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Business creation 4 june 2009 at 9:46 | Tell a friend | Printable version

Europe between modernism and immobility

The construction of the European Union has not standardised rules for business creation.

Ilustration : Thierry Cap de Coume
Ilustration : Thierry Cap de Coume
In all the countries of the European Union, there now exists the equivalent of the business corporation (SA) and the limited company (SARL). Nevertheless, the making of Europe has not led to the standardisation of rules that one might imagine. The procedures and systems to which companies are subject sometimes reveal great disparities. Even if most Member States are gradually limiting necessary procedures, starting a business is still on the par of a veritable trial in several countries.
Ireland and the United Kingdom are amongst the nations where the greatest changes have taken place in recent years. The Celtic Tiger has become a popular base for multinationals. The 12.5% company tax rate and the relaxing of rules for company creation have transformed the country into an Eldorado. Like its neighbour, the United Kingdom stands out for its tax assets and strong support for those starting up businesses. A single telephone number allows entrepreneurs to contact a local business link in charge of answering all queries.
France is also ranked amongst the countries showing the greatest progress in the matter. The World Bank recently ranked France amongst the ten most reforming countries. An average of eight days is required for launching a company, as opposed to eighteen in the United Kingdom, which nevertheless benefits from a highly favourable context. Xavier Kergall, founder of the Salon des Entrepreneurs, considers that “unlike what is commonly thought, it is good to start up a business in France”.
On the other hand, certain EU nations show a less attractive face, and this is  not necessarily the case of new entrants to the Union. Spain suffers from long-term bureaucratic constraints that slow down business creators and Italy subjects the latter to cascades of procedures and formalities that can hardly be called conducive.
Even States reputed as being attractive still have an excessive number of procedures in place: the Netherlands has the reputation of being a “country of permits”. Here, entrepreneurs need an average of twelve permits per year. An establishment permit is required for working in certain sectors such as transport or food. It is sometimes necessary to obtain both a building permit and an environmental permit before setting up.

Par Mathieu Neu


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Commerce International - June 2009
No 53


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