Estonia, Poland, Germany, Romania: guides to registering a business abroad. Infographics
In April, according to various polls, their number amounted to 83%. Freelancers, medium-sized and large companies are looking for foreign clients, partners, customers, and new sales channels. For this reason, experts from the Estonian governmental program e-Residency, together with Natalia Gaikalova, the founder and CEO of the company providing financial and legal services Finevolution, prepared a guide to business registration in different EU countries.
There are several reasons for choosing Estonia, Poland, Germany, and Romania for the infographics. These are the countries where the Ukrainians have most often registered their branches or representative offices in the past. Apart from that, currently, Poland and Romania have a large number of Ukrainian refugees (as of May 29, about 3.6 million people left for Poland and almost 1 million left for Romania). Most of them migrated together with their IT companies or other businesses. Another argument was frequent requests to financial and tax advisers for company registration in these countries specifically. The main advice on how to register a business in these four countries is in one unified infographic.
“If we look at the main characteristics, it becomes clear why these countries are chosen for business registration. First, VAT is almost the same for everyone: it fluctuates around 20% and, under certain conditions, can be reduced to 10-15%. Secondly, you can register a company anywhere by a personal visit. Considering that people are physically already there, they don’t hesitate to register a business,” comments Natalia Gaikalova.
Timewise, the registration procedure is almost the same everywhere: to obtain a “European residence permit” business requires, on average, three weeks or more. Early March partially retained Ukrainians from the so-called long game.
However, since the end of March and the beginning of April, the number of requests has significantly increased, understanding that Ukraine’s economy would still require time to recover properly, even if the victory were to come tomorrow. Some countries were also willing to compromise with Ukrainian entrepreneurs by simplifying or speeding up registration procedures and opening bank accounts.
“To help Ukrainians during this challenging period, we decided to reimburse the registration fee to entrepreneurs from Ukraine. Earlier, when registering e-Residency, you had to pay a state fee of 130 euros. This sum can now be refunded. This adds to the fact that entrepreneurs do not need to show the authorised capital immediately. 2,500 euros can be paid over the next few years and 0% tax if the funds are reinvested,” says Lauri Haav, CEO of e-Residency.
Every business is looking for its niche and favourable conditions. And the most important thing today is that this process does not stop as the business front strives to withstand despite everything.