5 European countries are the best for startups

When it comes to starting a business today, the world is yours. This article covers the benefits of starting a business in Denmark, Romania, Estonia, Sweden, and Lithuania.

Globalization and the rise of digital technologies have made it easier than ever to start a business in a new country. So how do you choose what’s right for your business? With a new report revealing the best European countries, we explore the advantages of the top five countries, from the lowest tax rate and high-growth markets, to government incentives and access to skilled workers.

1 – Denmark:

Denmark is one of the fastest growing countries in the world. “The government is simplifying the construction process in a few simple steps and at minimal cost.

According to the World Bank’s Doing Business report, published in 2019, the country has also benefited from reforms aimed specifically at reducing the cost of corporate tax by lowering the corporate tax rate and lowering capital minimum required.

Thanks to the ease of cross-border trade, the potential European report ranks Denmark first, which the World Bank attributes to the importance placed on online procedures for efficient business management. In Denmark, almost all transactions examined can be carried out online, and the introduction of an online platform allows simultaneous commercial and tax registration.

The flexible labor market, known as “resilience” where companies can easily hire and fire workers, while the unemployed collect unemployment benefits, is also a key part of the favorable business climate in this country. The Danish workforce is one of the most productive in Europe and there are no restrictions on overtime, allowing companies to work 24 hours a day, 365 days a year.

2 – Romania:

Business in Romania is thriving thanks to the booming economy. The economy grew by 5.7% year-on-year in the second quarter of 2017, the fastest rate in the European Union, with an average growth rate of 2.4%. This explains a 4.8% rise in GDP in 2016 and a 3.9% rise in 2015. Over the same period, the UK economy experienced slower growth of 1.8% and 2.2 %.

Romania is a particularly attractive destination for tech startups. The communist heritage that focuses on science, math, and technical education prefers a large group of skilled workers. The country also has one of the fastest broadband internet speeds in the world (behind Singapore, Hong Kong, South Korea and Iceland), which has contributed to the rapid growth of this industry, whose share is expected double GDP to 12% by 2025.

Operating and overhead costs are also low. Commercial real estate, energy and utilities are three to five times cheaper than in Western Europe. There are also tax benefits, including foreign tax exemptions and tax exemption on profits reinvested in equipment.

Romanian businessman Marin Lachimov, founder of 3D Human Development, said the government support program was particularly effective in promoting entrepreneurship. “The government gives a grant of 40,000 euros to Romans living abroad to set up a business in the country,” he said. “It was a good start for entrepreneurs and it helped Romania grow.”

He adds that the growth of companies such as Ford and Dacia in the country has also created more small businesses to support their businesses.

3 – Estonia:

Since Estonia declared internet access a basic right in 2000, it’s no surprise the country has been dubbed ‘E-stonia’. Free public Wi-Fi is widespread in cities, including the capital, Tallinn, which also includes a science and technology park called Tehnopol, which helps support around 180 businesses.

The e-residency program makes it easier to set up a business in Estonia. At the age of 15, Estonian citizens obtain an electronic identity which gives them access to approximately 4,000 online services, including banking, contracts, commercial register and tax services. Last October, the government took steps to allow non-citizens to also access electronic identities.

Taxes are also child’s play in Estonia. According to the Tax Studies Association’s 2014 International Tax Competitiveness Index, Estonia has the most competitive tax system among developed countries. The state does not impose a corporate tax in the traditional sense. Instead, he distributed corporate profits at a capital gain rate of 21%. If the company reinvested its profits in the business, it would have no tax liability. Estonia also provides for full exemption of all income earned abroad under the so-called “regional” tax system.

4 – Sweden:

Sweden offers advantageous taxes. Currently, the country is not only introducing a corporate tax rate of 22%, but also seeking to reduce it to 20.6% by 2021, in a bid to boost business.

The country’s progressive attitude towards social security means that businessmen feel freer to take greater risks, knowing that there is a reliable safety net in case something goes wrong. Generous parental leave allowances allow businessmen to run their businesses while comforting their families. Research shows that stipends encourage entrepreneurship.

Another reason to start a business is Sweden’s transparency in terms of information and data. For decades, it was possible to check anyone’s salary.

Businessman Lars Hammersholt Petersen believes that this openness to sharing information is particularly beneficial for startups. “As the data is available and free, it is easy to target your product or service, especially if it is specialized”, explains the CEO and director of Benchmark IT.

5 – Lithuania:

Lithuania, like its neighbor Estonia, has been at the forefront of tech startups. According to Startup Lithuania, there were at least 320 active tech startups in the country at the end of 2016. From 2006 to 2015, Lithuanian startups raised a total of 165.3 million euros, compared to 103.3 million in Latvia and 280, 6 million in Estonia.

Unsurprisingly, the country is a great place for the tech sector. Startups in Lithuania can reach an impressive array of qualified young graduates. The country, which is the first in the EEC in terms of graduates in mathematics, science and technology for the individual, is able to offer a group of highly qualified professionals in the field of information technology. According to Statista, 97% of Lithuanians of working age (25-64) know at least one foreign language. The country also has the fastest public Wi-Fi network in the world. According to Rotten WiFi, a beta service that rates public WiFi networks based on speed and customer satisfaction, Lithuania leads the competition in average download speeds on WiFi networks. public.

Startups and small businesses also enjoy massive support, with many entrepreneurial events held each year, including Silicon Valley coming to the Baltic with over 1500 attendees, and Jam Jams and hackathons mainly organized by Startup Lithuania.

Finally, Lithuania benefits from its location at the crossroads of four buoyant markets (Western Europe, Scandinavia, Russia and the Commonwealth of Independent States), which is the largest market of all the Baltic countries.