With US VC firms hotfoot in pursuit of new opportunities in sectors as diverse as tech and fintech or energy and life sciences, billion-dollar start-ups are blossoming in overseas hubs that offer a springboard into targeted geographic markets.Â
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By Nick Adams (pictured), Vice President EMEA at G-P – With US VC firms hotfoot in pursuit of new opportunities in sectors as diverse as tech and fintech or energy and life sciences, billion-dollar start-ups are blossoming in overseas hubs that offer a springboard into targeted geographic markets.
According to PE Wire’s VC Insight report, the top destinations for capital investment right now include a variety of hubs across northern Europe that offer the potential coverage VC firms are looking for. It is also exciting to read that a number of major US-based VC firms are hiring or expanding existing teams in London and Europe to better access this region. But, as VC firms ramp up their teams and search for unicorns that have the most growth potential, they’ll need to ensure they’re fully equipped to navigate the legal complexities associated with every international jurisdiction they plan to do business in.
Indeed, their ability to successfully hire and rapidly onboard the specialist talent they’re looking for in key locations depends on getting this right – first time, every time. The financial and reputational damage resulting from non-compliance in this arena can be significant and so , expanding into a new country is a risky proposition unless you’re fully equipped to navigate a whole host of complexities.
Let’s take a look at some of the common compliance pitfalls that can hamper any organisations when undertaking a global expansion journey.
Alongside assessing the implications of everything from tax and social security obligations, organisations can’t afford to underestimate the risks associated with employee mobility. If companies decide to send local employees overseas, it will be crucial to understand what additional tax-related fees are involved if there’s no established in-country entity where these workers are placed.
Similarly, the rise of global remote working means that companies now need to be fully conversant with the fast changing corporate records and filing requirements mandated by individual countries. The rapid evolution of workplace models has resulted in several nations passing new teleworking laws. As a consequence, companies are now responsible for maintaining up-to-date documentation in line with the requirements of each legislation.
When it comes to start-ups, how organisations manage everything from background checks on new hires through to the creation of employment contracts that are fully compliant with local laws will prove essential for seamless and speedy talent acquisition.
Added to which, ensuring adherence with the specifics of a country’s laws and customers, while still offering equal benefits to all global employees will prove vital for ensuring that organisations have competitive muscle when it comes to attracting and retaining talent without incurring compliance-related fines.
Finally, the misclassification of full or part-time employees as contractors can result in organisations unwittingly falling foul of local labour and tax laws or inadvertently depriving workers of the employee benefits to which they are entitled.
The cost and complexity involved in establishing subsidiaries and navigating local employment and tax laws can throttle fast-footed expansion into new markets. Fortunately, today’s global employment platforms can enable firms to surmount these regulatory and legal constraints. Providing a turnkey process that helps companies to establish a local presence anywhere in the world easily and simply, covering everything from hiring personnel to managing compliance, legal and tax requirements, and payroll.
Enabling organisations to cut through the red tape and pursue cross border opportunities in a highly agile and fully compliant manner, a single streamlined, highly integrated, and advanced employment platform makes it easy for companies to:
- Automate the generation of employment contracts that are compliant with local laws anywhere in the world with the click of a button
- Automate background checks – an integral part of any hiring process
- Simplify the oversight, management, and payment of contractors
In a world where having a local presence is a critical must-have for capitalising on openings around the globe, those organisations that can jet propel their human capital strategies to access talent fast – or put it where it’s needed the most – will gain significant competitive advantage.
Nick Adams, Vice President of Sales EMEA at G-P – Nick Adams is the Vice President of Sales at G-P based in London, UK, where he leads the company’s international expansion into Europe. With a focus on building a strategic partner network and overseeing regional revenue operations, Nick came to G-P with a wealth of experience scaling high growth businesses and is a firm believer in customer focus, integrity and teamwork; values that the company enshrines across the organisation in everything that we do. Prior to G-P , Nick was Global Head of Sales for Conversity, a cloud vendor of e-commerce software specialising in Customer Journeys.
Outside of work, Nick is an avid traveller as well as devoting his time as a volunteer helping to find employment opportunities for resettled refugees. Nick is also a mentor and coach with the Mayor of London’s International Business Program providing guidance to UK scale ups with their International Expansion strategies.
