To have a business in Europe makes a lot of sense as if forms a huge part of the global economy. Europe boasts a solid infrastructure, advanced financial systems and great legal frameworks. It is amazingly easy to get a business loan or företagslån in Europe. Of the all the world’s countries that are the easiest to do business in, Europe has a staggering 13 countries to add to the list! So, how do you set up a business in the major hubs of Europe?
The corporate structure of your company
If the majority of your future customers are located in a certain country such as Spain, it would only make sense to open your company in Spain. You would then have to establish the corporate structure of the company. In Europe, the easiest way of establishing a company is by forming a private limited company or an LLC. It is easy to set up, far less expensive and requires fewer compliance documents.
Getting your company registered
In order to get your company registered, you have a set of documents to fill out. The application process can take anywhere from one to two weeks, depending what business sector you are situated in. You need to remember that if the application is not submitted correctly or if all the required information is not present, you will be asked to provide additional documentation, thus delaying the registration process. In order to speed up the process and ensure there are no delays, it is a good idea to let a local law firm register the company on your behalf.
Opening a business account in Europe
When opening a bank account in Europe, you need to take into consideration that you might have clients that are situated on other continents. It is, therefore, not uncommon for a business to have an offshore account in order to minimize bank fees. A Single Euro Payment Area or SEPA is a system used to facilitate payments within European countries. These bank accounts have bank fees that are minimal, thus a great idea for a startup European business.
Tax implications for businesses in Europe
A large number of countries in Europe such as Hungary, Bulgaria, Ireland and Cyprus offer corporate tax rates that are very low and can range fromabout 10% to 15%. These tax rates are important for new companies as cash flows when opening new business doors are often not stable and consistent. A lot of European countries such asGermany, UK, Denmark and Belgium do not require an LLC to have a director present at the company so you are free to manage your company from wherever you may find yourself.
If you are come from another continent or a current resident in a European country and wish to open a business in there, you have a huge advantage at your side. With the above-mentioned points to open a business in this thriving country, you can potentially look forward to a fruitful business with a bright future of operated correctly!