How to Start a Small Business in Europe
If you are an EU citizen, you can launch a new business in any country in Europe, which will provide access to a vast marketplace. Yet, you will need to have much more than a good idea to successfully launch a new business. It is crucial to avoid various pitfalls that could potentially close your company before it has officially launched. Find out how to start a small business in Europe.
Choose the Best Country for Your Business
You will undoubtedly want your business to get off to the best possible start, which is why you must choose the right European destination for your new enterprise, as some will offer a more favorable business climate in comparison to others.
For instance, Ireland is a great country to choose, as their government offers a low corporate tax rate of 12.5%, which is why many large corporations have chosen to establish a headquarters in the country, such as Google, Facebook, LinkedIn, and Twitter. Forbes also recently stated that Sweden is the best country for business in the world, as it offers the highest profitability for small businesses, as many reportedly earn 18.2% of revenue as profit.
Seek Funding
There are a number of avenues you can choose to launch your startup company. For example, you could use your personal savings to start your first venture, or you could seek investment from a private investor or bank. However, if you are an EU citizen, consider applying for one of the many EU funds currently available for SMEs and startup businesses, which you can learn more about at the Startup Europe Club.
Adhere to GDPR Requirements
Data management for both small and large companies is set to change, as global data breaches are increasing with each passing year. As a result, your business must be compliant with new legislation to avoid serious penalties, such as hefty fines, compensation claims for damages, and a loss of consumer trust.
The new General Data Protection Regulation (GDPR) will come into effect on 25th May 2018, and every international business must adhere to the new legislation. Unfortunately, many international businesses are seemingly not prepared for the upcoming regulation, as only 45% have a plan in place on how to become GDPR complaint. Sage explains how to be GDPR fit and takes you through the main aspects of the legislation and recent statistics.
Understand Different Laws
It is important to remember that each nation within Europe will have their own laws, in addition to following EU law. It is vital to understand your startup’s legal requirements before you launch your new business. For instance, while some countries may not need a business owner to specify how many jobs they will create, others may need a company to create a select number of jobs before they can operate as a business. Every country will also have individual regulations for company registrations and business permits, and you will have an obligation to register your business with the appropriate local authorities to operate legally.