This means, among other things, that to register a company in Europe is quick and easy in most EU countries, administrative burdens are low and the attitude of the authorities is strongly supportive.
In addition, businesses have the opportunity to obtain various EU subsidies and resources, which can help them achieve faster growth.
The process to register a company in Europe
The process of the company registration in Europe is simple and transparent, which can typically be divided into the following stages:
- decision on the company name, the form of operation of the company and the activities of the company,
- decision on the members (the members of the company can be both legal entities and natural persons) and the amount of the deposits,
- decision on the person of the managing director, decision on the registered office of the company and the delivery agent (if necessary),
- company formation,
- tax number application,
- bank account opening,
- and the payment of the share capital (or part of the share capital).
At the same time, it is important that the European company formation is not only cost-effective, but can also be carried out remotely without personal presence.
Differences in the practice of the European countries
Register a company in Europe varies to some extent in the EU countries. In some countries, the company is typically set up before a notary (for example, in Germany), in other countries a lawyer registers the company (for example, in Hungary or Italy).
The process of company registration in Europe takes different time, but typically the length of company incorporation in Europe can take at least 1-2 days and maximum 30-60 days.
In Germany, for example, issuing an EU VAT number can be a very slow process and can take up to 6-8 weeks, which in practice can mean until that the company will not be able to issue a VAT-free invoice to another company within the European Union.
Hungary can be a good choice
If you want to register a company in Europe, set your mind on Hungary. Because Hungarian company formation can take place very quickly (even in 1-2 days) and you don’t have to wait for the EU VAT number, because the new company will receive it immediately. Another advantage is that the share capital does not have to be deposited in the company’s account, and can be used immediately.
In addition, Hungary has the lowest corporate tax rate in the EU (9%), which can be a significant competitive advantage.
So if you want to start a company in the European Union, it is worth considering several target countries before making a decision. Because some countries provide much more favourable rules and tax environment for businesses, especially Hungary.