• Maildrop Service
• Company Formation Agents
• Offshore Company Formation
• KYC/DD/AML

In which European countries is starting a business particularly smooth?

Starting a small or medium-sized business in Europe doesn't have to be as challenging as it often seems. While some countries have stricter regulations that can be difficult for non-EU citizens, others are open and welcoming to both local and international investors and entrepreneurs.

In response to COVID-19 and the energy crisis, Europe has intensified its efforts to support small and medium-sized enterprises (SMEs). There are numerous funding and support programs available, such as the Internal Market Program, the Connecting Europe Facility (CEF), and Horizon Europe. Additionally, there are useful knowledge platforms like the Your Europe Business Portal, the Enterprise Europe Network, and Erasmus for Young Entrepreneurs.

In 2023, around 24.4 million SMEs were based in the EU, employing approximately 85 million people. These businesses accounted for about 99.8% of all companies on the continent and are essential to smaller regions and cities.

To assess business conditions in different countries, ten key factors defined in the World Bank's Ease of Doing Business Index are considered:

1. Starting a business
2. Dealing with construction permits
3. Getting electricity
4. Registering property
5. Getting credit
6. Protecting minority investors
7. Paying taxes
8. Trading across borders
9. Enforcing contracts
10. Resolving insolvency

While not all countries excel in every category, some European nations stand out for their business-friendly conditions:

Ireland

Ireland is a popular destination for business startups in Europe due to its dynamic, digitally advanced economy. With a smartphone usage rate of 90% and internet access in 92% of households, the digital infrastructure is strong. The country invests in approximately 200 startups annually, sending a positive signal to global entrepreneurs.

According to the World Bank's "Doing Business in the European Union 2020: Ireland" study, several Irish cities perform well in various areas. Cork is particularly efficient in contract enforcement and electricity supply, while Dublin excels in business registration and contract enforcement. Waterford leads in issuing construction permits, and Galway stands out in property registration and business start-ups.

Ireland is a member of the EU, OECD, and the Eurozone, making it particularly attractive for European entrepreneurs. The absence of currency conversion and translation costs saves additional expenses. Non-EU citizens also find favorable conditions for starting a business in Ireland. With a corporate tax rate of 12.5% and numerous double taxation agreements, the country offers favorable tax conditions.

Bulgaria

Bulgaria has established itself as an attractive location for startups in Eastern Europe. The bureaucratic hurdles are low, and starting a business usually takes only a few weeks. Administrative costs are low, and the corporate tax rate is just 10%.

There are no legal restrictions on land purchases for foreign investors, and after registration, only operational costs need to be covered. EU entrepreneurs benefit from low labor costs, relatively low living expenses, and access to the European single market, as Bulgaria is an EU member.

Bulgaria's geographic location in Southeastern Europe also facilitates access to markets like Greece, Turkey, Serbia, and North Macedonia. Remote business registration is possible as well. However, corruption remains an issue that should be considered when planning the type and location of a business.

Netherlands

The Netherlands is one of the five largest economies in the EU, with a GDP of about $990.6 billion. The country boasts a cosmopolitan, well-educated workforce and offers various funding programs and tax incentives for new businesses.

Although the corporate tax rate is 25.8%, incentives like the Entrepreneur Allowance and the 30% ruling for foreign employees offer tax benefits. The government supports research and innovation by reimbursing costs related to scientific research and the development of new products.

The Netherlands is particularly attractive for technology and retail businesses, offering world-class infrastructure that facilitates access to modern technologies and markets.

Sweden

Sweden ranks second in the Network Readiness Index 2020 and is considered one of the best countries for technological innovation and digital readiness. The country is a hub for technology companies and hosts prominent firms such as Ericsson, AstraZeneca, Volvo, and Spotify.

As the largest Scandinavian economy, Sweden also boasts a thriving construction sector and stable infrastructure. Low corruption rates and a stable government further enhance the country's appeal.

United Kingdom

According to the British Business Bank, approximately 360,000 new businesses are established in the UK each year. Business formation is quick, straightforward, and cost-effective: postal applications are processed within eight to ten days, and online applications within 24 hours.

The UK offers a diverse economy and highly skilled workforce. Entrepreneurs benefit from support in the early years of business establishment and tax relief on asset sales. The country has a robust tax and legal system, with a corporate tax rate of 25%. Entrepreneurs have access to various funding options, including crowdfunding, venture capital, and government grants.Working with our experts can help streamline this process, providing valuable insights and tailored strategies to ensure successful outcome. Don’t hesitate any longer. Apply to become a client today to work with our experts on legal strategies to overcome barriers.
 

back | top