What to look out for when choosing where to register your company?
If you already set your mind on expanding your business to Europe (or starting there), chances are you already know where to begin with your European expansion. It will never hurt to go over a few details, just to make sure you don’t miss something important when it comes to a European company registration.
Even the most level-headed individuals can be swayed by presumptions and misconceptions regarding certain countries. As one may anticipate, there are many things to take into consideration when selecting the right place for your European expansion. Random articles, reviews, and personal opinions will only get you so far; it is strongly suggested to look at the barriers and opportunities various jurisdictions will give your business, so you are able to make an educated decision.
From venues of financial support to taxation, from having the appropriate language skills to choosing the most suitable commercial property, there are many things to weigh up when selecting the country that suits the needs of your growing enterprise. Interestingly enough, we believe that a company registration in Europe is nowhere near as difficult as you’d think, but it is more time-consuming than most people expect.
Biggest Advantages of Setting up a Business in Europe
Before we proceed any further, it needs to be established that running a business in the EU is prestigious. Clients and potential business partners alike recognize the value of any product and/or service that was certified by an appropriate European organization that oversees business in your industry. One reason for this is the fact that you often require a certain level of substance in each of the jurisdictions within Europe. And substance correlates to commitment.
Additionally, a European company:
- Operates in an environment of utmost stability (both political and economic);
- Thanks to ever evolving legal frameworks, constantly get exposure to improving its product and/or service;
- Has direct access to an advanced banking network;
- Through banking, has access to loans with low interest;
- Avoids double taxation (disclaimer: often, but depends on where the shareholders are tax liable).
Obviously, this list is just the tip of the iceberg. It gives you a good idea why so many entrepreneurs, start-ups, and crypto project seek to take advantage of the online company name registration system in the EU.
Key Factors to Consider When Choosing a Country for Your Business
There are several things that can and will influence your final decision. Down below, we are going to discuss the key factors that will surely affect your final call.
First, there are tax policies and implications. It’s difficult to gain your investors’ interest if the taxation framework is not lucrative at all. You can make as much money as you’d like, but if the majority of it gets sucked up by taxes, your investors are likely to look elsewhere. Worry not: studying key factors such as tax refunds or calculating tax liabilities is not as complicated as it might sound.
Secondly, if your investors are not from overseas: they will be more likely to work within a legal framework they are familiar with. Preferences of your main investors/shareholders/clients and B2B partners might impact your choice in a major way, and you will pretty much have to stop wondering “where can I register my company?” because the decision was already made for you.
Additional Factors to Take into Consideration
Although these factors are not as integral as the two mentioned above (taxation and investor preferences), we still want to list them:
- Residency requirements: Some countries actually require at least one person from the company to be a local resident, which might change the makeup of the company quite dramatically.
- Quality of local workforce: Hiring local workers (if necessary) can be a trying task if the majority are unskilled or don’t speak English.
- Licensing requirements: Paperwork alone might be enough to deter some companies from entering certain territories. Add in varying timeframes and costs associated with complying with local/national requirements, and it makes B2B partners think twice about considering working with you.
- Remote offshore incorporation: There are a handful of countries that offer extra incentives for overseas businesses that select remote incorporation.
Can I pick the right country based on this article alone?
… as you would imagine, even additional factors do not cover even half of what makes a jurisdiction more or less attractive to your specific business. At the end of the day, the question of “where can I register my company?” is way too important to be answered by a non-personalized write-up. You can never go wrong with conducting a little research on your own or outsourcing it to a consultant. After all, the start-up business landscape is more competitive than ever! For this – just hit the contact us from above and leave us your contact details. A professional will get in touch with you and assist you in your though-process.
Purely for educational purposes, we are going to mention a few popular jurisdictions often elected by our clients that seem to fit a certain mold. In no way this can be considered a recommendation, simply a representative selection.
Germany – Efficient, Flexible Banking, and Prestige
Commonly, this nation is seen as one of the most prestigious countries in Europe for incorporation. Furthermore, it has some amazing benefits going for it:
- German corporate law is modern and not rigid
- Prestigious jurisdiction
- Can be tax-efficient to set up your company in Germany compared to other central European countries
- Reduced costs of scaling your business operations up or down
- The process of online company name registration can be done fully remotely
Liechtenstein – Advanced Digital Framework, Low Taxes
A Liechtenstein company finds itself in a striving economy, while most steps of the company establishment process can be done remotely. Property registration is competitively fast and tax-related matters can be handled digitally. Additional benefits are:
- Support for high-tech businesses
- High-skilled workforce
- Low taxes
- Well-thought-out infrastructures on every level (communications, transport, financial services
- Part of the European Economic Area
- Licensing frameworks are very robust
United Kingdom – Fast Setup, Low Taxes on Dividends
People, who are asking “where can I register my company?” rarely consider Great Britains LTD or LLP structures as a valid option. Right, technically not Europe, but still worth it to be on this list. Despite the country’s long-standing reputation for being one of the hardest for foreign investors, you can actually set up your company within a day. Local and non-UK-based lawyers can have the company registered in a few hours. On top of that, there are other benefits to consider:
- No minimal requirements for share capital
- Highly reputable jurisdiction
- Setting up a business can be completed in less than two hours for a rather low cost
- Many tax benefits for investors, founding members, and workers
- 7.5% dividend tax for businesses with revenue less than $65k
Latvia and Lithuania – Easy Registration, Low Costs, Flexibility
People that want the lowest possible costs associated with online company name registration in the EU usually choose between a company in Latvia, incorporating in Lithuania or starting a business in Estonia. There are incredibly lucrative conditions that have been set up in Latvia for non-resident business owners. The benefits include:
- from 0% tax if the profits remain undistributed
- Only one person will be required to set up a company
- More prestigious than similarly low-cost offshore jurisdictions
- Lower maintenance costs
- Reliable economy, flexible corporate laws
Estonia – e-Residency Program, Quick Incorporation, Low Taxes
Starting a company fast online is about Estonia. As one of the most versatile jurisdictions it is suitable for different types of projects. To list a few options are: Online business such as Drop-shipping, Import/Export business, e-Commerce, or even Crypto projects such as ICOs, DeFi projects or NFT Projects. Key advantages include:
- 0% on retained earnings
- e-Residency program allows for quick incorporation
- Cheap and straightforward process
- Prestigious jurisdiction
- Low maintenance costs
In case you wish to get more information on any of the above, get in touch with us to receive a first free consultation to register your company now!