Registering a business in Europe: where is the most profitable place to open a company and which countries to choose, explained by lawyers from Visit Ukraine

Europe remains one of the most attractive regions for starting your own business thanks to its stable economy, clear rules, and favorable taxation. Find out where it is most profitable to register a company and what the advantages are

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Registering a company in Europe is not only a step towards expanding your geographical reach, but also a strategic investment in stability, prestige, and tax efficiency. The European Union offers entrepreneurs favorable conditions for doing business, a developed legal system, access to a market with more than 450 million consumers, and the opportunity to enter the international arena. However, before opening a company, it is worth considering the legal, tax, and economic characteristics of each country.

Expanding borders: how to start a business in Europe if you are not an EU citizen?

Ranking of European countries by ease of doing business

According to estimates by the World Bank and the European Commission, Denmark, Estonia, Ireland, the Netherlands, and Cyprus remain the most attractive countries for registering companies in the EU.

Denmark — the simplest registration system in the EU

Denmark consistently ranks among the top three countries in the world for ease of doing business. It has a highly transparent taxation system, a high level of legal protection, and an effective digital infrastructure.

Company registration: online in 1–2 days

Minimum share capital: 1 Danish krone (ApS)

Advantages: high reputation, speed of opening, support for innovative projects

Estonia

Estonia is a pioneer of the digital economy in Europe, known for its e-Residency program, which allows entrepreneurs from around the world to open and manage companies remotely.

Registration: 1–3 days

Authorized capital: €2,500 (can be paid later)

Advantages: remote management, favorable income tax (0% until distributed)

Ireland

Ireland is one of the leaders in terms of attractiveness for international investors, especially in the IT, pharmaceutical, and finance sectors.

Corporate tax rate: 12.5%

Registration: 3–5 business days

Minimum capital: from €1

Advantages: Anglo-Saxon legal system, favorable tax agreements, presence of global corporations (Google, Apple, Meta)

Netherlands

The country with the most developed system of international corporate structuring. The Netherlands is often chosen for the creation of holding companies, investment funds, and trading companies.

Registration: 3–7 days

Minimum capital: €0.01 (BV)

Advantages: stable economy, effective tax agreements, prestigious jurisdiction

Cyprus

Cyprus attracts with its combination of moderate tax burden, European status, and convenient location between Europe, the Middle East, and Africa.

Corporate tax: 12.5%

Registration: 5–10 days

Minimum capital: €1,000

Advantages: favorable conditions for non-residents, developed financial sector

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Choosing a corporate structure for your company

European countries offer similar forms of doing business, although the names and requirements may vary.

1. Limited liability company (LLC / GmbH / OÜ / BV)

The most popular form for small and medium-sized businesses. Owners are liable only to the extent of their contribution to the authorized capital.

Example: in Germany, a GmbH requires a minimum capital of €25,000, while in Estonia, it is only €2,500.

2. Joint-stock company (AG / SA / PLC)

Designed for large companies with plans to enter the stock market or attract investment.

Example: in Germany, the authorized capital must be at least €50,000.

3. Branch of a foreign company

Suitable for expanding an existing business without creating a new legal entity.

Opening time: 1–5 days

Advantages: simplified reporting, no need for full corporate registration

💡 Tip: for an IT startup, it is most profitable to register an OÜ in Estonia, and for an international corporation, to create a holding company in the Netherlands.

Where is the best place to open a company in Europe?

The decision on jurisdiction should be made based on business goals:

Ireland and Cyprus are the most attractive options due to low tax rates and a large number of double taxation avoidance agreements.

Estonia and Lithuania are digital ecosystems with e-government, remote registration, and an innovative approach to reporting.

The Netherlands and Luxembourg offer flexible corporate legislation, incentives for multinational companies, and a stable financial infrastructure.

Germany, Austria, and Switzerland guarantee an impeccable business reputation but require higher costs and stricter control procedures.

What to consider before registering a company in the EU?

Registering a business in Europe takes 1 to 10 days, but the choice of jurisdiction should not be based solely on speed. It is worth evaluating:

requirements for authorized capital (from symbolic to €50,000);

tax rates (from 0% in Estonia on undistributed profits to 25% in some EU countries);

the cost of administration and accounting;

accessibility of banking services for non-residents;

legal stability and investor protection.

Professional support from Visit Ukraine specialists — the key to successful registration

Each EU country has its own corporate and tax law features, so entrepreneurs are advised to consult with specialized lawyers and consultants in order to:

- choose the optimal form of company;

- prepare the founding documents;

- assess tax risks and optimization opportunities;

- ensure the opening of a bank account and accounting support.

The professional support of Visit Ukraine lawyers will help you minimize risks, avoid bureaucratic obstacles, and choose the most advantageous jurisdiction for your business.

Not sure which consultation format to choose? Contact our managers via Telegram or WhatsApp – they will help you choose the best option for your situation.

Visit Ukraine is your reliable legal partner abroad!

We remind you! In the previous article, Visit Ukraine lawyers explained how Ukrainian citizens can enter Ukraine in a car with European license plates and what consular assistance is — read more at the link.

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