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The Most Common Challenges in Global Expansion

Why is Global Expansion challenging and how to make it less daunting?

Global expansion is an attractive option for companies looking to grow their revenue streams and take advantage of a global marketplace. However, unfamiliar markets, strict regulations and growing costs can make deciding to take your business international a difficult prospect.

Therefore, it’s understandable that businesses can be apprehensive and don’t know where to start. In this article, we point out the common fears associated with global expansion, as well as help you overcome them by explaining how Capital GES can help to make going global less daunting.

Below are the 5 main concerns that businesses have when deciding to go global:

1. We don’t have any in-country expertise

Employment laws can vary drastically from country to country which can be challenging for companies trying to expand overseas. Some of the major differences in each country are holiday entitlements, maximum number of working hours, overtime policies and termination policies.

Each country has its own nuances and regulations. For example, if you want to expand into Eastern Europe, many factors need to be considered. Medical checks are compulsory before starting a job, and contracts have to be in the language of the country.

2. How do I remain compliant?

Staying compliant should be a major concern for all businesses. Every country has its own tax and social security laws and, as these laws change regularly, it can be a very time consuming and costly to stay compliant in an unfamiliar country. Getting the right advice can be hard to find and extremely costly. Accountants, lawyers and tax advisers typically charge by the hour and costs can soon spiral.

3. Are the costs prohibitive?

The cost of setting up in a new country can be extremely discouraging. Setting up an entity is not only expensive, but you are also exposing your company to high risk. What if it doesn’t work out? Even closing an operation can be costly and could take years to complete in certain countries.

4. How much time will it take?

Many steps have to be taken before you can set up in a foreign country such as setting up an entity, setting up a bank account, finding a payroll vendor, etc. After having researched them, many companies decide to abandon all ideas of going global as it can takes months to complete.

5. Will my product resonate and sell abroad?

This is usually the first question that is asked – There is no guarantee that just because your product sells well in your home market that it will be the same in Europe or elsewhere.

Using Capital GES Employer of Record Services to solve your global expansion problems

At Capital GES, we can facilitate your global expansion by helping you with all the above steps. We help companies employ workers in foreign countries and have in-country expertise and knowledge in the 30 countries where we offer our services.

In-Country expertise

We will be able to guide you and help you with what is legal or not in each of the countries and help you stay compliant by taking care of the tax and social security obligations in the country.

International compliance

We take care of the setting up of your worker and making sure he/she can work legally with the correct employment set-up of the requested country. And all this with a time frame of 3 – 5 days!

Reduce expansion costs

By collaborating with us for your global expansion you no longer have to set up a corporate entity which can save hundreds of thousands of dollars.

Easy set up and termination in country

What if you realise that your product or service does not work abroad? We will help you off board workers in the correct manner and allow you to focus on core activities.

Contact Capital GES

For further information on how Capital GES can help expand your business internationally, you can email us at  or phone us on +41 32 732 9700 or +1 833 972 6346 to see how we can help.

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