How to start a business in Europe - company formation, business bank accounts & accountancy

Europe is the perfect place to start a business. With many of the world’s biggest economies and strongest consumer markets, Europe is full of ideal startup destinations. The wealth of countries close together - and the benefits of the European Union - allow you to grow and expand your business without barriers or borders, and realize your full potential.

Euro Start Entreprises can help you to start a business in 23 countries throughout Europe, including the UK, France, Germany, and the Netherlands. Our network of formation agents, chartered accountants and other business specialists will handle the difficult aspects of starting a company in a foreign language, letting you focus on the things that matter most.

Advantages of starting a business in Europe

Europe is full of prime startup destinations, which you can read about in our guide to the Best Countries in Europe to Start a Business. But what are the other reasons to start a company in Europe? Your new business could benefit from:

Tax breaks for foreign investors
Ample access to talent
Generous R&D funding
Abundance of similar markets
Frictionless trade
Double taxation treaties
EU funding schemes
Robust startup infrastructure
Prominent tech hubs
Highly stable economies

Taxes and accountancy in Europe

Corporate tax and value added tax (VAT) rates differ across Europe, though all EU countries must comply with certain limitations. Corporate tax rates will have a direct impact on your revenue, while VAT mitigates costs for businesses. The average corporate tax rate in European OECD areas is 21.7%, below the global average of 23.54%.

The lowest corporate tax rate in Europe is Hungary at 9%, though Ireland at 12.5% has also become a popular destination for international businesses. Countries with higher rates of corporate tax tend to mitigate this with other benefits, such as a stable economic environment, small business support, strong startup infrastructure, and R&D tax breaks.

The most important thing to know about VAT in Europe is the MOSS VAT system. Under European law, businesses are required to pay VAT in each individual country they sell to. The MOSS VAT system is a one-stop-shop that allows businesses to pay all of their VAT obligations for all countries to the authorities in a single EU country, simplifying the process.

Our network of expert chartered accountants can help you to manage your business finances through the formation process and beyond, including payroll, bookkeeping and VAT returns. To learn more about our chartered accountancy services and ensure your business complies with the unique aspects of European law, get in touch with us today.

Opening a bank account in Europe

Many countries in Europe will require you to open a business bank account in order to start a business, both for share capital and tax payments. This often requires you to attend the bank in person and complete documentation in the local language. Although some banks do allow you to open accounts remotely, this may still require translation.

To open a bank account in Europe, you will usually need:

Business registration documents
Memorandum of Association
Certificate of Incorporation
Articles of association
Registered office address
Business plan (country dependent)

Euro Start Entreprises can help you to open a bank account in Europe. Our local experts will help you complete and present the necessary documentation, a key part of the formation process that takes much of the stress out of starting a European business. This is particularly true in countries such as France, where bank account approval is not a given.

Recruiting employees in Europe

Starting a business in Europe allows you to benefit from freedom of movement. Countries in the Schengen Area allow most European citizens and visitors to travel without a passport, as well as to freely live and work in other member countries. This allows European businesses to source the best talent from across the continent without worrying about visa eligibility.

Some EU countries also have visas for recruiting talent from further afield. Most countries will offer investment visas for business owners, as well as visas for skilled workers in key industries, tech talent, and individuals earning more than a certain threshold. They will usually require your business to sponsor the individual, which may require some paperwork.

The availability of these visas and ease of application will usually depend on the environment in a specific country. In many cases, visas will be made easier to acquire and numbers will be increased when there is a known shortage of local talent. While this may indicate a lot of competition in that country, it can also provide a useful pathway for new hires.

Virtual and serviced offices in Europe

To start a business in Europe, you generally need to provide a registered business address in your country of choice. If you do not actually require physical premises - e.g. if you conduct most of your business online - it may be more equitable to rent virtual or serviced offices, giving you a physical address and access to only the services you require.

Our virtual and serviced offices in Europe can include:

Telephone answering and forwarding, scanned document forwarding and messaging, using your company’s name
Reception facilities
Meeting and conference facilities
Secretarial assistance
Interview and training rooms
Virtual business address

To learn more about our virtual and serviced offices in Europe and the countries we offer them in, visit our Serviced Offices & Virtual Business Addresses page, or get in touch here.

Start your business in Europe today

Starting a business in Europe may be a leap into the unknown, but Euro Start Entreprises is here to support you. Our formation experts have experience and contacts throughout Europe, and can guide you through the formation process in your chosen country, from liaising with the authorities to completing and submitting the required documentation.

To learn more about starting a business in Europe and find the country that’s right for you, visit our Company Formation pages in the menu above. Alternatively, to learn more about the formation process and start your own formation journey, get in touch with our friendly team at Euro Start Entreprises today.