You must have already researched the prospects of starting your business in Europe. You are doing the right thing since Europe will give you access to huge markets. Moreover, the sophisticated structure is an excellent way to expand and proliferate. Furthermore, you also stand to get solid legal protection and an outstanding workforce.
It is the second-largest economy in the whole world as well. Among many top nations, Europe rank for ease of doing business. More and more investors are looking for viable options to head there are start your venture. If you are one of them, you are right on track. Here’s what you should know while on a mission to dominate your market in the Peninsula of Peninsulas.
Set-up Basics
Different laws govern different countries in Europe. However, there is one shared rule: foreigners do not need any work permit or other visa to set up shop. You only need a residency permit to set up your business. The permit is a temporary one, initially.
However, after a few years, and depending on the progress of your venture, you can obtain a long-term residency permit. There are some best places in Europe to reside in. They include Sweden, Denmark, and Ireland, to name a few. However, to qualify for the residency and permit, you need to submit a business plan first.
You can set up a business with different structures. They include sole proprietorship, partnership, LLC, or foreign company. The countries in the European Union will examine if your business contributes to the economy in any manner. Then, you stand a chance to get all approvals.
Some countries also require you to have a certain amount of money for investment and your expenses. Some countries also need the business owner to be a part of any chamber of commerce there. These are a few basics that you should know about before venturing to Europe.
Place of Operation & Taxation
Choosing the right place for business is a must stay in the game. It has been seen that many business owners look towards a property purchase. It is a tiny and independent city-state on the France border. You will find the space all occupied by yacht companies, casinos, and motor kart racing tracks.
The main reason investors and business people are looking for a place there are the tax regulations. Besides this, the European country offers advanced financial services along with incredible political stability and infrastructure. The country provides zero income tax. It also imposes low-tax structures for individuals, as well as foreign businesses.
Although taxation norms differ from one country to another, there is some good news. The European Union is looking towards the various proposals and facets to unify taxation schemes. You can expect the same to take fruition in 2023. This ensures that governments in the EU do not compete in the business sphere by offering lower taxes for businesses. “Business in Europe: Framework for Income Taxation” is underway. The authorities believe that such a tax norm will positively impact cross-border trade and commerce.
No wonder it’s the most attractive region for global businesspersons. You may discover a wide range of commercial properties on sale and rent. Although it is not an official part of France, it shares bilateral agreements. Directives that impact France also impact Monaco, though practically. There is no specific law that prohibits foreigners from buying properties in the EU.
However, certain companies have particular rules and regulations regarding residency and buyer categories. France, Germany, and Italy allow foreigners to buy property. They have the same rights as local citizens. It is always viable to register the property in the company’s name rather than the individual.
Corruption
There will be corruption in every country. However, you will be pleased to know that Europe has a lower incidence of this. Some are affected moderately. However, the authorities are not leaving any stone unturned to wipe it out. Many legislative initiatives are underway on the same. The Anti-Corruption team has taken money laundering seriously; the legal format is solid, too.
Freezing and confiscation of proceeds of crime, the 5th Anti-money laundering Directive, are among the top directives the EU has formed to stop organized crime and offences. European Commission also publishes an annual report on the fight against anti-national activities, apart from tackling the pandemic with full force.
Anyone can contact the European Anti-Fraud Office to investigate cases in this arena; you can contact the office anonymously, as well. There have been instances of financial recoveries and punishment for defaulting individuals.
That’s what you must be aware of while planning to establish a successful business venture in Europe. Although Europe makes the ideal place to make money, it’s suggested to do thorough research depending on your industry.
