The Process of Setting Up a Company in European Jurisdictions

Any businessman is looking for stability and better conditions for his business activities and often finds them outside their country. Recently, the strategy of tax optimization has become commonplace. European countries have developed more efficient and modern systems for entrepreneurs, attracting businesspeople worldwide. Europe makes it possible to transfer current losses to future periods and cover them when the opportunity arises. A significant advantage of establishing a business in Europe is the opportunity to enter the largest international market of the EU, operating according to agreed rules and using a single currency. In addition, citizens of participating countries enjoy the right of free movement between states, which is convenient for those entrepreneurs who plan to operate in several European countries simultaneously. Below, we will consider the main aspects of establishing companies in Europe.

Our team is dedicated professional experts in licensing and establishing organizations worldwide. We will provide comprehensive support when registering a company in Europe, the USA, Asia, or anywhere else.

Criteria for selection: tax conditions, investment framework, advantages, and limitations

Before opening a business abroad, many factors must be considered. Start by choosing your country. Make sure that it is possible to travel to the country of registration for an extended period or permanent residence. Starting capital will only need to be deposited in some places. Any jurisdiction requires proof of funds. A business registered in a European country is always legal. Many factors support favorable conditions.

1. The company will operate in an economically stable and prestigious country with a high business reputation. Governments in many EU jurisdictions offer various subsidies, and companies in authoritarian states in Europe are not in doubt.
2. Developed a system of government support for business: effective company development programs, tax incentives, grants, and loans on good terms.
3. Although offshore operations are excluded, you can open accounts in European banks, including Swiss ones.
4. It is impossible to evade taxes, but many countries’ tax rates have been reduced to acceptable levels. When considering options, you need to be interested in benefits for new companies, the availability of agreements that exclude double taxation, partnerships, and prospects for developing medium and small businesses.
5. Preference should be given to states with low taxes interested in attracting foreign business people and providing maximum benefits.
6. The company’s prestige will be a real advantage: a European company is more trusted in many countries. The market and partnership with the EU increase your credibility in the international environment.
7. Most countries’ laws provide residence permits and citizenship to persons who successfully develop a business.

The additional benefits that a businessman in the EU receives are listed below.

1. Reducing the tax burden: The fiscal system is usually considered the most crucial factor when looking for a country to open a company. Small and medium-sized businesses benefit from lower tax rates and various government incentives. Thus, in Bulgaria, the corporate income tax is only 10%, so many people consider it for business immigration.
2. Governmental support: The EU provides financing through loans and grants to various projects and programs in education, health, consumer protection, humanitarian aid, etc. Beneficiaries may vary depending on the critical areas of each project and the priorities set by the specific participating country. The funding aims to motivate job creation, develop business competitiveness, stimulate economic growth, and improve citizens’ quality of life.
3. Profitability: The European Union makes a significant contribution to the global economy, being the largest market and leading trading partner for 80 countries. Thanks to this, registering a business in the EU contributes to income growth, given that a company can be founded in one country and, from there, expand its influence throughout the EU.

Steps and procedures for registration: list of required documents and the process of preparing them

Suppose you decide to register a company in Europe. In that case, consider that the procedure for starting a business will differ and have specific features that depend on your chosen country. Remember that when opening a company, you may be required to provide additional documents, but at a minimum, you need to prepare:

• civil passport and its copy, as well as the beneficiary’s foreign passport;
• proof of the beneficiary’s place of residence (for example, a utility bill);
• Proof of solvency is required to open an account with an EU bank.

Registration of a company in the EU has several stages that are common to all European countries. A businessperson who starts a business here must go through the following steps.

1. Selecting the company’s main activity, a suitable form of doing business, and the enterprise’s name.
2. Selection and rental of a legal address in the country chosen by the businessman.
3. Preparation of constituent documents taking into account the requirements of the legislation of a particular EU country. The company’s charter must indicate the company’s name, the form of doing business, the legal address, a list of co-founders and directors with their data, and the amount of the authorized capital.
4. You need to deposit the authorized capital by opening a temporary bank account. The amount varies depending on the country where the decision was made to open a business.
5. Signature of documents by participants. Registering a business in Europe also requires the notarization of these documents.
6. Opening a company in Europe is confirmed by registering in the country’s Trade Register.
7. Opening the company’s main bank account and starting commercial activities.

You must consider several nuances to transfer your business to the international market. You will also need the next item.

1. The company name must be unique and comply with the rules.
2. Business registration documentation in the state of residence is mandatory when opening a company in Europe. The enterprise’s officials should also be indicated.
3. Some legal forms of business require the number of shares to be specified. This applies to companies with joint stock ownership.
4. The enterprise’s format and the authorized capital’s size are important parameters when opening a European business. The format can be different: JSC, LLC, or others. The authorized capital’s size depends on the company’s legal form and the laws of the state where the entrepreneur is registered.
5. It is necessary to provide data on assets and other resources.
6. When opening a business in another country, the company’s goals and confirmation of its positive reputation are mandatory.

After signing the constituent documents, you can begin commercial activities on your new legal entity’s behalf and apply for a residence permit.

When registering a business in Europe, opening a commercial account in one of the European banks becomes necessary. In developed European countries, you are guaranteed the safety of your assets due to the high level of development of the banking system.

Our firm will provide comprehensive advisory and practical assistance in establishing an organization in the EU. We will become your reliable allies on the path of your commercial development. With us, you can be confident in your profitable and long-term future.

The article’s author is Denys Chernyshov – founder and CEO of the globally-famous organization Eternity Law International.