Company registration in Europe: advantages and features
With effective management, any business “grows” from the borders of its country. For the further development and expansion of sales markets, the registration of an enterprise in the territory of the countries of the European Union is suitable. Registration is available to both multinational corporations and private entrepreneurs. This solution provides the following benefits:
• Companies registered in Europe receive prestige and trust from customers.
• Registration of enterprises in the EU countries allows to reduce the tax burden and optimize financial flows.
It is necessary to understand the following: each European country presents its requirements (different depending on the individual country) for company registration by foreign citizens, and individual nuances of doing business.
What actions need to be taken to formalize the object of commercial activity, and what advantages will this give for the domestic businessman?
Pluses of the company registration in Europe
• The degree of confidentiality on the part of suppliers, buyers and customers to a company registered in one of the countries of this region is significantly higher than to objects registered in the territory of the CIS.
• Registration of an enterprise in this region automatically increases the prestige of its owner.
• Politics and the economy in this part of the world are stable. The current legislation of all states encourages entrepreneurship and is aimed at improving the investment climate.
• Developed banking segment.
• Minimal risks and ensuring the protection of property (financial contributions, movable and immovable property) by the state.
• Simplified acquisition of citizenship and residence permit.
• The current legislation allows you to get rid of double taxation.
• Banks provide loans at the lowest interest rates.
In connection with the innovations in the domestic legislation that complicate the use of standard offshore schemes, domestic entrepreneurs have an increased interest in opening a business in Europe. Registration of a company in the EU allows you to optimize the costs of doing business, enter large markets and gain access to a customer base with a high purchasing power.
Which country is the most optimal for opening a company?
The choice of a country for the registration of a company is based on the following aspects:
• Stability of the economic and political situation.
• Geographical position.
• Ability to eliminate double taxation.
• Loyalty of local legislation to business.
• Level of development and security of the banking system.
For the successful development of business in Europe, it is necessary to trace global trends and take advantage of the opportunities available to the EU countries closest to Russia.
Great Britain is a country with one of the strongest economies in the world. Stable political environment, business-friendly legislation makes this country an advantageous place to open a company
• The possibility of concluding contracts with countries in which there is a restriction on working with standard offshore companies.
• Lack of supervision of foreign exchange operations by state control authorities.
• Lack of UK citizenship requirement from the business owner. Thanks to this, a citizen of any country of the world can open his enterprise on the territory of this country.
• Local legislation protects the assets of an enterprise.
• Ability to locate branches in all EU countries.
• After a certain period of time, legal entities are authorized to open accounts with a local bank.
Registration of a company in this country is prestige, correct and efficient work of the tax service and simple design.
Features of company registration. Today, there are two organizational forms in which you can register a company in the UK – it’s PLC (Private Limited Company) and LLP (Limited Liability Partnership). LLP requires at least two partners to conduct business outside the UK. In the event that these conditions are met by annual financial and tax reports, a company registered under the LLP form is exempt from tax. It is for this reason that some businessmen mistakenly take this form as a British offshore (although in practice this is completely wrong). For the registration of LLP drafting of the Charter is not required. All that is required for this is an oral or written agreement.
If the form of LLP for any reason you do not fit – use the form PLS (the most popular among foreign business owners). To register, you must have a Charter (at least one owner). The director with the Charter can also act as the sole shareholder of the company. Plus the form of PLS is to preserve all the advantages of British companies that outweigh the existence of a tax burden.
Terms of registration. The duration of this operation does not exceed 14-28 days.
Unlike the UK, Latvia does not belong to offshore jurisdictions. Therefore, all profits of companies registered on the territory of this country are taxed. But the tax burden is compensated by positive conditions for doing business by foreign entrepreneurs. Thanks to its proximity to Russia and its membership in the EU, Latvia is one of the most attractive countries for opening up companies to Russian businessmen.
A low tax rate on profit, the value of which is 15%. There is also a possibility of an obligation to pay VAT and real estate tax.
Registration of companies in this country is available to legal entities and individuals, to owners of large international enterprises and small private entrepreneurs.
A stable political environment, a strong economy, a high standard of living and the purchasing power of the local population.
Local banks provide loans on favorable terms.
Possibility of obtaining a residence permit for business owners and members of his family.
For non-residents there is a possibility of remote management of the company and management of the company by one person.
Features of company registration. A minimum number of securities is required for opening. All forms of business objects are available for registration.
Terms of registration. The duration of the operation is 2-5 days.
Thanks to the favorable location, the most powerful economy, which demonstrates constant growth rates, stable domestic currency Switzerland is an advantageous place for the company’s registration by foreign business owners.
Pros: on condition that most of Switzerland’s profits abroad are received, the tax rate on profits does not exceed 9%. If most of the profit is received in the domestic market of the country – the tax amount reaches 30%.
Nuances of company registration. To open a company in Switzerland, you must meet the following requirements:
Availability of office space in this country. The use of residential premises for these purposes is prohibited.
The amount of the authorized capital is 14 thousand euros.
The minimum number of shareholders is 2.
The citizenship of shareholders is any. This role can be played by individuals and legal entities.
Terms of registration. The duration of the operation is more than 3 weeks.
Attractiveness for foreign businessmen wishing to open a company here is based on a combination of two aspects: Cyprus’s membership in the EU and its relation to the offshore zone.
Cyprus is included in the “white” list of offshore zones. Due to this, the registration of firms in this country does not attract excessive interest from various instances to control business activity (fiscal service, etc.).
The lowest tax burden in the European Union.
The high tourist attractiveness of Cyprus in combination with the stability of the economic and political environment, the high purchasing power of the local population contribute to the rapid development of the enterprise (with effective management of the company).
Features of registration. In the absence of an office in Cyprus, the authorized capital must be at least 1,700 euros. If the office is available – 17 thousand euros or more.
Terms of registration. The registration period is approximately 21 days.
The reputation of the current Danish jurisdiction, together with the transparency of the financial sector and the established banking system, reduces excessive attention on the part of controlling authorities of other countries (tax service, etc.).
Pros. In the absence of doing business in Denmark, there is no taxation of the company registered here.
Features of registration. Register a company on the territory of Denmark have at least two nominal companies, consisting in a partnership.
Terms of registration. The procedure takes about a month.
The stable political environment within the country, a strong economy showing regular small annual growth, a loyal state-to-business attitude, the opening of foreign firms makes the registration of companies in Liechtenstein an advantageous solution.
Pros. Low tax burden. The amount of taxes does not exceed 12.5% of profits. Local companies have the highest image and reputation, comparable to firms registered in Switzerland.
Nuances of registration. Charter capital – not less than 50 thousand (currency – Swiss francs)
Terms of registration. Terms are 14-21 days.
Thanks to a high standard of living, a favorable investment climate, the patronage of business by state bodies, the Netherlands is a good choice for company registration.
Pros. Recently there have been positive changes in the current tax legislation, which are aimed at improving and simplifying the conduct of entrepreneurial activities (but the tax burden remained quite high).
Features of company registration. The only available form of registration is a closed-type firm with limited liability. The value of the authorized capital is not less than 90 thousand euros.
Terms of registration. The duration of the procedure is 14-21 days.