Introduction

VisionNav Robotics, a leading manufacturer of driverless industrial vehicles based in Shenzhen, China, has recently raised 500 million RMB (~$76 million USD) in a Series C funding round at a valuation of 5 billion RMB (~$800 million USD). VisionNav’s product line includes heavy-duty autonomous forklifts, reach trucks, pallet trucks and tow tractors. As part of its global marketing strategy, VisionNav is now seeking distribution partners across Europe to bring its autonomous forklifts to the European market.

However, expanding to Europe presents challenges in terms of navigating the complex labor laws, tax regulations, and compliance requirements in each country. To overcome these hurdles, VisionNav has partnered with PayInOne – a one-stop global employment and payroll management platform that helps companies compliantly hire and pay employees in over 180 countries.

The Challenge of European Expansion

Europe is an attractive market for VisionNav’s autonomous forklifts, with its large manufacturing and logistics industries. But the strict labor laws, complex tax systems, and varying regulations across European countries pose significant barriers for foreign companies looking to establish operations and hire local talent.

For example, France ranks as the 2nd most complex jurisdiction for business in TMF Group’s Global Business Complexity Index, largely due to the complexity of its accounting and tax processes as well as employee-centric HR regulations. All accounting must be done in the local language, which is very challenging for non-French speaking companies. France’s government is pushing digitalization and plans to conduct all tax audits digitally in the near future. While some English guidance is provided for foreign investors, the accounting rules change frequently with new finance acts passed each year.

As an “employee-centric” jurisdiction, France also has very complex HR and payroll regulations. Over 75% of cases brought to French labor courts (conseil de prud’hommes) are ruled in favor of the employee. Calculating payroll involves many parameters that vary by jurisdiction, with legal and HR information updates being the most commonly considered factor in 71% of jurisdictions globally.

Poland is another complex jurisdiction that saw many regulations passed and implemented by the government in a short time with little guidance provided to the public. A major change was the introduction of the “Polish Deal” which completely changed Poland’s tax system. It revised tax laws related to businesses, entrepreneurs and employees and changed how salaries are calculated. Companies struggled with payroll calculations due to lack of guidance from authorities.

Before the Russian invasion of Ukraine, Poland saw hesitation in foreign business activity, with some investments put on hold as the Polish government and judiciary questioned several principles in EU regulations. While Poland welcomes and needs foreign investment, the government prioritizes domestic investment.

These examples illustrate the complex web of legal, tax, HR and cultural factors that companies like VisionNav must navigate to successfully expand into European markets. Partnering with a global employment provider like PayInOne can greatly simplify this process.

How PayInOne Provides Solutions

PayInOne is a global employment and payroll management platform that helps companies compliantly hire and pay employees in over 180 countries, supporting 120+ currencies. Through its network of locally incorporated entities, PayInOne can act as the legal Employer of Record (EOR) for its clients’ employees, handling all aspects of local compliance, contracts, onboarding, payroll, benefits, and HR administration.

This EOR model allows companies like VisionNav to quickly deploy staff in new markets without setting up their own local entities – a costly and time-consuming process. Employees are hired onto PayInOne’s local payroll, while still working for and being managed by VisionNav.

PayInOne’s SaaS platform provides a simple and efficient way for companies to manage their global workforce. It can replace the need for large in-house HR teams, saving on personnel and administrative costs. The system automates payroll calculations and disbursements, accurately withholding statutory taxes and benefits. Salaries are precisely paid to employees through the platform.

Crucially, PayInOne ensures full compliance with local labor laws, tax regulations and statutory requirements in each country. Its teams stay up-to-date on frequently changing rules so clients don’t have to. PayInOne also provides stable and compliant payroll funding channels, partnering with top global banks to eliminate risks of account freezes or lost funds for clients.

Pricing is transparent, with fixed fee quotes and no hidden or extra charges. PayInOne protects clients’ IP and data privacy, with systems that comply with GDPR and ensure legal compliance throughout the global expansion process.

In addition to its core EOR service, PayInOne offers a range of complementary HR services to facilitate global expansion:

• Assistance with employee visa and work permit processing in 180+ countries
• Providing local employment contracts and handbooks in line with local laws
• Competitive benefits packages and insurance policies
• Expense management and reimbursements
• Performance management and disciplinary procedures
• Guidance on local HR best practices and cultural norms
• Employee onboarding and offboarding
• Ongoing HR support for employee relations issues

Current Situation and Benefits

By partnering with PayInOne, VisionNav has been able to solve the problems it encountered with previous service providers when trying to expand to Europe. VisionNav had already tried two other providers before finding PayInOne, but was unsatisfied with their response times and service quality.

With PayInOne, VisionNav has gained a reliable partner with the local expertise, robust platform, and high-quality service it needs to successfully navigate Europe’s strict labor laws and complex tax systems. PayInOne provides the flexible HR solutions to meet VisionNav’s various hiring needs, from full-time to part-time and contractor roles, enabling rapid adjustment to different situations.

VisionNav can now confidently establish distribution and service networks for its autonomous forklifts across Europe, without the cost, time and risk of setting up its own local entities. As VisionNav’s business scales across the continent, PayInOne’s platform will enable efficient management of its growing European workforce through a single, centralized system.

With the employment and payroll aspects streamlined through PayInOne, VisionNav can focus its full attention on its core business – delivering its innovative robotic forklifts to customers to power the future of intralogistics.

Conclusion

VisionNav’s partnership with PayInOne illustrates how using an experienced global employment provider can help ambitious companies break into complex new markets. By relying on PayInOne’s local knowledge, robust platform and extensive service offerings, VisionNav has been able to solve its previous challenges and establish a solid foundation for European expansion.

As more Chinese companies look to “go global” and deepen their integration with international markets, partnering with platforms like PayInOne will become an increasingly attractive option. Navigating foreign labor laws, tax systems and cultural norms is a daunting task, but with the right partner, the door to successful global expansion is open.