Doing Business in Europe – 5 Things to Consider
Many entrepreneurs want to start their own unique business in Europe, but they are not sure how to start, or where to go for assistance. Many countries in Europe offer a market that will lead to a good profit. There are five important things to consider when deciding where to register your business, and doing business in Europe.
1. Public Debt and Economic Stability
Entrepreneurs want to be sure that they are investing in a country that will not suffer economic distress in the near future. You can run your business smoothly when the economy is stable. Staff will be more committed and you can make long term agreements with business partners if things are predictable.
Public debt will give you a quick indication of how stable a country is, while high levels of debt indicate that some countries may experience problems in the future. This criteria makes countries like Luxembourg and Estonia good investment options. Portugal, like Italy, has a significant amount of public debt.
2. Euro Use and EU Membership
Countries that use the single currency and are EU members are more stable. They allow you to conduct activities throughout the economic zone with less risk. Investment and trade with business partners right across the economic zone are possible when you are doing business in a country within the zone. Finland, Latvia and Estonia are all good options for this reason.
3. Labor Costs
A significant portion of your budget can go towards labor costs if you operate in certain countries. You usually have to spend more on your payroll if you operate a business in Western Europe. You can register the same type of business in Eastern Europe or in Baltic States and spend less on labor.
Businesses which are registered in the Baltic countries can profit from lower labor costs there. This makes Estonia attractive to many investors. If you wish to manage your operating costs well, these countries give you access to a wide customer base and help you to get your business off the ground successfully without spending more than you budget for on labor.
4. Internet Access and Administrative Efficiency
Registering a business takes a long time in some countries, and that may lead to frustration. In fact, it can take weeks in some countries. Entrepreneurs who want to start a business immediately look to countries like Estonia, Latvia, Lithuania which is known for completing business registrations in minutes.
Many people want to be able to run their business from overseas some of the time. Good Internet access throughout the country makes it easy to contact your suppliers, use cameras to monitor your business facilities, and conduct other essential functions.
There are couple countries in Europe where English language is widely used. One of examples is Estonia, where all governmental websites are available in English, moreover, most of laws are officially translated in English.
Doing business in Europe is a good choice for entrepreneurs who want to act within legal frameworks with absolutely transparent rules.