Starting a business
If you would like to start a new company, it's important to understand the relevant EU rules and procedures as well as the funding and resources available to help you.
What can you do?
As an EU citizen you are entitled to:
- set up your own business (even as a sole trader) in any EU country, Iceland, Norway or Liechtenstein
- set up a subsidiary branch of an existing EU-based business that is already registered in one EU country
Requirements
The requirements vary depending on the country. However, the EU encourages all countries to meet certain targets for helping to set up new companies. This includes:
- setting up in no more than 3 working days
- costing less than EUR 100
- completing all procedures through a single administrative body
- completing all registration formalities online
Common legal forms of business in the EU
Depending on the country, you may be able to choose from several legal structures. Each has different rules on liability, taxes, setup costs, and ownership. Here's a quick overview:
General business structures
- Sole proprietor (sole trader) A business owned and operated by one person. You keep all the profits, but you're personally responsible for any debts or legal issues. This is the easiest and cheapest type of business to set up.
- Limited Liability Company (LLC / Ltd / SARL / GmbH / Srl etc.) A legally separate business entity. Your personal assets are protected from business debts and liabilities. A minimum capital contribution and formal registration are generally required.
- Partnership A business shared between two or more people in which the general partners share both management responsibilities and liability.
- Cooperative A business owned and run jointly by its members, who share profits and decision-making. Often used in sectors like agriculture, services, retail, and housing.
EU-specific business structures
- European Cooperative Society (SCE) An EU-wide legal form for cooperatives operating in multiple EU countries. It allows cooperatives to merge, operate, or move across borders under a unified legal framework.
- European Company (SE) An EU legal form for large public limited liability companies operating across the EU. It simplifies cross-border operations and allows a common structure throughout multiple EU countries.
- European Economic Interest Grouping (EEIG) An EU legal structure that lets members from different countries work together on economic activities by sharing resources or skills, without losing their independence. Members can be companies, organisations, or individuals, but at least two must come from different EU countries.
Warning
Legal forms may go by different names in each country — and the rules, taxes, and capital requirements vary. Always check national rules before registering your business.
Registering your business and getting permits
Once you have chosen a legal structure and are ready to start operating, you will usually need to register your business and, in some cases, apply for specific permits or licences.
Points of Single Contact (PSC) have been set up in each EU country to help streamline procedures such as registering a new company and obtaining any necessary permits or licences. Although PSCs focus mainly on companies that provide services, some of what they offer also apply to other types of companies. In addition, some PSCs are part of e-government portals that cater to all companies.
- Find out how to register your business and apply for permits or licences.
- Use Your Europe’s Assistance Service Finder to find Points of Single Contact
VAT registration and obligations
Most businesses operating in the EU must register for Value Added Tax (VAT). You may need to register once your turnover exceeds a certain threshold — or earlier, depending on your business activity (especially for cross-border sales or digital services).
Once registered, you'll be required to charge VAT, file returns, and keep proper records.
Accounting
Companies of any size in the EU must draw up and keep annual statements. Based on the number of staff you employ, your balance sheet, and your annual turnover, you can potentially benefit from simplified or extra-light reporting requirements.
Hiring employees
If you plan to hire staff, you’ll need to follow EU and national rules on employment contracts, working conditions, and social security. Employers are typically responsible for registering employees, providing safe working environments, and meeting minimum labour standards.
Funding and support
There are several projects dedicated to help startup businesses in the EU:
- Startup Europe strengthens networking opportunities between high tech startups, scaleups, investors, accelerators, corporate networks, universities and the media.
- Startup Europe Partnership is an integrated pan-European open innovation platform that helps the best EU scaleups grow.
- InvestEU Portal brings together investors and project promoters on a single EU-wide database of investment opportunities.
- European Innovation Council (EIC) Accelerator support small and medium-sized enterprises (SMEs) and start-ups in scaling up their businesses with grants and investments.
- Erasmus for Young Entrepreneurs is a cross-border business exchange programme, offering new entrepreneurs the possibility to collaborate with an experienced entrepreneur from another European country.
Read about EU funding programmes and how to get access to finance.
See also:
- Interactive map: companies funded by the EU via the SME Instrument
- Find a company: access company information in the EU
- Women entrepreneurship gateway
Find national rules on starting a business below.