Are these the 5 easiest countries to start a business in Europe?

advertisement

Starting a small business in Europe is not as difficult as many people think. While some countries on the continent may have strict regulations for non-EU nationals, others are very open and welcoming to domestic and foreign investors and businesspeople.

In the wake of COVID-19 and the energy crisis, Europe has stepped up its efforts to support and welcome small and medium-sized enterprises. We currently have a number of financing and support schemes in place for SMEs, including the Single Market Programme, the Connecting Europe Facility (CEF) and Horizon Europe. We also have a number of knowledge tools such as Your Europe Business Portal, Enterprise Europe Network and Erasmus for Young Entrepreneurs.

The EU will be home to 24.4 million SMEs in 2023

according to Statista, As of 2023, there were approximately 24.4 million small and medium-sized enterprises (SMEs) in the European Union, employing nearly 85 million people. These accounted for approximately 99.8% of all businesses operating on the continent and were the core of small regions and towns.

How easy it is to do business in any country means considering several important factors.World Bank Ease of Doing Business index We categorized these into 10 parameters. These include:

• start a business
• Handling construction business permits
• get electricity
• Property registration
• gain trust
• Protection of minority investors
• payment of taxes
• cross-border transactions
• Enforcement of contract
• bankruptcy resolution

While not all countries are the best in all categories listed above, here are some of the easiest countries to start a business in Europe.

Ireland

The Republic of Ireland is one of the most popular choices for starting a business in Europe due to its high income and highly developed digital economy. According to 1Office, smartphone usage has reached 90% and internet access at home has reached 92%, creating a good foundation for businesses with technology and digital products. Enterprise Ireland invests in around 200 start-ups every year, and the country sends a very strong and welcoming message to entrepreneurs around the world.

According to the World Bank’s “Doing Business in the European Union 2020”: Ireland study, Several cities in Ireland rank highly on many of the above parameters. In Cork, companies can sign contracts very quickly and get power smoothly. Dublin isn’t just good at entrepreneurship; he’s also good at two things. Waterford is the most efficient in issuing building permits, while Galway is the best in registering property and starting a business.

Ireland is a member of the European Union, OECD and Eurozone, uses the euro and English is one of its main languages, which are also very attractive factors for European entrepreneurs. This is due to the ease of doing business, the expansion of markets across the EU, and the cost savings of no foreign exchange and translation fees.

Entrepreneurs from the UK, Iceland, Norway, Switzerland and the EU do not need permits or visas to set up shop in Ireland. The country also facilitates remote company formation and registration for non-EU nationals. Additionally, its corporate tax rate is 12.5%, one of the lowest in the world, and it has concluded double taxation treaties with approximately 72 countries.

Bulgaria

Bulgaria is a very popular new business location in Eastern Europe because the bureaucracy involved in setting up a company is relatively low and only takes a few weeks at most. Not only is corporate tax just 10%, but administrative costs are also very low compared to most European countries.

There are no legal restrictions on foreign companies purchasing land in the country, and they only need to pay operational costs after registration. EU entrepreneurs benefit from cheap labor, a highly skilled and multilingual workforce, and a relatively You can also take advantage of a lower cost of living.

Bulgaria’s geopolitical location in southeastern Europe provides convenient access to other established markets such as Greece and Turkey, while also opening opportunities in Serbia and North Macedonia.

Bulgaria also allows remote company registration. However, corruption remains an issue in the country and should be taken into account when considering what type of business to set up and which region of the country to locate.

Netherlands

by world economic forumThe Netherlands is the fifth largest economy within the European Union, with a gross domestic product of approximately $990.6 billion (€918.7 billion) and accounting for approximately 5.96% of the EU economy.

Located in a very convenient location in Western Europe, the Netherlands has a highly international, highly educated and skilled workforce. The Dutch government offers a number of business support schemes and tax incentives for new businesses. At 25.8%, the corporate tax rate is a little higher than other European options, but given the location and market access, many business owners will find it well worth the price.

Incentives include an entrepreneur allowance and a 30% arbitrage. This will allow employers to pay 30% of foreign personnel’s salaries without tax deduction. In addition, the government supports R&D and innovation by reimbursing various costs for companies conducting scientific research and developing innovative new products.

The Netherlands is particularly favored by technologically advanced companies such as robotics and artificial intelligence, as well as retail entrepreneurs.

Sweden

With world-class infrastructure and technology, Sweden ranked second in the 2020 Network Readiness Index. The index measures a country’s digital readiness and the willingness of its citizens, businesses and governments to make the most of available technology. .

advertisement

As such, Sweden is another start-up and business hub for technology entrepreneurs around the world, with a huge number of early adopters of new technologies. Prominent Swedish companies include Ericsson, Astra Zeneca, Volvo and Sandvik, as well as Klarna and Spotify.

Sweden is also Scandinavia’s largest economy and has a thriving construction sector with excellent reach across northern Europe, attracting construction entrepreneurs as well as contributing to the development of a robust infrastructure. . A stable government and low levels of corruption also make the country attractive.

England

According to the British Business Bank, around 360,000 new businesses are set up in the UK every year. Forming a company is also relatively quick, easy and inexpensive, with mail-in applications being processed within 8-10 days and online applications being processed within 24 hours.

The UK has one of the most diverse economies and workforces in Europe and has also taken steps to support businesses during the first few years of low profitability. It also provides end-of-business tax relief on proceeds from the sale of assets.

Additionally, the UK has a strong tax and legal system, with efficient processes and a corporate tax rate of 25% for all limited companies. Today, a third of adults have some advanced degree, and the workforce is highly skilled and adaptable.

advertisement

Entrepreneurs have access to many crowdfunding, venture capital and angel investment opportunities, as well as government grants, funding and advice available through various government departments.