Grow your Exports and International Business

Doing Business in EuropeAsk the Expert: Global Upside

IBT Partners Webinar Series – April 20, 2016

Ragu Bhargava CEO, Global Upside

Susanna HardyDirector – Europe

John Worthington Managing Director

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Welcome

IBT PartnersWho we are: A team of experienced, web-savvy business developers,

with offices in the USA, the UK, Germany and France

What we do: International Business and Tradewe build and manage websites for

exporters

Go Global with Website Localization

We run a series of webinars for exporters so check out and register for the next one! www.ibtpartners.com/us/resources/webinars

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Welcome

Global UpsideWho we are: Problem solvers and partners in your growth.

What we do: We provide world-class Accounting, HR, Payroll, Tax, and Compliance services in 90+ countries.

Incorporation Banking HR Accounting Stock Options/RSUs

Tax (VAT/GST/HST, Income)

Payroll

Company Law Compliance Consolidation

Sign up for Accounting, Tax, HR, Payroll and Compliance updates in 90+ countries atwww.globalupside.com

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Doing Business in Europe

Section 1: The online world The online world Localized websites U.S. – EU economic relations

Section 2: Expand your presence in Europe Key Considerations Setup & Day-to-day Operations Hiring & Employment Law Value Added Tax (VAT) Expect the Unexpected

Section 3 : Takeaways and Q&A Exporter success and unicorns Q&A

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The Online World - Globalization

Global trade in goods and services has not recovered since 2008

End of globalization......

Or something new ?

* Source: McKinsey Global Institute (MGI) report,Digital globalization: The new era of global flows, 2015

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The Online World - Interconnections

Cross-border bandwidth X 45 since 2005 2015-2020 projected X 9 *

Digital flows....now exert a larger impact on GDP growth than

the trade in goods

Source: McKinsey Global Institute (MGI) report,Digital globalization: The new era of global flows, 2015

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Localized Websites

Accessibility Trust Knowledge

Localized website = built for target markets=>

localized website architecturerelevant design and contentoptimized for local searches

Localized digital marketing = building brand=>

via localized websites relevant social media

localized lead generation & online tools

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Localized Websites – Myth Busters

Google in the USA ǂ Google in the UK

Germany = google.de is in Germangoogle.com and google.co.uk = significantly different

Search engine optimisation is country specificSEO in your home market is NOT optimized for your export markets

Social media is for business

86% of B2B firms in Europe and North America use social media

Not all Googles are created equal

Trade volume/day$2.7 billion

The U.S.-EU Economic Relationship: Key Facts

3.8 million EU foreign affiliate jobs in the U.S.

4.2 million U.S. foreign affiliate jobs in the EU

51.1% of total 2014 U.S. FDI outflows were directed to the EU

59.4% of total 2014 FDI in the U.S. came from the EU

Source: Hamilton, D. & Quinlan, J. Center for Transatlantic Relations. Transatlantic Economy 2016 / Trans-Atlantic Business Council

Generates 15.5 million workers in “onshored” jobs on both sides of the Atlantic

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European Expansion

Key Considerations

Location

Entity Setup

Activities

Hiring and Employment Law

Management: Central vs. Regional vs. Local

Headquarter Support

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Location, Set Up, Activity

Where to?

Representative Office

Branch vs. Subsidiary

Permanent Establishment (PE) Risks

Eastern Europe

Setting up a Regional Center(Ireland, Netherlands or Switzerland)

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Company Law Compliance

Resident Director

Registered Office

Substance Over Form (Tax Structure)

Data Protection Registration

Data Privacy

Statutory Audit

Annual Reports

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Poll #2

What is your biggest HR challenge?1. Employment law2. Statutory/Supplemental benefits3. Attracting the right talent4. Multi-country Payroll5. Don’t know

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HR & Employment

Employment Law, Contracts, Local Terms of Employment

Infrastructure (leases, etc.),

Banking, Expense Reports

Local Employees or Expats, Immigration, Global Mobility

Cultural Sensitivity, Employee Expectations,

Work Culture

Salary Benchmarking, Compensation & Benefits,

Stock Options, Payroll

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Employment Law

At Will Employment – DOES NOT EXIST

Works Council & Collective Bargaining Agreements (CBAs)

Working Time Regulations

Hiring & Exiting

Statutory Benefits

Supplemental Benefits

Staffing

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Accounting Considerations

Key Filings and Deadlines

Payroll

Management/Statutory Accounts

Year-end Local GAAP (IASB) Accounts

Corporate and Payroll Taxes

Stock Transaction (ESPP, RSUs, Stock Options)

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Poll #3

How familiar are you with VAT?1. Extremely familiar2. Moderately familiar3. Somewhat familiar4. Slightly familiar5. Not at all familiar

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Value Added Tax (VAT)

Understanding VAT, implications for US companies

VAT obligations for you and your Client

Netherlands: Your Logistics Hub

Storage/Operations of Goods – Permanent Establishment Issues

VAT Compliance and Reporting

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Expect the Unexpected

Acquisitions

VAT Compliance Penalty

Do Your Homework

Management: Central vs. Regional vs. Local

EU Commonalities and Differences

Localization

Headquarter Support

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Poll #4

What other regions are you considering or already doing business in?Check all that apply.

1. China and/or India2. Rest of APAC3. Latin America4. South America5. Eastern Block (Romania, Ukraine, Czech Republic)6. Other

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Exporter Success

Digital world => Great news for Mid-Caps

The big disruption…….

or the big opportunity?

Mid-Cap exporters:

The winners will be the well-connected and the digitally literate

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Exporter Unicorns

Use of online to go international

Source: World Economic Forum Jan 2016

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Go Global: Global Upside and IBT Partners

Global UpsideRaguragu@globalupside.com Tel: +1 (408) 219 8203

IBT PartnersSusannash@ibtpartners.comTel: +44 7841 911 532