Success depends on several key factors, among which investors should not overlook the location of their new business. Each country has its own laws for foreign investments, taxes, and tax incentives as well as bureaucratic hurdles. Here are some of the best European countries to start a business in.
Investing in the Netherlands
The Netherlands is well known for its favorable business climate and openness towards foreign entrepreneurs. There are no restrictions or special conditions for foreign direct investment and foreign entrepreneurs (including foreign companies) are allowed to have 100% ownership over a Dutch company.
Tax incentives and investment aid are available in the Netherlands. These include loans, grants, and direct subsidies, typically awarded for R&D projects and those businesses that help create jobs. A special “innovation box regime” (for corporate tax reduction) and a “30 percent ruling” (for hiring foreign employees) apply in the country.
The two most employed business forms in the Netherlands are the BV and the NV company (the private limited liability company and the public company). The main differences between these two include the ability to sell shares and list on the Stock Exchange (only for the NV) and the requirements for a minimum share capital.
Companies incorporated in the Netherlands are taxed on their worldwide income. The corporate income tax rate in the country is 20% on the first 200,000 EUR of taxable profits and 25% on profits that exceed this amount. Foreign businessmen interested in starting companies in the Netherlands are invited to try this Dutch tax calculator in order to find out the taxes they must pay for their businesses in this country.
An expert working at a law firm specialized in corporate matters in the Netherlands can help answer any questions you might have about opening a Dutch company and the special requirements, according to the selected business type.
Opening a business in Ireland
One of the main reasons why start a business in Ireland include a favorable and welcoming business climate, that operates based on a pro-business framework. The country is an attractive location to base the company’s regional European headquarters.
Foreign investors are welcomed and there is no difference in their treatment, compared to local entrepreneurs. Ireland has a low corporate tax, nevertheless, the country also uses a generous research and development incentive scheme. Government incentives are mainly focused on foreign investments that provide high-skilled jobs.
Investors can open a public or a private limited liability company in Ireland, a partnership, sole proprietorship or a branch of a foreign company. The type of business entity is selected according to the available capital, the size of the business, the number of investors and other criteria.
Ireland has a low corporate income tax rate of 12,5% for trading income and 25% for non-trading income. There is no capital duty, no payroll tax, and no net wealth taxes. Ireland has a broad double tax treaty network, allowing for the avoidance of double taxation on income for companies that derive income both from a source in Ireland and from another country.
If you want to establish a business in Ireland, you can talk to a local company incorporation specialist for assistance during the company formation procedure.
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