Starting a Business in Europe as a Foreigner
Find out more about doing business in the British Isles. First, these rates are difficult to compare because of the different tax methods in different countries. In most countries, corporate tax is a flat tax that applies to all registered companies. In other cases, the tax rate is a combination of a national tax and a regional or local tax. In the end, a company in Berlin pays less corporate tax than a company in Munich. This is the case, for example, in Germany and Italy, where federal corporate tax is relatively low. If we add up all corporate taxes, these countries are among the countries with the highest corporate taxes in Europe. Branches are convenient options for those who want to expand the existing business into the new market. Note, however, that branches do not confer legal status on the company in most European countries. With a branch, after appointing a local manager, you can continue the activity as in the parent company. Minimum investment: There is no minimum investment for the business itself, but the applicant must provide the necessary resources to execute a business plan of an innovative and scalable business. In addition, he/she must have at least €130 per month to live in Estonia.
In Norway, anyone engaged in commercial activity must pay a tax advance. For foreigners, the general tax is 25%, which can be reduced to 17% under certain conditions. National information on expanding your business to another EU country. This „economic region“ includes the entire English-speaking part of Europe: England, Scotland, Wales, Ireland and Northern Ireland. Also included are some small connected islands such as the Channel Islands and the Isle of Man. As a country famous for its well-being, it may be surprising to know that Sweden is also one of the easiest countries in the world to start a business. While taxes can be a burden, the low bureaucracy and high degree of digitization of offices make life easier. Some countries do not specify the number of jobs your company must create to work, while others require a certain number of jobs. For example, the UK requires two new full-time jobs to be created for UK residents or citizens by your company.
Minimum investment: There is no set minimum investment, but the applicant must have the means to support themselves and the resources to execute the business plan. The Netherlands could easily be seen as „the new Britain“ after Brexit. With the highest proportion of non-native speakers in the EU and a slight touch of business regulation, the Netherlands is an easy place for many businesses to set up. This has strengthened Amsterdam`s already thriving technology sector as well as its financial credentials. High educational standards and high connectivity are the hallmarks of the Netherlands, with strong international rail connections, the Amsterdam Airport Schiphol power plant and a highly developed internet infrastructure. And while it has some weaknesses – an aging population and relatively small size – most of them are easily erased by the benefits of the Schengen area. For more information, check out our in-depth article on setting up a business in the Netherlands. Whether a country is business-friendly is not determined solely by government policies and tax levels. This is entrepreneurship, which some countries and regions seem to have more than others.
Again, this depends a lot on the specific industry, but it is possible to get a rough idea of which regions are more entrepreneurial and open to innovation and change. Some countries require you to prove that a certain amount of money is available to fund your startup. For example, if you want to set up a business in the UK (before Brexit), you need to have at least £50,000 to invest in your business, as well as additional funds (£200,000) to support yourself and your family until your business is profitable. The laws of most European countries also require that you have equal control or ownership in your business (in the case of a partnership), that you are involved full-time, and that you cannot apply for public assistance or hold a job while running your business. If you recruit someone from the EU, you must comply with the minimum requirements for the Staff Regulations of EU officials. You can offer employees full-time, part-time, fixed-term or fixed-term employment contracts. When hiring, you must inform employees in writing of the terms and conditions of employment between the day before and up to two months after the start of employment (depending on the country). Your recruitment process must comply with non-discriminatory EU rules. All workers must be over 15 years old (age limit depends on the country) – those between the ages of 15 and 18 are allowed to work up to 8 hours a day and 40 hours a week. You also have obligations if you lay off a large number of employees (depending on the size of the company), which is considered a collective dismissal. YeYe Agency can help you find and hire the right professionals for your business throughout the process.
However, the EU is strict about the type of regional aid a country can provide: EU state aid rules prohibit subsidies to private parties at a level that would restrict free competition. During COVID, all member states have increased their social programs to support businesses with high subsidies to cover workers` allowances, tax deductions and more. The Czech Republic also has an interest-free loan of up to 15 million. CZK for small and medium-sized enterprises that have lost their contract. The limited liability company is preferred for small and medium-sized businesses. The minimum capital requirement is symbolic – 1 CZK. The owner must have at least one partner and at least one licensed director, who may be a foreign citizen. In order to determine whether your residence permit application is actually made with the intention of starting a business, the national and economic interests of each country are taken into account, among other factors. Unless your self-employed or commercial activity is likely to make a significant contribution to the economy, culture and/or science of your chosen destination, your business proposal is unlikely to be approved and you will receive a residence permit.
In order to obtain a residence permit for the purpose of starting a business, some countries require a business plan, which is then reviewed by labor and immigration authorities to determine whether it meets the country`s economic needs. Essentially, your business plan should show that you will make investments and provide the necessary services in the country you are interested in. But remember that what makes London, Paris and Frankfurt attractive to large European companies is not necessarily so important to small businesses or start-ups. It is very important to determine the needs of your business or business start-up before relying on any of the surveys and studies mentioned in this article. The France, Europe`s third largest economy and the most visited country, is an increasingly attractive destination for companies. A series of reforms by President Emmanuel Macron have extended opening hours, simplified the process of removing underperforming employees, and made it easier for small businesses to grow and seek investment, contributing to a thriving economy.