How Invest in EU

With the world’s largest GDP, the European Union has become the cynosure of many investors all around the world. Many people are now trying to tap the European Union market through mergers and acquisitions and by investing in its key industries. The EU is in fact welcoming foreign investment in its member countries and has devised strategies which may encourage foreign investment in the country. The main steps taken by the European Union in encouraging FDI are its investor-friendly policies and the commitment of the member states to share the vision of the European Union has also worked in the favor as the member countries have now become the hottest destinations to invest in the world.
Here is a comprehensive information that will help investors about the various procedures and facts that are involved while investing in European Union and will also give them an overview of why the EU is the current hottest destinations to invest in the entire world.

Policy Procedure of investing (legal/regulatory):

Expensive or burdensome processes involved in starting a business turn away many investors from investing in any particular state or country. The integration of the European Union understands this and hence has established a principle that would help investors to create a company in any of the EU country and that too on an equal level of the nationals based in EU.


In the year 2007, several member states of the European Union have agreed to set up some of the one-stop shop agencies that will help investors with business start-ups. This really shows that the Policy procedure adopted by the member states of the European Union is quite conducive towards attracting foreign investment in the EU.

The European Union has come a long way in deregulating the foreign investment and has opened up its markets for foreign investors to invest in almost all of the sectors in the member countries. It has moved on from the traditional BIT Model and has started promoting a shift in its regulatory priorities. The European Union is now focusing more on liberalizing its markets even further to foreign investors and is mulling to aim a balance among the varied interests of the foreign investors and host and home countries.

Business Information:

Tax, duties and GST

The European Union has also taken necessary action to eradicate the tax hindrances and inadequacies. This has been mainly achieved through the VAT, car tax areas, and excise duties. The European Union has suggested that the tax policy of the EU should be such that it helps the businesses to achieve their goals. The EU is also working on eradicating the loop holes that exist in the existing 15 different tax systems within the EU and is trying to make them comprehensive and simpler to businesses as well as individuals.

The Goods and Services Tax in the European Union has been below the world standards and the European Commission is taking all the necessary steps to bring out reforms in the tax policies in the various member countries of the European Union to make them more investor-friendly. The member states of the European Union are also offering huge tax exemptions to foreign investors especially those who are investing in the regions where there are less employment opportunities.

Starting a business in EU:

As per 2001, it took an average of 22 days to start a company in the EU whereas there are three member countries of the European Union, The United Kingdom, Denmark and Norway which rank among the top ten countries in ease of doing business in the entire world. The enactment of the Small Business Act in the year 2008 has further sped up the process of starting a company and has also reduced the costs that are required while setting up a business. The European Commission has asked all the member states to provide the permits, licenses and other authorisations necessary to start a business within a deadline of one month. Adhering to this concern, the member states have agree to make some changes and are working towards reducing the time to register a new business to one week and are also working towards reducing the fees that are need to be paid while setting up a business.

Intellectual Property (IP) in EU:

The European Union guarantees a uniform system of protection of intellectual property rights that range from copyright and related rights to property rights. The protection of intellectual property rights in the European Union is done as per the international conventions, majority of which are implemented by world agencies such as the World Trade Organisation (WTO), World Intellectual Property Organisation (WIPO). The European Union also has its own bodies known as the European Patent Office (EPO) and the Office for Harmonisation in the Internal Market (OHIM) with the latter dealing with the registration of community trade marks and designs.

Apart from these, the European Commission is also campaigning to introduce the Community patent system that would implement be more legally effective and less costly and would offer a large amount of competition in the European industry. Furthermore, the protection of the rights also includes protection from counterfeiting, illegal trade and piracy.

An investor-friendly policy, supportive member state governments and supportive foreign investment agencies all these features really make the European Union one of the best places to invest in the entire world. Investors who wish to expand their business worldwide should not overlook the strategic benefits which the EU offers and should definitely consider investing in the European Union.


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