6 ms·

I looked up once how one starts a business in a few European countries and what taxes are. The processes I found were really expensive, and many companies weren

I looked up once how one starts a business in a few European countries and what taxes are. The processes I found were really expensive, and many companies weren’t allowed to exist except by meeting some pretty weird criteria. Then, taxes were insanely high. There were some business types that I could not figure out how to even met the criteria — you needed to be approved by some council who thought your venture was worthwhile and necessary I remember thinking, “no wonder there are no startups.” But maybe my research was low quality? It really may have been.

DoingIsLearning 4y ago
> But maybe my research was low quality? It really may have been. Creating a company is the smallest of barriers in many countries in the EU27 this can be done in a couple of hours and a few forms and a few hundred euros. In some countries you can even do it online. Now the ability to secure investors funding now that is a much bigger challenge, which is why you end up with European startup incorporating in Delaware, or New York to increase their success rate with US VCs.
- lordnacho 4y ago
  Can confirm having done this in a few countries. Registering isn't the problem, getting the business to fit into the economy is.
seanw444 4y ago
Regulation makes it very hard for startups. And Europe has a lot of those.
- 4ndrewl 4y ago
  Would be interested to hear which ones in particular make it difficult for startups?
  - pvaldes 4y ago
    VAT for example
    - 4ndrewl 4y ago
      That's not really regulation though,is it? It's a tax paid by consumers on some goods and services. Any actual regulations?
      - pvaldes 4y ago
        Everything written in the laws is regulation
mattmanser 4y ago
It was low quality. Setting up a business in the UK, for example, costs £40. There's Estonia e-business registration, which is quite a well known thing for registered a startup in the EU, it costs about €350.
- sparrc 4y ago
  You've referenced by far two of the most innovative countries in Europe. What about all the rest? Is it easy to start a small business in Spain and Italy?
- yasinaydin 4y ago
  There are 2 ways to find a company in Estonia through E-residency: 1- Create it yourself (using your E-residency and various e-services) 2- Use a service provider that handles all the steps. Note that this method may have some limitations. Service providers can be found at marketplace[6] For the method 1, here are the costs: Finding company: - Creating a sole-proprietor company (FIE): 20 euros, one time [1] - or, Creating a limited company (OU): 200 euros, one time [2] Accounting: - Using Estonia's e-financials (yourself): free for first year, 5 euros starting next year [3] - or, using an accounting company. I used to pay once a year hourly rate for end of year taxation (R-Form) ~60euros a year. See marketplace [4] for other accounting companies. Other requirements: - An Estonian contact address is required to find a company. There are companies providing this service in E-residency Marketplace[5]. Last I checked it was from 5euros/month. - An Estonian contact person, if you are not a resident of Estonia. Same E-residency Marketplace[5] has some service providers. [1]: https://www.eesti.ee/en/doing-business/establishing-a-company/doing-business-as-a-sole-proprietor-fie#what-are-the-costs-of-registering-as-a-sole-proprietor https://www.eesti.ee/en/doing-business/establishing-a-compan...? [2]: https://www.eesti.ee/en/doing-business/establishing-a-company/establishing-a-private-limited-company-oue https://www.eesti.ee/en/doing-business/establishing-a-compan... [3]: https://www.rik.ee/en/e-financials/service-fee-0 https://www.rik.ee/en/e-financials/service-fee-0 [4]: https://marketplace.e-resident.gov.ee/?services=19 https://marketplace.e-resident.gov.ee/?services=19 [5]: https://marketplace.e-resident.gov.ee/?services=4 https://marketplace.e-resident.gov.ee/?services=4 [6]: https://marketplace.e-resident.gov.ee/ https://marketplace.e-resident.gov.ee/
- 4y ago
seydor 4y ago
Doing taxes is probably the worst part and off-putting to people who are thinking to be entrepreneurs. Between accounting for differnt levels of VAT, reporting every 3 months etc, it becomes a huge hassle and every mistake is a fine. Regulation mostly reduces profits because of so many rentseekers
Normille 4y ago
>I looked up once how one starts a business in a few European countries and what taxes are. The processes I found were really expensive... In UK [if we're still allowed to count ourselves as part of Europe!] it couldn't be easier... or cheaper: Fill in an online form. Pay your twelve quid [they even take PayPal] and --Hey Presto!-- you're now a company director. https://www.gov.uk/set-up-limited-company https://www.gov.uk/set-up-limited-company

DoingIsLearning 4y ago

> But maybe my research was low quality? It really may have been. Creating a company is the smallest of barriers in many countries in the EU27 this can be done in a couple of hours and a few forms and a few hundred euros. In some countries you can even do it online. Now the ability to secure investors funding now that is a much bigger challenge, which is why you end up with European startup incorporating in Delaware, or New York to increase their success rate with US VCs.

lordnacho 4y ago
Can confirm having done this in a few countries. Registering isn't the problem, getting the business to fit into the economy is.

seanw444 4y ago

Regulation makes it very hard for startups. And Europe has a lot of those.

4ndrewl 4y ago
Would be interested to hear which ones in particular make it difficult for startups?
- pvaldes 4y ago
  VAT for example
  - 4ndrewl 4y ago
    That's not really regulation though,is it? It's a tax paid by consumers on some goods and services. Any actual regulations?
    - pvaldes 4y ago
      Everything written in the laws is regulation

mattmanser 4y ago

It was low quality. Setting up a business in the UK, for example, costs £40. There's Estonia e-business registration, which is quite a well known thing for registered a startup in the EU, it costs about €350.

sparrc 4y ago
You've referenced by far two of the most innovative countries in Europe. What about all the rest? Is it easy to start a small business in Spain and Italy?
yasinaydin 4y ago
There are 2 ways to find a company in Estonia through E-residency: 1- Create it yourself (using your E-residency and various e-services) 2- Use a service provider that handles all the steps. Note that this method may have some limitations. Service providers can be found at marketplace[6] For the method 1, here are the costs: Finding company: - Creating a sole-proprietor company (FIE): 20 euros, one time [1] - or, Creating a limited company (OU): 200 euros, one time [2] Accounting: - Using Estonia's e-financials (yourself): free for first year, 5 euros starting next year [3] - or, using an accounting company. I used to pay once a year hourly rate for end of year taxation (R-Form) ~60euros a year. See marketplace [4] for other accounting companies. Other requirements: - An Estonian contact address is required to find a company. There are companies providing this service in E-residency Marketplace[5]. Last I checked it was from 5euros/month. - An Estonian contact person, if you are not a resident of Estonia. Same E-residency Marketplace[5] has some service providers. [1]: https://www.eesti.ee/en/doing-business/establishing-a-company/doing-business-as-a-sole-proprietor-fie#what-are-the-costs-of-registering-as-a-sole-proprietor https://www.eesti.ee/en/doing-business/establishing-a-compan...? [2]: https://www.eesti.ee/en/doing-business/establishing-a-company/establishing-a-private-limited-company-oue https://www.eesti.ee/en/doing-business/establishing-a-compan... [3]: https://www.rik.ee/en/e-financials/service-fee-0 https://www.rik.ee/en/e-financials/service-fee-0 [4]: https://marketplace.e-resident.gov.ee/?services=19 https://marketplace.e-resident.gov.ee/?services=19 [5]: https://marketplace.e-resident.gov.ee/?services=4 https://marketplace.e-resident.gov.ee/?services=4 [6]: https://marketplace.e-resident.gov.ee/ https://marketplace.e-resident.gov.ee/
4y ago

seydor 4y ago

Doing taxes is probably the worst part and off-putting to people who are thinking to be entrepreneurs. Between accounting for differnt levels of VAT, reporting every 3 months etc, it becomes a huge hassle and every mistake is a fine. Regulation mostly reduces profits because of so many rentseekers

Normille 4y ago

>I looked up once how one starts a business in a few European countries and what taxes are. The processes I found were really expensive... In UK [if we're still allowed to count ourselves as part of Europe!] it couldn't be easier... or cheaper: Fill in an online form. Pay your twelve quid [they even take PayPal] and --Hey Presto!-- you're now a company director. https://www.gov.uk/set-up-limited-company https://www.gov.uk/set-up-limited-company