The European Union is the second-largest economy in the world in nominal terms after the USA, making it a rather lucrative place to do business.
Before you start launching over to Europe, however, there are a few points to consider when running a business in the EU. This guide has you covered on what you should know before you start. Read on now for the full overview.
English Is Not Widely Spoken Everywhere
In a lot of countries across the European Union, especially in parts of central Europe and Scandinavia, it is easy to get along just by knowing English. With that said, it is wrong to assume that English is widely spoken everywhere. Other languages to either have a solid personal command of or at least have one member of the team speaking, include French, German, Russian and Spanish.
The Difficulty of Registering a Business Depends on the Country You Choose
While access to the EU allows you to do frictionless business with 27 different countries, you will still have to register your business in one of the 27 in order to get started. For one of the most attractive offers around, it might make sense to obtain an e-residency in Estonia. The benefit of this is that you can become a so-called resident without ever really having to step foot in the country, making the barrier to access much lessened compared to the relatively difficult bureaucracies of countries such as Italy, Germany or France.
Personal Interactions Are Key
While in America you can probably expect to get right down to business right away upon meeting a potential business partner, these types of interactions happen at a far slower-pace in Europe. With meetings often happening in otherwise informal atmospheres, such as in a bar or a restaurant, it helps to be more casual and personable if you want to clinch the perfect deal with a potential business partner.
Strict Data and Payment Protection Laws
Across the EU there are a series of important data and payment protection laws that you should adhere to in order to make sure that you are operating within the law. The first is to adhere to the strict GDPR laws which dictate how much personal information of the customer you can store. The second is payment protection laws, which means that you have to have secure verification processes, such as 3D Secure 2.0, in order to facilitate purchases.
The UK Is No Longer A Member
The EU used to have 28 member states until the United Kingdom voted to leave in a closely fought referendum in 2016. This means that the country is run by a different set of rules than the EU, which is something worth bearing in mind when dealing with the continent of Europe’s second biggest economy. One loophole is to set up a business in Northern Ireland, which is still part of the customs union; giving you access to both markets. Just be aware that this special status could easily change.
