Not only large companies can open a business in another country, in particular in Europe or the UK. Private entrepreneurs and small business owners also have a real chance to work in more favourable conditions. If you are thinking about starting a business in the UK and are looking for a provider of a virtual office in London, this article will surely clear all your doubts.
What Are The Advantages of Registering a Business In Europe And The UK?
A business registered in a European country is always legal. Favourable conditions are supported by many factors.
- The company will operate in an economically stable and prestigious country with a high business reputation. Governments in many EU jurisdictions offer various subsidies. Companies in authoritarian states in Europe are not in doubt;
- Developed system of government support for business: effective company development programs, tax incentives, grants, and loans on good terms;
- The possibility of offshore is excluded, but you can open accounts in reliable banks;
- Tax avoidance is not possible, but the tax rate in many countries has been reduced to acceptable levels.
- When considering options, you need to be interested in benefits for new companies, the availability of agreements that exclude double taxation, partnerships, as well as prospects for the development of medium and small businesses;
- Preference should be given to states with low taxation, interested in the influx of foreign businessmen, providing the maximum number of benefits;
- The prestige of the company will be a real advantage – a European company is more trusted in many countries. The market and partnership with the EU increase your credibility in the international environment.
Which Country Should You Open a Company In?
Registering a legal entity in European countries is quite simple if you know about the pitfalls and subtleties. Below is a list of countries where it is easier and faster to open a business in Europe.
England
It is worth noting that England is not an offshore zone, but at the same time, it provides entrepreneurs with the opportunity to significantly save on taxes on income received outside its territory. Benefits and state support are provided for the development of small and medium-sized businesses.
Why should you choose England?
- You can register a company in the UK online within a few days. To do this, you must provide the necessary package of documents, after which the new company is entered into the register.
- Management is also carried out remotely.
- The possibility of representation (a figurehead), which ensures anonymity, simplifies the opening of an account in a country’s bank and also preserves reputation in the event of failure.
- Lack of exchange controls and strict requirements for the size and contribution of the authorised capital, as well as the composition of the board of directors or shareholders. One person performing their functions is enough.
- When operating outside the country, a non-resident legal entity is not subject to corporate tax. The main rate on the company’s profit is 25%. The standard rate applies to capital gains.
The stable situation in the country, loyal attitude, and government support make the UK a winning option, provided the right type of company is chosen. It is possible to open a company in the UK in two forms: LTD (limited liability company) and LLP (limited liability partnership). There is also the option to launch an LP (limited partnership).
If you have chosen England and are looking for a reliable virtual office service provider in London, we recommend contacting The Hoxton Mix.
Denmark
For a positive decision on an application to open a company in Denmark, the following are assessed:
- the legality of invested funds;
- the prospect of new jobs;
- the applicant’s business potential;
- the applicant’s solvency (the ability to bear the costs of maintaining his own family at a certain level and to meet the expenses of the business before receiving a return).
The country’s legislation provides support for young enterprises and organisations, especially in the areas of shipbuilding and shipping, independent energy supply, IT technologies, biotechnologies, food production, design, and the arts.
Portugal
The legislation provides for various forms of individual entrepreneurship and organisations, as well as flexible and accessible conditions: the amount of authorised capital, the minimum number of documents, and the quick issuance of a visa make Portugal an excellent option for starting or developing your own business. The cost of registration does not exceed 510 euros.
Malta
Business in Malta provides entrepreneurs with profitable opportunities:
- Economic and political stability;
- Licensing in Malta means the free choice of the EU country for doing business, as well as the use of international payment systems;
- No exchange controls;
- VAT – 18%, the lowest in the EU;
- Double taxation is excluded;
Under certain conditions, income tax (35%) can be refunded. Taking this into account, the actual tax amounts range from 0 to 10%. Malta has one of the lowest taxes in the European Union – 18%.
Malta opens up space for entrepreneurs of any direction. The country has well-developed textile industries, shipping, financial systems, and tourism. It is allowed to open casinos and engage in cryptocurrency.
Features of opening a company in Malta:
- Registration lasts no more than two weeks;
- A commission fee is paid, which is calculated in accordance with the form of the organisation and its authorised capital;
- Companies are usually opened in LLC (limited liability company) or partnership format;
- For each form, the size of the authorised capital and the minimum composition of the company are prescribed: two people. The authorised capital must be placed on the account at least in the required amount (20–25%);
- Some goods or types of products will require excise taxes and duties;
- Documents can be sent online.
Wrapping It Up
Launching a business in another country can give you the chance to tailor your products or services to diverse cultural and consumer preferences, which can lead to more successful market penetration. If you have chosen the UK and are looking for a reliable virtual office service provider, we recommend paying attention to The Hoxton Mix.
