By Shona Hastings, 24.09.2021
Deciding on the best country in Europe to start a business can be a complex task. From market research to the costs and requirements involved, there is a lot to learn before you commit to taking the leap. European countries offer many different advantages in terms of corporate law, business environment, corporate tax, and incentives. Our team has put together a list of the top 5 cost-effective locations which are ideal for doing business in Europe to help you minimize the costs and maximize growth.
Romania has become an international business hub and is considered by many foreign investors as the ideal environment to register a business. Romanian companies benefit from the streamlined incorporation process, low registration costs, and a favorable tax regime. With a moderate cooperate tax rate of just 16% on business profits, it sits lower than OECD averages. Businesses can also benefit from reduced tax rates between 1-3%, if their net profits are less than €1,000,000, making Romania an attractive cost-effective location to register a business. Romania also has a lower income level than some of its EU neighbours, so the cost of business operations is reduced.
Discounted Romanian Company Formation Pricing
- Company Formation: €1,650 ex. VAT
- Bank Account Introduction: €650 ex. VAT
- VAT Registration: €750 ex. VAT
- EORI Registration: €400 ex. VAT
- Registered Office €1,200 ex. VAT per year
Total: €4,650 (1,000 discount) = €3,650EUR ex VAT
Visit our service page for more information on Starting a Business in Romania.
A member of the European Union since 2004, Hungary occupies a strategic location in the heart of Europe. Having ranked 52nd out of 190 countries for ease of doing business in the World Banks Ease of Doing Business Survey in 2020, the country is an attractive location for international business thanks to their highly skilled and educated workforce as well as their open and export-driven economy. For those interested in relocating to Hungary, acquiring a legal residence permit in Hungary is a straightforward and simple process. Hungary is one of the few EU countries that still issue their EU VAT numbers automatically. This, combined with their low corporate tax rate of just 9% and their local business tax of just 0 – 2% (on profits, depending on location) make Hungary an ideal location for any foreign nationals looking for a cost-effective solution or convenient base within Europe.
Discounted Hungarian Company Formation Pricing
- Company Formation: €1,299 ex. VAT,
- Bank Account introduction: €449 ex. VAT
- VAT application: €249 ex. VAT
- Registered Office €900 ex. VAT per year
Total: €2,897 ex VAT
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3. Czech Republic
In the 2020 World Bank Ease of Doing Business Survey, the Czech Republic ranked 41st out of 190 countries worldwide. The Czech Republic is home to several European company headquarters due to a moderate corporate tax rate of 19% and double taxation treaties with various countries around the world. The Czech Republic has substantially lower costs of living compared to other European countries and has a strong reputation for business across Central & Eastern Europe. An attractive research and development allowance incentive available to Czech entities makes this country an attractive cost-effective location within the European Union to set up a company and carry out business.
Discounted Company Formation Pricing Czech Republic
- Company Formation: €1,200 ex. VAT
- Bank Account Introduction: €650 ex. VAT
- VAT Registration: €500 ex. VAT
- Company Registered Address for 1 year (including mail forwarding facilities): €980 ex. VAT
Total: €3,330 ex VAT
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Greece has become a promising location to start a business which is relatively inexpensive. With the low costs of real estate, low labour costs, unrivalled availability of skilled and unskilled workers, and government incentives to promote regional development including grants, interest subsidies & tax allowances it is easy to see why. The corporation tax has been reduced in recent years and currently sits at 22%, except for credit institutions which remain subject to the previous rate of 29%. Greece is an attractive and cost-effective location that should not be ruled out when deciding where you should do business in Europe.
Discounted Greek Company Formation Pricing
- Company Formation including government fees for setting up a standard IKE company: €900 ex. Vat
- Bank Account: €499 ex. Vat – physical meeting required to sign off on the account
- Vat Application: €499 ex. Vat
- Registered Office Address in Athens: €1,650 ex. Vat per annum
Total: €3,000ex VAT
Visit our service page for more information on Starting a Business in Greece.
Lithuania is now one of the fastest growing economies in Europe. It has gained the reputation of being a convenient and inexpensive jurisdiction to register a company and operate a business. The taxes in Lithuania are amongst the lowest in the EU, with the standard tax rate for companies being 5% or 15% of profits and VAT amounting to 21%. Lithuania has also concluded double taxation agreements with many countries around the world. Lithuania ranks in the top 30 countries in the Doing Business Index and ranks in the top 10 countries for Cost Effectiveness and Foreign Direct Investment (FDI) Performance in the Tech Cities of the future (2020/2021 report). The Lithuanian government recently set a goal to attract 225 direct investment projects in various fields by 2025. This goal is supported by government support and attractive financial incentives for R&D and manufacturing activities. The country is currently one of the top 3 EU Member States attracting investment. The government also provides incentives to innovative entrepreneurs looking to make Lithuania their base, through their Start-Up Visa Program, Start-up Employee Visa, and their Workcation Programme.
Lithuania offers many advantages for businesses in terms of, taxation, talent potential, government support, policies, business-friendly regulations as well as a vibrant tech culture.
Discounted Lithuanian Company Formation Pricing
- Company Formation: €1,450 ex. VAT
- Bank Account: €549 ex. VAT
- VAT Registration: €599 ex. VAT.
- Registered Office Address: €800 ex. VAT
Total: €3,398 ex VAT
Visit our service page for more information on Starting a Business in Lithuania.
Should you require any further information to help you determine the best country in Europe to start a business or if you need assistance forming a company, please do not hesitate to contact us today or call +353 (0) 16461627. European Company Formation is easy and straight forward when you work with our expert team.Contact US