These are five European countries where you should start a business

Starting a small or medium-sized company in Europe may not be as daunting as most people think. Although some countries across the continent may have stricter regulations that can be difficult for non-EU citizens, others are very open and welcoming to domestic and foreign investors and entrepreneurs.

After COVID-19 and the impact of the energy crisis, Europe is doing more to support and welcome SMEs. It currently has a number of funding and support programs for SMEs, such as the Single Market Programme, the Connecting Europe Facility (CEF) and Horizon Europe. It also has a number of knowledge tools such as Business Portal Your Europe, Enterprise Europe Network and Erasmus for Young Entrepreneurs.

In 2023, the EU will be home to 24.4 million SMEs

According to ExtraIn 2023, the European Union had about 24.4 million small and medium-sized enterprises (SMEs), employing almost 85 million people. These made up about 99.8% of all operating businesses on the continent and were the backbone of smaller regions and cities.

How easy it is to do business in any country means taking into account several key factors. World Bank Ease of Doing Business index divided them into 10 parameters. These include:

• Starting a business
• Dealing with building permits
• Getting electricity
• Property registration
• Getting credit
• Protection of minority investors
• Paying taxes
• Trading across borders
• Contract enforcement
• Solving insolvency

Although not every country can be the best in all the above categories, here are some of the countries in Europe where it is easy to start a business:

Ireland

The Republic of Ireland is one of the most popular options for starting a business in Europe because it is a high income and highly digitally developed economy. According to 1Office, smartphone usage has reached 90%, while household internet access has also touched 92%, providing a good base for businesses with technology and digital products. With Enterprise Ireland investing in around 200 startups every year, the country is sending a very strong and welcome message to entrepreneurs around the world.

According to the World Bank’s Doing Business in the European Union 2020: Ireland studiesseveral Irish cities rank highly in many of the above parameters. Businesses can enforce contracts very quickly and get electricity smoothly in Cork. Dublin also does well for these two things, as well as business start-ups. Waterford is the most efficient at issuing planning permission, while Galway is the best at registering property and starting a business.

Ireland being a member of the European Union, the OECD and the Eurozone, as well as the use of the Euro and English as one of the main languages, are also very attractive factors for European entrepreneurs. This is due to the ease of doing business, a larger market across the EU and cost savings in terms of zero exchange or translation fees.

Entrepreneurs from the UK, Iceland, Norway, Switzerland and the EU do not need any permits or visas to set up business in Ireland. The country also facilitates remote company incorporation and registration for non-EU citizens. It also has one of the lowest corporate tax rates in the world at 12.5% ​​and so far has double tax treaties with around 72 countries.

Bulgaria

Bulgaria is a very popular new business center in Eastern Europe due to the relatively low bureaucracy involved in setting up a company, which only takes a few weeks. Administrative costs are also very low compared to most of Europe, as well as corporate tax being only 10%.

Foreign companies have no legal restrictions on buying land in the country and only have to pay operating costs after registration. EU entrepreneurs can also take advantage of cheap labour, a highly skilled and multilingual workforce and a relatively low cost of living, while still having access to the European single market as Bulgaria is part of the EU.

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

Bulgaria also allows remote company registration. However, corruption still remains an issue in the country that needs to be taken into account when considering what type of business to start and in which part of the country to base it.

Netherlands

According to World Economic ForumThe Netherlands is the fifth largest economy in the European Union, with a gross domestic product of approximately US$990.6 billion (€918.7 billion), representing approximately 5.96% of the EU economy.

The Netherlands is very conveniently located in Western Europe and has an extremely cosmopolitan, highly educated and skilled workforce. The Dutch government provides a number of business support programs and tax incentives to new businesses. While the corporate tax rate is slightly higher than some other European options at 25.8%, for many business owners it could be worth the price given the location and access to the market.

Incentives include an entrepreneur allowance as well as 30% of the decision. This allows employers to pay 30% of the salaries of foreign talent tax-free. In addition, the government supports research and development as well as innovation by, among other things, reimbursing various costs to companies conducting scientific research or developing new innovative products.

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

Sweden

With top-notch infrastructure and technology, Sweden ranked second in the Network Readiness Index 2020. This index measures how ready a country is for digital broadcasting and how willing a country’s people, businesses and government are to take full advantage of available technologies. .

As such, Sweden is another start-up and business hub for tech entrepreneurs worldwide, with a very high number of early adopters of new technologies. Notable Swedish companies include Ericsson, Astra Zeneca, Volvo and Sandvik, as well as Klarna and Spotify, among others.

Sweden is also the largest Scandinavian economy and also has a thriving construction sector with an excellent reach across Northern Europe, which also attracts construction entrepreneurs and contributes to a strong infrastructure. A stable government and a low level of corruption also add to the charm of the country.

United Kingdom

According to the British Business Bank, around 360,000 new businesses are set up in the UK each year. Incorporating a company is also relatively quick, easy and cheap, with postal applications processed within eight to 10 days and online applications within 24 hours.

With one of the most diverse economies and workforces in Europe, the UK also has measures in place to support businesses in the first few years when profitability is low. It also provides tax relief at the end of business life in respect of proceeds from the sale of assets.

In addition, the UK has a strong tax and legal system with efficient processes and a corporation tax rate of 25% for all limited companies. With a third of adults now having some form of higher education, the workforce is highly skilled and adaptable.

There are also a number of crowdfunding, venture capital and angel investment opportunities available to entrepreneurs, as well as government grants, funding and advice through various government departments.