Low Cost Manufacturing Central Europe and Turkey

Low Cost Manufacturing Europe Hungary Romania Poland Czech Republic Turkey
Our ranking in order of preference 1 2 3 4 5
Summary at a Glance
Total year 1 engagement set up costs in €? 8,210 8,820 9,960 9,660 11,710
Total year 2 costs (incl. audit and tax) in €? 3,420 3,440 3,400 2,355 6,060
Our Client must travel during the engagement? No No No No Yes
Total engagement period? 2 months 2 months 2-3 months 3 months 3 months
Corporation tax rate on net profits? 10% 16% 19% 19% 20%
Average monthly employee salary in €? 773 417 705 765 565
Average monthly office rental per sq m in €? 10 8 15 12 11
Average warehousing rental per sq. m. per month in €? 4 3.2 3.5 4.5 10
Computer literacy % of population 72% 57% 58.4% 74.1% 46.6%
English language proficiency % of population? 58.54 58.63 64.26 57.42 47.80
Incorporation requirements
How long to set the company up? 2 weeks 3 weeks 4 weeks 4 weeks 3 weeks
Minimum number of shareholders? 1 1 1 1 1
National shareholder required? No No No No No
Individual and corporate shareholders allowed? Yes Yes Yes Yes Yes
Minimum number of directors? 1 1 1 1 1
Resident director required? No No No No No
Minimum paid up share capital in €? 10,000 50 1,200 7,000 3,360
Fast turnkey solution available (click link)? No No No No No
Corporate director(s) allowed? No No Yes Yes No
Public register of shareholders & directors? Yes Yes Yes Yes Yes
Tax and accounting considerations
Corporate tax payable? 10% 16% 19% 19% 20%
Withholding tax on dividends paid overseas 0-16% 0-16% 20% 15% 15%
Annual financial statements required? Yes Yes Yes Yes Yes
Statutory independent annual audit required? No No No No No
Local GST or VAT? (%) 27% 24% 23% 21% 18%
Tax incentives for manufacturing start-ups? Yes Yes Yes Yes Yes
Access to double tax treaties? 79 75 80 70 80
Tax optimized free zones available? Yes Yes Yes Yes Yes
EU VAT member? Yes Yes Yes Yes No
Corporate bank account considerations
Healy Consultants’ preferred bank? KDB Raiffeisen HSBC Bank Polska Ceska Sporitelna HSBC Turkey
How long to open bank account? 4 weeks 4 weeks 4 weeks 4 weeks 4 weeks
Do I travel to open the bank account? No No No No No
Minimum bank deposit (USD)? US$1,000 No US$20,000 No US$33,000
Multi-currency corporate bank account? No Yes Yes Yes Yes
Multi-currency corporate visa debit cards? No Yes Yes Yes Yes
Corporate ATM card available? No No Yes Yes Yes
Bank rating by World Economic Forum? 73 91 51 24 38
Ease of getting credit by WEF? 126 59 89 36 64
Euro currency used by this country? No No Yes No No
Employment considerations
Average skilled labour monthly salary in €? 800 600 704 797 590
Average unskilled labour monthly salary in €? 500 400 650 405 450
Average pension and insurance benefits %? 27% 15.8% 35% 34% 20.5%
Minimum national salary in €? 333 218 410 332 424
Labor productivity per hour (in US$)? 28.3 19 28.1 31 28.9
Mandatory labor unions? No Yes Yes No Yes
Minimum days’ notice to dismiss employees? 30 15 14 60 20
Minimum redundancy indemnity? 2 month pay No 1 month pay 2 month pay 1 month pay
Quotas on foreign workers? No No No No Yes
How long to get work permit approved? 4 weeks 4 weeks 4 weeks 4 weeks 4 weeks
Manufacturing considerations
Cost per unit of electricity in € per kWh? 0.035 0.032 0.050 0.050 0.11
Rank for getting electricity (by WB) 162 171 64 123 34
Warehousing rental (€ per sq. m. per month)? 4 3.2 3.5 4.5 10
Ranking for transport infrastructure? (by WEF)? 65 106 78 53 22
Ranking for customs procedures (by WEF)? 31 86 58 47 83
Government incentives for startups? Yes Yes Yes Yes Yes
Internet connectivity rating? 72.6% 49.8% 62.8% 74.1% 46.2%
Global competitiveness index (click link)? 57 59 43 37 45
Venture capital availability (by WEF)? 121 78 99 42 90
Logistical considerations
Preferred manufacturing city? Dunaújváros Bucharest Warsaw Ostava Bursa
Number of seaports? 0 5 10 0 47
Number of airports? 41 45 126 128 98
Proximity of railways in kilometers? 7,877 22,298 19,617 9,469 9,642
Computer literacy % of population 72% 57% 58.4% 74.1% 46.6%
Local purchasing power (GDP per capita in US$) 24,942 19,712 25,105 29,925 19,610
Local market size (population in millions) 9.8 21.6 38.2 10.7 75.8
Average annual inflation rate in 2015? 0.63% -1.5% -0.8% 0.8% 7.2%
Average unemployment rate? 7.3% 6.9% 7.9% 5.9% 10.4%
Ease of doing business index (click link) 57 48 32 44 55
Estimate of engagement costs (€)
Healy Consultants engagement fees 2,850 3,850 4,850 3,550 5,900
Company secretary and registered office 1,100 1,100 1,100 950 1,100
Government fees 560 170 310 260 210
Resident director fees (0 if not required) 0 0 0 0 0
Corporate bank account opening 2,950 2,950 2,950 3,950 2,950
Estimate of total outgoings in Year 1 8,210 8,820 9,960 9,660 11,710
Draft sales invoice attached

Contact us

For additional information on our incorporation services, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar