Own business in Europe

Criteria for Evaluating European Countries for the Profitability and Prospects of Foreign Business

When assessing the investment attractiveness of different countries, experts from the World Bank use the Ease of Doing Business Index as an indicator that characterizes a state’s position in the investment attractiveness ranking. Building a profitable business in Europe can be challenging with low rankings; various factors are considered when calculating the ease of doing business:

• Ease of starting and closing a business;
• Minimum investment amount;
• Level of government regulation;
• Investment protection and property rights;
• Accessibility of credit and contract enforcement;
• Convenience of tax and trade systems;
• Visa requirements and availability of business visas;
• Procedure for obtaining construction permits, etc.

Entrepreneurs establishing a profitable business in one of the European countries also consider other parameters that complement the picture, such as the Economic Freedom Index, inflation rates, and infrastructure conditions. Knowing the strengths and weaknesses of national economies makes it easier to plan your own business in Europe and find opportunities to compensate for deficiencies and fill gaps in the structure.

United Kingdom

The United Kingdom likes to appeal to its long-standing entrepreneurial traditions, but building a profitable business from scratch can be challenging. Registering a company requires a substantial initial capital – the minimum amount for registering an individual entrepreneur is significantly higher than in other EU countries; the tax rate is 20%. Up to 80% of enterprises barely break even in their first year of existence, and over half of the companies go out of business within 5 years.
However, the United Kingdom is considered an investment-attractive country, ranking second among 50 countries for startup friendliness and eighth in the Ease of Doing Business Index. When developing your business in England, you can expect government support and access to budget financing. Comfortable conditions for international trade have also been established: over a hundred countries worldwide have signed double taxation avoidance agreements with the UK.

Germany

The high standard of living in Germany is the envy of the world, attracting those who dream of creating the most profitable business in Europe and plan to expand. Registering a company in Germany allows Ukrainian entrepreneurs to open branches in any Schengen country and provides access to many benefits. Startups are exempt from taxes for three years, and the cost of bank loans is one of the lowest in the world: in 2021, the average loan interest rate was only 1.2%.
However, a closer encounter with German bureaucracy can temper enthusiasm: each application for a tax identification number and opening a bank account undergoes thorough scrutiny. In case of any doubts about the applicant’s reliability, you may be denied financial services. To avoid difficulties with registering a business in Germany, it’s recommended to seek support from experienced migration companies that assist in legalizing entrepreneurs.

Lithuania

The Republic of Lithuania delights with a favorable investment climate, preferential loans, and generous state support programs. Ukrainian migrants opening businesses in Lithuania can take out bank loans of up to 3 million EUR for 10 years and open an additional line of credit for working capital of up to 200,000 EUR for 3 years.
Favorable taxation regimes with the ability to carry forward operational losses indefinitely allow for rapid growth of promising startups and attracting investors. The country has one of the lowest corporate income tax rates at 5 or 15%; there are tax preferences for venture funds, holdings, and companies in free economic zones. To support innovative entrepreneurship, a triple deduction for research and development is introduced, and within one enterprise, the transfer of tax losses is possible.

Czech Republic

The Czech Republic is another interesting country for entrepreneurial activity: registering your business in the Czech Republic gives you access to markets in 27 other European states. Entrepreneur status simplifies the process of purchasing real estate and land plots and grants the right to obtain an annual business visa with the possibility of renewal. After five years of regular visa extensions, you can apply for a permanent residence permit, and after ten years, you can obtain citizenship.
Effectively using numerous preferences, foreign citizens create in-demand businesses in Europe with minimal investments. Large corporations and banks regularly hold startup competitions among students and researchers, which foreigners can participate in; companies with foreign capital receive subsidies from the state for creating jobs and improving staff qualifications.

Poland

Poland is one of the few countries that has maintained a trend of stable GDP growth despite economic crises and political instability. According to the Ease of Doing Business Index, Poland ranks first among Central and Eastern European countries and pursues a consistent policy of attracting foreign investments into the economy. The government subsidizes companies that create jobs for Polish citizens and allocates Eurogrants for implementing socially significant projects.
If you register own business in Poland, you won’t be burdened with excessive checks, and low credit and leasing rates free up funds for developing the company and expanding supply geography. Most Ukrainian entrepreneurs are pleased with digitization and reduced bureaucratic burden: with the ePUP digital profile, Ukrainians can register a company online and submit reports electronically. The IT sector and financial services are actively developing in the country; by 2026, Poland will become a global leader in data processing volumes.

Current and Promising Business Directions for Opening Your Own Business in Europe

When considering investment opportunities in European Union countries, it’s difficult to predict which industry will offer the most promising business prospects in Europe. You should search for answers based on your own plans, skills, and capabilities, while also adhering to the rules that define the interactions between market participants.
In EU countries, great importance is given to legal formalities, compliance with technical regulations, and product standardization. As a result, the market behaves more predictably, providing the opportunity for strategic planning and forecasting future trends.

IT

Information technology is a dynamic young industry with relatively low entry barriers, wide scalability opportunities, and tremendous innovation potential. If you want to build your IT business in Europe, consider focusing on central and eastern regions. Leading American corporations are shifting their branches and data centers to Poland and the Czech Republic.
Western investors are attracted by the developed infrastructure of broadband internet and the moderate salary expectations of qualified engineering professionals. The sector is actively supported by governments and venture funds, with startup incubators being established in many cities to facilitate the practical realization of breakthrough ideas.

Tourism

Historical landmarks and recreational resources in the Old World are of great interest to international tourism, but it’s challenging to innovate in the package tour segment. It’s better to develop your own tourism business in Europe in the direction of personalized programs with unique tours, gastronomic experiences, and adventure trips.
The hospitality sector is also experiencing a revival: large companies are investing in turnkey hotel complexes, and it’s time for flexible small businesses to move away from the oversaturated hostel niche. Consider more specific accommodation options as alternatives – boutique hotels, retreats, apartment complexes, glamping sites, historic estates, etc.

Logistics

Close economic ties between European states and developed communication networks maintain a steady demand for transport services. If you have your own fleet of vehicles, confidently open your business in Europe for freight transportation – reliable carrier services are well-paid.
Large logistics projects are subsidized by the government and EU funds; tenders are conducted for the construction of highways, ports, and railways. Mutual integration of the freight transport market, car repair, and warehousing services is one of the most promising directions in the logistics business: equipping key transfer points with automated terminals reduces delivery times and improves cargo safety.

Waste Processing and Recycling

Each year, the amount of waste in EU countries increases by 1.8 million tons, so it’s not an exaggeration to say that the most relevant business in Europe is safe waste disposal. The problem of climate change and environmental pollution has increased investment in the development of “green” technologies, allowing our planet to breathe a sigh of relief. Innovative methods of eco-friendly plastic, textile, and bio-waste disposal, proposed by enthusiasts, form the basis of successful commercial projects with scaling potential.

Healthcare

In the world of innovation, healthcare appears as a stronghold of conservatism, but properly organized and financed medical services bring high profits and guaranteed income. Setting up a medical center to European standards may seem daunting at first, but with an experienced developer, building a private clinic becomes a feasible task. By partnering with Medinvest, you can obtain a high-income medical business in Poland from scratch or under a franchise without risks and additional payments.
Partial participation in the project is limited to a one-time contribution; upon completion, you become a full-fledged owner of a multi-profile clinic with an existing client base, a complete set of equipment, and a team of top-notch specialists. During the transaction, the legal department ensures that your property rights are clear; even the strictest auditor will find nothing to criticize. Implementing a medical project at a high level is not only a profitable long-term investment and a reputation bonus, but also a significant contribution to social infrastructure.

We have made advanced healthcare technologies accessible to a wide audience – the democratic cost of medical services is achieved through increased energy efficiency of buildings and reduced operational costs. A thriving business requires a prosperous living environment and a healthy society: invest in medicine, and success will accompany you!