European countries are the hub for all kinds of business opportunities spanning several sectors. Companies of all shapes and sizes can benefit from established legal frameworks, developed infrastructure, company guidelines, and advanced taxation and financial systems. With all this said, it’s a no-brainer to launch your own brand in Europe, especially as you can benefit from the lucrative European market.
What’s more, European countries have a wealthier consumer base who are willing to shell out more on quality products and services when compared to other consumer markets. With the right knowledge and expertise behind you, you’ll quickly get on the journey to establishing and running a successful operation in one of the European countries. Here are just some things you need to know before going any further.
Pick the Right Location
If your heart is set on opening a company in Europe, you need to make sure you choose a location that’s going to provide the most success. You need to establish where your potential audience base and suppliers are. Doing so will help you grow your company faster and ensure you’ve made the right decision.
Now is the time to start researching different European countries so you can learn more about their market dynamics. This will help you understand where your potential customers are. Some of the most sought-after European countries to set up base include Denmark, UK, Finland, and Sweden.
Choose the Right Corporate Structure
In Europe, foreign investors can pick an array of business entities or corporate structures to launch a business. The first of these is corporate subsidies. If you’re willing to start and grow as a startup, you can pick the option of corporate subsidies for your business structure. This option gives you the freedom to grow and expand at your own pace and leisure. For those who want to spread the word about their established business, you may prefer to set up a representative office first. However, this business entity means you can’t carry out business transactions on behalf of your organisation.
Another option is to set up a branch office of your parent company in Europe. This tends to be a relatively cheaper option, especially if you’re running your company independently to make profits. There aren’t any restrictions regarding business transactions too.
Open a Bank Account
If there is one thing you’re going to need and make lots of when running a business in Europe, it’s money! You need to figure out your business finances from the start. Doing so will ensure you’ve got the funds to turn your business idea into a successful reality. Therefore, one of the first things you need to do is open a business bank account.
While you should be allowed to start a European business bank account even if you aren’t an EU resident, you may need to visit a high street bank in person with documentation to be accepted. Thankfully, there are easier options out there. Take Silverbird for example who have a guide on how to open a UK business bank account for non-residents. They explain who can start a European bank account, challenges you may face along the way, and alternative options to look into.
Register Your Business
Practically every European country follows a similar company registration process. This normally takes between 1 and 2 weeks depending on where you plan to set up your company, as well as what your business niche is. Make sure to pick a unique name for your business that represents what you. Also, you will need a special permit and license for specific activities. This will depend upon where your company is located.
Almost every European country also shares a common regulation for foreign investors. This is because they do not need a work permit or any other kind of visa to set up a business. Instead, they require a country-specific residency permit where they want to launch their brand.
Gather Documents Together
When fine-tuning your operation and getting it ready and raring to go, you’ll need to submit relevant documents and paperwork to get approved under the company’s rules and guidelines in different countries. Some of the common documents you’ll need include passport copies, bank reference letters, and certificates of incorporation.
Other paperwork you will need includes a description of the purpose and scope of your business, a copy of your business plan, and lease contracts of the country address. It’s your job to get these in order and prepared before going any further.
The process from thinking of a business venture to actually launching it in Europe is going to be time-consuming and complex. Because of this, it’s vital that you know exactly what you’re getting yourself into. Once you pick the right location, understand the rules and regulations, and have the right documents to hand over, it won’t be long before you officially launch your business and go on to achieve the success you’ve envisaged from the start.
