Modern companies require specialized, professional employees with a high degree of responsibility and special expertise in specific areas. Since most people today live in a very rapidly changing environment, access to continuous professional development that deepens employees' knowledge is required. Therefore, when it comes to finding the right people for the right job, it is crucial to go through every single stage of the hiring process, such as: B. the planning, recruitment and selection of employees.
The recruitment phase consists of the implementation of certain methods and strategies that a company uses to find applicants for employment. This means searching for potential employees using internal and external sources, reviewing and shortlisting the applications received based on the suitability and suitability of the candidates, and having potential employees evaluated by professional recruiters.
The methods and strategies to be used must be valid and appropriate to ensure an effective recruitment process. Consequently, certain resources are required to perform this process. The most important thing is to delegate the task to competent HR and recruiting professionals who can assess whether a candidate has the right skills and qualifications to be successful in the position. They also need to know where to look for the right candidates for open positions and how to attract both suitable and unsuitable candidates.
This means recruiters should be able to understand the market and therefore know what a suitable candidate looks like. For this reason, the best choice for an international company is to hire local professionals who are familiar with the market and can easily identify the right candidates for the positions on offer.
Local recruitment companies typically have background knowledge of the range of local staff available. As separate business entities, third-party companies relieve the client company's managers, directors and other employees of additional work that is at the expense of their regular roles and day-to-day responsibilities. Since the best results are achieved when one is fully focused on one thing, a professional third-party firm is more likely to be more successful in attracting the best talent than the firm's senior executives.
With outsourcing now becoming an option in a wider range of hiring strategies, some companies are using it to buy time and ensure a more responsive approach to customer needs. Local external service providers can be of great help to internal employees, mainly because of the time savings in managing and implementing the recruitment process.
Local recruitment companies can offer more engaging and convenient recruitment processes by staying in touch with candidates, understanding the position sought and expediting hiring processes. Due to the existing background knowledge, it is not necessary to specifically educate or train the employees in order to prepare them for such a responsible task with long-term consequences for the company. Local recruiters are also likely to avoid common pitfalls of the hiring process.
Local recruiters can easily find a common language with potential candidates in the local job market, find an easy way to contact and engage with them, and help the company connect with and engage with them Stay in touch by keeping them updated throughout the hiring process. This makes the recruitment process more effective, methodical and organized, i. H. smoother and more personalized in terms of the approaches used, leading to the selection of the employees who will make the best of their jobs in the future.
Austria is a sophisticated and prosperous business centre, which serves as a trading bridge between Eastern Europe and Balkans. Austria welcomes foreign investors and rather than combating offshore countries, Austria makes tax treaties with them. In addition, tax-minimizing structures are developed for all types of companies, which allow the effective tax rate to be only 3-5%. These are only few of numerous benefits of company formation in Austria.
Business structure in Austria Choosing the right business structure may have critical consequences therefore it is highly important to explore all the available options before making this decision. Below are four most popular types of companies available for formation in Austria:
Joint stock company (Aktiengesellschaft) is designed for large businesses and its minimum share capital is 70,000 EUR. The capital is divided into shares and can be offered to the public. One shareholder is needed to start joint stock company and his or her liability is limited by the contribution to the capital. Limited liability company GmbH (Gesellschaft mit beschränkter Haftung) is the most popular type of company in Austria. The minimum share capital is 35,000 EUR from which 17,500 EUR or more must be deposited at the moment of registration and each shareholder must contribute with at least 7,000 EUR to the starting capital of the company. Shares of this type of company cannot be traded to the public. General partnership is formed by two or more corporate bodies or individuals with the same economic objective. Important to note, that all individuals participating in formation of general partnership have full liability for the company's debts as well as have equal rights in managing the partnership. No minimum capital contribution is set for general partnerships. Limited liability partnership can be formed if there is at least one partner with full liability on company's debts and can make major business decisions and at least one partner with his or her liabilities limited by the contributed capital and has no decision power. Procedure of company formation in Austria The number one action for all new entities is to receive a confirmation from the Economic Chamber saying that the company is indeed a new enterprise. Then a document called Articles of association is drafted by a lawyer before a notary and a starting capital is deposited in a bank account and a confirmation deed of the funds is received.
After the above things are done, the company formation process can be started at the local court. For this process shareholders need to deposit following documents:
Application of registration; Notarized declaration of establishment; Articles of association; Confirmation deed that the starting capital is deposited in the bank; Specimen signatures of the board of directors. After around seven days, when the business entity is registered at the local court and the information is published at the local newspaper, the company can be registered with the local Tax Office. There you will need to fill an application and declare the Articles of association, certificate of company registration at the local court and specimen signatures of the company representatives. In exchange, Tax Office issues a VAT number and tax identification number.
The last steps include registration in the Trade Register, registration with the municipality and finally – registration of company's employees with the social security authority.
The average time needed to set up a company in Austria is 21 days, from which the most time – 12 days – is spent waiting for a tax identification number (the official deadline to obtain the tax identification number is 1 month).
A cryptocurrency is a digital asset designed as a medium of exchange. It uses cryptography to secure transactions and control the creation of additional currency units. Cryptocurrencies are digital currencies, a subset of alternative currencies. The most popular cryptocurrency is Bitcoin, and since its invention, the various new cryptocurrencies that have been created are often referred to as altcoins, short for Bitcoin alternative.
Bitcoin was designed to be a peer-to-peer system for online payments without the need for a trusted central authority. Since its invention in 2008, Bitcoin has evolved into a currency, a technology, an investment vehicle and a user community. In fact, it is believed to be the first cryptocurrency, although as mentioned, similar systems have existed before. Because the Bitcoin system operates without a single administrator (like PayPal) or central repository, the US Treasury Department has categorized Bitcoin as a decentralized virtual currency. In fact, the first decentralized digital currency would be a more correct term than the first cryptocurrency.
Since all transactions are digital and take place directly between users and without intermediaries, it is important to ensure that users do not spend more Bitcoins than they own. Therefore, all transactions are verified by network nodes and recorded in a publicly distributed ledger called a blockchain.
While everyone has heard of Bitcoin and other cryptocurrencies, few have complete knowledge of how they work. In the remainder of this article, we will introduce you to the main advantages and disadvantages that you should consider before taking advantage of the possibilities of Bitcoin.
Advantages and disadvantages of using bitcoin Due to bitcoin's relatively novel nature, its price can increase or decrease unpredictably over a short period of time, and it can sometimes be more illiquid than other types of currency. This means that keeping your savings in bitcoins is a risky decision and not recommended. Bitcoin is seen as a high-risk asset, and it is not advisable to store money in bitcoins that you cannot afford to lose. On the other hand, due to its high volatility, those willing to take a risk may see considerable returns over a short period of time. Lack of awareness and understanding of bitcoin means it is relatively rarely used among businesses as a billing method. Once more and more businesses and private individuals start using bitcoin, its volatility and its liquidity risk should settle down.
Another thing to consider before acquiring bitcoins is the security of your digital wallet. Like your real wallet, your bitcoin wallet needs to be safe. Indeed, since bitcoin makes it possible to quickly and easily transfer funds anywhere in the world, the security concerns it poses are even greater. Remember, it is your responsibility to adopt good security practices. Overall, bitcoin is considered to be a safe and transparent system due to its cryptographic security. As a bonus, bitcoin users can enjoy considerably smaller transaction fees than those charged by credit cards or PayPal.
Money laundering is a money legalization process, when a person takes actions that conceal the source of funds in order to make their nature lawful. Anti-money laundering (AML) involves a set of measures aimed to prevent usage of the financial system or banks for money laundering or terrorist financing. AML measures and instruments are globally standardized and implemented by international and national institutions, banking and business companies. Each bank and other financial institutions, as well as other business entities, must execute the laws and regulations on AML. In order to obtain bank license, the bank must approve compliance with AML requirements and present AML policy. AML policy can be upgraded in case of necessity or in response to recent trends in AML field and recent practice.
AML policy core principles Although the AML policy may differ from bank to bank, the major principles are common customer due diligence procedures (CDD) based on know your client principle. Due diligence procedure is based on client provided information in the questionnaire. Such questionnaire must be frequently updated.. If the person transfers funds significantly exceeding the indicated cash flow - the bank may ask additional questions in order to verify the purpose of such transfer. If the company changes the business profile, it must notify the bank. In addition, if the company starts co-operation with a new company, it must notify the bank in order to provide smooth transfer process. Usually banks or other large financial institutions incorporate a specific department that challenges AML. Such department are called Legal Compliance Department.
AML and customer due diligence definitely affect client's privacy. However, the purpose of investigation is solely based on protection of public interests and prevention of financial crimes and support of terrorism. Consequently, lack of investigation would greatly threaten the internal market of the Europe Union.
Goals of AML policy AML policy was introduced with the ultimate goal to establish a general framework to fight against money laundering, terrorism, corruption and other financial crimes. The other goal is to protect community from money legalization and to ensure that the organization complies with relevant laws and regulations.
By introducing AML policy, it is planned to provide transparent and trackable cash flow that must be maintained in order to prevent terrorist financing and to control its usage by suspected terrorists and criminal groups and their own financial resources. The full transparency and traceability of transfers of funds is an important and valuable mechanism in the prevention process, identification and investigation of money laundering and terrorist financing. If the bank detects a suspicious transaction,it may freeze the funds until the client provides an explanatory reasoning.
Given that within the European Union there are no withholding taxes on IP royalties between member states, we can suggest a number of countries where royalties are particularly advantageous.
CYPRUS The intellectual property royalties tax regime in Cyprus has changed as a result of the recommendations of the Organization for Economic Co-operation and Development (OECD) Action Report 5 and the Ecofin Council conclusions published on 8 December 2015. Legislation has been changed to limit the companies that can benefit from research and development (R&D) exemptions, but the tax rate in Cyprus is still one of the most favorable in the EU for foreign companies using Cyprus intellectual property want to license -resident companies (intermediaries), where this right is then sub-licensed to the end user. Overall, the effective tax on IP royalty income should be less than 2.5%.
IRELAND In 2015 Ireland introduced an effective corporation tax rate of 6.25% on intellectual property income based on an allowance for research and development costs borne by the company. By linking the two components in this way, Irish law encourages companies to conduct R&D directly within the EU - leading to the creation of intellectual property - while discouraging them from acquiring licenses without directly committing to R&D.
BELGIUM Belgium has introduced a tax system that favors those with income from acquired copyrights. This tax regime can have many different applications and can be used to protect artworks as well as a useful tax break for IT developers. Income from IP rights royalties is taxed at 15%. This income is not taken into account when calculating social security contributions. In addition, these taxes are reduced by 50% for imports due to the application of standard import costs. The first €15,000 that a copyright owner earns in a year is therefore taxed at 7.5%, and the next €15,000 at 11.25%. This tax system applies to people with a total annual income of up to 56,450 euros.
LUXEMBOURG In general, corporate tax in Luxembourg is 29.22%, but for IP licensing income it can be as low as 5.8%. This is due to an 80% corporate income tax exemption. Interestingly, this exemption also applies to companies that have registered a patent for use in connection with their own business, which then calculate a notional net income as if they had received the licensing income.
ITALY Italy is a larger market compared to the other countries discussed and can be a very attractive place for a company to invest in R&D since 2015 companies have been able to deduct intellectual property income from their taxable income base. The tax deduction was set at 30% in 2015, 40% in 2016 and 50% from 2017. Businesses will therefore enjoy a significant tax rebate by reducing their taxable income.
THE NETHERLANDS Since 2010, IP income has been taxed at only 5% in the Netherlands. Except for patents, there is no income limit. Patent holders can actually have access to this tax regime if their share of the expected revenue is between 30% and 70%, taking into account the total combined revenue from patents and other sources. These rates also apply to foreign companies owning intangible assets or companies that have received research and development accreditation from the Dutch Ministry of Economic Affairs if they are owners of software IP or trade secrets. The only other caveat to this favorable tax regime is that it doesn't apply to marketing and branding-related assets.
As more jurisdictions open up to foreign trade, companies can gain access to a large pool of resources abroad. They can establish relationships with foreign partners and relocate their production to foreign locations or simply export their products to new markets. IT and software development companies are also trying to capitalize on moving production to foreign jurisdictions.
In general, the main advantages to offshore software development is lower cost compared to home country. For example, the cost of developing the exact same software in India is 50% lower than in the US. The savings generally come from lower labor costs, but offshoring IT and software production offshore can also expand the company's access to a broader pool of workers with higher skills and expertise. This could explain why 50% of America's Fortune 500 companies use offshore IT and software development. Let's look at some of the jurisdictions where opening a software development company might be more beneficial compared to others and discuss the reasons why.
India India has long been one of the preferred software development outsourcing destinations for leading multinational companies around the world. This means that one of the biggest advantages of choosing India for your IT and software development business would be multinational demand for outsourced software development services. Meanwhile, the company would benefit from relatively lower labor costs, a broad pool of skilled workers, and a business-friendly environment with the government encouraging start-ups and small businesses. Furthermore, the IT industry is expected to grow in the early to mid teens in the coming years due to favorable political and economic initiatives by the Indian government.
United Kingdom London was recently described as the city with the most opportunities for business and took first place in terms of technology readiness. While low labor costs are not among the benefits of starting a software development business in London, there are several other benefits that could offset relatively higher wages. Numerous hubs and incubators offer young start-ups and small companies an environment with all the necessary functions and support for less than 300 euros a month. The government is also committed to supporting the software development and technology sectors with organizations such as Tech City UK and Innovate UK with the aim of accelerating the growth of IT companies. Various tax benefits are now available to IT and software development companies in London. Other benefits to consider include a skilled workforce and high-speed Internet access.
Poland Eastern Europe is becoming more and more attractive for IT and software development companies, with Poland ranking as the number one Eastern European country. While Poland may not offer as low labor costs as India, it can offer other advantages such as proximity to Western Europe and the ability to find common working hours with the rest of the world. Poland also shares a cultural affinity with the western world as well as other eastern countries. It is also believed to offer better product quality and business environment compared to lower cost targets for software development companies.
Each continent has additional jurisdictions to consider for registering an IT company - each with their own benefits and characteristics:
America: Brazil, Argentina and Chile; Asia/Pacific: China; Europe: Romania, Belarus and Ukraine. The above countries have large enough populations to have a broad labor pool and good education systems to produce skilled software developers. The business risks in these countries are manageable and the costs are reasonable compared to the USA, Canada and Western Europe.
It is important to remember that while a particular jurisdiction may be considered the best place to start an IT business for one entrepreneur, it may not be suitable for another. Consider the necessities your business is most interested in. This can be language, geographic location, regulation of specific activities, skilled labor, or cost.