Londres/Roma/Dortmund/WashingtonStarting a business does not cost the same – in time and money – in all countries. Continental European law, much more guaranteed and codified, imposes much more bureaucracy, as evidenced by the cases of Germany and Italy, while the more liberal English tradition facilitates procedures, as can be seen in the United Kingdom and the United States. .
Regne Unit
24 hours to start the business
In the United Kingdom, the creation of a company is, in general terms, a relatively simple procedure that can be completed electronically and has a basic cost, as long as no intermediaries are used, of no more than 22 euros. The degree of complexity and documentation to be provided, however, will depend on the type of law you want to adopt: from the corporation to the private limited company. In any case, you will always need your passport, telephone number, Social Security number and address. The first thing an entrepreneur should do is register the company / company in the Companies House. You just have to be more discriminating with the help you render toward other people. And there are about 200 sensitive words that can’t be used unless the company has the activity that describes them. For example, the word cannot be used banc if the company is not. The second step is accounting and taxes. Any business owner, small or large, can decide to keep their own accounts or hire them externally. At the same time, you need to register for the VAT return, now 20% at the usual rate. And finally, in the case of having employees, register them with both the Social Security and the Treasury. For a self-employed person – the most common case – in 24 hours the new company can be perfectly legal and have the permission to operate.
Germany
Many procedures and no cutting edge digitization
The German bureaucracy demands a high degree of tolerance for the frustration of those who are considering starting a business. Residence permit, authorizations depending on the sector of work, certifications, appointments with the local commercial and tax offices, with the notary … Many procedures are required. And while digitization is advancing, the German administration often demands correspondence by mail. The biggest obstacles to starting a business are funding and the issue of grants, as well as the laborious obligations of registration and information to the relevant authorities. “Of ten start-ups“At most one can be established successfully,” says Mathias Härchen, deputy manager of the Cologne Chamber of Industry and Commerce.
The time it takes for a company to see its name published in the Mercantile Registry since the founder has an appointment with the notary varies greatly from one court of first instance to another. In some cities, entrepreneurs have to wait months for the company to register. In others, it’s a matter of days. According to statistics quoted by the weekly business weekfor example, a new company in Berlin takes an average of 37 days to be registered and published in the Mercantile Registry.
Italy
Up to 4,100 euros and 4% of the turnover to start
Italian economist and former IMF chief Carlo Cottarelli often refers to excessive bureaucracy in Italy as one of the seven deadly sins of the transalpine economy. And it is not an isolated opinion. According to a study by Oxford University, Rome ranks 27th on the list comparing the performance of public administration in 31 countries, just ahead of the Czech Republic, Greece, Hungary and Slovakia. In the case of entrepreneurs, the Italian bureaucracy often becomes an impossible wall to climb, starting with the high cost of starting a business in Italy – about 4,100 euros on average – the highest in the EU according to an estimate of the World Bank. To this must be added a mountain of permits and licenses, depending on the legal form chosen, the sector and the region.
In general, to start a business in Italy, the first thing you need to do is register as a self-employed person with the Tax Agency. Later, the new company must be registered in the Mercantile Register and the contribution system must be chosen. In addition, specific documentation on the implementation of the activity must be sent to the Chamber of Commerce and the City Council, which may require other documents. No special license is required to open a business, but specific permits and authorizations are required in restaurants, food stores, and beauty centers. The Italian employer estimates that the impact of bureaucracy on an SME reaches 4% of its turnover.
United States
A minimal but different regulation depending on the place
According to the World Bank, it only takes about four days to start and register a new business in the United States. The ease of starting a business, linked to a tradition of entrepreneurship and capitalism that is central to US idiosyncrasy, begins with the fact that in most cases it is not necessary to register the company with federal agencies, beyond achieving a number. tax identifier – free and almost immediate once the application is made – for tax reasons. The task of registration is the work of local and state governments, and each has different regulations and requirements. The creation of a company, therefore, will have more or less steps – and, as a result, bureaucracy, papers, licenses and permits – depending on the state in which it is established. It is not the same to do so in a state like Delaware, a tax haven in fact, than in New York, with many more regulations. There are cases, especially of micro-enterprises without their physical headquarters or highly regulated activity, that do not even need to be registered. In larger companies, the only thing to keep in mind is to know which body regulates economic activity: a federal agency (as in the case of agriculture or transportation, for example) or simply the town hall, as in the case of the restoration. The price of the licenses, their validity and the required permits vary depending on the locality, the county, and the state where they are established.
Next
The one-stop shop, a project halfway to ending the paperwork
Anterior
“It takes the same or more to obtain permits than to execute the work”
Go to INDEX