With increasing global migration, more entrepreneurs are starting businesses abroad in search of new opportunities and financial stability. However, launching a business in a foreign country requires more than just an idea—it demands an understanding of local laws, proper documentation, knowledge of the tax system, and adaptation to market dynamics. Here’s what you need to know to successfully start a business in a new country.
Starting a business in Europe
Starting a Business in the European Union
Before you start your own business, you need to decide which country you want to work in. The fact is that EU countries have some differences in terms of doing business. For example, Estonia has zero tax on reinvested profits, and Poland offers a preferential tax for small businesses (9%). Many countries also offer grants to entrepreneurs.
Main Types of Business Structures in the EU:
- Sole Proprietorship - an individual entrepreneur;
- Limited Liability Company (LLC);
- Branch - a subsidiary. If you already have a business in another country;
- Partnership - a partnership. If you have several co-owners.
Map of countries in the European Union
To register a business abroad, you must apply to the relevant government institutions. For example, in Poland, it's CEIDG, while in the Czech Republic, it's Obchodní rejstřík. Many countries offer pathways for foreign entrepreneurs; some, like Estonia, even have e-residency programs that allow business registration entirely online. In certain cases, legal residents may have the same business registration rights as citizens, making the process more accessible.
The following documents are usually required to register a business in the EU
- Passport or other identification document
- Residence permit;
- Tax number of the country in which you wish to register;
- Legal address of the company;
- Memorandum and Articles of Association, etc;
- Some countries may require additional documents, such as a business plan or proof of financial solvency.
However, the list of documents may vary from country to country.
Read more: The Lifecycle of Business Expansion in the Baltics: Key Stages and Common Pitfalls
How to start a business in non-EU countries
For example, to register a business in Norway, you must have a residence permit that allows you to work in Norway. In addition, businesses operating in Norway through private ownership must have a Norwegian identification number and an organization number to access services from government agencies and other organizations.
There are two types of numbers:
- D-number (temporary number);
- Norwegian national number.
The identification number a foreigner receives depends on the type of residence permit and the length of stay in Norway.
You can register a business in Norway through a separate body called Bronnøysund Register Center. The register provides an organization number, which is necessary for contracts, invoicing, reporting, contacts with Norwegian government agencies, etc. You can apply for an identification number at the same time as registering your business. The tax rate is approximately 22% of the income.
All procedures can be completed online, but it should be noted that most documents are completed in Norwegian. For more information on registering different types of activities, visit the website of your corresponding Embassy in Norway.
Starting a Business in the UK
The UK has a simplified procedure for setting up a company and doing business in its territory. In particular, it takes an average of 12 calendar days to start a business.
What you need to do:
Choose a type of business:
- Sole proprietorship;
- Limited Liability Company (LLC);
- Partnership;
- Branch.
The company is registered through a government agency called Companies House.
Most non-UK residents will also need a visa to conduct business. Among the possible options:
- Startup Visa - for new entrepreneurs, no initial capital required.
- Innovator Visa - for entrepreneurs who plan to invest at least £50,000 in a business. The application fee is £1191.
- Representative of an Overseas Business Visa - for opening a branch of a foreign company. Application fee is £719.
- Global Talent Visa - for leaders in the fields of science, arts, culture and digital technologies. The application fee is £716.
You must also open a business account with a UK bank. The minimum deposit is £1. The tax rate is approximately 19% of income. For more information on starting a business, visit the British government's website.
Read more: How to deal with challenges on the road to overseas expansion?
