Performance:
After the appropriated tax and legal studies, even with the possibility to appeal to the Norwegian Tax Department and to avoid the permanent establishment, we planned to directly open a branch company in Norway. With the company name and the adjective “Scandinavia” the new local branch attained a great commercial image which supposed a considerable and permanent sales increase in all the Scandinavian countries.
The legal establishment of a commercial branch in the destination country, with minimum costs, supposed some outstanding commercial effects that the parent company would have never achieved without the branch.
On the other hand, the branch opening was done jointly with the implementation of a financial management control that allows coordinating all the information flow between the destination country and the origin one and establishing a financial reporting system that gives useful information for making decisions.

Performance:
We decided to open a subsidiary company in Belgium, using the name and the brand of the company with the adjective “Belgium”. The agent turned into the subsidiary Managing Director and with a bigger commitment and motivation the sales rate increased considerably at the same time as the company image made a big qualitative leap, not only in the countries where it operated, but all along Europe because the expansion trough subsidiary companies always involves a commercial image improvement for the whole company.
The subsidiary opening was done with a very low cost and at the same time, a financial management control was put in place between the branch and the parent company, allowing a total control over the subsidiary company operations, the local legal obligations fulfilment and obtaining a very useful information for the decision making.

Performance:
After the pertinent analysis of the activity done in Germany we concluded that it was possible to defend that this activity did not mean the fiscal concept of “permanent establishment”; concept that bounds to tribute in the local country for the profit generated for this activity. As taxation for profits was higher in Germany than in Spain, and as the Spanish company was not interested in establish any legal entity in Germany, we decided that the most advisable thing to do was to carry out the necessary steps for hiring someone as a Spanish company employee, even being German resident.
We consulted directly the German Tax Department to be sure that the activity was not constitutive of permanent establishment, registered the employee in the German Social Security and hired a local service firm to calculate and prepare his payrolls.

Performance:
After a detailed legal and fiscal study, we opened the subsidiary company and we implemented an intercompany contract in a way that the action of the subsidiary company was remunerated by corporate, but at the same time it was stated and explained that the power to make contracts with customers was only for the Spanish parent company. Whit this, while the Indian staff helps with the sales action, it is the parent company who invoices and receives directly the collection in the origin country, and with the contract implemented it is prevented a total imputation of the invoicing amount done from Spain in the tax base of the profit tax return of the subsidiary in India.
The commercial subsidiary company opening in India was done with a minimal cost, and at the same time it was implemented a financial management control between the parent and the subsidiary companies that allows a complete control over the subsidiary company operations, the tax and legal obligations fulfilment and to obtain a very useful information for the decision making.

Performance:
To get that we carried out the following actions:
- We developed an appropriate business plan with a complete financial plan including the investment to be done, the need for financing it, the future annual projections for the profit and loss account, for the balance sheet and for the cash flow needs, as well as an assessment of the project in expected profitability terms.
This document was not only essential for the company as a road map to follow; but it was also really important for all those stack holders that would be indirectly involved in the project. Especially for the financial service companies that would fund the company.
- We proceeded with the tax and juridical study about the implication of opening a production subsidiary in China, and then we carried out all the legal obligations in order to obtain all the pertinent licenses and registrations and finally to open legally the subsidiary in China.
- We started several conversations, negotiations and information exchanges with different financial entities and finally closed a financing agreement in order to fund part of the investment in fixed assets. The rest of the investment would be done with the own company capital.
In parallel, we negotiated and made an agreement with a Chinese bank for funding working capital during the first years of starting-up the factory.
- We recruited locally the subsidiary’s financial manager.
- Together with the financial manager we implemented the subsidiary’s accountancy, with the goal of, in one hand, fulfilling the legal and accounting Chinese obligations, which needed a specific chart of accounts and some determined Chinese accounting principles, and in the other hand we mapped and prepared the chart of accounts and the reporting needed for the parent company in Spain.
- We designed and implemented the necessary costs model to obtain an analytic accountancy and the unitary cost of the products produced by the subsidiary, and at the same time we designed the necessary configuration of the financial ERP in order to get the appropriate information from every cost centre, work centre, department and product.
- We implemented an appropriate budget control system with special attention to the control of the investment done.
Finally, the Chinese subsidiary began to produce with a good financial control over all its activity.

Performance:
We designed a financial management control system to control the activity of every subsidiary and, at the same time, have a company international business global vision. In order to do so, we designed and implemented a reporting system that allows to obtain the basic financial data of every subsidiary in an homogenous format, made up by the balance sheet, the profit and loss account and the cash flow situation. This homogenization makes possible to compare information between subsidiaries and parent company, as well as obtaining consolidated data.
We also designed and implemented those reports which could give key information from every subsidiary, even commercial or productive, and we fixed a reporting deadline agenda.
Finally, we designed and implemented the reporting for the annual budget, its follow up system and deviations analysis.