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The world is becoming more interconnected than ever before. This brings a set of opportunities for international expansion not only for big corporations, but also small and medium-size enterprises that can expand their businesses globally. When carefully planned, international expansion and entering new markets can not only increase profits, but also reduce risks while rocket-launching growth on an international scale. However, the difference among jurisdictions, market specifics, customs, traditions and the business environment in general significantly affect which country has the best to offer and which are providing less benefits to specific types of businesses.
This overview for international expansion was created in cooperation with our global business community, Accace Circle, providing basic yet valuable information from 15 countries. The infographic layout allows you to quickly breeze through the specifics of international expansion and compare key data that may be crucial for your ambitions of international expansion.
International expansion and entering a new market can be a piece of cake with the right partner by your side. Whether you are just about to expand your business or you are starting from zero with entrepreneurship, our team of local experts can help you design the right business solutions for you. We specialise in providing full-range advisory and BPO services to keep your tax, legal and corporate agenda, accounting, reporting, payroll and HR operations not only effective and accurate, but also 100% compliant with your local duties and regulatory requirements.
To help you get started, we offer a free 60 minute call focusing on market entry where you can discuss your investment plans, understanding country specifics and discuss basic tax and legal aspects of international expansion with a selected expert. Head over to our eShop to book your call today!
What would be the best entity type for your international expansion? See below the most common legal forms of business per country to make a better decision, including information on incorporation time and incorporation fee.
Limited liability company
Bulgaria, Czech Republic, Egypt, Hungary, Poland, Morocco, Portugal, Romania, Slovakia, Spain, Turkey
Private limited company
Estonia
Private company (IKE)
Greece
Private company – limited by shares (LTD)
South Africa, United Kingdom
Joint-Stock Company (Sociedade Anónima – SA)
Portugal
* Depends on the nature of the legal form of the company; duty free for LLC
** The capital is freely determined
*** There are no fees applicable for the Trade Register, however Official Gazette fees for publishing documents will be applied.
**** Official expenses to the Trade Registry, notary, translation and tax office (for stamp tax)
No costs specified for South Africa and Turkey
Bulgaria: https://portal.registryagency.bg/en/
Czech Republic: www.justice.cz
Egypt: https://itda.gov.eg/hint-sgl.aspx
Estonia: www.rik.ee/en/e-business-register
Greece: www.businessportal.gr
Hungary: www.e-cegjegyzek.hu
Morocco: https://rnesm.justice.gov.ma/index.aspx
Poland: www.wyszukiwarka-krs.ms.gov.pl
Portugal: https://eportugal.gov.pt/en/espaco-empresa/empresa-online
Romania: www.portal.onrc.ro
Slovakia: www.orsr.sk
South Africa: www.cipc.co.za
Spain: www.registradores.org/el-colegio/registro-mercantil
Turkey: www.ito.org.tr
International expansion brings a number of new tax challenges. Get familiar with CIT, VAT and tax period.
Bulgaria
Czech Republic
*Reduced rate applies on dividend income of Czech tax resident entities from non-resident entities
**Reduced rate applies on certain investment fund profits
0% on pension funds
Egypt
Estonia
*Automatically applied to the amount of profit distributions, which are equal or less than average distributed profits of the last 3 calendar years, on which the company has paid the CIT
Greece
Hungary
Morocco
*12.5% on net income below MAD 300,000; 20% for net income between MAD 300,000 and MAD 1,000,000; 28.25% for net income between MAD 1,000,001 and MAD 100,000,000; 32% for net income above MAD 100,000,000
Poland
*For small taxpayers, and taxpayers starting up a business
Portugal
*Standard rate in mainland Portugal
**Standard rate in the Autonomous Regions of Madeira and Azores
Romania
*On the revenue of gambling companies and nightclubs or 16% on the taxable profit, based on which is higher
Slovakia
*On annual taxable revenues below EUR 60,000
South Africa
Spain
*Reduced rate applies for newly created companies
Turkey
United Kingdom
*On profit over GBP 50,000 but below GBP 250,000
Calendar year
Bulgaria, Egypt*, Greece, Morocco, Poland, Portugal
*Each company has the decision to adjust its financial year
Calendar or fiscal year
Czech Republic, Hungary, Romania, Slovakia, Turkey
Fiscal year
Spain, United Kingdom
Calendar month
Estonia
Company’s financial year
South Africa
Bulgaria
0% applies to services explicitly regulated by law
Czech Republic
Egypt
0% on exported goods and services
Estonia
0% on the export of goods and services
Greece
Hungary
0% rate on daily periodics
Morocco
*7% for pharmaceutical products, necessities (milk, sugar), school supplies, rental of electric meters, transactions related to the sharing of drinking water, 10% for banking services, hotel services, sale of food or drinks for on-site consumption, 11% for rental of electricity meters, 14% for passenger and freight transport operations
Poland
0% rate on exemptions
Portugal
Romania
Slovakia
0% on the export of goods and services
South Africa
Spain
Turkey
United Kingdom
0% applies to zero-rate goods and services
Your international expansion to new markets means also additional agenda around employment. For this, a good understanding of labour law is necessary. Take a look at our overview of PIT rates and contributions below.
Bulgaria
* On income acquired in a seafarer capacity
Czech Republic
15% on annual income up to CZK 1,582,812 23% on annual income above CZK 1,582,812
Egypt
0% on income between EGP 0 and EGP 40,000, 10% on income between EGP 40,001 and EGP 55,000, 15% on income between EGP 55,001 and EGP 70,000, 20% on income between EGP 70,001 and EGP 200,000, 22.5% on income between EGP 200,001 and EGP 400,000, 25% on income between EGP 400,001 and EGP 1,200,000, 27.5% on income above EGP 1,200,000
Estonia
Greece
Based on income
Hungary
Morocco
0% for annual income below MAD 30,000; 10% for annual income between MAD 30,001 and MAD 50,000; 20% for annual income between MAD 50,001 and MAD 60,000; 30% for annual income between MAD 60,001 and MAD 80,000; 34% for annual income between MAD 80,001 and MAD 100,000; 38% for annual income between MAD 100,001 and MAD 180,000
Poland
Based on income
Portugal
Based on the tax base
Romania
Slovakia
19% on annual taxable income below EUR 47,537.98, 25% on annual taxable income exceeding EUR 47,537.98
South Africa
Spain
19% for income up to EUR 12,450, 24% for income between EUR 12,450 and EUR 20,200, 30% for income between EUR 20,200 and EUR 35,200, 37% for income between EUR 35,200 and EUR 60,000, 45% for income between EUR 60,000 and EUR 300,000, 47% for income above EUR 300,000
Turkey
Based on the tax base
United Kingdom
0% on annual income below GPB 12,570; 20% on annual income between GPB 12,571 – GBP 50,270; 40% on annual income between GBP 50,271 – GBP 150,000; 45% on annual income above GBP 150,000
Overview of the rate paid by employer or employee
Bulgaria
Czech Republic
Egypt
Estonia
* In addition, 0.8% unemployment insurance contribution is paid by the employer
Greece
Hungary
Morocco
*Depending on the sector for work accidents
Poland
*The accident insurance varies based on the business sector
Portugal
Romania
In addition, 2.25% labour insurance contribution paid by the employer
Slovakia
South Africa
Contributions are made to the Unemployment Insurance Fund (UIF)
Spain
* In addition, a variable rate for occupational accidents, for instance 1.50% office work
Turkey
United Kingdom
0% on income up to GBP 9,100 per tax year
Overview of the rate paid by employer or employee
Bulgaria
Czech Republic
Egypt
Included in the social security contributions
Estonia
Included in the social security contributions
Greece
Included in the social security contributions
Hungary
Included in the social security contributions
Morocco
Included in the social security contributions
Poland
Portugal
Included in the social security contributions
Romania
Slovakia
South Africa
There is no mandatory health insurance; however, many employers offer medical aid as a benefit
Spain
Turkey
Included in the social security contributions
United Kingdom
Health insurance paid by an employer in the UK is not covered by national insurance, unless covered by private healthcare, which is on an individual basis. The rate of the health insurance contributions paid by the employee in the UK is the same as for the employer.
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About Accace
Accace is a proactive consultancy and outsourcing partner who bridges the gap between needs and solutions. Combining smart and streamlined technology with a holistic approach, we provide an all-round care to clients and consider their matters as our own. With over 800 experts and approximately 2,000 customers, we have vast experience with facilitating the smooth operation and growth of small to large-scale, global businesses.
About Accace Circle
Accace operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience and erase the borders of service delivery. Covering over 60 jurisdictions with more than 7,000 professionals, we support over 80,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 800,000 pay slips globally.
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