There are so many variable to consider when you consider opening a business in a foreign country. Some of the most talked about simple issues are time zone difference, taxes, language barriers, and foreign policies. The time zone changes from the US and Canada to Germany is about 8 hours. This will vary due to daylight savings time, but that is now a major issue itself. The main concern is if the company is a United States company but based out of Germany and there is a problem that needs addressed. You will need a complete management staff on the ground in Germany to oversee any problems. Depending on the situation it could require you to go on location which could take you a few days to get there as opposed to a local based company that you could be within a few hours from. This location in Germany does have a few benefits for online companies. It is centrally located to where shipments could ship faster across the world. Customers would receive products faster and that would increase overall satisfaction. Taxes will need to be considered in Germany. There are several pages of tax law that would need to be analyzed by a legal team to make sure the company pays all appropriate taxes and receives certain tax breaks they qualify for. Germany is known for high taxes and it would all depend on how they vary compared to being based in the U.S.
Being an online company the language barrier should not be too much of an issue. There are programs for online stores to use to simply select the language of choice while shopping online. However, when dealing with the local government the company will need a spokesperson that is fluent in German. This will be another position the company will have to pay for and most translators for business purposes receive a very good paycheck. Germany’s business policies could vary greatly from those in the U.S. The hours allowed to work and the pay for those hours could be completely different. For instance, in Iraq the day starts at 12 a.m. on the pay scale. Anything after the first 8 hours is time and a half and anything after 9 p.m. is double time. So finding out exactly what government regulations are for how to pay your employees is a must. This should seriously affect the bottom line and be a huge avoidable mistake in budgeting.