Anyone who has successfully launched a business in Germany will sooner or later consider an international strategy. one.lx offers expertise with a focus on the US, but can also help with various markets in Asia and the EU.
Beyond the business aspects of setting up a company abroad, drafting contracts, selecting law firms for legal advice, taxes, and insurance, one.lx also considers socio-economic aspects, which are essential for international success.
The US market in particular presents challenges. The myth that it is easy to start a business there compared to Germany is quickly dispelled when you start looking into choosing the right bank, a company headquarters, sales taxes, and recruiting employees. For customers in the public sector, there is also the issue of accreditation with sam.gov or regular registration reports to the state in which the company was founded.
Examples:
Spin-off in the USA: SerNet, Inc.
In 2004, seven years after SerNet was founded, the first customers from the US came looking for support and software development. This went well from Germany until 2007, when a US subsidiary had to be established because the customer needed an American contract partner. However, after the project ended in 2011, this company was closed again. The US business was further expanded from Germany.
But in 2021, so many customers from the public sector wanted to become clients, that SerNet Incorporated was finally re-established.
Use what you already pay for: IHK & AHK
Most German companies are members of their Chamber of Industry and Commerce (IHK). This also gives you access to the network of chambers abroad, the AHKs – in the US the German American Chamber of Commerce: GACC. When we first founded SerNet Inc in 2007, we did so with the support of friends who had already founded the company in the USA. However, we also made some mistakes that made it seem expedient to close the offshoot again in 2011.
When we re-established SerNet Inc in 2021, using GACC’s network made the founding so much easier – especially because of GACC’s virtual office.
Quite tricky: Contracts with major US companies
For German companies, concluding contracts with US firms involves a number of special requirements.
Base Agreement: Framework agreements are usually very long and cannot be signed by German companies without legal issues (keyword: drug testing for employees). Therefore, a balanced consideration of all relevant factors is in order to evaluate legal and economic risks as well as benefits. Here, our experience comes into play.
Statement of Work: A contract is legally sound in the “SOW,” in which you not only specify the order components with the customer’s purchasing department, but may also exclude problematic aspects of the base agreement (for example, you do not have any US employees in the project and do not have to carry out drug tests). This naturally requires a considerable degree of care.
Purchase Order: The PO at the end then represents the actual order to be invoiced, where some