South Eastern Europe Desk

For German MSMEs looking to expand their business abroad, countries in South Eastern and Eastern Europe (SEE/EE) have become some of the most favourable destinations in recent years. SEE is a thriving region with diverse market opportunities across various industries, holding significant growth potential for companies operating in sectors such as manufacturing, food processing, renewable energy, or information technology, among others.

The countries in the region offer various opportunities suitable to a broad range of business needs. This is why it is essential to conduct thorough research, compare the markets and learn as much as possible regarding the advantages, potential and challenges each location brings before deciding which one is right for your business.

For example, Bulgaria and Kosovo, with its skilled and tech-savvy workforce, are particularly suitable for IT-nearshoring. North Macedonia has established itself as an excellent location for automotive suppliers, whereas Serbia and Romania offer great potential when it comes to industrial activities thanks to its well-developed infrastructure.

To find out more about the differences between SEE/EE countries as well as their advantages, MSMEs can consult organisations specialised in facilitating the expansion of business activities into South Eastern and Eastern Europe, such as the German Chamber of Commerce (AHK), German Trade and Invest, or other specialised location scouts. Furthermore, ProCredit Bank is committed to helping companies set up their business in South Eastern and Eastern Europe.

For an SME planning to expand operations into South Eastern and Eastern Europe, the journey begins with finding the ideal market within the region, followed by registering a local company and actually starting to do business there.

Once these steps have been completed and business operations are under way, the next challenge that becomes obvious is managing the local subsidiary in a foreign country. A successful approach to this challenge involves considering several key aspects such as legal and regulatory compliance and operational activities as well as specific political and cultural considerations.

From a legal and regulatory perspective, you must be in a position to navigate the local laws specific to the country you have chosen as your next expansion destination, which includes labour laws, taxation, data protection, and intellectual property, among others.

When it comes to the everyday operational activities, you have to consider areas such as financial management, including controlling and reporting, as well as specific accounting standards that might differ from those in Germany. Having a well-equipped and efficient treasury department at your disposal is also essential.

Another important aspect of managing a local subsidiary is having the necessary supply chain, which includes suppliers and providers of logistics services. Finally, marketing and sales are also crucial to a successful cross-border business operations, and this requires an adapted strategy for promotion that takes into consideration the local culture and consumer behaviour.

With all these challenges and potential hurdles in mind, companies looking to expand into South Eastern and Eastern Europe could benefit from the proper help and support so that they can manage their local subsidiaries successfully.

ProCredit Bank has the means to do exactly that. Our relationship managers can support you from Germany and connect you to our on-site teams. Through our local ProCredit banks, we can connect your local accounts to your main treasury management system and assist you with any aspect of your day-to-day operations in the region.

Get in touch with our Corporate Banking team or visit our South Eastern Europe Desk for more information: https://www.procreditbank.de/en/business-clients/south-eastern-europe-desk

South Eastern and Eastern Europe offer excellent opportunities for MSMEs from Germany looking to expand their business abroad.

After doing your research and choosing the country with the ideal market for your business activity (see Step 2 of this series), it’s time to begin the process of formally setting up your business there.

Opening a bank account and registering a company are the first and most crucial steps in this process. This may require you to set up a local subsidiary. The requirements and bureaucratic procedures in this regard vary by country. Obviously, ProCredit Bank can be of valuable assistance: Thanks to our longstanding activity in the region and colleagues on the ground, we have extensive knowledge of the local markets, regulations and procedures. Through local ProCredit banks, we can support you every step of the journey and help you complete the process as quickly and easy as possible.

The general process of establishing a business in South Eastern and Eastern Europe involves multiple steps: registering the company, obtaining the necessary permits and licenses and opening a corporate bank account. After registering your company, you will also have to register for tax and social security in order to comply with local laws and regulations. The required documents include a business plan and articles of association, and you will also be asked to provide ownership information such as details about shareholders and managers. The good news: Most countries across South Eastern and Eastern Europe have online processes in place to assist in launching a business.

Additional advice: Connect with German chambers of commerce in the respective countries to gain more insight and receive support when setting up your business.

For more information on how ProCredit Bank can support your cross-border growth, visit our business clients page: https://www.procreditbank.de/en/business-clients