Are you a recruitment agency wanting to expand your business into Europe and support clients overseas? Then using an umbrella company could be your stepping stone to do just that.
At some point, a business will look at ways to expand and many look to markets overseas, in the recruitment sector expansion is often led by client requirements. Being taken overseas often brings more challenges than expected, but an umbrella company could be the key to a quick expansion.
Understanding the European Market
Europe is a highly attractive market for businesses, as the 3rd largest economy it hosts many of the world’s largest companies across a variety of sectors, including engineering, IT, construction, energy or healthcare. Its diverse economies, skilled workforce and vast customer base make it a promising destination for expansion. However, navigating the European market can be daunting due to various legal and regulatory barriers, language and cultural differences.
It’s not uncommon for UK small and medium businesses (SMEs) to want to attempt international expansion, with recent reports showing at the start of 2023 64% of companies surveyed planned to expand in Europe and North America, indicating the real desire for investment opportunities.
The market is poised for entry, supported by the latest figures. In Germany, the total working population accounts for 77%, with 8 million workers classified as contractors or in temporary work. Italy and Spain also have significant numbers, each hosting over 5 million contract workers.
So where does an umbrella solution come into play?
Benefits of an Umbrella Solution
Benefits of using umbrella solutions for international expansion:
Cost: Setting up a legal entity in a foreign country can be expensive and time consuming. Umbrella companies eliminate this cost by providing a ready-made locally employed solution, which supports the fast pace of today’s recruitment industry.
Compliance with Local Regulations: Staying compliant with local labour laws and taxation regulations can be hard work. Umbrella companies specialise in managing these complexities, ensuring your business adheres to the necessary legal requirements. Meaning you’ll never be stung by unexpected fines and gives you peace of mind everything is running as it should.
Simplified Payroll and Taxation: Payroll and taxation can be overwhelming, especially when dealing with international employees and unfamiliar tax rates. Umbrella companies ensure that your employees are paid accurately and on time.
Administrative Support: Managing administrative tasks can divert your focus from core business activities. Umbrella companies handle administrative burdens, allowing you to concentrate on business growth.
Time: Speed to market is essential in the competitive European environment. Umbrella companies significantly reduce the time required to establish a presence in a new market.
Try Before You Buy
When thinking about expanding your business into Europe, it’s important to understand that using an umbrella solution doesn’t have to be a permanent arrangement. Instead, think of it as a flexible option that allows you to test the waters in a new working environment. This approach is particularly valuable when you’re in the initial stages of entering a new market, as it enables you to build confidence and gather valuable experience.
When it comes to umbrella solutions, Sapphire stands out as a trusted service provider that specialises in facilitating international expansion. Our recent development into the European market makes us a valuable partner for any company looking to expand their UK business. We offer a range of services designed to simplify your operations and ensure compliance with local regulations, allowing you to concentrate on your core business activities. Get in contact if you would like to learn more at newbusiness@sapphireorg.co.uk
