European Business Market: Is It a Good Investment Destination?

European Union (EU), the second-largest economy after the US, has become the new investors’ paradise. With a huge nominal GDP of $18.292 trillion and a population of more than 446,834,578, this economic block is like a Launchpad that investors can rely on to catapult their enterprises to success. But before you can make the decision to go into the EU market, it is important to take a closer look at the main benefits to anticipate after taking your business there.

A Brief about the EU Market

The EU is an economic and political bloc consisting of 27 member states that are located mainly in Europe. The primary goal of the EU market is facilitating the free movement of goods, services, capital, and people within the member states. Of the 27 EU members, only 19 are members of the Euro, the largest reserve currency in the globe, and the second most traded currency trailing the US dollar.

The EU economy is made of an internal market that combines economies based on advanced social models and free markets. By early 2020, the GDP of the EU was $18.377 trillion, with main contributors being the service sector (70%) and Industry (24.5%).

The above statistics and its vast geo area point at the huge potential for investment. Whether you intend to invest in tech niche or hospitality services, the market is waiting for you.

Key Benefits of Investing in the EU Market

Since the EU’s creation, its leadership has demonstrated a special commitment to improving the business environment for investors progressively. From the economic and political institutions, the goal is to provide a level playing field and allowing the forces of the market to get into work. Therefore, if you have good products that meet the needs of users in the EU, it is easy to outdo competitors and become the multinational you want. Here are other benefits of the EU market:

• Diverse Investment Opportunities

The different economic policies of the EU have helped to make it one of the best business destinations in the globe. This can be seen from the fact that the EU has become one of the largest importer and exporter of products in the entire globe. EU is a net exporter of commodities such as dairy products, clothing, meat, iron, pharmaceuticals, and machinery, among others. Well, these are areas that you can target and expect your business to grow rapidly.

• Supportive Administration

For the EU, foreign direct investment (FDI) is more than an investment. In addition, it is a way of advancing economic and social growth and development. With this focus, the EU has installed policies that seek to offer investors with a conducive environment for businesses. For example, it has abolished barriers that hindered free trade between the member states. This implies that if you have a manufacturing unit in Germany, it will be pretty easy to sell the products in the neighboring states.

• A Large Market

To grow your business, you need an ample market for your products. With a population of more than 440 million, most enterprises find it ample for their enterprises. But the EU has also signed many bilateral trade agreements with almost all countries around the globe. This implies that once you start producing high-quality products, the market is limitless. Remember that since EU negotiates for these trade agreements as a block, you are sure of getting better preferential treatment abroad.

The EU is one of the most enviable business hubs in the globe today. In addition to being a well-managed and functional unit, the economic block has ample resources and opportunities for all, no matter the area of interest. So, whether you are interested in the hospitality and catering niches or manufacturing industry, the EU will never disappoint

EU Startup Market: What You Need to Know

Do you have a business idea and want to start a venture in Europe? One of the best jurisdictions is the EU. It is one of the best investment hubs in the globe because of its supportive policies and diverse opportunities for startups. Here is everything that you need to know.

Types of Business Formations in Europe

Note that when it comes to the business formation, the EU does not impose requirements for investors wishing to gain presence there. Instead, it leaves that to individual businesses. But the business formations are similar in many respects, and they include:

• Corporate subsidy: This s a company that that is established as part of a bigger well-established company. But even with this connection, the company is considered fully independent.
• Representative Office (RO): A representative office is another common business formation, which is mainly selected when companies want to gather information about the market before making the main decision to move there. Unlike a corporate subsidy, the representative office is not allowed to do profit-oriented operations.
• Branch office (BO): This business formation is like the representative office (RO), but differs slightly in that you are allowed to make money.

The EU Support for Startups

To demonstrate its commitment to helping startups grow and become successful, the EU runs the EU funds that entrepreneurs can apply to overcome the funding challenges. Well, you might also want to check the Startup Europe Club to see the different requirements for the funding.

Another funding for entrepreneurs is the Startup Europe Partnership, which is aimed to helping startups that are seeking to expand their operations. Using the European Investment Project Portal for registration, entrepreneurs can also meet potential investors for their businesses. Other funding opportunities for startups include:

• COSME Program.
• Structural Funds.
• Horizon 2020.
• Digital agenda for Europe.
• EEN Network.

Note that most of these funding entities largely promote enterprises that focus on tech and manufacturing opportunities. So, it is important to check carefully and establish if your business falls in the supported categories.

The Main Requirements for Startups Include

Before you can start running your startup, the first step is to incorporate it in the EU. This will give you the legitimacy to start operations. Remember that the EU does not have a specific guideline that individual countries should follow. However, it encourages the member states to complete the process of incorporation in three working days at a reasonable price. So here are the items that you need to get your startup incorporated and start operating in the EU.

• A statement of your business purpose.
• Corporation name requirements.
• A specification of the permits and licenses that the business needs from different agencies.
• Available resources for business operations. Although not all the countries require you to reveal the money that will be directed at business operations, some do. This is used to help determine if investors have ample cash to support their ventures.
• Hiring locals. Although the EU does not impose restrictions on where you hire the workforce from, some counties have moved ahead and added more requirements before they can start operating. For example, the UK requires businesses should create at least two new job s for UK residents.

This post has demonstrated that the EU market is a unique place for startups to brood their ideas, register businesses in the market, and exploit every available opportunity. If you have funding challenges, make sure to check the funding organizations that we have listed for support. Well, no matter what idea is in your mind, the EU is a great place to implement it and grow it into the big multinational of your dreams.