If you already have an established business, you might be looking for an opportunity to expand with a branch office in Germany. Starting up a branch office is one of the most straightforward ways to establish your business presence abroad.
In a new country, there are always some promising markets to explore. Of course, this business structure also has its own benefits and flaws, just like all the others. Below, we are going to explain all the pros that make it worthwhile to open a branch office.
Then, you can decide whether it is really worth it for your parent company to expand in such way.
1. Branch Offices Grant You More Control
A branch office in Germany is the type of business that gives you the msot control. The actions of a branch office are completely dependant on the parent company. In Europe, you can choose from a wide range of countries where opening a branch office puts the control in your hands.
2. Branch Office in Germany Makes Expanding Cost Effective
A huge part of the process of expanding your business is taking a look at the costs. The costs of opening different types of business entities vary from country to country in Europe. There are numerous locations such as Germany where a branch offices are more cost effective than subsidiaries.
The reason why branch offices are the low-cost option over subsidiaries is that they don’t require share capitals. Another huge benefit of a branch office in Germany is the low maintenance costs. In Germany, accounting requirements are much more straightforward.
3. Establish a Strong Business Presence Abroad
Opening a branch office is a great way to expand and reach new potential markets. It is an opportunity for your brand to enter and conquer a new territory. With this company structure, it is relatively easy to enhance your visibility and as a result, bring in more profits to your business overall.
Also, if you want to introduce a new product or try out new ways to market it, you don’t have to do it in the host company anymore. You can try it out in your branch office in Germany first and see if it works.
4. Exploring the Market in Germany
Establishing a branch office abroad is a great way to explore the vast market that the European Union has to offer. In order to expand, you need to reach new customers with your products and services. The market in Germany is full of new prospects.
With its sophisticated market and the abundance of opportunities in its surrounding countries, it is an absolute paradise for entrepreneurs. A branch office in Germany will not only give you access to the German market but also the markets of other countries it shares borders with.
5. The Tax Benefits of a Branch Office in Germany
A branch office is without doubt a more beneficial business structure when it comes to taxation than a subsidiary. All you need is a double tax treaty to protect you against double taxation. These treaties are common conventions in most countries from all around the World.
All in all, setting up a branch office in Germany will help your business to expand and reach your target audience abroad. If your goal is to make your products and services available elsewhere, this is the best way to go.
