Not so long ago, opening one’s own business in a particular part of the EU was a privilege for a select few, today, it is a reality available to a wide range of entrepreneurs. It is enough to choose a European jurisdiction carefully and responsibly in order to accomplish any task.
For example, entering the market with a startup, relocating a business, or scaling a company to a transnational level.
Bringing business to a transnational level in a globalized economy is gaining relevance. First of all, European jurisdictions are considered for business registration.
And there are reasons for this:
- a first-class level of intellectual property asset protection;
- reduced tax burden;
- the opportunity to be in a developed banking environment.
Optimal conditions for business development up to preferential taxation regimes, visa-free travel, and account opening are provided by citizenship by investment programs designed for wealthy people. One can get a second passport within a reasonable period of time in exchange for investing personal funds.
Factors to Consider When Starting a Business in Europe
When choosing a jurisdiction in a given region, an entrepreneur needs to take into account a large number of factors. First and foremost are taxation issues. Suppose a business person plans to remain a tax resident of his country after opening a business in Europe. In that case, it is worth taking into account the new rules regarding the reporting of controlled foreign companies, the amount of corporate tax, and the basic VAT rate.
Before considering the best countries to open a company, it is necessary first to clarify the scale of the business and the entrepreneur’s goals. These may be:
- Business immigration – implies the possibility of obtaining European citizenship in the near future. It is better to look at countries that offer programs for obtaining residence permits for investment in the economy.
- Opening an IT company, fintech startup, or other high-tech enterprise – it is advisable to focus on countries that are trusted by investors and where IT infrastructure is well developed (technology parks, accelerators, incubators, co-working centers).
- The need for a simple, transparent taxation system – one should choose places where one can optimize taxation and conduct profitable international business.
According to the information gathered by Immigrant Invest specialist Zlata Erlach, to understand the best countries to register a company, the first thing to do is to analyze the features of jurisdictions and then compare these features with the needs of a particular business.
Country 1: Germany
According to data from prestigious business rankings, it is a leader in terms of the quality of its infrastructure. Registering a company there provides access to a skilled, educated, and multinational workforce.
Stable economy, comfortable conditions for doing business, and support programs for newcomers to the market – thanks to this, it is realistic to recoup investments quickly, reach a decent level of profitability, and achieve a high quality of life.
Opening a business there guarantees the possibility of obtaining a German residence permit and then a permanent residence permit with citizenship. The entrepreneur is exempt from paying taxes for the first three years of business.
For applicants who have not yet decided what exactly to do in Germany, it is recommended to familiarize themselves with the most promising types of activity. These include fast food, buying real estate for rent, and hotel and restaurant business.
Country 2: The United Kingdom
There are a lot of ways to realize plans in England. Registering a dormant company to deploy a full-fledged full-cycle industrial production is possible. An entrepreneur may wish to earn money in one of the world’s financial centers or seek to register with an organization just to immigrate.
Why is this place included in the rating of the best countries for doing business? Because the process of registering a company there is maximally simplified, doing business is not accompanied by unforeseen expenses if everything is initially organized legally correctly and in time.
Country 3: Malta
Here are the main pros of doing business here:
- positive dynamics of economic growth;
- a well-developed banking system;
- The minimum capital needed to become a Maltese businessman is €1,250.
Foreign business people are exempt from double taxation. The share of general business tax is 5%. That is, it is possible to profitably open branches related to trade, technical development, and support.
Country 4: Sweden
Scandinavian countries to start businesses are the most attractive. This is due to the simple system of company registration, the right to invest, the acquisition and sale of a company without registration of residency status, and the simplicity and reliability of trade relations.
Country 5: France
The state actively supports small and medium-sized enterprises and creates a favorable business climate. Foreign business people receive a residence permit under an accelerated procedure for four years.
Registering a business in a specified region of the globe is an effective solution for entering new, uncharted markets and gaining access to high standards of government support, modern infrastructure and quality banking services.