DiFFreight Blog What business is relevant in Europe

What business is relevant in Europe

What business is relevant in Europe

The European market remains one of the most popular directions for Ukrainian entrepreneurs. But at the start, many questions arise: how to legalize a business? Is it necessary to open a company? How to arrange supplies? To enter the European market, you need to prepare carefully and assess all risks, benefits, and potential challenges.

How to start your own business in Europe

In this article, we will focus on opportunities for businesses located in Ukraine. Although migration is becoming increasingly popular, opening a company abroad is a complex process. So, you want to establish exports of your products to the EU — there are two business models for this:

  • Export without registration in the EU

You can conduct foreign economic activity as a private entrepreneur (FOP) or LLC. You need customs accreditation (for exporting goods) and a foreign currency account. Note that as an individual entrepreneur, you are limited by annual turnover depending on your tax group.

Pros: less bureaucracy, taxes are paid in Ukraine.
Con: not all EU companies want to work with foreign entities, logistics is complicated.

  • Registering a branch or a new company

You will need a tax number, a residence permit (not always — Estonia, Lithuania, and Poland allow remote registration), a legal address, a local director or representative, and a local bank account. Each country has its own requirements — consulting with specialists is recommended.

Pros: trust from foreign partners, unlimited opportunities, access to grants and subsidies.
Con: a very complex process requiring thorough knowledge of laws.

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It is better to start a startup with direct export shipments without investing in opening a branch or foreign company. This is a simpler path for beginners and helps test the market reaction without losses.

The next question is: who will be the distributor of your products? If you do not plan to open a retail point (offline or online), you need a business partner. How to enter the European market:

  • Start selling on marketplaces (eBay, Amazon, Etsy). Important: they often require VAT registration, meaning obtaining a tax number.
  • Find a partner on B2B platforms.
  • Look within the Ukrainian diaspora: cooperation with someone already in Europe can become an entry point into retail.

The most promising countries are Poland, Lithuania, Germany, and the Czech Republic.

The most profitable business in Europe: ideas for entrepreneurs

The market is diverse, but several stable niches stand out:

  • Product business and e-commerce (annual growth 6–8%). Selling products that interest European consumers through marketplaces or your own online store. Competition in product sales is extremely high, but so is the income when successful.
  • Import of specialized equipment. A complex niche with high standards, strictly regulated.
  • Natural cosmetics and para-pharmaceuticals. Annual demand grows by 7% or more.
  • IT sector and other digital services.

Shipping goods from Europe to Ukraine can also be an intermediate step for exports to the USA or Canada. EU countries act as a transit or warehouse hub.

If you plan to launch an international business, be sure to use consulting from DiFFreight — we will explain how to legally start exporting abroad. We also provide warehousing services in Europe for your business.


Documents for export

Working in the EU is not as easy as it may seem at first. The European market is an area of strict regulations, so legal export requires quite a number of documents:

  1. Foreign economic contract with a partner.
  2. Invoice.
  3. Packing list.
  4. Transport documents.
  5. Export declaration EX-1.
  6. Certification of conformity/quality.

For most industrial goods, you need to obtain a Declaration of Conformity (CE Declaration), or CE marking. It is required for electronics, toys, medical devices, construction materials, machines, and mechanisms. For food products, a phytosanitary/veterinary certificate is required.

The EUR.1 certificate of origin is not mandatory, but you will want to obtain it if your product is manufactured in Ukraine. It provides reduced or even zero duties when importing goods into the EU.

Business development in Europe

The EU market requires a thoughtful development strategy: from establishing supply chains to marketing, attracting investment, and strictly following the rules. Regardless of the format you choose, here are useful tips:

  1. Optimize logistics. It can become a significant expense, affecting profitability. For product-based businesses, logistics can account for up to 40% of the final product price.
  2. Work with reliable manufacturers and suppliers. Each batch must meet EU standards.
  3. Follow export rules. Trading counterfeit goods, replicas is a path to customs delays or even criminal liability if the goods reach European retail.
  4. Obtain a VAT number if your products are stored in EU warehouses.
  5. Maintain transparent accounting, pay taxes, and keep all documentation (in some countries up to 10 years!).

Be especially attentive to tax regulations. Non-compliance leads to marketplace blocks, fines, and bans on sales.

Start working with Europe now

Trade in the EU for Ukrainian businesses involves a large number of challenges, many of which are related to bureaucracy. But this does not mean you should give up new opportunities! We are ready to be your partner by offering:

  • logistics from Ukraine to EU countries, as well as delivery to the UK from Ukraine;
  • customs brokerage services for export preparation;
  • consulting on international trade.

Do not wait for the “right” moment — start preparing to enter the European market now, with the support of DiFFreight.

FAQ

1. What are the criteria that make a business relevant in Europe?

Key criteria include steady demand among consumers, compliance with European regulations and standards, profitability margin, shipping/logistics costs, and the potential to scale across EU markets.

2. How to assess demand for your product or service before entering the European market?

Conduct market research: check trends on online marketplaces, examine sales statistics, reviews and competition. It’s also useful to start with small test batches before committing to large orders or a full launch.

3. Are certifications and regulatory compliance important for doing business in Europe?

Yes — very important. Many EU countries have strict standards for quality, safety, packaging, and labeling. Without proper certification or compliance, products may be banned or returned by retailers or customs.

4. How do logistics and shipping affect business success in Europe?

Logistics is a key factor: the right shipping method, cost optimization, speed, secure packaging, and correct documentation affect final pricing and customer satisfaction. Poor logistics can lower competitiveness significantly.

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