Today, setting up an offshore company has become a quite popular idea. It seems that there, on the other side, the grass is always greener. The regulations are more comfortable, the market is larger and the technology is more accessible.
Still, there are a lot of restrictions - the language, the mentality and the not always present possibility of opening a company if you’re a foreigner.
But how to actually choose a country where your business will surely work out? These are the main criteria:
- ease of registration, including for a foreign entrepreneur;
- amount of taxes and their administration;
- access to finance;
- competitive environment;
- legal protection.
Many of these criteria are measured by the World Bank's Doing Business ranking from year to year.
As a rule, the Scandinavian countries are called the most convenient for doing business in Europe. Nevertheless, the favorable business environment and high financial well-being of the population won’t spare you from the highest costs for doing business there.
Anyone can open a business in Sweden. Non-residents can register a limited liability company (Privat Actiebolag) and an open joint-stock company (Publikt Aktiebolag). Non-residents can also manage a LLC, but at least one of the directors must be a Swede. To carry out managerial activities, a foreigner must have a special work permit (from the National Patentoch Registreringsvercet).
Still, Sweden has very high taxes - about 60%. 32% is the tax of the company, which includes municipal taxes, income tax and social contributions, 25% of the value added tax (VAT) is partially refunded. You’d also have to pay the customs fees if the company works with foreign partners.
The Baltic countries are a good place for new business, being included in the top lists of places that are comfortable for doing business. For example, the quite prosperous and technological Estonia offers non-residents the opportunity to open companies of generally known types: individual entrepreneurship, limited liability partnerships and joint-stock companies .
The Tallinn Department of Entrepreneurship will help anyone draw up a business plan, and get free advice on the preparation of financial aspects and forecasts. Local unemployed, as in Scandinavia, are trained to do business for free.
Non-residents can rely on cash assistance in the amount of up to € 15,000 from the Enterprise Development Fund (EAS). The start-up subsidy is intended for businesses with high development potential, meaning they should be engaged in provision of services for the population or in production. The company that received the start-up subsidy must work for at least 3 years, otherwise the subsidy money will have to be returned.
An interesting and promising choice of business habitat is Austria. The country is not at the forefront of business ratings, but it is popular among young and talented entrepreneurs from around the world who are now actively developing high-tech startups within its borders.
State support for small business in Austria is very strong. You can register a company in the form of an LLC, or GmbH, with a minimum starting capital of € 10,000, of which only € 5,000 must be paid in cash. Non-residents who plan to open a business in Austria are advised for free by a state organization that might help with the choice of activity, organization of office work, taxes, labor law and international trade.
In addition, Austria is a convenient place to conduct business from a geographical point of view, the country being a stronghold for the development of business relations with countries of Eastern and Southeast Europe. This means that many international corporations’ headquarters are located here, like Siemens, Beiersdorf, Hewlett-Packard, Henkel, BMW, Shell, etc.
Got here and still aren’t sure how to set up your own business in one of these countries? Bizonaire is here to help you with that!
Contact us right away and get on with the offshore company formation ASAP!
