We selected 3 countries for expansion – legal analysis
Choosing a sales market is often a decision based on intuition, but at Development Consulate, we rely on hard data. We analyzed 47 of our recent expansion projects to see where a Polish manufacturer will encounter the fewest bureaucratic hurdles.
Germany: reliability requires documentation
The German market remains the main goal for 64% of our clients. Legal requirements there are transparent but extremely rigorous. Unlike the Polish approach, every distribution agreement here must have precise clauses regarding product liability. In 2023, we helped a furniture company avoid a fine of 4,200 EUR just by improving provisions in their delivery terms.
If you produce goods, you must prepare for compliance certificate verification. German authorities do not accept verbal translations or verbal declarations. The wait time for full VAT tax registration can take from 3 to 5 weeks. Let's get down to business: without third-party liability insurance for at least 500,000 EUR, entering retail chains is almost impossible.
German authorities do not accept verbal declarations. Every entry in the contract must be supported by a document.
Czech Republic: geographical and cultural proximity
For many companies, the Czech Republic is the first test step outside the country. We tell it like it is: business mentality is similar to the Polish one, which significantly shortens the negotiation process. However, commercial company law differs regarding capital requirements. Last year, we carried out 12 implementation projects there and noticed that registration in the Czech commercial register takes an average of 14 days less than in other neighboring countries.
We secure your next step by suggesting cooperation with a local accounting office as early as the planning stage. Czech labor law is favorable to employers regarding notice periods, but the tax system requires frequent quarterly reports. Without unnecessary bureaucracy, we can prepare the documentation necessary to open a branch in Prague within 7 business days.
Lithuania: modern approach to e-services
Lithuania stands out in the region due to the pace of office digitalization. In our analyses for 9 e-commerce clients, Lithuania proved to be the market with the lowest barriers to entry for companies from Poland. The tax system is more transparent, and contact with tax authorities often takes place exclusively electronically. The cost of starting a company can even be 20% lower than in Poland.
However, one must remember the specifics of the local consumer market. Lithuanian customers value fast delivery and local customer service in the Lithuanian language. If you are thinking about expansion in this direction, prepare a logistics strategy that handles returns within 14 days. We help construct regulations that protect your margin while maintaining full compliance with Lithuanian consumer protection law.
Lithuania offers the lowest barriers to entry for Polish companies thanks to administrative digitalization.
How to make the final decision?
Legal analysis is only half the success. The next step is checking your company's operational capability to handle foreign orders. Is your team ready for contact in another language? Do you have a verified logistics company that will deliver goods according to international standards? We check these aspects during a preliminary audit.
You don't have to decide alone. We propose a short consultation where we will compare 3 expansion options based on your product's specifics. Sign up for a 20-minute conversation to learn about real costs and risks. We tell it like it is – expansion is not always the only way to develop your company at a given moment of the year.
