The transition of a business to an international level can begin with the registration of a company in Europe. It is believed that this is not only prestigious, but also beneficial: the tax burden is reduced, and financial flows are optimized. Transnational corporations and private entrepreneurs register their companies in European states. What opportunities open up for those who register their company in Europe, and what needs to be done for this? Each country has its own characteristics and requirements that not everyone likes.
Benefits of opening a company in Europe
The owner of a European company is prestigious: the level of trust of customers and suppliers increases and the geography of activities expands. In addition, European business is:
- work in conditions of economic and political stability;
- improving asset safety and minimizing risks;
- access to a developed banking system;
- low-interest rates on loans;
- the ability to avoid double taxation;
- the prospect of obtaining citizenship or residence permit in the European Union.
The need to open companies in European countries arises for entrepreneurs who want to optimize their costs of doing business.
Where to open a company in Europe: choosing a country
The determining factors when choosing a country is its geographic location, features of legislation, economic and political stability, the existence of agreements to eliminate double taxation.
England
In the UK, companies are opened by businessmen from various countries. The reason is that this country, being one of the world’s financial and trade centers, provides unique conditions for non-residents.
Benefits
Having a company in the UK, you can conclude trade deals in those countries that have imposed restrictions on working with “classic” offshore companies.
There is no foreign exchange control over British companies. There are no requirements for the citizenship of the director of the company – he can be a citizen of any country. The company’s assets are protected by British law, and its branches can be located in any country of the European Union. Over time, a legal entity gets the opportunity to open an account in a British bank.
A company in the UK is a high business status, the correctness of the work of the tax authorities, ease of registration with a relatively low cost of annual maintenance.
Features of registration
You can register a company in England in one of two organizational forms – Limited Liability Partnership (LLP) or Private Limited Company (PLC). A limited partnership – LLP – must be made up of at least two partners operating outside the UK. If these conditions are confirmed by annual tax and financial statements, the LLP will not have to pay taxes. Such a scheme is sometimes called a British offshore, although it is not offshore at all.
Great Britain does not position itself that way. An LLP does not require the creation of a charter – a simple agreement in writing or even orally is sufficient. If you are not comfortable with this partnership option, you can register a company in the more popular PLC form.
The tax burden is imposed on such a company, regardless of the geography of the business, but the firm retains all the advantages of a British company, which, as a rule, more than compensate for the negative aspects. A private limited company – PLC – must have a charter and at least one director, who can also be the sole shareholder.
Registration of a company in England is carried out in two to four weeks. This will cost around 2,000 euros. If necessary, you can buy a ready-made company in the UK, this is done in one day at the same financial costs.
Ireland
Despite the fact that in Ireland all profits received by the company are taxed, many choose this particular country.
Benefits
The corporate tax rate here is one of the lowest in Europe. It is only 12.5%. Value-added tax – 21%. For reporting, you will need a tax report, financial report with audit, annual report. However, the director of the company must be a resident of Ireland.
Features of registration
When registering, you will need to provide the following data: type of company activity, place of business, the physical address of the governing body. Registration cost and terms. You can open a company in Ireland within two weeks for 5700 euros.
Latvia
This country is not an offshore jurisdiction, so all company profits will be taxed. However, friendly conditions have been created here for non-resident businessmen, and membership in the European Union.
Benefits
Income tax – 15%. The company may also be required to pay property taxes and value-added taxes.
Registration of a company in Latvia is a guarantee of reliability, and the process of managing a company here will not cause difficulties. Individuals and legal entities, including non-residents, are allowed to own and manage a Latvian company. ‘
A non-resident can establish a Latvian company solely and manage it remotely. Latvian companies are provided with favorable credit conditions. A business owner can obtain a residence permit in Latvia for his entire family.
Features of registration
In Latvia, you can register a limited liability company, joint-stock company, individual merchant. To register any form of activity, you will need a minimum of documents. Registration cost and terms. You can register a company in Latvia within two to five days. The cost of the procedure is about 3800 euros.
Switzerland
Owning a Swiss company is prestigious. Switzerland has an advantageous location in the center of Europe, is a world financial center, and in general, has always been a stronghold of stability and reliability. Any business registered here immediately has a positive business image.
Benefits
Income tax, if most of it is received abroad, is 9%. Otherwise, it can reach 20-30%.
Features of registration
The company must have an office in Switzerland, which must not be located in a residential building. There are requirements for the authorized capital – its size cannot be less than 14,000 euros. There must be at least two shareholders. The requirements for the citizenship of a shareholder are free; he can also be a legal entity or an individual and at the same time act as a director. Registration cost and terms. It costs 12,000 euros to register a company in
Switzerland. The registration process takes three weeks.
Cyprus
This state is both a member of the European Union and an offshore zone, which makes it especially attractive for those who wish to register a company in Europe.
Benefits
Cyprus, unlike other offshore zones, is not blacklisted in any country, and a company established here will not attract increased attention. Buying an offshore company in Cyprus or registering a new company in this jurisdiction means starting a full-fledged European business with the lowest taxation in the EU. In addition, Cyprus is a popular tourist destination, so there are plenty of opportunities for both business and leisure on the island.
Features of registration
There are requirements for the authorized capital. Without a “work office” in Cyprus, it can be from 1700 euros, and if available, from 17,000 euros. Registration cost and terms. You can open a company in Cyprus in three weeks, spending about 2000 euros on it.
Denmark
Prestigious European jurisdiction, which does not attract undue attention of tax and regulatory authorities of other countries.
Benefits
If the company does not conduct its activities in Denmark, it will not have to pay taxes.
Features of registration
A partnership of at least two nominee companies is registered. An annual financial report is required. Registration cost and terms.
Registration costs around 6,000 euros and can take three to four weeks.
