By Globalization PartnersFebruary 2018
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Globalization Partners enables companies to quickly and easily expand into 187 countries without the hassle of setting up local branch offices or subsidiaries. You identify the talent, and we employ your team member via our in-country payroll. This enables you to quickly and easily hire around the globe, and lifts the burden of figuring out HR, tax and legal matters from your shoulders to ours.
Germany is a top destination when it comes to global business expansion. But due to strict laws, it can be extremely difficult for U.S.-based companies to compliantly hire even one employee.
As Globalization Partners sales associate Kathrin Koedderitz explains, it can take several months to set up an entity, and there are many financial filings to make along the way, so a tax advisor is strongly recommended.
In addition, Germany has a capitalization requirement of 25,000 €, which means these funds would need to be deposited in a German bank before any work were to begin.
This can be a significant burden, especially if a company only needs to hire one or two people.
This is where the Global Professional Employer Organization (PEO) model comes in. Globalization Partners helps companies expand internationally without having to set up a subsidiary overseas, by putting their employees on our payroll and assigning them 100 percent back to the client company.
We follow the absolute letter of the law. That means that we carry an AUG license, which is a requirement for Global PEOs.