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FAQ
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What are the essential requirements for selling products or services in Europe ?To sell any products or services in Europe , you must meet certain legal and business criteria. Firstly, you need to have a locally registered company in one of the European countries where you intend to sell. This ensures that your business is recognized and compliant with local regulations. Secondly, you must obtain a VAT (Value Added Tax) number, which is crucial for tax purposes and legal trading within the European Union. Without a VAT number, you cannot legally sell to customers in Europe. Lastly, you need a business bank account to handle transactions, payments, and financial operations. This account will facilitate smoother, more secure transactions and help build trust with your European customers.
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How to employ professionals in Europe and Emerging Markets?- Through Your Own Company, by employing professionals directly, you gain full control and integration within your existing company structure. This option involves setting up a legal entity in the European country of interest and adhering to local employment laws and tax regulations. - Hiring a Contractor/Freelancer . You can opt to hire independent contractors or freelancers who must be registered with local tax authorities and possess a VAT number. This is a flexible option suitable for short-term projects or when you require specialized skills without the commitment of a full-time employee. - Temporarily Through an Employment Agency. If you need to quickly scale up your sales team or cover for temporary absences, partnering with an employment agency can be beneficial. These agencies handle the recruitment, payroll, and compliance, allowing you to focus on managing and integrating these temporary hires into your sales operations. - Outsourcing to BPO Vendors. Business Process Outsourcing (BPO) vendors can provide a comprehensive solution by managing entire sales functions or specific processes. This option allows you to leverage their expertise and infrastructure, reducing the burden of local employment compliance and operational overhead.
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What options do I have for expanding my sales operations in Europe without creating my own company?There are a few ways, but we focus on 3 effective pathways to help you expand your sales operations in Europe. - First, you can enter into a commission agreement with a local European reseller. This allows you to leverage the reseller's established networks and market knowledge to promote and sell your products or services effectively. - Alternatively, you can outsource your entire sales department to a local agency. This option enables you to benefit from the expertise and on-the-ground presence of a dedicated sales team without the overhead costs of establishing your own. Both approaches are designed to streamline your entry into the European market and maximise your sales potential. - Third approach would be leasing an entity through an entity leasing agency. This approach allows you to quickly and efficiently enter the market without the need to navigate the complex and time-consuming process of establishing a new business entity. By leasing an existing entity, you can focus on assessing your sales performance and understanding market dynamics with minimal upfront investment and risk. Once you're confident in your market traction and sales results, you have the flexibility to convert this leased entity into your own permanent entity by transferring of ownership from the entity leasing vendor to youThis strategy enables you to make informed business decisions, backed by tested market data, before committing to a full-scale entity setup.
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How does the process of hiring a BPO team through BPO model work?The process of hiring a back office or an IT team through BPO model is straightforward and efficient. Despite the nature of the team, whether it's for sales or IT, the fundamentals remain consistent. Here’s a detailed breakdown: - Identify the Need. First, you must clearly identify their specific business needs. This means understanding the role and the scope of the sales team to be hired, such as their responsibilities, expected outcomes, and targets. - Define the Skills. Once the need is identified, the next step is to define the essential skills and qualifications required for the sales team. This includes competencies like communication skills, back office or IT experience, product knowledge, and any other specific requirements relevant to the client's industry and products. - Select a BPO Vendor. After defining the needs and skills, the client will choose a BPO vendor – in this case, Sommet Global and our solutions . We are specialised in tailoring recruitment and employment solutions to fit the client's specific criteria in both EU and Emerging Markets. - Recruit and Employ. BPO vendor then undertakes the recruitment process, utilising their extensive network and expertise to identify suitable candidates. The employment process is managed by vendor, ensuring that the new team members meet the defined criteria and are ready to contribute to the client's sales objectives. By following these steps, Sommet Global ensures that clients get a well-rounded and competent sales team that aligns with their strategic goals. This streamlined approach not only saves time but also ensures quality and compliance in the hiring process.
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What is EOR and how does it work ?An Employer of Record (EOR) solution is a service that allows companies to employ workers in a foreign country or different state through a local employment agency. Using an EOR solution enables clients to hire and manage employees seamlessly without the need to establish a local entity. An EOR vendor will handle all the administrative, legal, and HR responsibilities associated with employing personnel in the target location. This includes payroll, tax compliance, and ensuring adherence to local labor laws. All employment costs, including wages, taxes, and any potential future liabilities, are re-billed to you, the client. It's important to note that in the event of employment termination or disputes, the client is responsible for all associated payments and liabilities. Be aware that in many countries, EOR services are either restricted or require a temporary/employment agency license. You should always check the legality of using EOR services on a country-by-country basis to ensure compliance with local regulations.
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What is BPO (Business Process Outsourcing) ?BPO involves outsourcing certain departments, solutions, or tasks. In this case, employees managed through BPO are solely the employees of the BPO vendor and not of the end client, which eliminates the complexities associated with direct employment. One of the unique advantages of utilizing BPO solutions is the fixed cost structure. Local vendors provide an all-inclusive fixed invoice that covers all aspects, including future liabilities and risk management costs. This includes management of day to day activities, performance reviews & KPIs and project termination costs, ensuring that client financial planning remains predictable and transparent.
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What is the difference between the EOR and BPO models in talent acquisition ?The difference between the EOR (Employer of Record) and BPO (Business Process Outsourcing) models in talent acquisition lies primarily in the recruitment and employment processes. In the EOR model, talent is usually headhunted and recruited by the end client. Once the talent is selected, they are employed by the EOR agency, which manages administrative tasks such as payroll, taxes, and compliance while the end client oversees their day-to-day responsibilities. In contrast, through the BPO model, all talent is headhunted, recruited, and thoroughly tested by our internal recruiting department. Our recruiting team is spread across multiple countries, ensuring a diverse and highly skilled talent pool. This model allows us to manage the entire recruitment process, from initial contact to testing, ensuring that the hired talent meets specific project requirements and our quality standards. Both models offer distinct advantages and can be selected based on the client's specific needs in their sales operations.
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How do you manage teams and KPIs ?We blend traditional management techniques with state-of-the-art technology to ensure optimal team performance in our sales environment. We believe in the effectiveness of classic methods such as on-site working, daily timesheet submissions, and weekly goal reporting. Our team members are encouraged to work from our office locations, which fosters collaboration and enhances communication. To streamline these processes, we utilize our proprietary in-house technology. This allows us to effortlessly track attendance, measure team performance, and monitor key performance indicators (KPIs). Our integrated system ensures that all data is accurately recorded and easily accessible, enabling managers to make informed decisions and provide timely feedback. By combining tried-and-tested management practices with innovative technology, we create a structured yet dynamic work environment that drives sales success.
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Employee Retention (EOR v BPO)We understand the importance of effective employee retention, which varies depending on the employment model used. When operating under the Employer of Record (EOR) model, the end client is primarily responsible for managing the retention of EOR employees. This includes developing and enforcing policies, organizing activities, and offering perks to create a conducive work environment. The EOR vendor, in turn, implements these strategies as directed by the end client, ensuring compliance and consistency. In contrast, under the Business Process Outsourcing (BPO) model, the responsibility for employee retention shifts to the BPO vendor. This means we take an active role in creating retention strategies, staying close to the employees, understanding their needs, and creating a supportive workplace culture. We focus on direct engagement with employees to foster a sense of belonging and commitment, leveraging personalized activities and benefits to enhance job satisfaction. Understanding these distinctions allows us to tailor our approach effectively, ensuring that whether the client requires an EOR vendor or a BPO provider, employee retention is always managed optimally to support both our workforce and clients' business goals.
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