In more than 30 years of providing accounting and payroll services in Europe, we have met hundreds of clients wishing to expand their business presence abroad.
Taking your company abroad introduces a whole new set of considerations, from market trends and analysis to political and economic factors, entity set-up, legal barriers, and the logistics of hiring workforces in new countries.
In 2025, Leinonen Group consists of 12 successful offices in 11 countries. With a reliable international network of accountants, lawyers, payroll advisors, and more, we are well equipped to support your business as you make the cross-border transition.
In the meantime, here are five important areas you should explore when deciding whether to enter a new market abroad.
1. Market Analysis to Establish a Strong Business Case
This might seem obvious, but it is a step many companies forget (or rush). We often see businesses wanting to expand their reach, starting with neighbouring territories. They believe they know the local market well enough – but during detailed research, surprises often emerge.
When conducting market research, be sure to explore the following as a minimum:
- Cultural differences
- Consumer behaviour
- Market trends
- Language barriers
- Competition
- Taxation
- Legal aspects
- Employment regulations
If you can produce a strong business case using thorough market analysis and research, your chances of success will be much improved. Ultimately, proper research will reduce your risk of losing significant money and damaging your brand along the way.
2. Proper Entity Set-up
When establishing a company abroad, it is crucial that the company form and registration both comply with the local legislation. The number of founders, capital requirement, division of responsibility and decision-making, financing, and taxation are just a few of the factors that influence which legal entity is most suitable.
We strongly suggest consulting with local authorities or service providers before making a final decision about entity set-up. This is because every market is different, and registration processes vary in terms of time and resources needed.
If you plan to expand to Baltic countries, Finland, Norway, Sweden, Poland, Hungary, Bulgaria, Ukraine or Kazakhstan, you can consult with Leinonen’s accounting services. We will use our expert knowledge of local markets and best practices to help you select the right legal entity for your business.
3. Understanding Local Laws and Regulations
Different markets have different local laws and regulations around taxes. The taxation of international businesses changes frequently and can be difficult to understand. As legal regulations affect everything from establishing a company to hiring employees, it is better to minimize risks by investigating these regulations sooner rather than later.
It is also vital to consider how your home country treats income earned internationally, as this could significantly impact profits. The earlier in the process regulations enter the decision, the better for your company; they might impact your mode of entry choice.
4. Hiring Employees Globally
Are you planning to open a local office or simply use remote workers in different markets? Will you use expats or focus on local talent?
Whatever decisions you make, ensure you are well educated on local employment laws and that your human resource plans comply with local requirements. In many markets, employment legislation creates the general framework of the terms and conditions of employment, but employer and employee unions enter into collective agreements.
Collective agreements are more specific than the law, and some of them are universally binding (e.g., in Finland, there are more than 100 legally binding collective agreements). This means that even unaffiliated employers that do not belong to an employers’ organisation must apply the terms and conditions of the sector’s collective agreement. If the terms of an employment contract are not in accordance with a binding collective agreement, they are not legally valid.
Money is a sensitive matter, and managing employee salaries should always be handled with the utmost care, confidence, and punctuality. If you use a payroll partner, as many companies do, make sure they provide compliance support in-country and communicate in the local language. For diligent payroll services in Europe, contact your local Leinonen office.
5. In-house or Outsourced Services
Many businesses choose to outsource accounting and payroll. Not only can this decision simplify company operations, but it also allows them to benefit from the knowledge of local financial and legal specialists.
Key Benefits of Outsourcing Payroll Services in Europe Include:
- Saving time. Managing your own payroll is laborious and time consuming – it may not be realistic or efficient to take care of it yourself. Outsourcing your payroll management to a financial expert can streamline the process and save you many hours.
- Avoiding mistakes. Payroll mistakes cause a whole host of practical issues, and can even damage your reputation; frequent errors could make you appear less trustworthy. With a team of specialists on hand, outsourcing your payroll will eliminate errors, effectively troubleshoot, and keep things running smoothly for both you and your employees.
- Improving security. Your employees trust you with their personal and financial data, and you want to keep it safe. Reputable organisations offering payroll services in Europe prioritise confidentiality and security for your peace of mind.
To find out more on the benefits of outsourcing payroll to a specialist accounting service in Europe, read our article here.
Leinonen: Your new Partner for Accounting Services in Europe
Expanding your business globally can be complex, but considering these five factors is a great starting point. It is vital to do the proper homework, prepare a strategic business case, and lean on a trusted international partner for local expertise. With adequate preparation and research, your business will be much better equipped for global success.
To learn more about how Leinonen Group’s accounting services in Europe will help you find success abroad, contact us today and arrange a consultation.
