New study shows Once-Only Technical System (OOTS) could save time and money
A recent study by the European Commission has found that the Once-Only Technical System (OOTS) could save freelancers significant time and money when expanding their business activities to another EU country.
The OOTS is a new online system that allows businesses to securely share evidence between competent authorities across EU borders. This means that freelancers will no longer have to spend time and money gathering and translating documents from different sources.
The study examined the experiences of 43 small and medium-sized enterprises (SMEs) and self-employed workers in 18 EU countries. It compared the current procedure of expanding abroad without OOTS to a future scenario where this tool is fully operational.
The findings showed that the OOTS could reduce the total cost of expanding abroad by up to half. This is because freelancers will no longer have to pay for translation costs, notary fees, and travel expenses.
Average costs to expand your business abroad
Expanding a business abroad presents a significant financial hurdle for SMEs and the self-employed. The process, encompassing planning and research, preparation, procedural tasks, and follow-up, results in a high Total Cost of Journey (TCJ).
On average, SMEs spend nearly €10,000 (€9,989) when navigating international expansion, with the bulk of the costs incurred during the preparation (€4,276) and procedural (€3,218) phases. This contrasts with self-employed individuals who face a lower overall TCJ of €2,576, with preparation (€1,817) being the costliest stage. These figures highlight the financial burden associated with cross-border business ventures, particularly for SMEs.
The average small to medium enterprise (SME) and self-employed individual can expect to spend between €50 and €80 on document requests. However, the biggest expense lies in external advisors, who command fees ranging from €1,000 to €4,000. Direct costs, including notary authentication of translations (€580 – €1,400) and the translations themselves (€500 – €1,500), contribute significantly to the overall expenditure. Indirect costs, such as printing and postage (€110 – €240) and travel and accommodation (€500 – €1,000), should also be factored into the budget.
Reduce the time to expand in the EU by half
In addition to saving money, the system could also save freelancers a significant amount of time. The study found that the OOTS could reduce the total time it takes to expand abroad by up to half. This is because freelancers will no longer have to spend time gathering and submitting documents.
The OOTS is still under development, but it is expected to be fully operational by the end of 2024. Once it is operational, it will be a valuable tool for freelancers who are looking to expand their business activities to other EU countries.
How the OOTS works:
- Freelancers will be able to access the OOTS through the Your Europe portal.
- They will then be able to select the country they want to expand to and the type of business activity they want to carry out
- The OOTS will then provide them with a list of the required evidence.
- Freelancers will be able to submit their evidence electronically
- The OOTS will then securely share the evidence with the competent authorities in the other EU country
What freelancers can do to prepare for the OOTS:
- Make sure they have all of their business documents in digital format
- Create an account on the Your Europe portal
- Keep up to date on the latest developments with the OOT.
The OOTS is a promising new tool that could make it much easier for freelancers to expand their freelance business activities to other EU countries. Freelancers should keep an eye on the development of the OOTS and make sure they are prepared to use it once it is operational.
You can visit the Your Europe portal to learn more about the OOTS.
Share this article with other freelancers who may be interested in expanding their business activities to other EU countries.