Best EU Country for Business 2024

The best EU country to start a business in 2024 will be multifaceted from a legislative viewpoint, considering tax advantages and business objectives. No jurisdiction is perfect for every entrepreneur; however, a number of states in the European Union offer favorable conditions with regard to business registration and low corporate taxes, along with residency or citizenship opportunities.

Setting Up a Business in the European Union: Key Considerations

Many entrepreneurs turn to us with such a request: “Register a company in the EU with low taxes as soon as possible.” But during the consultations, other priorities come up. For example, clients may also want to live in the country where their business is based, or seek options for permanent residency or even EU citizenship. This can significantly affect the choice of jurisdiction because some countries grant long-term residence permits in connection with business investment.

Choosing the Best Country to Do Business: A Holistic Approach

Migrating into the EU with the aim of setting up a business requires a wide approach. In this respect, corporate laws, tax systems, and immigration policies have to be weighed up against the specific objectives of the entrepreneur, be it:

• Low corporate tax rates can be identified in a few countries, which will help greatly in minimizing business expenses.
• Business-friendly regulations: Determine what countries will allow businesspeople to register a company and comply with regulatory issues in a smooth and speedy manner.
• Residency and citizenship options: For long-term residence or even potential EU citizenship, look to the countries offering residence programs based on business visas or investments.

All these factors would be weighed against each other with care to make sure the entrepreneur decides the right choice of any EU country for setting up his business with a view to attaining his financial objectives, as well as personal ones.

We offer company registration services in different European countries

Which European Country to Open a Business in 2024 and Pay Low Taxes

Over the last couple of years, the number of companies registered in EU states has grown sharply. Such a trend is driven by the urge to conduct business in economically stable and prestigious jurisdictions with available international markets. Businesspeople are willing to pay less in taxes and, at the same time, pursue an option related to business immigration to obtain residence permits for their families.

The registration of companies in the EU is profitable for large enterprises and individual entrepreneurs alike, as it aims to save business expenses in 2024 and further.

Why Companies Register in EU Countries

Companies registered in the European Union represent strong legal frameworks with good reputations because of government support. Many European countries have subsidies for special businesses, tax rebates, and SME development programs.

• Lower taxes: In some countries, properly structured firms save a business a lot. What a business needs is the optimization of tax burdens, not evasion.
• Banking opportunities: Establishment of a company in the European Union opens excellent opportunities for accounts in Lithuania, Spain, Switzerland, Portugal, Cyprus, and Malta despite all those rather restrictive banking regulations that exist there.
• Business development and access to the international market: A firm established in the EU is more prestigious, its chances of cooperation with foreign companies and partners are higher, which quite often preferably select those coming from developed and stable countries.
• Access to grants for development programs: In most EU countries, there are special startup and small- and medium-sized enterprise programs that offer low business-lending rates.
• Opportunities for Residency: Company registration can be used as legal grounds for business immigration, opening the chance for entrepreneurs and members of their families to obtain long-term residence permits upon observance of all the legal conditions.

Advantages of Business Registration in Europe

Operating one’s own business in the European Union has a lot of advantages. Some of these advantages include:

• Low Tax Burden: Many regimes and incentives exist to minimize tax burden.
• Avoidance of Double Taxation: Because there are treaties between countries of the EU, there is usually a way for an entrepreneur to avoid double taxation of income.
• Developed Economic Environment: Ensuring that the tool and services with respect to effective financial management, liquidity, and credit resources will be developed and provided to entrepreneurs.
• Bank Accounts Abroad: The European banking systems are among the best services in the world in terms of service level, security, and confidentiality.
• Stable Political and Economic Systems: These make for very favorable conditions in undertaking business.
• Business Visa/residence permit possibilities: Most of the countries have visa schemes to get various types of visas or residence and work permits.
• Internationalization: With the registration of a company abroad, you are immediately accessing one of the largest and most developed markets in the world.
• Networking: You will be in the position to expand your portfolio of clients, find new partners, and improve profitability.
• Prestige: Company registration in Europe is associated with a high level of product and service, innovations, and social responsibility, developing the company’s image and attracting new clients or investors.

What You Need to Know Before Registering a Business in the EU

When choosing the jurisdiction for registration of the enterprise, it will be proper to take into consideration the following criteria:

• Taxation: Obtain a jurisdiction featuring a favorable tax environment that is entirely transparent. Watch for new company incentives, double tax treaties, and minimum incentives on income for small and medium-sized companies.
• Cost of Business Incorporation and Maintenance: Minimum required capital types with various company types, also average salaries, office rent, and the cost of banking services.
• Black lists: Try to avoid jurisdictions appearing on black lists composed by international organizations or EU lists, since it will make financial relations more complicated and possibly be a reason for extra bank scrutiny.
• Convenient transport link: It is necessary that countries have fast and comfortable air connections with your country of residence in order to ensure easy business operation.

Best European Countries to Start a Business in 2024

In today’s economic environment, Europe has a unique mix of stability, innovation, and entrepreneurial opportunities. Where one decides to set up the business often becomes a very important first step, since it could mean the difference between success or otherwise in years to come. The legal and tax experts at Regulated United Europe can give a detailed outlook into the countries within Europe with the maximum benefit availability to entrepreneurs.

Bulgaria

Opening a company in Bulgaria enjoys the following advantages. These aspects make Bulgaria interesting for entrepreneurs and investors worldwide. A few key aspects explaining Bulgaria’s attractiveness for business are listed below:

• Low taxes: Some of the most important advantages are low corporate tax rates, among the lowest within the European Union. This reduces the overall burden of taxes on businesses and raises their competitiveness level accordingly.
• Strategic location: It is at the crossroads between Europe and Asia, thus making it the best place for companies that would like to expand to markets both ways.
• Company registration procedure is simplified: The Bulgarian government has simplified the company registration procedure. This cuts time and bureaucracy and makes the beginning of an enterprise much easier than before.
• Access to EU markets: As a member of the European Union, Bulgaria provides businesses with access to the huge EU market, which is a great advantage for export-oriented companies.
• Skilled labour: Bulgaria offers highly skilled and relatively inexpensive labour, making it attractive to companies looking for efficient workforce.
• Developed infrastructure and IT sector: The country continues to invest in infrastructure and technology development, especially in the IT sector, which is experiencing significant growth and offers many opportunities for technology start-ups and IT companies.
• Political and economic stability: Bulgaria tends to be stable in political and economic relations; as a result, it is capable of creating optimal conditions for long-term investment and business development.
• Attractive investment climate: Different kinds of state support and stimuli are provided at the national and local levels, such as grants, incentives, and other forms of support aimed at attracting foreign capital.

In a word, Bulgaria has managed to create an optimal combination of low taxes, strategic location, simplified company registration procedures, access to EU markets, skilled labour, developed infrastructure, political and economic stability, and an attractive investment climate — all of these being most attractive for beginning and developing business. All these factors make Bulgaria one of the most promising destinations for conducting and developing international business.

National Revenue Agency

Estonia

This is mainly famous because of its innovations in digital government and e-business. It is probably one of the countries with the most modern IT infrastructure in the world, perfectly situated for establishing any kind of start-up and technology businesses. Estonia is a small country located on the Baltic coast. Recent years have seen the country take some giant strides towards the development of the economy and maintaining a good business climate. The result of all these changes has been increasing interest by overseas investors and entrepreneurs in establishing companies in Estonia. Let me summarize the major points that make Estonia a good location to carry on with business activity.

• Digital innovation and e-Residency: Estonia is considered the forerunner in Europe in the field of digital technologies. It was the first country in the world to offer the concept of e-Residency, whereby foreign entrepreneurs would have an opportunity to establish an Estonian company and conduct business remotely. In line with this approach, simplicity and transparency of business procedures are assured, keeping bureaucratic barriers to a minimum.
• Tax policy: The Estonian tax system is very special and very beneficial; it provides corporate tax only in cases of distribution of profit. The aim of this is to stimulate the reinvestment of profits for company growth. This system works out particularly for startups and technology companies oriented at development and scaling.
• Geographical location: Because Estonia is situated on the border of Eastern and Western Europe, it is strategically positioned to connect to both Scandinavian markets and the rest of Eastern Europe.
• Highly Qualified Labor: The highly qualified labor in Estonia could boast of an educated, multilingual labor force with very highly developed digital literacy that enables Estonia to be a perfect place to locate for technology and IT companies.
• Stable and innovative business climate: The political scene in Estonia is stable, corruption is low, innovation is welcomed, and the Government actively supports enterprise development; priority is given to high technology and ecologically clean production.
• Support for startups and innovative projects, including various Estonian programs aimed at the provision of grants, funding, and support for innovative projects at different stages of enterprise development, is another vast area of interest for a venture capitalist in innovative enterprises.
• Developed infrastructure and technology: Estonia boasts of modern infrastructure and one of the most developed digital communication systems in the world. This provides businesses with high speed and quality of internet access, which is significant for most businesses today.
• Investment climate: From stability to innovative ecosystem, from a supportive business climate, Estonia can boast about attracting a considerable share of foreign investment. Investors love the economic environment of this country, its transparency, and efficiency.

Having a business in Estonia means possessing an innovative economy, comfortable taxation system, skilled labor, wider perspectives on business development in both European and global dimensions. Estonia unites technological advance, stability, and favorable conditions for business, which make Estonia, in fact, one of the most demanded countries to open a business in Europe.

Estonian Tax and Customs Board

Cyprus

International companies in Cyprus enjoy special tax incentives. These low tax rates also apply to businessman-citizens of Cyprus. Such facts allow us to call Cyprus a tax haven. The difference from the direct offshore zones is that the tax incentives in tax havens apply not only to foreign companies but to all local ones.

A company may be managed and controlled from an office in Cyprus and still be non-resident.

 

Taxation:

1. Tax on the company’s profits from domestic operations – 10%
2. Tax on the company’s profits earned outside the country – 0%
3. VAT – 5-8% (the Company is exempt from VAT if the recipients of goods and services provided by the Company are non-residents of the European Union)
4. Tax on dividends – 0%
5. Income tax on the profit gained from trading in the stock market: 0%
6. Capital gains tax: 0%

(A capital gain is when particular assets are sold at a price higher than that paid at the time of purchase or when an asset accrues some added value in terms of interest or dividend. Capital gains tax is only payable on the difference between the current and original value)

During the registration of companies, there arises an obligation to pay a state fee of 0.6% of the declared authorized capital.

The Cyprus Parliament at the end of August 2011 voted to amend the Companies Law. From that vote, the result was for an annual fee of €350 paid regularly to the Registrar of Companies. This is the amount to keep the company in “good standing” and on the Register.

The audited financial statements are also submitted to the Tax Authority and the Central Bank of Cyprus by a Cyprus registered company.

Advantages

• Cyprus company is highly suitable for investment. Lots of offshore banks are available to the investors, which are not taxed on the interest rate.
• The confidentiality of the holders of the offshore account of the offshore banks, trusts, and international companies is protected stringently in Cyprus offshore.
• No dividend tax and no capital gains tax are payable by a holding company upon gains from the sale of subsidiaries.
• The Republic status as a serious financial center, combined with EU membership, high standard services.
• No exchange control.

The other element of the state’s currency policy in the part indicated is the organization of the control and supervision over compliance with the legislation in the sphere of currency and foreign economic operations, including:

• Control over the movement of currency valuables across the customs border
• Control over the currency transactions
• Control over fulfilment by residents of their obligations to the state in foreign currency

Tax treaties with more than 50 countries.

Most important advantage of double taxation treaty:

• The rate of tax on dividends 5% or 10% given less than $100 000 is invested in the subsidiary, interest Precision, and royalties Precision kept at standard rates
• Exchanging information with other countries

The information exchange between other EU countries and Cyprus may be carried out, even though such information is not needed in relation to tax purposes of those countries. In any case, the country from which information is requested shall not be obliged to provide such information when such provision is contrary to the law or public interest of that country. It is also forbidden to request information not available in the public domain of that country.

Equally, it has to be underlined that, in almost all the cases, the Cypriot tax authorities are without any information concerning the beneficiaries of the private companies or any other material information. In that respect, Cypriot companies that would be registered through nominees, the information about the real owners is confidential.

Individuals whose information is being retracted have to be duly collected in the records of the registrars. Professional secret cannot, therefore, be used to deny information concerning such persons.

However, the conditions under which professional secret may be lifted will depend upon state law. Thus, disclosure will not be a simple automatic administrative procedure, it will need the intervention of local government officials.

Opening a company in Cyprus can turn out to be this very step that will decide the expansion of your business and its entering new large markets. Because of this factor of uniqueness in its advantages, Cyprus opens great perspectives for growth and success in international business. However, success depends on careful planning, understanding the local business culture, and effective resource management.

Cyprus Tax Department

Ireland

Within years, Ireland developed into Europe’s technology hub. The low level of corporate tax, highly skilled population, and close relationship with the European Union, the UK, and the US – it is for these reasons that many international corporations want to set up a business company there. Undoubtedly, in the last few decades, Ireland has emerged as one of the most sought-after destinations to launch one’s business in Europe. Some of the most attractive reasons that make Ireland a destination of choice for setting up businesses by many international companies and entrepreneurs include the following:

• Low corporate tax rate: Having one of the lowest corporate tax rates within the European Union, it is attractive to international business investments.
• Access to the European market: It gives access to the EU single market, hence making it easy to trade and expand into European markets.
• Well-qualified labor force, educated people: Ireland has a quality educational system and skilled human resources. Besides mother tongue English, the greater proportion of the population can speak more than one language, which is one of the most influencing factors in persuading scores of companies.
• Stable economic state, political environment: Ireland possesses a highly developed economic atmosphere along with a democratic political system. It develops an appropriate milieu for doing business and a magnetic pull for foreign investments.
• Well-developed infrastructure: Well-developed, modern transportation and technological networks are key factors in operational businesses.
• The Irish government is actively supportive in business by offering different investment incentives, grants, and tax breaks mainly in high-tech and export-oriented enterprises.
• Friendly business climate: Most experts consider Ireland to be one of the friendliest countries towards business in the world. Therefore, it is not a big hassle for companies coming from abroad to establish and grow their businesses.
• Highly innovative and technology-centric: Ireland is developing the high technology research and development industry that will surely be attractive to tech startups and research companies.

Putting all the above factors in summary, Ireland is one of the most attractive countries to set up and expand an international business, particularly a high-tech, financial service, pharmaceuticals, and IT industry business.

Irish Tax and Customs departments

Luxembourg

Companies incorporated in this jurisdiction are widely utilized in order to create holding companies and investment funds, because these companies are not subject to major income, property and dividend taxes.

The statutory office of an “offshore” company shall be in Luxembourg.

Taxation

• It will obligate the foreign company to contribute 5% of its profit to a reserve fund in Luxembourg. It is not a permanent one; it will be provided until the total sum reaches 10% of the issued capital.
• The annual fee in a form of state duty shall be paid in a form of 0.2 % of the authorized capital.
• The no-resident company shall be brought into the liability of taxation only in regard to the corporate tax concerning the profits arising from the domestic operations. The foreign-sourced profits of the companies do not fall under any tax lien.

The corporate tax rate consists of three elements: the general income tax rate of 21%; the contribution to the unemployment fund of 4% of the general rate, i.e., 0.84%, and the municipal tax rate fixed by the municipality; for example, it is 6.75% in the capital. Thus, the total corporate income tax rate of a taxpayer having its seat in Luxembourg-city amounts to 28.59%.

There is a general withholding tax rate of 5% on dividends paid out. Under a double taxation treaty, the withholding tax rate may be different.

No withholding tax is collected on dividends distributed by a Luxembourg holding company, an investment fund, or a securitisation undertaking.

No withholding tax is withheld if the shares have been held by the dividend recipient for at least one year and their value amounts to at least €1.2 million. One added requirement is that the dividend recipient needs to be a resident of Luxembourg, the EU, or a fully taxable resident of Switzerland.

The dividends obtained from abroad by a resident company are free from taxation if the capital participation is at least 10% or the acquisition value of the shares is at least EUR 1.2 million.

Types of registered foreign companies and their taxation peculiarities:

SOPARFI – financial holding company. As for the holding companies, the Luxembourg holding companies are not bound by the double tax treaties.

Zero withholding tax on the dividend paid to a subsidiary/parent company in the EU. As far as the dividend payments outside the EU are concerned, the respective income tax rate would always be due, but it corresponds – for comparable taxable results – to the corporate income tax rate in Luxembourg; it can be reduced by an exemption via the tax treaty usually at least to 15% in practice.

Interest payable is exempted from source tax.

SIF – Specialised Investment Fund. In principle, a specialised investment fund resident in Luxembourg is exempt from corporate income tax. Subscription tax amounts to 0.01% p.a. The subscription tax shall be computed concerning the total net asset value of the specialised fund. The company is liable for an annual capital duty of 1,250 euros, which is payable upon formation.

SICAR – Societe de capital-risque risk capital investment company. Capital autorise of at least EUR 1 mn. Annual capital turnover tax EUR 1,250. Corporate tax 29.63%. No restrictions under double tax treaties. The profit distributions are not subject to source tax. Income from securities is tax-free. Proceeds from the liquidation of an undertaking are not taxed – for non-resident participants.

Offshore bank account profits are not burdened with taxes in Luxembourg. An offshore bank account in Luxembourg is an already guaranteed method of protection of capital. All information about the offshore bank accounts in Luxembourg is considered confidential; it cannot be disclosed without the express consent of the owner of such a bank account.

With its stable economy, privileged taxation system, strategic geographic position, quality of financial services, and level of living combined, Luxembourg offers a set of business opportunities nowhere to be found. As a matter of fact, it offers optimal conditions for international investors and entrepreneurs looking to expand their operations or break into the European market.

Business success in Luxembourg, on the other hand, is attainable only through careful planning and adequate insight into the local environment by identification of an ideal legal form of the company, strategic planning, observance of regulatory requirements, and standing on the front line of proactive commitment by local partners and regulators.

Generally speaking, the business climate is highly favorable in Luxembourg due to its highly competent labor force, innovative economy, and stable legal environment. It is hence one of the prime targets of international business and investments.

Luxembourg Inland Revenue (ACD)

Malta

In Malta, it is possible to incorporate both a closed and a public limited company. The minimum share capital of a public company amounts to €46,600 and for a private company it amounts to €1,200. At the time of incorporation, at least 25% of the capital of a public limited company and 20% of the capital of a private limited company must be paid up.

Taxation

Any profit derived from the activity undertaken by a Malta-resident company, whether in Malta or overseas, is to be subjugated to Maltese income tax at the standard corporate tax rate of 35%. Correspondingly, Malta does not charge withholding tax on dividends, interests, and royalties remitted abroad. Malta likewise doesn’t have transfer pricing and thin capitalization rules.

Transfer pricing, that is selling goods or services to interdependent persons at intra-company non-market prices, can give them the possibility to redistribute the overall profits of an entity of related persons in favor of persons in low-tax states. This is the simplest and most ordinary scheme of international tax planning, which aims at minimizing the taxes paid; thin capitalization – when the activities of the company are financed by borrowed funds.

Value Added Tax is imposed on the sale of goods, works, and services in Malta. The VAT rate on the island is 18%. Some goods are subject to preferential rates of 5% – for example, printed publications and hotel services, and of 0% for medicines and foodstuffs. No property tax exists and no turnover tax on the transfer of shares in companies owned by non-residents. Malta also has no exchange control legislation, and a Maltese Company may conduct its economic activities in any currency in the world.

It would appear that Maltese taxation is quite severe, and the corporate income tax rate does not indicate Malta as a low-tax jurisdiction. That is actually not the case. In Malta, non-resident companies are entitled to a refund of taxes paid, which allows us to talk about the lower level of taxation in Malta compared with most countries of the world.

The essential requirement for a corporation tax refund to be payable is that the foreign company should be registered with the relevant Maltese authorities as either a trading or a holding company. In essence, a trading company would derive income from the trading activity, and the holding company would derive its income from participation in other organizations.

All the income derived by a Malta company shall be credited, for tax accounting purposes, to one of four tax accounts, namely: “foreign profits”, “Maltese profits”, “profits from immovable property”, “non-taxable income”. Each type of income enjoys its own rules of taxation. The final amount of tax shall be credited to the fifth account “final tax”.

Example: Let us consider two most usual cases:
a) a Maltese company derives profits from trading abroad and from participation in other companies. In either case, such profits would be subject to statutory tax at 35%, while such tax deducted from the dividends distributed is refundable to the Maltese shareholders. The rules governing a refund are different, depending on the type of income.

In the case of a Malta company deriving income from a trading activity outside Malta, whereby the concept of “trading” encompasses both the purchasing and selling of goods directly and/or the provision of services, then the shareholders are entitled, upon receiving the dividend, to file an application and get a refund of 6/7th of the tax pre-paid in Malta; in such an event, the effective income tax rate shall be 5%.

Where a Malta company derives dividends from shareholdings or capital gains, namely interest or royalties, the same profits may be taxed at a rate of 35%. Where the dividends are distributed to the shareholders, the latter are entitled to claim a full refund of the tax paid in Malta at 100%.

For a Maltese company to qualify for the exemption, so-called “qualified participation” criterion needs to be satisfied. A qualified participant means that at least 10% of the shares in a foreign enterprise are held by the company.

The tax refund system was extended since 2007, now covering all shareholders irrespective of their residence.

The tax legislation in Malta has been aligned with EU legislation: a Maltese trading company may henceforth trade in Malta provided the income derived from that trade does not exceed 10% of the company’s total turnover/income. Thus, 90% of the company’s total turnover/income must be derived from overseas sources. Consequently, upon refund of the above-described tax, the shareholders of the Maltese company are left with an effective worldwide income tax rate of 5% taken on those profits.

Malta companies must file an annual financial statement with the Registrar of Companies. The names and addresses of the company directors and shareholders are matters of public record.

Malta has double tax treaties with 41 countries. However, entitlement to any tax exemption under a bilateral treaty would be subject to the company’s satisfaction, for the tax authorities, that income constitutes foreign-sourced income and has already been taxed abroad.

Malta has probably no equal in the world in offering a combination of favorable taxation, strategic location, progressive regulatory environment, and high quality of life. With such an overall score, Malta is sure to be a promising destination in terms of international business development and investments, especially for organizations with plans of expansion either in the European or Mediterranean markets.

With these advantages, Malta is increasingly an attractive jurisdiction for international business in a special blend of financial advantage, strategic location, and quality business environment. It hence, on this premise strategically justifies the reason for any incorporation of a company in Malta for those businesses desirous of dynamic growth and international development.

Malta Tax and Customs Department

Benefits of business registration in Europe

A number of benefits may be derived from business registration in Europe; one can’t deny that. Favorable conditions are based on many factors.

• The company will work in an economically stable and prestigious country with a high level of business reputation. The most of the governments of EU jurisdictions provide different types of subsidies. The companies of authoritarian states of Europe are not questionable;
• Effective system of the state support of business: good programs of development of the company, tax stimulating, grants and loans on good conditions;
• Exclusion of the possibility for offshoring, but opening accounts in European banks is possible, including Swiss banks.
• Tax planning opportunities: the tax rates in many countries were reduced to an acceptable level. Considering the options, one should be interested in incentives for new companies, existence of double tax treaty practice, partnership and prospects for medium and small business;
• The low-tax states, which actually take an interest in the inflow of foreign entrepreneurs and create maximum benefits for them, are to be preferred;
• The prestige of the company will turn into a real advantage: very often, a European company is trusted everywhere. A market and partnership with the EU enhance your credibility in the international environment;
• In most countries, national legislation provides for residence permit and even citizenship granting to a person who manages to successfully develop a business.

Setting up an overseas business may require a lot of deliberation on many factors. First, one needs to decide on the country. One needs to make sure a person can enter the country where registration will take place for long-term or permanent residence. Not all these jurisdictions will necessarily require start-up capital immediately; some may only ask for your confirmation on the availability of funds.

The type of business to open in Europe must be meticulously considered, studying the industries that need development and support within the countries of your interest. In this way, you will be able to make a choice of option that would be most favorable in the context of doing business in Europe.

Requirements to establish a company in Europe

Each of them has specific conditions depending on the existing regulations and legislation, but there is a bouquet of general rules that will have to be considered regardless of jurisdiction.

Needed:

• Name of the company, registered and unique;
• Documents on business registration in your home country;
• A list of the company officers;
• The name and address of the representative in the chosen country;
• List and number of shares, if such item is provided for;
• Form of the company and authorized capital with regard to the foregoing;
• Supplementary financial information: property and others;
• Objects and operations which the company is authorized to exercise;
• Certificate of company in good standing;
• Some countries will require a certificate of no criminal record in the country of residence.

The application pays the dues of the amount required by the law and awaits a decision on for the time given in the regulations. Also, it will be nice to either do your own studying of the local laws or consult with a lawyer; this would help to avoid any violations.

Tax legislation requires special attention, especially if you have plans to provide services not only in the country of registration. First of all, it is necessary to find out what rates of VAT will be charged.

How to register a company in Europe in 2024

Once you have selected the country, you’ll have to pay closer attention to the main factors that will influence the success of the venture:

• Taxation;
• Political and economic stability;
• The status of intellectual property rights;
• The type of activities that are not prohibited or discouraged;
• The mentality of the locals and business etiquette.

In Europe, the company can be registered within several successive stages of every one requires the corresponding study of chosen country legislation. It also presupposes gathering and proper execution of a number of documents. Their list is different for every country. Mistakes and inaccuracies in the gathered documents might lead to prolonging the process and causing extra problems.

Whether opening a business in Europe pays off

Policy of the EU state is aimed at the creation of optimal conditions for foreign entrepreneurs, who besides making money themselves contribute to boosting the economy of the chosen country. The advantages of opening a business in the EU are described more in detail below:

There are also some complexities to be taken into account in the moment of deciding to open a company in Europe:

• Availability of start-up capital. Some European countries require a foreigner to confirm that he has enough money to develop his own business in the EU. Some European Union states require that the authorized capital be fully paid in the moment of registering a European company.
• Tax codes and matters of compliance with them. Establishment of a legal entity abroad presupposes studying features of taxation, European and regional rules of carrying on business. For example, in some countries opening of an office for more than 6 months may make entrepreneur obliged to file an income tax return before the determined period otherwise a fine will be imposed.
• Business licenses and business permits. If you want to open a company in Europe, then you have to be informed about the conditions that must be respected by the foreigners which are undertaking entrepreneurial activity. There are the most common licenses and permits which are required for all businesses, and without them, the business owner risks administrative or criminal liability.

How to open a business in Europe in 2024

In order to start an enterprise in an EU country, the foreigner will be able to:

• Familiarize yourself with the current regulations concerning business activities and the requirements for business immigrants, go to the webpage of the relevant national contact point for setting up a company in a given European country;
• Choose a country to start a business in and its legal form;
• Prepare and file documents for an EU business visa to the embassy/consulate of your residence;
• Comply with the requirements set for European company registration.

Types of companies to open in Europe

A foreigner has to decide on the legal form of enterprise that will best serve his/her strategic and operational goals. The most common forms in Europe are sole proprietorship, partnership, and limited liability company.

Individual entrepreneur (IE)

This is by far the easiest way to start a business in the EU. Registration is straightforward, and the foreigner has only to maintain basic financial records. He or she obtains all profits less taxes, but is personally liable for all debts. Each EU state has developed its own laws, regulations, and administration rules for sole proprietors.

Partnership

This kind of entrepreneurship is established by signing a formal agreement between the two or more parties: legal entities and individuals who are intended to conduct business together. In the partnership agreement, it would clearly be stated what the scope of authority is, how the profit is distributed, and what the obligations between participants are. There are 2 types of partnership: general one (full), when all partners take on the responsibility of possible losses, debts, and other obligations of the company; and limited one – when some of the participants are only investors without the right of the control and responsibility.

Limited Liability Company(LLC)

It is the form of business that can be opted by various types of business entities such as trusts, corporations, and individuals. An LLC does not risk the assets of shareholders through segregation of personal liabilities from those liabilities created by the company. In most European countries, the incorporation of a limited liability company involves the preparation of the incorporation documents, depositing minimum share capital, and registration with the Commercial Register. Generally, in the LLC management rests with the members comprising both the directors and the shareholders. However, any authority under the company can be surrendered from the founders of the business to the managers hired for the job.
Setting up an LLC in Europe has many advantages, and the most appealing is the limited liability of the owners themselves. One of the things it entails is that in case something went haywire, an owner will be liable for the debts of the company up to the amount authorized by the capital. Another critical advantage that comes with choosing a limited liability company is the capital required at the time of incorporation. Most European countries have minimized such requirements of authorized capital in the case of a limited liability company. One of the best examples in this regard is the Netherlands, because one would require only 1 to open a Dutch limited company as authorized capital. Naturally, the overall costs will be higher, but the Netherlands remains one of the cheapest European countries where one can start a company.

This is where the good thing is that the requirements concerning the registration of such a company are virtually the same in all European countries and refer to the number of shareholders, the management of the company, and the residency of the directors. The minimum number of shareholders is usually 1 or 2, since the directors do not have to be residents of the country where the company will be registered.

Which type an entrepreneur will opt for depends on his business objectives. Liability, taxation, control and capital gain are just some of the aspects a foreign citizen needs to study before setting up a European company. Assistance from a professional attorney is required in order to weigh all the factors the choice of business organization is based upon.

Documents needed to open a company in Europe

In general, the following documents will be required for opening a company or commencing production in Europe by a foreigner: copies of the applicant’s foreign and national passports; business visa; certificate of incorporation of the company; letters of recommendation from the bank where the foreigner has an account; business licence; CV and photo of the applicant; legal address lease agreement.
The actual documentation necessary for a foreign entrepreneur depends upon the country within Europe and also the form of business organisation that has been chosen.

Company Registration

The way in which a company can be set up is related to the country chosen within Europe, but there are some common points in this respect. Company registration usually takes 1 or 2 weeks. A personal visit can open a business in Italy, Denmark, the Netherlands, Poland, and Portugal in 1-2 days depending on the field of activity. Most of these countries also have a centralized body through which all the administrative procedures are routed, such as the Danish Business Authority in Denmark or the registration centre Centre de Formalités des Entreprises or CFE in France.
One of the major things to be done when registering the company involves choosing its name. The name should be unique since there are instances where special authorisations will be needed to be allowed to use some of the words. For example, some of the restricted words in the Republic of Italy include “Italy” and “international,” which have to be approved.

 

A foreigner will need:

• obtain in the country where the business is to be conducted a registered office;
• open an account in a European bank, through which the payment of the authorised capital of the company shall be made when so required;
• find out whether there is a need to obtain a licence to conduct such business;
• to register with the trade register of companies.

Since foreigners do not properly know how company registration is carried out, it happens to be a tedious task for him/her. If the application for the incorporation of the company in Europe is not duly filled, the concerned authority will correspond with the foreigner and also request for more documents which will postpone the procedures. This could delay the proposed plans, especially if the founder of the business in Europe happens to be abroad. It is therefore advisable to contact local law firms or international business consultants who are able to register a company by proxy without the need for clients’ presence thus saving lots of time, energy and money.

Buying a Ready-made Business in Europe

Besides setting up a new company, a foreigner also has an option of acquiring an already existing company. This option has its own merits:

• Having a good financial history wins state tenders or gets bank loans;
• Big businesses co-operate mostly with well-established ones whose previous business activities can be accounted for;
• It is less hassle and faster than establishing a new firm, for example, in some European countries like Germany, it is easier to buy an off-the-shelf company.

Of course, there are certain risks involved when you buy a ready-made business in Europe. Before buying any company, the foreigner has to be cautious and check the background of the company with regard to liabilities or any litigation pending against it. Following are basic 6 steps to be followed while buying a business:

• Seeking professional advice means that the very well-qualified support in the course of negotiating with the seller, valuation, and purchase of the company itself is quite important; that is why it is highly recommended to consult a local lawyer in the very beginning.
• Information Request. To perform the analysis, ask that the owner of the business furnish financial statements; rosters of employees, in order of salary and years of service, customers and vendors; machinery and other assets of the business; major contract information and any reports pertaining to debt and liability.
• Due Diligence. A seller will likely ask that a non-disclosure agreement be executed in exchange for providing details about his business. Any documents that the foreigner may be called upon to sign at this stage of the deal should be shown to a lawyer in order to ensure that they do not imply unspecified obligations. Government databases that may be available can be utilized while researching company details. Public source checks will disclose, for example, whether there are any liens on the business assets, taxes owing outstanding litigation or human rights complaints and if the seller actually owns the property it is disposing of.
• Agreement to the terms of transaction. It has to be identified who the parties to buyer and seller are, whether the shares or assets are to be purchased, what its value constitutes, when and how payment is made.
• Discussion of additional clauses. A buyer can offer to insert individually agreed clauses into the agreement, the amount of which will depend on the level of risks associated with the business. For example, secure a “Non-Competition Agreement” signature to avoid setting up a similar company by the seller later.
• Preparation of legal documents. It usually falls to the buyer to compile a package of documents which is forwarded to the lawyer for the seller for review prior to finalisation. There is, however, a relatively simple basic document used to record the main features of the transaction at an early stage – the “Letter of Intent” or “Schedule of Terms”. It deters misunderstandings and saves having to revise any of the clauses in the agreement on the eve of the sale. The most important legal document used is what is called “Contract of Sale”. It includes all that relates to the purchase, is based upon the contents of the “Letter of Intent”, and contains all the details of the transaction. In this text, the most important paragraphs of the document for the buyer will be the seller’s representation and warranties, and description of the business assets and business-related liabilities.

How to find a business partner in Europe

There are 3 sources that will be useful for a foreign businessman in order to find a reliable European partner.

• An Agency where firms within most European countries contact the concerned government department of trade, information, and resources. It accesses databases of foreign experts who deal in business, investment, and technology matters. The department advises on export and other ways of entry into a market. Enterprise Europe Network EEN is the largest network in Europe. It has an online database that provides trade services to companies.
• Foreign diplomatic missions. In some EU countries, for example the Netherlands, you will be dealing with embassies in foreign capitals, consulates in important economic centres and business support offices in other regions. They know the local market, allocate resources and advise in practical terms.
• Business associations. This association of business representatives includes industry organisations, chambers of commerce and councils established to promote commercial activities with specific target countries. They serve as sources of information for the aspiring entrepreneur, as many of them maintain industry statistics and lists of members.

Advantages of partnership with European companies

• Bridging the gap in expertise: a good partner can share missing expertise or additional business development skills;
• Cost savings: having a business partner means that the foreigner will be able to spread a financial load for covering the costs and capital investment required for entrepreneurship;
• Capital increase: the more partners there are, the more money can be available from their combined resources to invest in the business.

Best countries to open foundations and trusts in Europe

Selection of the proper jurisdiction for the registration of funds and trusts is an essential issue in the context of international asset management. In Europe, there are a lot of great options, all with their peculiar features and attractive advantages. In this part of the paper, we will provide the general overview of the most appealing European countries for opening of funds and trusts regarding tax policy, legal stability, financial infrastructure, and asset protection.
Switzerland and Luxembourg head the rating of the best countries for opening trusts and foundations. Their legislation provides unprecedented protection to beneficiaries, the registration of trusts is the most flexible, and risks are minimized.

Let us remind you that according to the Global Competitiveness Index, Switzerland is among the 10 best countries for financial investments. It is the largest centre for the administration of trusts, and during 2007, Switzerland ratified the Hague Convention on the law applicable to trusts.

Best Jurisdictions in Europe for Funds and Trusts

Jurisdiction	Key Advantages
Luxembourg	Tax Incentives: Significant tax incentives for investment funds, including exemptions from income and capital tax. International Recognition: High degree of trust and recognition as a leading financial centre. Regulatory Environment: Progressive fund and investment legislation harmonised with European directives.
Switzerland	Privacy and Asset Protection: Regarded as a reliable jurisdiction for asset protection and privacy. Stable Economy: Extremely low political and economic risks. International Standards: Compliance with international standards and regulations for foundations and trusts.
Malta	Attractive Tax Policy: Favourable tax system with tax refund opportunities for foreign investors. Flexible Regulation: Adaptable investment fund laws for different strategies and needs. EU and Eurozone: Membership provides additional advantages in trade and investment.
Ireland	Asset Management Centre: Recognised as a leading hub for asset management. Tax Advantages: Competitive tax environment, including low corporate tax rates and incentives for investment funds. Supportive Regulatory Environment: Transparent and flexible regulatory structure aligned with international standards.
Netherlands	Strategic Location: Convenient geographical location for asset management in the European market. Tax Incentives: Availability of favourable tax structures and double tax treaties. Strong Financial Infrastructure: Well-developed financial system with qualified professionals.

Key Factors to Choose the Right Jurisdiction for Foundations and Trusts in Europe

Extensive Tax Policy Analysis

The country of choice should be able to provide an analysis of extensive tax policies and potential incentives. Even international tax planning could be considered for maximum benefit therein.

Knowledge of the Regulatory Requirements

One also has to consider the regulatory environment and specific requirements under each jurisdiction in relation to funds and trusts to ensure that international standards are met as relates to legal frameworks.

Political and Economic Stability

This will mean that there is a stable political and economic environment that has been chosen with least risk involved, which means sustainable management of one’s assets.

International Reputation and Recognition Assessment

This in turn gives your foundation or trust tremendous credibility with investors and partners because of its strong international reputation, flowing from the jurisdiction under which it operates.

Availability of Competent Professionals

In both foundations and trusts, qualified financial and legal professionals are availed for effective operations in compliance and operational efficiency.

Such an ideal European jurisdiction for incorporation of foundations and trusts would have to be identified with a process of careful, sometimes painstaking research and strategic planning. Some countries like Luxembourg, Switzerland, Malta, Ireland, and the Netherlands do enjoy various benefits in terms of an advantageous tax environment, friendly regulations, and political conditions. It will be vital to harmonize your specific needs with your strategic goals in identifying an ideal jurisdiction for your funds and trusts.

If you plan to start your business in Europe but are at a loss about which country you should register it in, we recommend you appeal to Regulated United Europe lawyers. Our team, including specialists knowledgeable in the peculiarities of many jurisdictions in Europe, will be able to raise options best suited for the particularities of your business, condition of taxation, and special needs.

Main Aspects to Consider While Choosing the European Jurisdiction

Regulated United Europe lawyers also offer crypto projects legal support and compliance with the MICA regulations.

Best countries to start a business in Europe

The choice of country to start a business in Europe would depend on various factors, including but not limited to economic stability, level of tax, ease of doing business, and resource availability. We look at some of the most favorable European countries for entrepreneurs and startups in this paper.

Germany

Centrally located in Europe, Germany has the largest economy on the continent. The country offers a stable economic environment along with the added advantage of a high standard of living. Skilled labor force, developed infrastructure, and access to a wider European market make it a haven for business ventures. With its reputation for innovation in engineering, automotive, and technology, Germany is a great base for startups in the technology and manufacturing industries.

 

UK

Although Brexit has brought a lot of uncertainty, the UK is still one of the leading countries to start a business due to its flexible attitude toward entrepreneurship and innovation. Having an attractive tax system for businesses and corporate taxation, this country maintains one of the most dynamic startup ecosystems in Europe.

 

Estonia

Among other Baltic countries, Estonia has progressive views on digital technologies and entrepreneurship. That is where the world was first presented with the concept of e-Residency, a sort of digital residency that allows entrepreneurs all over the world to manage their EU business remotely. With one of the most advanced digital government infrastructures, Estonia is a great choice for IT startups and digital technology companies.

 

Ireland

Ireland attracts a lot of international investment, especially in high technology and pharmaceuticals. The country is home to one of the lowest levels of corporate tax in Europe at 12.5%, besides being an important bridge to trade between Europe and the US. Ireland can also be highlighted with its young, highly educated population and strong support for innovative businesses.

 

Netherlands

With its favorable geographical location in the heart of Europe, the Netherlands is a strategic spot for logistics and trade activities. The country has one of the most competitive economies in the world, with a very high level of business ethics and good transport infrastructure. The Netherlands welcomes international entrepreneurship and has a highly multicultural labor force.

 

 

 

The country to start a business in Europe depends on many factors: industry type, resource availability, tax policy, and supporting policies initiated by the government. Countries like Germany, the UK, Estonia, Ireland, and the Netherlands offer favorable conditions for aspiring entrepreneurs and can be excellent starting points for developing a successful international business.

 

Cheapest country in Europe to start a business

When choosing a country to enter the European market, entrepreneurs often weigh not only the business climate but also the costs of launching and subsequent operation. While there are many countries across the continent offering attractive business environments, clear front-runners by cost and taxation include Estonia, Lithuania, Ireland, and the Czech Republic. Here, we take a closer look at what factors make these countries favorable for startups and small businesses.

With a modern digital infrastructure and the e-Residency program, Estonia is among the top countries in Europe for ease of starting a business. Entrepreneurs worldwide can register and conduct their businesses entirely online. Estonia’s transparent tax system boasts one of the lowest income taxes in Europe at 20%, and the low cost of registering a business, coupled with widely available government and banking services online, significantly reduces administrative costs.

Lithuania: an appealing Baltic tiger

Lithuania has an open economy and offers moderate taxation, which is attractive to entrepreneurs. The profit tax in Lithuania is 15%, making it competitive compared to other European countries. The country offers various tax incentives for start-ups, especially in technology and R&D businesses. Additionally, Lithuania offers low start-up costs and a skilled labor supply, making it ideal for new technology ventures.

Ireland: a bridge between Europe and the USA

Due to its strategic location, Ireland provides one of the best places for business with a corporate tax rate of 12.5% and substantial investment support. R&D companies can take advantage of huge tax incentives and numerous grants offered by the government, making Ireland an attractive destination for international corporations and technological innovation.

Czech Republic: the center of Europe at democratic costs

The Czech Republic provides a convenient geographical location and access to the European market. The country appeals with its stable economy, skilled labor force, and relatively low costs of doing business compared to other European countries. Income tax in the Czech Republic is 19%, and the country offers a wide range of tax incentives for small and medium-sized enterprises, especially for production and export-oriented businesses.

Deciding where to set up a business in Europe depends on various factors, such as the line of operation and the business plan. With key benefits like low taxes, innovation support, and market access, Estonia, Lithuania, Ireland, and the Czech Republic offer cost-effective options for entrepreneurs looking to establish a business.

Start business in Europe

Starting a business in Europe is highly promising due to the stable economic environment, developed infrastructure, and access to the huge European Union market. To succeed in this region, it is necessary to plan well, understand local legislation, and adapt culturally. Below are key steps and advice for establishing a business in Europe.

Setting up a business in Europe offers excellent opportunities but requires careful planning and understanding of local regulations. By selecting the right country and planning every business detail accordingly, entrepreneurs can achieve significant success in the European market.

Best country to start a business as a foreigner in Europe

The most important factor for any entrepreneur is selecting the right European country. Several countries are open to foreigners, offering innovative programs and stimulating entrepreneurial environments that attract foreign investors. Here, we look into some compelling reasons why these four countries – Estonia, Lithuania, Ireland, and the Czech Republic – are ideal for foreign entrepreneurs looking to start a business in Europe.

Estonia: digital entrepreneurship at its best

Estonia is globally recognized for its liberal digitalization policies. As the first country to introduce the concept of e-Residency, which allows foreigners to manage their business in the EU remotely, Estonia is an attractive destination for IT startups and digital businesses. The simple, transparent tax system and excellent data protection and internet services make it an ideal base for digitally oriented companies.

Lithuania: friendly climate for startups

Lithuania’s economic reforms and incentives have created an enabling environment for foreign entrepreneurs. The country offers relatively low taxes and exceptional investment support for R&D, with programs like grants and subsidies for startups.

Ireland: the strategic bridge between the US and the EU

Ireland is a popular choice for international business due to its low corporate tax rate of 12.5% and active foreign investment policies. With tax incentives for R&D companies and good infrastructure, Ireland is favored by U.S. companies looking to expand into Europe.

Czech Republic: location, accessibility, and a strong industrial base

Located in the heart of Europe, the Czech Republic offers a stable economic environment, competitive tax rates, and a highly educated workforce, making it ideal for high-tech and engineering businesses. Its industrial infrastructure and strategic location appeal to companies targeting the European market.

Countries like Estonia, Lithuania, Ireland, and the Czech Republic offer favorable conditions for foreign entrepreneurs. Factors such as low taxes, innovation support, and well

Open company in Europe

Europe is one of the most attractive regions to start a business, having a stable economy, developed infrastructure and access to a vast market. Among the European countries, Estonia, Lithuania, Ireland and the Czech Republic are outstanding due to their special advantages for entrepreneurs. Let’s look at what makes these countries ideal for opening a company more closely.

Estonia: innovation and digital economy

Because of its generally developed technological landscape, and e-solutions in particular, Estonia is featured in the listings of the most innovative countries of the world. The Estonian government offers some unique opportunities, like an e-Residency program, enabling foreign entrepreneurs to register and manage their EU businesses online. Hence, Estonia is especially attractive for those seeking efficient and minimalistic solutions for launching startups, at least in the technology sector. Also, the country offers a transparent tax system with competitive income tax and multiple state supports for innovative projects.

Lithuania: economic openness to market access

In general, the strategic geographical position of Lithuania in the Baltic region and its openness to international trade provide favorable conditions for doing business. Among economic characteristics, one can list the fastest-growing economy in Europe and a great number of financial incentives for investors, among which are tax incentives and research and development grants. Lithuania is famous for its quality education and relatively low costs of doing business, as well, which is appealing for many startups and IT companies.

Ireland: low corporate taxes and international companies

Most of the world-famous technological and financial giants have come to Ireland because of some of the lowest levels of corporate tax in Europe, equal to 12.5%. Very favorable tax conditions, a highly qualified labor market, and developed infrastructure make Ireland a favorite among foreign investors. Being also an essential bridge for US companies seeking to expand into Europe, Ireland is therefore an ideal choice to make big investments and conduct international business.

Czech Republic: central position and industrial development

The particular opportunities for manufacturing and export-oriented business in the Czech Republic stem from its central position in Europe and strong industrial base. The country has a stable economy with low corruption levels. From a business point of view, the country has a healthy business environment with access to a large and solvent domestic market. Relatively low operating costs compared to other developed countries, and good infrastructure, make the country attractive to most types of business.

In Europe, Estonia, Lithuania, Ireland, and the Czech Republic rank as the four most sought-after countries for foreigners to set up a business. Each of them offers different economic and strategic advantages—low taxes, innovation in high degree, access to international markets, and a friendly business climate. Which country to choose would, of course, depend on your specific goals and needs.

Open a branch in Europe

The international business of Europe is extremely interesting because of the huge economic diversity and great stability, with the economy being really open to innovation. Opening a branch in one of these countries may thus yield a strategic advantage for the company willing to build up its presence and position in Europe. What follows is a look into the key aspects and benefits of opening a branch in Estonia, Lithuania, Ireland, and the Czech Republic.

Estonia: digital technologies and e-government

Opening of the branch here is very tempting for IT companies and startups, as well as for other kinds of business, due to the following advantages:

• E-Residency: Unique program that allows you to manage your business remotely
• Easy registration: The whole process of business registration can be easily made online
• Low taxes: An appealing corporate tax system

Lithuania: dynamically developing economy

Lithuania attracts foreign companies by its dynamically developing economics, especially in manufacturing, technology, and telecommunications industries. Opening a branch in Lithuania opens possibilities to:

• Strategic location: Favorable geographical position for Eastern and Western European market accessibility
• Talent: Well-educated population and developed system of higher education
• Supporting innovation: Government stimuli for research and development activities

Ireland: a Gateway for International Corporations

Ireland represents one of the most appealing places for US companies’ expansion into Europe due to its:

• Low corporate tax: One of the lowest, if not the lowest, rates of corporate tax in Europe is 12.5%
• Professional population: High proportion of young and multilingual professionals
• Investment incentives: Attractive tax incentives and grants referring to the development of business

Czech Republic: Industrial and Logistics Centre

It is also an industrial base and a good logistical opportunity for those firms that want to manufacture and export their products. Key features of opening a branch in the Czech Republic include:

• Central European location: Ready for organizing production and distribution of goods all over Europe
• Developed infrastructure: Good-quality roads, railway, and air routes
• Quality labor force: Technically savvy and multilingual labor is available

As far as opening its branch office in Europe goes, a company may do so in Estonia, Lithuania, Ireland, or the Czech Republic. Each of these countries offers distinct advantages to be tapped into in accordance with specific needs and circumstances. Choosing the right country and realizing the local conditions will hold the key to successful integration and long-term growth in the European market.

Company in Europe with a bank account

During the last years, Europe has become one of the most attractive regions for international business because of its stable economic environment, well-developed infrastructure, and favorable legislation. One of the most important questions concerning company registration in Europe for foreign entrepreneurs will be opening a bank account since, according to the current law, it is a prerequisite for any business activity. In this respect, the following is a detailed overview of the process concerning company registration and opening a bank account in Europe:

Setting up a company in Europe involves opening a bank account, and it is what needs serious preliminary preparation. Some of the key success factors include awareness of local legislation, determination of the right jurisdiction, and full compliance with all regulatory requirements. Professional advice with regard to setting up an enterprise in Europe is strongly recommended for effective international business and tax advice.