‘Euronews Business’ reveals where in Europe it is easier to face the challenge of creating a company.
Create a small or medium-sized business, SME, in Europe It doesn’t have to be as daunting as most people think. Although some countries on the continent may have stricter rules that may be difficult for citizens outside the European Union (EU), others are very open and welcome national and foreign investors and entrepreneurs.
Following COVID-19 and the impact of the energy crisis, Europe has done more to support and embrace SMEs. It currently has a series of financing and support plans for these companies, such as Single Market Programme, the Connecting Europe Facility (CEF) and Horizon Europe. It also has a series of knowledge tools, such as the Your Europe business portal, the ‘Enterprise Europe Network’ and the Erasmus for young entrepreneurs.
The EU will have 24.4 million SMEs in 2023
According to StatesmanIn 2023, the European Union had 24.4 million SMEs employing almost 85 million people. They made up around 99.8% of all operating businesses on the continent, and were the backbone of smaller regions and cities.
The ease of doing business in any country involves taking into account some key factors. He index The World Bank’s ‘Ease of Doing Business’ classifies them into 10 parameters:
- Create a company
- Process construction permits
- Get electricity
- Register property
- Get credits
- Protect minority investors
- Pay taxes
- Trade cross-border
- Execute contracts
- Resolve insolvencies
Although not all countries are the best in each of the categories listed, here are some of the easiest in Europe to create a company:
Ireland
The Republic of Ireland is one of the most popular options to create a company in Europe, because it is a high-income and highly digitally developed economy. According to 1Office, smartphone usage has reached 90%, and home Internet access is also close to 92%, establishing a good foundation for companies with technological and digital products. With Enterprise Ireland investing in around 200 startups each year, the country sends a very strong and welcoming message to entrepreneurs from all over the world.
According to the World Bank study ‘Doing Business in the European Union 2020: Ireland’, several Irish cities occupy prominent positions in many of the parameters mentioned. In Cork, companies can execute contracts very quickly and obtain electricity without problems. Dublin also performs well in these two aspects, as well as in business creation. Waterford is the most efficient at issuing building permits, while Galway is the best at registering property as well as setting up businesses.
The fact that Ireland is a member of the European Union, the OECD and the Eurozone, and the fact that the English is the main languageare also very attractive factors for European businessmen. This is due to the greater ease of doing business, a larger market across the EU and the cost savings of not having to pay exchange or translation fees.
Los businesspeople from the United Kingdom, Iceland, Norway, Switzerland and the EU do not need permits or visas to settle in Ireland. The country also makes it easier for non-EU citizens to create and register companies remotely. It also has one of the lowest corporate tax rates in the world, 12.5%, and a double taxation treaty with 72 countries to date.
Bulgaria
Bulgaria is a very popular business center in Eastern Europe due to the relatively low bureaucracy involved in setting up a company, which only takes a couple of weeks. Administrative costs are also very low, compared to most of Europe, and corporate tax is only 10%.
Foreign companies have no legal restrictions on purchasing land in the country, and only have to pay operating expenses once registered. EU entrepreneurs can also benefit from cheap, highly qualified and multilingual laborand a relatively low cost of living, while still having access to the European single market thanks to Bulgaria being part of the EU.
Bulgaria’s geopolitical situation in southeastern Europe also offers a comfortable access to other consolidated markets such as Greece and Türkiye, while opening up opportunities in Serbia and North Macedonia.
Bulgaria It also allows remote company registration. However, corruption remains a problem in the country, which must be taken into account when considering what type of business to establish and in what part of the country to establish.
Netherlands
According to the World Economic ForumThe Netherlands is the fifth power in the EU, with a gross domestic product of 990.6 billion dollars (918.7 billion euros), which represents around 5.96% of the bloc’s economy.
Located in Western Europe, the Netherlands has an extremely cosmopolitan, highly educated and skilled workforce. The Dutch Government offers a series of support plans and tax incentives for new companies. Although the corporate tax rate is a little higher than other European options (25.8%), many business owners will find it worth it for its location and market access.
ADVERTISINGIncentives include a tax relief for entrepreneurs, as well as a rule that allows employers to pay 30% of the salaries of foreign talent without deducting taxes. In addition, the Government supports research and development, as well as innovation, by reimbursing various costs to companies that carry out scientific research or develop new innovative products.
The Netherlands is especially favored by entrepreneurs with technologically advanced companies, such as those in robotics and artificial intelligenceas well as retail sales.
Sweden
With first-class infrastructure and technology, Sweden has taken second place in the ‘2020 Network Readiness Index‘. This index measures the degree of digital readiness of a country and the willingness of its citizens, companies and Government to make the most of available technology.
As such, Sweden is another startup and business hub for tech entrepreneurs around the world, with a very high number of early adopters of new technologies. Among the most prominent Swedish companies are Ericsson, Astra ZenecaVolvo and Sandvik, as well as Klarna and Spotify, among others.
ADVERTISINGAs Sweden is the largest Scandinavian economy, it also has a thriving construction sector, which attracts entrepreneurs in the sector and contributes to robust infrastructure. A Stable government and low levels of corruption They also contribute to the charm of the country.
United Kingdom
According to the British Business Bank, Every year around 360,000 companies are created in the United Kingdom. Setting them up is relatively quick, easy and cheap: postal applications are processed within eight to ten days and online applications within 24 hours.
With one of the most diverse economies and workforces in Europe, United Kingdom It also has measures to support companies in their early years, when profitability is low. Also offers tax relief at the end of a company’s lifein relation to the income obtained from the sale of assets.
Furthermore, the United Kingdom has a solid tax and legal system, with efficient processes and a type of 25% tax for all limited companies. With a third of adults having some form of higher qualification, the workforce is highly skilled and adaptable.
ADVERTISINGEntrepreneurs also have at their disposal a series of crowdfunding, venture capital and angel investment opportunitiesas well as public grants, funding and advice, through various government departments.
