Recruiting a member of staff for relocation to a foreign subsidiary requires some careful thinking. We have compiled the questions that are most frequently asked when people are faced with this human-resources quandary.
International recruitment involves recruiting people in their company's country of origin and relocating them abroad to work in a foreign subsidiary. In a globalised world, this has become common practice. However, when setting up a Belgian company abroad you will face a series of legal obstacles, as soon as your employees cross the border out of Belgium. These include employment laws, residence permits, taxation and social security. These questions will make things clearer up for you:
Should I recruit before developing my strategy?
No. Before starting the recruitment process, the first thing that a company must do is clearly define what it wants to achieve in the country where the subsidiary will be set up. It must take cultural differences between the countries into account. If the company usually recruits locally to be on the same wavelength as its target customer, when recruiting internally candidates should be adaptable and self-reliant, but above all they should be fluent in the country's language (in English, at the very least).
Can my employee work in this country?
If the free movement of workers applies within the EEA (European Economic Area) and in Switzerland, you do not need any special permit apart from your Belgian identity card. You must have a work permit as soon as you cross the border out of this area. The paperwork to apply for this can be extensive and even complicated (particularly in the United States). It is essential you have a lawyer who specialises in immigration.
Do I need a centre of operations in the country?
If you want to employ staff in a different country, you should have a local entity. Depending on the country in question, a small entity (sometimes no more than a letterbox) can be enough.
Where should social-security contributions be paid?
In the EEA and countries that have a bilateral social security treaty with Belgium, the social security system in the country of work will apply. In situations involving simultaneous employment, the social security system in the country of residence applies. As a rule, an employee cannot be subjected to different systems. Outside the EEA, you should operate on a case-by-case basis (legal and tax advice is essential in these situations).
What about salary and working conditions?
Employees can only work in an export market if they have an employment contract adapted to the salary and working conditions of the country in question. As a general rule: the mandatory legal provisions in the country of work will take precedence over the ones that appear in your Belgian employment contract.
Where should taxes be paid?
Double taxation is not a very appealing option for employees who are being relocated to work abroad. To avoid this, Belgium has signed treaties with a large number of countries specifying the country responsible for taxing the salaries that you pay. As a general rule, workers are taxed in their country of work, except in cumulative cases (the 183-day rule), where the national law of the country responsible for taxing the salary will apply.
Can I recruit internationally from Belgium?
Yes, you can. For example, in the Brussels-Capital Region, Actiris has an International department, which selects candidates with an interest in working abroad. This body is a member of EURES, a network of more than 1,000 employment counsellors (EEA and Switzerland). If your employees do not want to be relocated abroad, its counsellors can also place your job offers on the EURES portal.
Should I go it alone?
Certainly not. The steps that you need to take before relocating one of your workers abroad or recruiting internationally are too complex for you to tackle without any advice; only a specialist firm will be able to help you take these different steps (residence permits, work permits, social-security payments, taxation).
Who is in with a chance of winning a Leeuw van de Export Award in 2022?
On Wednesday 14 September, FIT will present its 21st Leeuw van de Export Award: the highest award for Flemish companies achieving outstanding export results. Will Belkorn, Twipe Mobile Solutions, XenomatiX, Bogaerts Greenhouse Logistics, Kipco-Damaco or Lambo Laboratoria win?
Every year, Flanders Investment & Trade (FIT) awards a Leeuw van de Export Award to two companies that have recorded notable achievements in the field of exports in the past year. We briefly introduce the six nominees below. Be inspired by their foreign expansion stories. On 14 September, the top exporters will be celebrated at the Brabanthal in Leuven.
Nominees in the 'Companies with up to 49 employees' category:
Belkorn from Diest
Healthy and tasty, high-quality ingredients that are good for people and the planet. Belkorn has been making this sustainable vision a reality since 1985, when it launched the first organic baby biscuit in Europe, well before the current trend for organic food. In 2010, a British brand chose Belkorn to bake its biscuits, causing the company to ramp up its export plans. Russia and Australia soon followed suit, and today Belkorn has a presence in 30 countries. More than 95% of the company's turnover is derived from exports.
CEO Jos Corthouts: "Thanks to continuous investments in innovation and a state-of-the-art production centre, we have seen rapid growth over the past five years. In the future, we hope to boost our presence in Ireland, Australia and New Zealand and gain a foothold in the German market."
Twipe Mobile Solutions from Heverlee
Heverlee-based Twipe Mobile Solutions assists 80 influential newspaper titles, helping them to increase their reader numbers and revenue with a user-friendly digital newspaper, insights into reading behaviour, and personalised news feeds. After a first mobile news app and the first exclusive digital newspaper in France, they launched JAMES in the UK, a digital butler that compiles automated, personalised reading lists for subscribers. Twipe Mobile Solutions serves newspapers in 13 countries, accounting for 92% of turnover.
CEO Danny Lein: "In the coming years, we want to develop a tech scale-up that plays in the Champions League of news media technologies, while remaining true to our Flemish roots. With intelligent innovation, a lot of hard work and team spirit, you can grow and build an international reputation."
XenomatiX from Leuven
XenomatiX develops innovative laser systems for self-driving cars. The Leuven-based company provides an answer to the automotive industry’s demand for more compact, reliable and affordable sensors. Despite its small-scale production, XenomatiX has a very local presence in major automotive countries such as Germany, the US, China, Japan and South Korea, to explain and demonstrate its technology on the ground. The company wants to make a difference worldwide with its promising technology.
CEO Filip Geuens: "We want to make an economically relevant contribution to society through our technology and the resulting employment."
Nominees in the 'Companies with 50 or more employees' category
Bogaerts Greenhouse Logistics from Hoogstraten
Bogaerts Greenhouse Logistics is the largest player in the automation of greenhouse gardening. The company develops machines, appliances and other logistical aids for spraying, harvesting and sorting in modern greenhouses. The sophisticated systems, which are produced in Hoogstraten, are now used in more than 40 countries.
CEO Joris Bogaerts: "In Europe, we're gradually hitting the ceiling in terms of terminal automation. But there are lots of large-scale projects in the pipeline in Eastern Europe, Russia and China. And the African continent still offers a lot of potential." We want to be ranked among the global top 3."
Kipco-Damaco from Oostrozebeke
The chicken in your favourite deep-frying snack or boiled sausage is probably produced at Kipco-Damaco. In recent years, the poultry slaughterhouse in West Flanders has developed into a global producer and distributor of chicken separator meat for further processing. After a first foreign sales office in Singapore, the company established 4 production sites and 11 branches in countries such as Brazil, India, the Philippines and Vietnam. This development offers significant added value thanks to local market knowledge and short lines of communication with the meat technologists at Kipco-Damaco. Exports account for 83% of the company's turnover, of which a significant proportion is bound for the EU.
Co-owner and commercial & marketing director Iris Vandaele: "We believe in taking a chance, jumping on every opportunity for expansion. We valorise chicken separator meat, but also extract proteins from feathers for animal feed, for example. We were circular long before this was a hot topic."
Lambo Laboratoria from Wijnegem
Family-owned company Lambo Laboratoria develops high-quality gelatin capsules for the pharmaceutical and food supplement industry. Instead of mass production, they produce capsules that are tailored to their customers on demand. Their choice to operate in a niche market has been driving their international growth for 15 years, with sales to 30 countries today. Currently, exports account for 78% of the company's turnover, with the majority bound for our neighbouring countries, Italy and Poland. The company thinks there is still plenty of growth potential, both geographically and in specific market segments, and is currently looking for partners in Germany and Italy. Far-flung markets also beckon.
Managing Director Uwe Leonard: "We purposefully capitalise on our Flemish roots. It is striking how we are often appreciated more abroad than in our own country. 'Made in Belgium' is a quality label around the world."
Find out on 14 September who are the 2 winners of the 2022 Leeuw van de Export Award. Register beforehand at www.leeuwvandeexport.be.
Are you ready for your first international adventure or do you want to further expand your international activities? We offer you the peace of mind you need, with a wide range of solutions to optimise, secure and finance your import and export activities.
Source: Wereldwijs magazine 2022
Not words, but actions: how can you realise your internationl project?
Gaining a foothold in a foreign country is no easy task, and some good advice alone will not suffice. Trade Development at BNP Paribas Fortis is the perfect partner to turn theory into practice!
Many companies want to try their luck outside our borders and gain a foothold in new markets. This is necessary not only to be able to continue to grow, but also to remain competitive. But if you don't know where to start, it's hard to put your money where your mouth is. How do you find the right market? How do you find prospects? How do you prepare the whole operation in all its aspects? What risks do you need to cover? And which partner can you trust? All important questions that can make or break your project. And this is how international ambitions are sometimes left on ice....
"We want to help companies achieve their international ambitions", says Rob van Veen, Head of Trade Development at BNP Paribas Fortis.
"We look at the local market into which the company wants to launch and make sure the underlying potential is sufficient." And so, the first step towards success is taken.
WHEN GOOD ADVICE IS NOT ENOUGH...
There's a deep gap between theory and practice that managers do not always dare to cross. It's essential to collect a lot of data and information, but this is certainly not enough. Talk must then be followed by action. Your growth project's first stone must be laid... preferably with the greatest possible chance of success and as few risks as possible. In such an adventure, (good) guidance is not a superfluous luxury. Even more reason to call on the support of Trade Development: a partner who can assist you with a wide range of solutions and help you establish a long-term strategic vision. In Belgium and beyond.
"In their project's first phase, companies often find a lot of information and support from the Belgian export promotion agencies", says Rob van Veen. "But they don't get all the practical answers they need to roll out their activities in a given country."
Given that growth prospects in Belgium are rather limited, companies must therefore look for international growth. But where? This is where the Trade Development team comes in. Your choice of target market is certainly crucial. A vague, poorly thought-out decision can have dramatic consequences: examples of failure abound – partly because companies don't understand the local 'culture'. Companies sometimes gravitate towards exotic markets because others have gone before them. But every international project is unique: does the market fit into your overall strategy? Are you aware of all the challenges that lie ahead (regulatory, commercial, etc.)?
"Let's take the example of a company that wants to set up in Brazil. Our first question is then: what activities have you already been carrying on in Europe? Might there be new, undiscovered opportunities there? For example, it's much easier for a company to set up in Poland than in Brazil, where taxes on imports are extremely high" , continues Rob van Veen.
HIGHLY NECESSARY 'LOCAL' CONTACT PERSONS
Your project has taken shape and you've determined your target market. The time has then come for Trade Development to roll out one of its greatest assets: access to a global network of competent and reliable partners.
"We introduce the client to local specialists who can support their project abroad from start to finish. One deals with the roll-out of activities, another specialises in legal and tax issues, and a third takes care of the administrative side of things. We prefer to work with small, local agencies, most of whom are long-term BNPPF network partners", says Rob van Veen.
These contact persons have a perfect knowledge of the national rules and customs and know how to adhere to that specific framework. The company therefore has the great advantage that it can benefit from such a skilled team: a win-win situation. "In addition, our permanent contact persons are evaluated by the client after each project. This way, we can guarantee the quality of our services!"
BUILDING RELATIONSHIPS: Save TIME AND gain EFFICIENCY
Are you looking for an effective distributor or a reliable representative? An ideal on-site supplier? Do you want to determine these contacts' actual potential or get to know possible new partners? Not easy for a company…
"Most of them are looking for a white knight. Our trade developers draw up realistic selection criteria in consultation with the client. They carry out a financial analysis of the commercial partners and check their technical baggage and their reputation", explains Rob van Veen.
First, a list of four or five serious and interested candidates is drawn up, and then the contact phase follows. "Our local contact introduces the candidates to the Belgian company to ensure that both parties are interested in a partnership. Once all these issues are clarified, the relationships can be rapidly explored in depth."
SUCCESS IN THE FIELD
Every target market has its problems and risks: from the language to cultural and commercial differences. Very specific problems that are often difficult to solve from Belgium, especially in the post-COVID-19 era. Hence the importance of being surrounded by specialists who know the country like the back of their hand. Need an example? "To be able to supply retailers in the UK, you often need to be able to invoice at a local level", explains Rob van Veen. "Our trade developer can then act and take care of the local invoicing and accounting on the company's behalf at a fixed and transparent rate for each transaction. This is a simple initial structure that does not require major investments but is very interesting professionally." The client can naturally then seek its own local partner. "That too is a task they can leave to our contact person, who has the necessary experience to do so." Need another example? Russia, where everything takes a huge amount of time... Trade Development's network of experts can also speed things up considerably here and solve problems more quickly.
Who is the key partner in your international growth?
Your bank! In particular, the network of experts at BNP Paribas Fortis' Trade Development department. The missing link between your foreign ambitions and your growth project's success.
Conquering foreign markets raises new expectations within companies. Needs that go way beyond a bank's 'traditional' services... We at BNP Paribas Fortis have understood that well, and that's precisely why we established the Trade Development department. This department advises clients and provides them with a full range of support in their international ambitions. "A bank can provide practical assistance to companies' expansion projects abroad: it can open accounts, provide guarantees, underwrite cash flows, and more", says Rob van Veen, Head of Trade Development at BNP Paribas Fortis. "But that's not all clients need: they also expect their bank to think about strategy and to help them approach the market in an intelligent and efficient manner. And that's exactly what we do." What does that mean? The service provides unique and highly essential support – especially now against the backdrop of the COVID-19 crisis – for expansion beyond our national borders, reassuring business owners and connecting them to a global network of local experts or providing long-term follow-up.
KNOWN TERRAIN... EVEN ABROAD
A good example of this successful partnership between a company with international ambitions and the bank is the Besins Healthcare group, founded in 1885 by Abel Besins, and which has been expanding globally since the 1980s. Great ambitions, which the company fully embraces with BNP Paribas Fortis' sustainable support. "Once we've got new plans abroad, we first discuss them with our contact person at BNP Paribas Fortis", says Leslie Grunfeld, CEO of Besins Healthcare, which is currently active in over a hundred different markets, and has local branches in several of them. "Our treasurer will check whether the bank is present in the country in question or whether it has partnership links with local institutions." This approach means that the group never goes into a blind adventure, as it has a similar range of services throughout the world. "That's great! Especially when you consider that the local problems you have to solve can vary greatly from one country to another."
ACCESS TO A KNOWN AND RELIABLE NETWORK
One of the Trade Development team's biggest advantages is that it can provide companies with a real network of local specialists. Professionals for whom the target market holds no secrets. They know the reality of the country in question like the back of their hand and provide the company with support through all the local steps: from exploring business opportunities to bureaucratic formalities.
"Even in countries where BNP Paribas Fortis doesn't have branches, we were able to benefit from the bank's network, which made the establishment of local branches particularly smooth. We didn't have to start from scratch every time we went abroad: we had immediate access to a structured network and reliable banking partners. And that means huge time savings", Besins Healthcare's CEO emphasises.
THE HUMAN FACTOR
Personal contacts with preferred partners are of great importance in an international growth project. Not only to have reliable and proactive contacts, but also to gain access to useful information and to unlock new local opportunities. These 'local' contacts are usually long-term partners of the bank... a guarantee of reliability for the company that should not be underestimated. They are specialists with various skills and profiles – legal, business or administrative – who assist the company in question from start to finish. This includes assisting with setting up local establishments, starting up a new activity, recruiting staff (management, local contracts, etc.), setting up a new legal structure, seeking suitable suppliers and other partners (e.g. banks), responding to clients' needs (cash credit, leasing, fleet management, currency hedging, etc.) and offering them tailor-made solutions. And what happens when the company is 'launched'? Trade Development then remains on standby to continue the banking relationship and to closely monitor the client's evolution. For the long term!
A bank like BNP Paribas Fortis – through its Trade Development teams – is therefore the key partner for companies' international growth. And that goes way beyond simply offering financial services. It also provides:
- exploration of new markets and partners for the company. In this capacity, it can collaborate in determining the strategy at the source and opening the range of possible relationships on the ground as widely as possible;
- risk mitigation: the bank analyses and assists with the preparation of a realistic profile of the future partner (finances, real interest, reliability, reputation, etc.) and with reducing the margin of error;
- creation of ready-to-use solutions. In this regard, the bank is always available to listen to the client, anticipate their expectations and offer solutions adapted to their specific situation;
- acceleration of the foreign process to establish themselves in a market or gain a foothold there, thanks to local contacts with useful local knowledge and experience;
- facilitation of the whole process, making its extensive network available to rapidly put the company in question in contact with local partners, but also to manage or advance all kinds of situations;
- long-term support – Trade Development's experts closely monitor the company's international journey, on-site or remotely, and oversee the project's success.
Leverage 'your'network for your international growth
How do you launch yourself in foreign markets and increase your chances of success with as little risk and investment as possible? Thanks to a well-developed network that's worth its weight in gold...
International growth is essential for companies, not only for large groups but also for SMEs. A versatile strategic choice that makes every project a unique adventure... whether we're talking about 'normal' cooperation with partners abroad, about export or foreign establishments. But it's not that simple, as it's an equation with several variables. How do you keep all those variables under control? By seeking an answer to a whole series of questions, clearing up your doubts, analysing different parameters, exploring the terrain and forging partnerships. Consequently, you can use all the help you can get (and often specialised guidance, too). And you'll find that in a network. A well-developed, reliable and competent network. An ecosystem that helps you:
- cut distances and times;
- explore and confirm existing options;
- accelerate all processes;
- make everything a bit easier.
These are all tasks that only useful and reliable local contacts can guarantee you. However, building such a network beyond our national borders isn't so easy. It's therefore in your best interest to build on existing solutions that have already proved their worth.
PRESENCE OF 'PUBLIC' BODIES
Belgium is all too aware of the importance of good relational ties and therefore has an extensive diplomatic network: the Belgian chambers of commerce with representatives of the Federal Public Service Foreign Affairs and regional delegates linked to export support agencies (abroad). But the contacts alone are not enough... Companies can indeed find information and support during their project preparation, but not necessarily all the answers to realise their project and expand their activities in the country in question. So, a bank like BNP Paribas Fortis didn't just opt to set up its own 'ecosystem' for businesses, using the expertise of its Trade Development department, among others. This is a network of global experts who support the client from start to finish.
THE 'BILATERAL' CHAMBERS: ACROSS BORDERS
That's what the Belgian chambers of commerce abroad are called. Independent organisations that can be found (almost) anywhere in the world. Their mission? Share their experience and support Belgian companies with their establishment in 'their' country. They were set up on the initiative of local companies with a link to Belgium and have one common task: to strengthen our ties with a region or country. These 'bilateral' chambers of commerce are accredited, and this can count in terms of reliability. They also cooperate with the official network of representatives of Belgium abroad. But not only that... For some years now, BNP Paribas Fortis has been providing support – by joining – some ten such bilateral chambers: the Chinese, American, African, Indian and Arabian chambers of commerce, to name but a few. This is an additional benefit for the bank's customers, as it gives them access to a 'unique' forum of companies and prospects in a clearly defined market. And particularly useful for expanding your network and gaining as much useful information and experience as possible.
A UNIQUE MEETING AND SHARING PLACE
The bilateral chambers of commerce are extremely useful tools for companies seeking to gain an international foothold. They help make international expansion projects smoother and faster. But that isn't all they do. These independent organisations are also a meeting place for all companies involved in commercial exchanges between Belgium, China, the United States, Africa and India. All kinds of companies can be found here: large and small, Belgian and foreign, companies with a long history as well as newcomers. And not forgetting certain representatives of the public sector: staff from the Minister for Foreign Affairs' office, Flanders Investment & Trade, Hub.Brussels and AWEX (Walloon Export and Foreign Investment Agency). And of course, BNP Paribas Fortis!
This network therefore comprises all the important people and bodies you need to expand your commercial relations and boost your international growth. So, a bank also deserves a place in this ecosystem. As such, BNP Paribas Fortis has logically strengthened its position in this network by joining the boards of directors and various committees of the bilateral chambers and by actively participating in events and training courses. In this way, the people in charge of banking relationships also keep up to date with the latest developments and business practices in the countries concerned. Although the current situation doesn't exactly make things easier, the network's strength is often demonstrated by the events organised by the bilateral chambers with BNP Paribas Fortis' support. They are a unique opportunity to meet others, listen to carefully selected speakers and learn about topics that are important for your international expansion project.