office accommodation is readily available to suit all needs and budgets – often with a breathtaking view of the Mediterranean.  Outside of this, costs for establishing a business are low and a Business Facilitation Unit has been established to assist with the practicalities of moving a business to or starting up a business on the island.  A government that is consistently pro-business and pro foreign investment Since 1960, irrespective of political leanings, successive Cypriot governments have been keen to promote a business and tax environment that will encourage foreign investment in the country.  For the past decade, this has evolved into a desire to promote Cyprus as a sustainable business and trade centre.  Recent policy has focused on the introduction of new incentives targeted at the areas of high-technology, innovation, pharmaceuticals, shipping, and foreign interest-owned companies.  Many of these incentives were put in place at the start of 2022 the remainder are expected to follow in short order.  They include the establishment of a Business Facilitation Unit to assist with the relocation and establishment of businesses in Cyprus, changes to migration rules to facilitate the entry of skilled third-country nationals, and numerous individual and corporate tax incentives to encourage a ‘brain drain’ into the country.  In addition to all of above Cyprus is rated as one of the safest countries in the world to live in with excellent education and health facilities. It offers a more relaxed environment with good cuisine and a welcoming population. Is it any wonder that so many businesses are now choosing to make it their home?  Migration & Substance  2022 Government investment strategy facilitates the employment of third-country nationals (TCN) in targeted sectors and gives them family reunification rights.   It is now much easier for foreign interest companies, or foreign investors, to relocate key workers to Cyprus and establish economic substance on the island as required under ATAD3.  Digital Nomad Resident Visa Scheme   From March 2022 the government is allowing, subject to certain conditions, 500 visas to be issued to TCNs able to work remotely through telecommunications technology. The initial visa is for one year. Possibility of renewing for a further two years. They may be accompanied by family members who will not have the right to work in Cyprus. They become Cyprus tax residents after 183 days in any year unless they can prove tax residency elsewhere.  Capital Gains  Capital Gains Tax is only imposed on gains made from;  - The sale of immovable property in Cyprus, and  - The sale of shares of unlisted companies directly or indirectly owning immovable property in Cyprus.  Gains are taxed at 20%. An exemption exists for the sale of property originally purchased on an ‘arm’s length’ basis between 16 July 2015 and 31 December 2016.  Withholding Taxes (WHT)   There is no WHT on dividends, interest, and royalties paid to non-residents of Cyprus except in the case of royalties earned on rights used within Cyprus. WHT on royalties for rights used within Cyprus may be reduced or eliminated by double tax treaties entered into by Cyprus or by the EU Interest and Royalty Directive as enacted in the Cyprus tax legislation.From 31 December 2022, Cyprus will apply WHT on dividend, interest, and royalty payments to EU Blacklisted jurisdictions.  Incentives for expatriate workers   Persons considered to be Cyprus tax residents may benefit from a 50% deduction (expatriate relief) on personal income tax if they:   ·Were not a tax resident of Cyprus in the previous tax year; ·Were not a Cyprus tax resident for any three of the past five years prior to commencement of their employment in Cyprus; and ·Have annual gross emoluments ≥€ 100,000.  This relief is currently available for 10 years. The government intends to reduce the qualifying threshold in 2022 to ≥€ 55,000 with a retroactive effect. It is also proposed to extend the period of relief to 17 years for existing beneficiaries. Lower paid expatriates becoming tax-resident in Cyprus can claim an annual exemption equal to the lesser of €8,500 or 20% of their income from employment in Cyprus.The exemption commences 1 January following the year of employment. The exemption is available for a period of 5 years with the last eligible tax year being 2030.  There are many benefits to setting up a Cyprus company or moving some of your operations to Cyprus.  If companies wish to receive advice on legal support, business incorporation support or receive market entry advice, it is best to contact an expert. Experts will be able to advise on country-specific processes including how to do the following:- Open a bank account- How to action company registration or establish an entity such as a; limited liability company, private limited company, public limited companies- Advice on obtaining a physical address, registering your business name, action any relevant document submission, and much more.- Work with both local companies ( Cypriot company ) as well as provide access to an international network- Access a wide variety of markets that may have the right consumer base for your product or servicesIf you are interested in setting up a business in Cyprus, get in touch. Our experts are on hand to support you.  How to Get the International Expansion Ball Rolling Setting up a company in Cyprus 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 Spain?    Sign up to the Centuro Connect platform today and start your global expansion journey to Cyprus and 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.  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.            

May 13, 2022
Blog
Start A Company, Hr +2
How To Acquire A Romanian Company

If a company has made the decision to purchase an asset in Romania, whether it be a Romanian company, or simply shares in a Romanian company, it is crucial to factor in some key considerations. As many lawyers and general counsels will know, commercial decisions are made, and then implemented by lawyers.  Companies often ask themselves whether they should conduct specific research before acquiring a company, however often lean on the knowledge and expertise of their lawyers to solve any problems or issues they are facing.Although lawyers may help to solve many challenges, companies should have legal provisions in place to reduce their risk, and ultimately help to ensure their success. It is an imperfect world for many Romanian transactional lawyers and therefore potential purchasers in Romania need to be aware of certain issues which have been outlined below.What legal challenges can be expected? This article is intended to review some of the initial problems that organisations should consider from a legal perspective.  The first question is what type of transaction is your firm trying to conduct.  Is your organisation looking to make an asset purchase, or are you purchasing shares within a company?  For buyers who have no legal entities or presence in Romania at the time of the purchase, the transaction may raise some concerns. If a foreign company is looking to acquire a company in Romania, they will need to financially register themselves before the transaction can be compleated. This includes opening a bank account, setting up an entity, and establishing a legal entity.  Once a company is financially registered, they immediately have a permanent establishment in Romania. This means that tax authorities can now charge the purchaser as they are now a taxable, Romanian entity. All relevant assets can therefore be taxed. This often leads to a popular question; should companies set up or incorporated a business before they proceed with an acquisition?Registering an entity, such as limited liability companies, or private limited companies may help to simplify the incorporation procedure. Ultimately, a tax implication will apply to the purchaser as to whether they acquire a local company, or set up their own entity, they will need to complete legal formalities and confront taxes potentially payable.To prevent complications and foreign ownership restrictions, the simplest route for companies could be to incorporate a local company in Romania. Additionally, incorporating a company may allow for the acquirer to benefit from a number of tax exemptions, including a double tax treaty. Setting up a local entity also helps to tap into the local Romanian market, and can help to offer increased representative offices for your services or product within the region. Corporate entities with offerings in other EU member states often consider establishing Romanian companies.What tax challenges and exemptions apply Tax exemptions are often relevant to the corporate taxes companies need to pay. However, there are exemptions that apply to income payments between the parent company and the subsidiary. For example, dividends received from a Romanian company or paid to it, provided that a dual taxation agreement is in force, will not have to pay withholding tax if the company has at least 10% of the issued shares and has been established for at least one year.The same type of exemption applies if there is income from a valuation, revaluation sale, or transfer of shares of either a Romanian company or subsidiary in another jurisdiction provided the transaction is in relation to companies in states where Romania has a Treaty against Double Taxation. Other tax considerations that sometimes arise relate to the shared exchanges or mergers that assist in facilitating the acquisition.Shared exchanges do exist in some cases, however, mergers and demergers are more likely. In these cases, there are limited taxation issues. However, it is always advised to consult a specialist to fully understand the main transfer tax exemptions. The outcome may change on a case-by-case basis.Taxation of a target company in Romania Romania follows the more popular approach when it comes to the taxation of a target company during a transaction. Because the target company is a legal entity, the taxation applies within the trade registry of that location. more normal routes in relation to the taxation of the target company during any transaction.  The taxable position of the company will not be altered by the change of ownership of the shares of the company.  Cost of acquisition transactions The costs of the transaction will also need to be reviewed in relation to the taxes which might be payable as a result of the acquisition. For the acquisition of shares or social parts the only tax payable will be that charged by the Official Gazette for the publication of the shareholders’ resolution. These are not calculated on the value of the transaction and are minimal. However, if there are assets being transferred and these assets are real estate then there will be notary fees and land registration fees.  The notary fees are charged based on the value of the real estate. The minimum value is set by the Notary table of real estate values. Another matter that might be considered by the acquiring company is the question of the deductibility of interest on the funds used to finance the purchase.  Exemptions for independent taxpayers As a general rule, the interest will not be deductible and is generally applied to all companies and is related to the implementation of anti-tax avoidance directives.  There is however an exemption relating to independent taxpayers permitting full deductibility of interest and foreign exchange losses.  The question of the availability of any tax exemption needs to be examined carefully in respect of any acquisition and the buyer's finance department or independent advisors need to consider this question. As matters in relation to taxation can arise after the closing of the purchase of a company or the assets it is also prudent for the acquiring company to consider there is a retention of part of the purchase consideration until such time as the total tax liability of the parties has been ascertained.  The question of any outstanding ability to mitigate tax liability will become apparent during the due diligence phase of the transaction and will therefore need to be covered in the transaction documents.  Depending on the nature of the retention any withholding may be treated as conditional payment of the purchase consideration and dealt with accordingly.Final considerations; expertise matters When working with companies as a Legal Romanian counsel for these types of transactions, we have found that the matters are often resolved during the negotiation process and when the purchase has successfully been completed.  However, the key takeaway for any purchaser should that quality legal and tax advice should be a priority before commencing with an acquisition in Romania. This will help to ensure that the whole transaction is conducted with the minimum tax liability for both parties as permitted by law.  How to Get the Acquisition Ball Rolling Acquiring a company in Romania is actually much simpler than many realise. Doing 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 acquire a company in Romania?    Sign up to the Centuro Connect platform today and start your global expansion journey to Romania and 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.  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.

May 13, 2022
Blog
Start A Company, Hr +2
The Remarkable Netflix Global Expansion Journey

Netflix is a prime example of a company that has successfully expanded its operations internationally. Starting out in just one country, the United States, Netflix has expanded into over 190 countries in just seven years!Despite the current challenges Netflix is facing concerning new subscribers, the company managed to successfully expand globally due to careful planning and execution. This article will explore three key areas that helped the streaming service achieve success, namely:1. Market choice;2. The Role of Data and Localisation; and3. How the company overcame Challenges.So let's get started!1. How Netflix Carefully Chose Its International Markets When entering into new countries, Netflix initially chose its next markets based on similarities, in order to limit potential cultural and geographical challenges.Canada One of the countries Netflix first considered for its global expansion was Canada. This was because the market was very similar to the United States in terms of culture, language and geography. This made it easier for the company to expand into Canada and tailor its content offerings to suit this new market.Netflix officially launched into the Canadian market in September 2010, kickstarting its first foray into international markets. Pricing was an important consideration in order to win market share and the initial subscription fee was priced at $7.99 per month, which Netflix CEO Reed Hastings referred to as "the lowest, most aggressive price we've ever had anywhere in the world." This was a key initiative as part of Netflix's business model to attract users quickly.Even with the low price tag, Canadian content availability was extremely limited. According to Canadian Business Online, in the United States by 2012 there were 10,625 distinct Netflix titles, whereas in Canada there were only 2,647.However, despite the initial relative lack of content, it took the company less than a year to attract one million subscribers, which is roughly three percent of Canada's population. This was an impressive feat!The choice of Canada proved to be a great success for Netflix. It exemplifies how choosing a similar market to your home country can be a relatively easy first step in your international expansion plans.Latin America & the CaribbeanOnce it had expanded into Canada, the next logical step in the Netflix global expansion journey was to expand into Latin America and the Caribbean due to the region's geographical proximity to the United States.At this point in time, the business had around 23 million subscribers across the United States and Canada. Successful expansion into the Latin American market would provide Netflix access to over 600 million potential new subscribers.On announcing its international expansion into the region, Netflix's share price surged by 8% taking it to record levels.From there, in September 2011, the firm began its expansion to 43 countries and territories in Latin America and the Caribbean, with content available in Spanish, English, and Portuguese. Brazil was the first country in Latin America to go live with the service on September 5th. The streaming service was priced at around $9.10 making it more expensive than in North America.Following Brazil, Netflix continued its expansion in Latin America, and the company launched in Argentina, Chile, Colombia, and Mexico in the subsequent days before expanding into a further 38 countries in the subsequent weeks. The company partnered with the likes of CBS, Miramax, and Showtime to share local content in the region.However, there were challenges in Netflix's global expansion into Latin America and the Caribbean. The lack of high-speed internet compared to the US and Canada proved to be an initial setback.For example, in Brazil, only 20% of the population had an internet speed greater than 500 kB/s a second in 2011. This proved to be an issue as Netflix required speeds of 800 kB/s a second in order to stream its content.A second major challenge was that the banking system in Latin America was not used to monthly recurring payments for a service, and given that this was the first streaming service to launch in the region, with no competitors, there was a reasonable degree of initial apprehension around the concept.Nonetheless, whilst this did hinder rapid growth, there was enough uptake to consider the expansion into the region a success.Europe Following the above-mentioned successes with global expansion, Netflix then turned to Europe in 2012. The expansion into the United Kingdom was a great success and by 2014 one in ten British households were subscribed to Netflix.Netflix developed a great strategy in relation to its international expansion based on its choice of content in new regions. "They start with a tiny offer that doesn't cost them much money and lowers their risk. Then they collect very specific information about what people enjoy, and programming and investment around consumer behavior are organized," according to Christof Baron, CEO of the world marketing firm Mindshare.In the UK, they started with content from the BBC, Channel 4, and ITV to gain initial traction and then started to review the type of content people actually enjoyed.2. The Role of Data and Localisation in Expanding Internationally Tailored Thumbnails Netflix has great attention to detail and even considered how viewers from different geographies would react to different imagery on the thumbnail of images.People are far more likely to view something if the thumbnail shows something that appeals to them. The old saying goes that a picture is worth a thousand words and in Netflix's case, the more you watch, the more likely you are to keep your subscription.  Based on this, Netflix very cleverly generates many possible thumbnails for each piece of content. The Netflix algorithm then looks at your viewing habits to match up the most relevant thumbnail.If you watch a lot of romantic comedies, Netflix will show you a Stranger Things thumbnail with Winona Ryder and David Harbour to capture your interest. If you watch more comedy content, then the Netflix algorithm will instead show you a Stranger Things thumbnail with the kids dressed up as Ghostbusters.Personalization algorithms Netflix used data to carefully select its next markets and to tailor content based on the regions they were targeting.Netflix personalization algorithms enabled the company to understand global user behaviour and preferences. This allowed them to create a content strategy that was tailored to each individual market, which was key to their success.When entering Asia, the company learned that Asian audiences were more likely to watch shows with subtitles rather than dubbed versions. In contrast, Latin American audiences preferred dubbed content. This data proved invaluable in Netflix's international strategy for localising content.Language Considerations To ensure that its content was accessible to as many people as possible, Netflix also translated its content into local languages and introduced subtitles and dubbing. Viewers in different countries could now enjoy Netflix's wide range of content.In English-speaking countries, Netflix aims to localize foreign titles via English subtitles, while in other important markets, such as France, Germany, Italy, Spain, and Japan, the company opts to subtitle or dub content based on local content preferences.In India, Netflix offers content in Hindi, Tamil, Telugu, Marathi, and Bengali.In China, it offers content in Mandarin and Cantonese.By localising its content, Netflix has been able to achieve global growth and become one of the most popular streaming services in the world.Original Content Not only does Netflix localise content but it also makes original content based on local preferences.  When expanding into Japan, Netflix saw that Japanese users were watching a lot of anime. In response, Netflix created an original anime series called "Devilman Crybaby" which was extremely popular.  More recently, Netflix began to take this strategy of making local content and tweaking it in a way to help its content simultaneously go global. For example, when the Korean movie Parasite made history by becoming the first non-English language movie to win the Oscar for Best Picture in 2020, Netflix took real notice. K-Pop was globally successful and on reviewing its data to see what sort of content global audiences were interacting well with, Netflix noticed a lot of success with Hunger Games.Netflix took this analysis and created content in the form of the Korean show Squid Game, resulting in mass international success. In fact, Squid Game became the most-watched show in the history of Netflix within a mere 6 weeks of launching.3. Challenges in entering new markets Despite the phenomenal global success discussed above, Netflix's expansion was not trouble-free and it faced a number of challenges when entering new markets. We have already touched upon some of the issues it faced in Latin America in relation to internet speed and the novelty factor. but what other challenges did it face?Legal Issues In Australia, Netflix fell into hot water with local laws. TV Stations in Australia rejected Netflix's classification as a technology company rather than a broadcaster as this allowed it to avoid having to comply with certain local regulations. In response, the Australian government considered introducing a law forcing streaming companies such as Netflix to invest in the local market.Censorship Issues Netflix also faced censorship challenges in markets including China, North Korea, and Saudi Arabia. Based on values held in different regions, certain content relating to the consumption of drugs, alcohol, or of a sexual nature would have to be adapted or removed completely in order to satisfy local societal values and rules.Netflix is currently not available in China but continues to explore options for entering the market.Despite these challenges, Netflix has been able to achieve global growth and become one of the most popular streaming services in the world. As of the beginning of the second quarter of 2022, Netflix has around 222 million international subscribers in over 190 countries making the business a fantastic success.Lessons from Netflix's Global Expansion Journey  The Netflix global expansion journey into over 190 international markets is a phenomenal success. This growth would not have been possible without Netflix's careful planning and execution. So what are the key lessons that expanding companies seeking to have similar success on a global scale can take from this?- You can't be in every country at once - start with those countries whose markets are most closely aligned to yours to ensure minimal cultural, language and regulatory complexity.- Test the market initially and gather data to help you make decisions before fully committing and going all in.- Even the most successful companies can face setbacks - don't be disheartened by any challenges.- Localisation is key to success in new markets - if you don't adapt your product, service, or offering to local markets you have little to no chance of success.Ultimately, by understanding the needs and preferences of its target market, Netflix was able to create a service that people loved. And by making their content accessible to as many people as possible, they were able to rapidly conquer foreign markets.Get started with your global expansionIf you are an expanding business looking to enter new markets, then sign up to Centuro Connect now. Our platform provides companies with information on how to expand into over 170 countries, setting out how to hire and relocate staff, local laws to consider, entity setup options and requirements, and a whole host more.Build your international expansion strategy, connect with local experts and track and manage your expansion in one single place.Sign up now to truly simplify your global expansion plans. 

May 05, 2022
Blog
Start A Company, Hr +2
Expanding Into Spain: Everything You Need To Know

Growing a successful business requires hard work and dedication. Once it takes off in your home country, the opportunities for wider success become even more clear. If you are wanting to reach a larger audience with your products and services, Spain may be the ideal location to grow your business.  Spain makes the top three list of excellent countries to establish a business in Europe. The Spanish market is categorised as a high-income economy because it is the 14th largest globally. As the 4th largest country in Europe, Spain has a very competitive economy with close ties with European and Latin American nations, a convenient location occupying Africa and Europe, and has a growing interest in constant research and technology.  How to expand your business into Spain In most cases, expanding a business to a foreign country can be pretty daunting. More so if you lack adequate information on some issues such as the country's business structures, legal processes, and regulations, to aid the smooth running of your business. Along with a structured business plan, our useful resources should ensure you get a successful foothold in the Spanish market.Setting Up an Entity in Spain The country of Spain is an ideal place to set up a business as an expat.  There are different business structures in Spain. A popular setup option in Spain is the Limited Liability Company (Sociedad de Responsabilidad Limitada/SL) which many small and mid-sized companies in Spain utilize.  Steps you must take to set things in motion include:Get Your NIE Number  Getting an NIE (Número de Identidad de Extranjero) number is a vital step toward setting up in Spain. It is an identification number given to non-Spanish citizens, enabling them to conduct activities legally. It is a straightforward process, taking a few days for EU citizens to acquire and a slightly longer time for non-EU citizens.Next Up, Registering Your Company  The next thing to do is to register your company's name with the Registro Mercantil Central (RMC). This registration process confirms that the name you have decided for your own company doesn't already belong to an existing company. It isn't time-consuming and can be done online.  Receive Your Bank Certificate  Opening a bank account should be your next move in setting up a company in Spain. It will prompt the receipt of a bank certificate. Also, you may need to deposit a sum in the account. It is 3,000 euros for a limited liability company.  More Registrations The registrations may appear never-ending for a new company, but going through with them is necessary. You can choose to get all the registration out of the way by applying for social security considerations simultaneously. For this registration, you will need all the documents you have acquired so far and TA 0521, which you can get at a local security office. You will need to register for a tax identification number (CIF) online or at the Tax Agency. Filling the Seats of the Shareholders and Directors  As a business owner, the last move will be establishing the shareholders and deciding on the directors. You will need to determine how many people will hold shares and their percentage in your new business. To fill the position of the director, you could pick two different people or a single person (Spanish resident) to have both corporate and operating functions.  What Is the Corporate Tax Structure in Spain?  Corporate tax in Spain is no joke, and defaulting on payment will attract strict penalties. The Spanish financial year is the same as a typical calendar year, and residents are taxed on their global earnings, while non-residents enjoy having only their Spanish income taxed. Another thing non-residents enjoy is a flat rate of 24%. As for residents, their taxes are charged progressively.  Taxes in Spain are a lot covering state and regional ones. As an expatriate, there are biases in your favour. It is standard for an expat who becomes a resident to pay income tax. However, under the special tax regime otherwise known as Beckham's Law by the Spanish government, you can be treated as a non-resident for five years, excluding the year you move.The downside is that as expats taking advantage of the special tax regime, you don't get to enjoy the full benefits a typical non-resident would. The exemptions in the non-residents' income tax are unavailable to you. What Visas Are Available to Those Wishing to Relocate?  You can apply for a Spanish visa tailored to suit the activities you want to conduct in Spain from the variety of available long and short-term visas.Let us get it down; you don't have to bother with this if you are an EU/EEA national because you won't need a visa, only a national identity number NIE (Número de Identidad de Extranjero) if you decide to stay for more than three months. However, if you don't belong to the EU/EEA region but wish to relocate to Spain, you need a D-type visa and other documents.  Work Visa  If you will be relocating for business purposes, a work visa is the correct choice. It is granted by Work and Immigration Offices available in the various regions. However, before you apply for a work visa, if it is a must, you have a work permit. Employees can't apply for a work visa; the process will have to be handled by their employer. The exception to this is if you are self-employed.The lifespan of a work visa is a year. However, it can be renewed for an additional five years, after which you can get permanent residency.Student Visa  You can only apply for a student visa if you have received an offer from a school in Spain. The lifespan of this visa is as long as the study program. During your stay in Spain, you have the freedom to work and indulge in other activities.Non-lucrative Residence Visa  This visa is perfect for those who are financially capable of not having to indulge in any lucrative activity for as long as they remain in Spain. No form of work is allowed even remote jobs. It is the perfect visa for retirees.Family Visas Your family can apply to join you in Spain if you have been a resident of Spain for a minimum of one year. They are also free to work without a work permit for the duration they'll be there.   Other available visas include a golden visa if you'd like to make investments and the digital nomads and remote workers visa, which hasn't been passed into law.   Ease of Entry into the Spanish Market: Good Options for Expanding Companies  Spain bounced back from its recession in 2007 and has had steady growth since then. It is an excellent place to set up your business, but it could be daunting for foreign companies if you go in without a plan. There are specific initiatives you could take to ease your market entry.Arrange for Physical Meetings   It is crucial to know the preferences of the market you will be going into if you wish to expand abroad. When it comes to Spaniards, they value physical meetings; it could be what could change their status from potential investors to investors, especially if you plan to operate locally. Also, it is essential to know that even at these physical meetings, Spaniards are typically formal, so formal attire is recommended.  Take Advantage of the Recession Spain has come a long way since the recession. They have recovered, but not entirely. Due to the downturn, they faced over a decade ago; many skilled people are without a job. To ease your expansion into Spain, take advantage of the talent pool and recruit highly skilled workers.  Understand Spain's Diversity  Under the umbrella of Spain are 17 autonomous communities. Every community has its strong suits and distinct identities, with Barcelona and Madrid as the major economic hubs. So, spreading your business across all the districts is advisable, beginning with the famed business hubs.  Prepare Yourself for Delayed Payments In Spain, credit is regular in the markets. Customers can make purchases on credit, and you have to be able to accept this, too, if you want to stand toe-to-toe with your competitors. Sometimes, it takes up to three months before payments are made.  Be a Problem Solver  Be prepared because it won't be easy to make customers out of Spaniards, except your products are unique and solve a problem. After all, they are conservative buyers. They stick to who companies they trust. Final WordsDeciding to do business in Spain will have you beaming in the long run if you do the due diligence on your part and employ the services, advice, and support of experts. Don't struggle with the entire process on your own; we are happy to help. Get in contact with us today!How to Get the International Expansion Ball Rolling Setting up a company in Spain 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 Spain?    Sign up to the Centuro Connect platform today and start your global expansion journey to Spain and 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.  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.                        

Apr 22, 2022
Blog
Start A Company, Hr +2
Top 5 Compliance Mistakes To Avoid When Hiring Internationally

Ignorance is bliss, but not in all situations. When running a business, especially internationally, you should do due diligence by familiarising yourself with the laws that govern your business in foreign countries, as not knowing this could cost you a great deal. With the ever-increasing access to new and conventional ones, more regulations are being put in place, proportional to compliance risks.Understanding Compliance Risks  Compliance risks, similarly referred to as integrity risks, are the financial, legal, and reputational dangers a company exposes itself to by failing to abide by laws, regulations, and standard practices. To fully understand and address the issues that are compliance risks, companies need to put more effort into thoroughly assessing risks because missing any could deal a significant blow to the company.  It is not a rare occurrence for companies expanding to other countries or recruiting remote workers in different regions to make some errors in the process or after the process has been completed. Some of the most common mistakes companies make when hiring abroad include:  Erroneous classification of a worker’s status  When hiring, it is essential to clarify the agreement terms to qualify the employee under the country’s local and tax laws. The status of an employee affects things significantly. As an employer, you may think you are hiring an independent contractor, for instance, but you are employing the person as a part-time employee.It is good to carry out your research diligently and get these things straight because by making a mistake or doing this intentionally, you could avoid paying taxes and the like, which could attract severe sanctions. Failing to grasp the local laws required to set up in a new country   When expanding globally, ensure all key stakeholders across your business understand the in-country employment and labour laws. In many countries, the regulations and governments often favour local employees over foreign employers.Hiring local employees may require a local legal entity, a registration of your company, and a clear understanding of the local labor laws, and employee rights. The lack of adequate knowledge makes the hiring process daunting for many firms expanding into new markets. One of the surest and easiest ways to get this done is to seek expert help. Contact us for setup advice. A problem with employee benefits Employee benefits differ in various jurisdictions. So, to make an irresistible offer and recruit some of the best talents, it is pertinent to understand the benefit entitlements of employees in certain jurisdictions are entitled. Some of these benefits may include health insurance, pension funds, a 13th-month salary, and fully paid maternity leave (in some European countries).Also, it would be best if you didn’t attempt to kill all birds with one stone by dishing out the same benefits to all your global workforce; it’ll only bring about catastrophic results.  Issues meeting the requirements for international employees' relocation Meeting and taking care of the immigration and visa requirements is tasking. The problem associated with this is failure to meet the preconditions and the penalty is the rejection of the application. As an employer, if you desire to bring foreign employees to your home country, you automatically become their sponsor, and it is not a walk in the park.  Not adhering to compensation laws and minimum wages for international workersIt is common to seek to hire international employees because this gives you access to an infinite pool of talent and, to an extent, reasonable compensation. However, one thing you must consider when hiring from a foreign country is that various jurisdictions have their minimum wage laws.These laws differ on the state and even regional levels, but one thing is constant, there are strict penalties if you, by any chance, fail to comply with the laws.Managing Compliance Risks Making sure your business complies with the rules and regulations of the various countries you are hiring from is essential to the growth of your business. It is also crucial to know what to do when compliance risks surface.  Some of the best practices by which you can manage compliance risks include conducting a risk assessment and having a structure that carefully spells out your organisation’s duty to all the parties involved.You must consider the parties, from the government down to the customers, and also endeavour to update the structure often to accommodate new laws and regulations that may come up. Also, you have nothing to lose by making sure your business is an ethical one where people can speak up if there are any issues.Managing compliance risks is not an easy task, but it is something you must be done. If you don’t have the personnel or time to do the job carefully, as is usually the case, it is advisable to automate the process with our AI-Powered global expansion platform.   Final Words Do not assume a country’s laws when hiring from there; make sure you do proper research because you may unknowingly be violating laws and creating errors for which you could be significantly penalised.Also, in any case, where you are indulging compliance risks to escape some financial duty, desist from it because it comes back to bite. Contact us for advice and support when hiring internationally. 

Apr 22, 2022
Blog
Start A Company, Hr +2
An International Expansion Case Study: Deliveroo

Origins of DeliverooAfter making the move from New York to London, Co-Founder, and CEO Will Shu was astounded to realize that it was very difficult to get ready-made food delivered to consumers. As a result, he made it his personal mission to bring restaurants closer to their customers. This led to the launch of Deliveroo in February 2013. Before going global, Deliveroo started as a small company in the US with very few sales and minimal stock listings. In its 3rd year, revenue grew to £18 million and the company began to grow and develop significantly.  How much has Deliveroo grown?  In 2021, Deliveroo won Best Beats First Category Company in the Real Innovation Awards. Moreover, it was crowned the fastest growing technology firm in the UK by Deloitte. Over the last 4 years, it has achieved an incredible growth rate of 107,117%. This year, the company is in the rankings again, proving that it has the momentum to maintain its steep growth trajectory.Currently, the company is valued at US $2 billion (£1.5 billion), making it one of Britain’s most valuable private companies despite having recorded a gross profit of less than 1% in 2021. In addition, Deliveroo has raised over $900m since it was established, and this has given it the opportunity to expand in other countries. The company is growing at an extraordinary rate, partnering with thousands of popular restaurants to deliver great food to customers’ doorsteps.  What led to Deliveroo's global expansion success?  Without a doubt, Deliveroo is ahead of the competition since it heavily invests in resources that afford it a competitive advantage. To be precise, the crux of its success lies deeply in its prompt responses to customer demands and concerns, and this is made possible by its data-driven decision-making process.  The firm was also able to raise over $200 million (£132 million) last year, and this has partly contributed to its meteoric rise. Unlike its competition, Deliveroo has transformed the way consumers order food by making it possible for its customers to indulge in-home delivery from restaurants that were not making deliveries. Today, customers can get reliable and quick deliveries from more than 750 premium London hotels thanks to its massive network of 300 freelance drivers.  The efficiency and adeptness of the company can also be attributed to big data and machine learning. Dan Webb, the company’s VP of engineering, says that "ever since the company was established, the use of data has been pivotal to ensuring that riders, customers, and restaurants get the best possible experience."  Deliveroo uses data in 3 key ways:  - To support team decisions. Constant experimentation has enabled the company to comprehend product changes. According to Webb, graphs and data help their operations team to comprehend and react to trends.  - To provide support for recommendations and decisions. The company uses machine-learning models that need to be retrained to make sure that the company is making decisions and recommendations using relevant and up-to-date information.  - To provide ‘real-time operational monitoring. Since Deliveroo’s operations are mostly in busy cities, connecting customers to restaurants and riders is always unpredictable. To overcome this, the company uses real-time data to identify and react to challenges that may arise.  By leveraging on data, their dispatch engine, ‘Frank’ is able to continuously calculate and match the ideal combination of riders and restaurants with customer orders. These predictions and calculations are based on machine learning algorithms trained to identify and react to challenges that may arise.  How many countries does Deliveroo operate in?  Deliveroo has transformed itself into a global company that operates in over 800 cities and towns across 12 markets. These include Hong Kong, Belgium, France, the United Arab Emirates, Italy, Ireland, the Netherlands, Singapore, the United Kingdom, Spain, Kuwait, and Australia.  How many employees does Deliveroo have?  Deliveroo has partnered with more than 140,000 takeaways and restaurants. It also boasts over 110,000 riders that provide food delivery services across the globe. Moreover, it has over 2,000 employees in offices around the world.  Challenges Deliveroo faced  Shifting customer preferences  The main aim of Deliveroo was to grow its market share by offering the best possible deals to its customers at an affordable price. Unfortunately, players in the food delivery niche have elevated the marketing game to such a level that customers are spoilt for choice. This made it hard for the company to build brand loyalty.  Volatile Market Prices  Apart from growing its customer base, the company has also decried the high volatility of food prices. The company says that it has been hard to track and keep up with market prices, and this has made it difficult to implement an ideal pricing strategy.  Observance of Food Quality Standards  Due to a massive demand for orders, delivering food to customers who are far away from restaurants while maintaining quality has been a challenge for Deliveroo. The problem is that the food served in restaurants and the one being delivered to customers create a significant loophole that the company is striving to overcome.  Managing Customer Expectations   Regardless of the success that Deliveroo has had, it has been finding it hard to satisfy customer demands. The company has publicly stated that customer satisfaction is not just a matter of their delivery partners but also those working at the point of origin. As a result, it has been a challenge for the company to fill the gap that exists between restaurant workers and delivery partners. Conclusion  Despite the challenges faced by Deliveroo, it has established itself as a big wig in the food delivery industry. And though it is yet to make substantial profits, we should expect the company to continue its growth, largely due to its business model and its ability to raise funds for expansion,

Apr 22, 2022
Blog
Start A Company, Hr +2
How To Successfully Expand Into Germany

Looking to expand your business into Germany? Well, that's a noble business move for several reasons. First and foremost, Germany is a global powerhouse boasting the largest economy in Europe. Moreover, it has a highly skilled workforce, over 450 million consumers, an innovative business culture, 45 preferential international trade agreements, and manufacturing dominance responsible for 22% of Europe’s GDP.Even though it is this lucrative, there are several business and regulatory factors you need to take into consideration before expanding into Germany. To help you out, we have created this comprehensive guide to assist you to establish any kind of entity in Germany be it a sole proprietorship, partnership, or corporation.  How to set up an entity in the German market  Before setting up a business in Germany, it’s imperative to be aware of what form of entity you are looking to start. There are 3 types of entities you can establish. Let’s have a look at each.  1. Sole Proprietorship (Einzelunternehmen)  This is the most popular option for people looking to start personal companies or businesses. In Germany, a Sole Proprietorship is commonly referred to as a Gewerbe. As a sole proprietor, you will be responsible for all business debts and actions. In case the company makes less than 22000 Euros in its first year and not over 50000 Euros in the second year, you can opt to re-register it as a small business (Kleingewerbe) and benefit from less bureaucracy  2. Business Partnership (Personengesellschaft) Partnerships in Germany are described as sole proprietorships with 2 or more actors. There are different forms of partnerships but the most common include:  - General commercial partnerships OHG (offene Handelsgesellschaft)  - Civil law partnerships  GbR (Gesellschaft bürgerlichen Rechts)  - limited partnerships KG (Kommanditgesellschaft)  Apart from limited partnerships (KG), all others are liable for business actions and debts.  3. Corporation (Kapitalgesellschaft)  Corporations are the most favorite entities among funded companies and startups. There are 2 types of corporations you can establish in Germany. These are: - Limited liability companies GmbH (Gesellschaft mit beschränkter Haftung). These require 250000 Euros as capital but your personal finances are protected. - UG (Unternehmergesellschaft). This is an ideal option if you don’t have enough capital to start a limited liability company since you only need 1 Euro as a starting capital.   How to register an entity in Germany  When establishing an entity in Germany, the process will vary depending on the type of business. However, it is typically similar in most cases. The most important milestones you need to complete will be something like this.  Obtain a Business Visa for Germany  A business visa grants you up to 6 months of stay as you establish your business and complete necessary paperwork. To get one, you will need to declare your address, prove financial support, and have short-term health insurance  Register Your Address  Once you have arrived in the country, you will be required to register your address with the local Bürgeramt.  Get Your Trade License  After registration and permission to stay in Germany, you will be required to register your entity with the trade office (Gewerbeamt) so that you can be granted a trading license. The trade license (Gewerbeanmeldung) permits you to get involved with business activities. To get registered with the trade office, you are required to fill out an online form, sign it, and send it to a local Gewerbeamt.  Register With The Tax Authorities  Once you have a trade license, you will be required to register your entity with tax authorities. This can be a tedious task since it requires you to complete a 7-page questionnaire. Fortunately, we can help you with the process.   Tax Structure in Germany for Foreign Companies  Germany’s taxation system is grounded on over 40 types of taxes established under strict rules. The tax burden also varies depending on the taxpayer's benefits from various deductions and exemptions. However, foreign investors and non-resident individuals are only levied income tax on the income they generate. The same applies to foreign corporate entities which are levied corporate tax and municipal trade tax depending on where they have been registered.  Corporate Tax Rules for Germany  Foreign entities in Germany are categorized under the foreign tax act which was put into effect in 2010. These regulations apply to German resident taxpayers with over 50% stake in a foreign company and to foreign entities established in Germany that receive passive income.  The German corporate income tax is charged to corporations at a 15% flat tax rate but an additional 5% solidarity tax may apply. Moreover, foreign companies or German subsidiaries are levied a 25% withholding tax on their dividends.  However, in case there is a double taxation agreement between another country and Germany, this dividend tax may be reimbursed.  The trade tax applied to foreign companies in Germany  Foreign corporate entities are required to pay municipal trade tax if they generate income this also applies to foreign entities that have been permanently established in the country and the municipal tax trade ranges from 6% to 17% depending on the location of operation.  In case capital gains are repatriated to another corporation, the foreign entity may benefit from tax exemptions for trade tax purposes. This exemption is effected by reducing the tax burden to about 1.5%. To qualify for this exemption, the foreign entity needs to have about 15% of shares in a permanent German establishment.  What Visas are available to expanding companies? (Work Permits vs. Business Visas)  Work Permits Germany Anyone can live in Germany and conduct business activities even if they are not EU citizens as long as they meet eligibility criteria. To be allowed to work and live there legally, you will need a residence and work permit. You don’t have to apply for each individually since they are granted together.  Categories of Work Permits in Germany  Based on your employment type and qualifications, there are different types of work permits. These include:  General Work Permit – if you have found a job in Germany that could not be filled by an EU national, you can apply for this type of work permit. There are no requirements for extraordinary skills. All you need is to be qualified for the job.  Highly Skilled Worker Permit – if you are a highly skilled worker with a lot of experience and high income, this is the work permit to apply for.  The EU Blue Card for Germany – if your annual salary ranges between €44,304 and €56,800, you can apply for the EU Blue Card more so if you are in a shortage occupation.  Work Permit for Freelancers- If you are self-employed or a freelancer, you can apply for this type of visa. However, you need to prove that you have prospective clients.  Visa options for Germany  The Germany Employment Visa provides an opportunity for foreigners to settle and establish entities in Germany in any given field. It offers an individual the chance to work, enter, and reside in the country for 2 years with the possibility to extend the stay with an EU blue card or other work permits.  Long-Stay Visa Types for Working in Germany  The Germany Long-Stay Visa can be used for the following purposes:  Employment – if you have landed a job in Germany  Self-Employment – if you want to open an entity or work as a freelancer  Jobseeker – if you are looking for a job while staying in Germany.  Working as an Au Pair – for people looking to immerse themselves in the German language and culture.  Working Holiday Visa – for young people from countries that have working holiday agreements with Germany.   Reasons to expand to Germany  Prosperous economy  Germany is the largest economy in Europe and ranks among the top 5 economies of the world. In 2020, it accounted for about a quarter of the EU's gross domestic product. Since its economic crisis ended in 2019, the GDP has grown in bounds making it an ideal to expand your business or start a new one.  Largest consumer market  Besides having the largest GDP in Europe, its population of 83.2 million tops the population of all other EU countries. This implies that it is the largest consumer market in Europe both in terms of purchasing power and number of people.  Skilled German Workforce Germany's reputation for innovation and productivity is largely owed to its highly skilled workforce. It boasts a robust vocational and education system and over 50% of upper secondary graduates have a vocational qualification. This means that you will always have qualified employees in the business that you want to set up in Germany.  Investment incentives  The country offers a wide array of incentive programs and funding instruments that can be very beneficial for expanding businesses. The most common are:  - GRW cash grants  - Research and development grants  - Grants for hiring   Top challenges of expanding to Germany  Though there are several benefits of doing business in Germany, there are also several drawbacks. The social market may be prosperous but expanding businesses come across extensive regulations and high labor costs. Some of the challenges include:  Lengthy process for starting a business  The biggest challenge of expanding into Germany is the complicated and long process of starting a business. Germany ranks 125th on the World Bank’s starting business index and this accounts for procedures, time, and cost.  Robust employee protections  Individuals looking to tap into the German market need to be aware that Germany has the strongest employee protections in the world. Employment laws set strict requirements that employers should enforce on their employees. For instance, employees in Germany are entitled to 20 days of paid holidays and 13 public holiday offs.  High cost of labor  Germany’s competent labor force is a draw to many investors but the cost of labor is not. The average hourly rate in the country is 35.6 euros which is higher than the EU average of 27.7 euros. The minimum wage is currently 9 euros but is bound to increase to 10 by the end of 2022.  Complicated tax laws Setting up a business is not the only complexity. Notably, the fiscal system is very convoluted so anyone looking to set up a business needs to partner with local finance experts to help them file taxes and organize their finances.  Conclusion  Despite these challenges, Germany is still a global powerhouse that is very lucrative for international investors. The bureaucracies of doing business might be harsh but once you are established, you are bound to reap the benefits. To help investors get a share of the German market, we have a German company formation service that simplifies the process of establishing entities. Please contact us for further details on how we can help you set up a business in Germany.How to Get the International Expansion Ball Rolling Setting up a company in Germany 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?    Sign up to the Centuro Connect platform today and start your global expansion journey to Germany and 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.  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.      

Apr 21, 2022
Blog
Start A Company, Hr +2
How To Expand Your Business To The USA

Is your business contemplating expanding into the USA? The United States of America is the world's largest economy, and many businesses are drawn to the opportunity of establishing a presence in the profitable market due to its rich talent and ease of entry.However, there are many pain points that companies need to consider as the process can be labor-intensive and costly. To help you determine whether the USA is the right target market for your global expansion, we have compiled a definitive guide to inform you of the key business incorporation steps.    What are the benefits of expanding into the US market?   1. Skilled workforce  The US reputation for innovation and productivity is largely owed to its highly skilled workforce. It boasts a robust vocational and education system and over 50% of upper secondary graduates have a vocational qualification. This means that you will always have qualified employees in the business that you want to set up in the USA.    2. The US access to funding  The US has the largest foreign direct investment (FDI) initiatives in the world. This implies that the country heavily invests in international businesses. In 2020, the FDI initiative was valued at $4.6 trillion, while in 2021, the US venture capital firms invested $160 billion in over 10,000 businesses.  3. Entrepreneurial mindset  The US ranks among the top 3 most entrepreneurial markets in the world. In the country, entrepreneurs are forward-looking and this is captured vividly by Allyson Stewart-Allan, author of Working with Americans.  4. The US market size  The US is the world's largest economy with a Gross Domestic Product of over $20 trillion. The GDP growth in 2021 was 5.7% and the trend is expected to continue upward. It also boasts a 330 million population and this makes the USA an ideal country to invest in.   What are the top challenges of expanding to the US?    Though there are several benefits of doing business in the US, there are also several drawbacks. The social market may be prosperous, but expanding businesses come across extensive regulations and high labor costs. Some of the challenges include:  1. Lengthy process for starting a business  The biggest challenge of expanding into the US is the complicated and long process of starting a business. The US ranks 46th on the World Bank's starting business index and this accounts for procedures, time, and cost.  2. Robust employee protections  Individuals looking to tap into the US market need to be aware that it has some of the strongest employee protections in the world. Employment laws set strict requirements that employers should enforce on their employees.   3. Complicated tax laws  Setting up a business is not the only complexity. Notably, the fiscal system is very convoluted, so anyone looking to set up a business there needs to partner with a local tax consultant to help them file taxes and organize their finances.   How do companies set up an entity in the US?   Choose Your Company Structure   Depending on the nature of your business, there are several legal entity types you can choose from. These include:  Sole Proprietorship: In the US, this is a company that is owned by a single person and is not separate from its owner in terms of legal representation. This means that the owner bears full responsibility for any debts or obligations of the company. Moreover, the owner of such a business enjoys all the profits that the company earns, and any generated income is added to the owner's personal tax returns.  Partnership: A partnership is similar to a sole proprietorship, with the difference being that it is owned by more than one person.  Limited Liability Company: An LLC is a company with multiple owners, but it is a separate legal entity from its owners. A document known as an operating agreement governs Limited Liability Companies. This document outlines how the company will be governed. Under US corporate law, an LLC is the most flexible business structure since they are easy to manage.  C-Corporation: A C corporation is a legal entity where the shareholders or owners are taxed separately from the company. C-corps are the most prevalent corporations and they are subject to corporate income taxation. Taxes on profits from these companies are both from personal and corporate levels creating a double taxation situation.  S-Corporation: This is a type of corporation that meets certain Internal Revenue Code requirements. If it does, the company can pass credits, income, losses, or deductions on to shareholders without having to pay federal corporate taxes. This type of entity is associated with small companies that have less than 100 shareholders. The S corp status gives the business benefits of incorporation while enjoying tax-exempt privileges.   How to register a company in the USA?   Once you have decided on the type of entity you wish to establish, you will be required to formally register your business. The process will vary depending on the entity type you have selected. Below are the primary steps and requirements. 1. Choose a unique name as a trademark   You will be required to choose a unique trade name that is not currently registered in the US. If you are still undecided about a suitable name, be sure to consult the US Patent Trademark database to view trademarks that may no longer be available  2. Register with state agencies   Once you have a name, you will be required to register your business in the state where you intend to conduct your business. To do this, you need to:  · Have a physical address in the relevant state  · Conduct in-person business meetings in that state  · Prove that most of your income comes from that state  · Hire employees from your chosen state  3. Get a registered agent   A registered agent is an individual or business that is responsible for receiving Service of Process (SOP) when a business entity is in legal action, such as a summons or lawsuit. In all states, it is a mandatory requirement when forming a new company.  4. File for Foreign Qualification  Filing for Foreign Qualification refers to registering your entity with the secretary of the state office of another state. It facilitates your company to pursue growth opportunities in other states without having to incorporate a new business entity. This is usually the first step when expanding your business operations in a new state. Once you have filed for the qualification, you may receive a certificate of authority which makes it possible to obtain state-level business licenses and tax registration.   5. File state documents and fees   The necessary documents will vary depending on your business structure and where you want to register it. However, the most common requirements include:  Business location  Business structure  Registered agent information  Value and number of shares  Management structure, ownership, or directors  6. Register with local agencies  For LLCs, corporations, and partnerships, you will be required to file for city or county licenses. If you are using a trading name, you might also be required to register it with the local county or city.  7. Open a Business bank account   You will also be required to have a business account to run your entity's financial transactions. This is mandatory if you are starting an LLC or corporation. There are several options to choose from, but it will pay to conduct some research for more affordable bank providers.   If you require assistance with setting up an entity in the US, please Contact Us.  What is the Tax structure in the USA?  Taxation of income earned by non-US citizens is dependent on whether the income has a nexus with the US and the extent and level of the non-citizen's presence in the US. There are many tax benefits for companies looking to set up in the US. However, it is key to understand the tax structure first. It can be broken down as follows:  Alternative minimum tax (AMT)   AMT is imposed on LLCs, C corporations, and S corporations with an average 3-year gross revenue not exceeding $7.5 million. This tax is computed by adjusting the company's regular taxable income by specific adjustments and tax preferences. Adjustment items or tax preferences arise if a company has substantial accelerated depreciation, intangible drilling costs, percentage depletion, or non-taxable income.  S corporations  Corporations with 100 or fewer shareholders are taxed under Subchapter S of the Internal Revenue Code. These companies are taxed in a manner similar to but not identical to partnerships. This implies that all taxable items, such as deductions and income flow through the owners of the entity. Therefore, S corporations are not subject to US federal tax income.  Gross transportation income taxes   Nonresident individuals and foreign companies are subject to an annual 4% tax on gross transportation income (USSGTI). However, there is an exception for income associated with a US trade or business. Transportation income is defined as any income resulting from or connected with:  • The use, leasing, or hiring of an aircraft or vessel  • The performance of services related to the use of an aircraft or vessel.  State and local income taxes  In addition to the federal income tax, some states impose a state income tax. Local governments also levy income taxes based on state income tax calculations. State income tax is imposed at a graduated rate on the taxable income of every corporation, individual, trust, and certain estate. These rates will vary by entity type and state. However, they conform closely with federal taxable income.   If you would like to discover more about the tax structure in the US or have any questions, please Contact Us.    What Visas are available to employees looking to immigrate?   There are 4 visa categories available to companies with employees who are looking to relocate to the US. These include:  Visa options for the USA   1. Temporary Investor Visa: E1 & E2 Visa   Candidates who are looking to establish a company in the US may be eligible for an E1 or E2 visa. Although not all candidates will be eligible for this visa category, those who do qualify are able to register entities in the US. Spouses, employees, and children of these visa holders may also qualify for a visa.  2. Permanent Investor Visa: EB-5 Visa   The EB5 Visa allows the candidate to live, work and register as an entity without having an employer in the United States. To qualify for this visa, substantial investment is required. Candidates need to invest at least $900,000 in a US enterprise that creates at least ten or more jobs for American citizens. Successful candidates for the EB-5 visa may receive a green card, which could eventually lead to citizenship.   3. Business Expansion Visa: L-1 Visa   The L1 visa is also known as a business expansion visa. It offers temporary residence for employees of international companies with offices in the US. This visa is available to employees working for companies outside the US that have subsidiaries, branches, affiliates, or joint ventures with companies in the US.   4. US Corporate Immigration   If you have a business and would like to expand your operations in the US, the Corporate Immigration visa is your best option. It is precisely designed for small to medium-sized enterprises (SMEs) and may apply to large companies that are looking to seamlessly transfer their employees to the US.   Conclusion   All in all, the United States is a perfect country if you are looking to expand your business. However, the process can be taxing more so if you are a foreigner. Fortunately, we are here to help you. Contact Us so that we can advise you accordingly on what you need to have your business set up in the USA.How to Get the International Expansion Ball Rolling Setting up a company in the USA 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 the USA?    Sign up to the Centuro Connect platform today and start your global expansion journey to the USA and 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.  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.                      

Apr 20, 2022