Importing from South America to EU: Where to Establish Your Business
Question:
I’m planning to start an import/export business in the EU, bringing goods from South America to sell in countries like the Netherlands, Germany, and Poland. Which EU country would be best to set up my company in, and is it possible to operate from one EU country while importing to another?
Answer:
For your import/export business focusing on bringing goods from South America to sell in the Netherlands, Germany, and Poland, we recommend considering the Netherlands as your base of operations. Here’s why:
- Infrastructure: The Netherlands boasts excellent transportation networks, ideal for efficient import/export operations.
- Business-friendly environment: It offers favorable tax conditions and less bureaucracy compared to Germany and Poland.
- Language advantage: English is widely spoken, making business operations smoother.
While Germany and Poland are also good options, they have some drawbacks:
- Germany: Strong economy but more complex bureaucracy.
- Poland: Lower operating costs but potential language barriers.
I have written this article where I compare the Netherlands against other countries in Europe.
Regarding operating from one EU country while importing to another, it’s possible but not always advisable for small businesses. For example, you could set up in Cyprus and import to Germany, but this can lead to complications:
- Increased operational complexity and costs
- Potential need for VAT registration in multiple countries
- Requirement for fiscal representatives
- More complex banking and payment processes
- Potential legal complications in case of disputes
For most small businesses, it’s simpler and more cost-effective to incorporate where most of your business activities take place. In your case, since you’re focusing on the Netherlands, Germany, and Poland, setting up in the Netherlands could offer the best balance of benefits and operational simplicity.
If you need personalized advice tailored to your specific circumstances, don’t hesitate to reach out to our consultants. We’re here to help you navigate the complexities of international trade and find the best solution for your business.