Where in Europe is it most profitable to open a company: countries, taxes, and registration conditions

Registering a company in Europe opens up new opportunities for business. Find out which countries offer the most favorable conditions, taxes, and fast company registration

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Registering a company in Europe has become one of the key tools for entrepreneurs seeking to scale their business, gain access to international markets, and take advantage of a favorable tax environment. When choosing a country, it is important to consider not only the size of taxes, but also the requirements for corporate structure, registration deadlines, minimum authorized capital, and the level of investor protection.

According to research by the World Bank and the European Commission, a number of EU countries are considered the most attractive for starting a business.

Remember that registering a company abroad can be a challenge without experience and knowledge of the law. Our lawyers will help you launch your business quickly and safely, taking into account all the legal nuances of foreign laws.

Ranking of countries by ease of doing business

● Denmark. It stands out for its transparent taxation system and ease of company registration. You can set up a company online in 1-2 days, and the minimum authorized capital for an ApS is only 1 Danish krone. The country is also known for its high level of investor protection.

● Estonia. One of the most popular jurisdictions for IT companies thanks to the e-Residency program, which allows foreigners to start a business completely remotely. Registration takes 1-3 days, the minimum capital for an OÜ is €2,500 (payment can be deferred).

● Ireland. Offers one of the lowest corporate tax rates in the EU — 12.5%. The Anglo-Saxon legal system makes it understandable for international investors. A company can be registered in 3-5 days, and the minimum authorized capital is symbolic — from €1.

● The Netherlands. A center for international holding and trading companies. The country has an extensive network of tax treaties that reduce double taxation. BV registration takes 3-7 days, and the minimum capital is €0.01.

● Cyprus. Attracts entrepreneurs with a combination of loyal taxation (12.5%), EU membership, and convenient banking infrastructure. Company registration takes 5 to 10 days, and the minimum capital for a private limited liability company is €1,000.

Where is the most profitable place to open a company depending on your business goals

If the key factors in your business are:

● Tax minimization and international agreements – Ireland and Cyprus are the best choices.

● Technological projects – Estonia and Lithuania create favorable conditions for digital business.

● Holding companies and trade — the Netherlands and Luxembourg are considered optimal.

● Stability and high reputation — Germany, Austria, and Switzerland are most often chosen for this (despite the fact that it is not part of the EU).

When choosing a jurisdiction, it is worth considering the registration time (from 1 to 10 days), minimum capital (from a symbolic €1 to tens of thousands of euros), the level of bureaucracy, and the availability of skilled labor.

Read also: How to open a foreign bank account for a Ukrainian business — step-by-step instructions and tips

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Choosing a corporate structure

When entering the European market, it is also important to choose the right legal form:

● Limited liability company (LLC / GmbH / OÜ / BV). The most common form for small and medium-sized businesses. The liability of the participants is limited to the amount of their contribution to the authorized capital. For example, a GmbH in Germany requires a minimum capital of €25,000.

● Joint stock company (AG / SA / PLC). An option for large companies planning to attract investment. Requires substantial authorized capital: in Germany — from €50,000.

● Branch of a foreign company. Allows you to expand the activities of an existing business without creating a separate legal entity. Depending on the country, it takes 1-5 days to open.

Why should you consult lawyers when registering a business in Europe?

European markets offer significant opportunities for Ukrainian entrepreneurs, but at the same time, each country has unique requirements. The wrong choice of structure or jurisdiction can lead to additional taxes or restrictions. That is why many business owners turn to professional consultants.

If you are planning to open a company abroad, relocate your business from Ukraine, or get advice on optimizing your existing business, Visit Ukraine lawyers will help you choose the right jurisdiction, accompany the registration process, and provide comprehensive support. This allows you to avoid risks and focus on business development rather than bureaucracy.

We remind you! Ukrainian entrepreneurs are actively developing their businesses in Europe, gradually shifting their focus from the Ukrainian diaspora to local customers. Read more about how Ukrainian companies are adapting to new conditions and strengthening their positions in the international arena in our previous article.

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