More and more companies raised their internationalization as an economic measure to deal with the crisis in the Spanish market as well as the increasing globalization supported by new technologies and internet.
The definition of internationalization encompasses a process that is defined, undertakes and develops the participation of an enterprise abroad. Notably, when making the decision to take the company outside the national level does not always imply that what the company seeks is expansion, since in many occasions it is improvement. This improvement necessarily implies a thorough study of their business model, political and cultural circumstances as law in the country of destination, in addition to the resources, both human and financial, this would entail.
If the final decision on internationalization is affirmative, this may occur in two ways: the adoption of a permanent form of activity on arrival, or the other hand, through various forms of contracts. Given the extent of the second case, in this article we will focus on the first embodiment.
Firstly, the subsidiary will be a new autonomous and independent business entity of the matrix, although its capital will come from another head company who will own the majority of shares. The subsidiary shall be governed by the laws, accounting and tax rules of the country of destination.
Secondly, the branch office will be an administrative division of the company, which unlike the previous one, will not have legal personality, which shall be subject to the matrix company. Still, branch offices must run their own accounting under foreign legalization.
You can also consider the option of creating a European Company, being this intended for those companies operating in several Member States of the EU. This system will have a unique administration and statements, as well as will imply a reduction in costs. The minimum capital for its constitution will be of of € 120,000, as well as an agreement and involvement of workers.
Finally, for large projects, there is the possibility of creating consortia, joint ventures and groups of society. These bonds can be driven under subordination, assuming one of the companies the leadership of it, or conversely, join in a regime of equality and cooperation.
An example of the latter case would be the JVs (joint ventures), whose union is carried out for the execution of services, works and supplies. It will be crucial to formalize it a public document, which will be registered in the Ministry of Finance.
Since the internacionaliazción of a company is a complex task that must be carried out by a specialized team, contact DAEMI ZABALZA & ASSOCIATES, who have both lawyers and economists specialized in the field. Investing in an exhaustive study of the market with a specialized company is the only was yo success in the expansion towards the international market.