E-commerce business - setting up in the EU

[samuel5]

I’m looking to branch my E-commerce business into the EU.
Our biggest market is Germany so makes senses to get a warehouse there.

We will use it for the following:
- Receiving and storing stock from China and stock transfers from our UK warehouse.
- Sending stock to Amazon EU for FBA.
- Receiving Amazon FBA returns.
- Fulfilling EU orders from a new German
website we will launch.

My question is what would be the best option, setting up a new EU company or keeping it under the existing UK company?

It would be much easier to do the latter but I’ve heard that most companies in the same boat as us are setting up new EU companies, so there must be benefits?

Has anyone here done anything similar to expand into the EU?

Thanks

Sam

 

[nick34785]

It's very difficult to import into Germany as a non EU company. You could set up the company in another easier EU country like Estonia or Ireland.

 

[Manior]

I can put you in touch with a fulfillment company in Kilkenny Ireland if you require.
They receive stock in from China and dispatch throughout Europe, Germany being one of their biggest markets. They can also offer vat services, not too sure how that works.

 

[The Byre]

I have toyed with the idea of doing something like a German representation office as we already have a company there and everybody is fluent in English and German. The only thing stopping me is the fact that setting it up would cost money as everybody is fully occupied and we have been trimming back staff levels as far as possible without getting a nose bleed.

Here's the shock news - Germans buy from Germany and speak German. They are also relatively litigious and they like to know who to take to court when things go pear-shaped. They want to see a German trading partner and a German address and a German landline telephone number. And of course, all the paperwork is only in German.

German law, economy and industrial standards dominate Europe as nobody else does. The Euro is just the old Deutsche Mark with lipstick on it. All those international industrial norms are just the adoption of the old DIN (Deutsche Industrie Norm) standards.

My question is what would be the best option, setting up a new EU company or keeping it under the existing UK company?

Set up a GmbH and they will trust you. Set up something in Estonia or Ireland and they'll assume you're dodgy.

The key to doing business in Germany is to have a person on the ground (or here, as we are all working at the end of a telephone line anyway) that has a formal qualification in Business Studies (Betriebswirtschaftslehre - BWL to its friends) or (if you can find one) is a qualified 'Speditionskaufmann'. Who else you hire depends on the scale of the operation. Due diligence to avoid naughty people is very important!

Things to avoid - charlatans posing as experts. Expensive areas like Munich, Berlin, Hannover, etc. (I recommend setting up in the Eifel or the Harz as those are cheap areas.) Accountants and lawyers and notary publics that see you as a meal-ticket and/or a boat-payment!

Must get - A decent lawyer and a decent accountant.

Here's everything you need to know about setting up a GmbH - https://www.smartlaw.de/rechtsnews/unternehmen-gruenden/gmbh-gruendung-was-sie-kostet-und-wie-sie-dabei-sparen-koennen#:~:text=Gründet eine Person eine GmbH,sind 250 Euro Notargebühr fällig.

 

[samuel5]

Thanks The Byre, GmbH it is!

I want to appoint someone to run things over there but don’t know where to start!
I will give them a percentage of the new company and make them a director.

Can you recommend a good accountant and lawyers to get it set up?

 

[The Byre]

I have sent you a PM with loads of useful info!