Starting a Company in Europe as a Non-EU Founder

Why Europe for Entrepreneurs?

Europe offers a range of attractive startup ecosystems, strong investor networks, and increasingly entrepreneur-friendly immigration policies. Whether you want to scale an existing business or start fresh, several EU and EEA countries have created dedicated pathways for non-EU founders.

Main Pathways for Non-EU Entrepreneurs

1. Startup Visa / Entrepreneur Visa

Several European countries offer dedicated startup visa programmes:

France — French Tech Visa (Talent Passport)

• One of Europe's most accessible startup visa programmes.
• Requires endorsement from a French public structure (incubator, accelerator, or public investment bank BPI France) OR proof that you have raised at least €30,000 in funding.
• Grants a 4-year multi-entry visa with the right to establish and manage a company.
• Your family can apply simultaneously under the family Talent Passport.

Germany — Selbstständigkeitstätigkeit (Self-Employment Visa, §21 AufenthG)

• For freelancers and founders who want to run a business in Germany.
• Authorities assess: whether there is an economic interest or regional need, whether the activity will have positive effects on the economy, and whether the financing is secured.
• No minimum capital requirement for a Freiberufler (freelance professional). For a GmbH (limited company) the minimum share capital is €25,000.

Estonia — Startup Visa

• Estonia's e-Residency programme allows you to incorporate a company digitally and run it from anywhere.
• The Startup Visa (valid for up to 18 months) requires evaluation and approval by Startup Estonia and the Estonian Business and Innovation Agency.
• Particularly attractive for digital businesses and SaaS companies.

Netherlands — Startup Visa

• 1-year residence permit to develop an innovative product or service in the Netherlands.
• Requires a facilitator (mentor) recognized by the Dutch immigration service (IND).
• After 1 year, the founder can apply for a Self-Employment Residence Permit.

Portugal — Tech Visa / D2 Visa

• D2 Visa for entrepreneurs, independent workers, and investors.
• Requires a viable business plan and proof of financial means (approx. €760/month).
• Portugal's NHR (Non-Habitual Resident) tax regime historically offered 10-year flat-rate tax benefits, though this scheme has been adjusted for 2024 and beyond.

2. Self-Employment / Freelance Visa

If you do not want to incorporate a company but want to offer services as a freelancer:

• Germany Freiberufler visa: For recognized liberal professions (writers, artists, consultants, programmers, etc.).
• Spain Autónomo visa: Requires proof that your activity generates sufficient income.

Choosing the Right Legal Entity

Most EU countries allow non-residents to incorporate remotely, but managing a company typically requires a registered address and, in many cases, a local director or representative:

| Country | Main Entity | Minimum Capital | Notes | |---------|-------------|-----------------|-------| | Germany | GmbH | €25,000 | UG (mini-GmbH) possible from €1 | | France | SAS/SARL | €1 | Most common for startups | | Estonia | OÜ | €2,500 | E-Residency allows full remote management | | Netherlands | BV | €0.01 | One of Europe's most flexible structures | | Portugal | Lda | €1 | Simple and fast incorporation |

Tax Considerations

• VAT registration: If you sell goods or services in the EU, you may need to register for VAT.
• Transfer pricing: If your company has related-party transactions with entities in other countries, document them carefully.
• Double-tax treaties: Iran has limited double-tax treaty coverage with EU states — consult a local tax advisor before setting up.

Practical Steps

1. Choose your target country and legal form.
2. Hire a local accountant or company formation agent.
3. Obtain the relevant immigration permission (startup visa, freelance visa, or business visitor visa for preparatory visits).
4. Incorporate the company (often takes 1–4 weeks in most EU countries).
5. Open a business bank account (this can be the most time-consuming step for non-EU nationals — consider a fintech business account such as Revolut Business or Wise Business as a bridge).
6. Register for taxes (corporation tax, VAT, social contributions).