Being an association of 27 European countries, the European Union (EU) was created for the promotion of economic development between its individual members and establishment of a single customs union. Registering a company in the EU provides one with an opportunity to freely provide their goods and services in EU countries.
Because the EU has legal personality, it has a right to participate in international relations and conduct international transactions. Those seeking to open a company in the EU should keep in mind that its member countries can participate in the EU Single Market. Today, 19 countries of the EU use the Euro - a single currency, on the basis of which the Eurozone was formed.
Advantages of Registering a Company in the EUStarting a business in the EU provides one with the following advantages:
- no passport control within the Schengen countries;
- a customs union (prohibits duties on trade between member states);
- free movement of products and capital (freedom of movement of capital: it means, that you can freely make payments and transfers across borders, as well as buy real estate, company shares).
Requirements for the Establishment of an Enterprise in the EUOpening a company in the EU means that:
- both individuals and legal entities can conduct business in the EU, a residency of which, most often, does not matter;
- its founders must have a minimum authorized capital (the amount will vary, depending on which jurisdiction you choose).
Business Organization FormsThe most common business organization forms in the EU are Joint Stock Company (JSC) and Limited Liability Company (LLC). The founders of both enterprises can be either one or several entrepreneurs, who will have an opportunity to obtain a residence permit in a particular jurisdiction.
Registering a Company in the EU: Which Country to Choose?Given the fact that Great Britain has withdrawn from the European Union, it is now possible to register a company in the EU in 27 countries. Let’s take a closer look at some of them.
LATVIAThe advantages of registering a company in Latvia include:
- preferential modes (e.g. profits earned in other countries are not taxed);
- multiple entry visa (makes it possible to travel to the EU states that have signed the Schengen Agreement);
- no currency control;
- obtain a residence permit in Latvia;
- obtain a tax resident certificate.
LITHUANIAThe advantages of registering a company in Lithuania include:
- no customs barriers in the EU;
- no double taxation;
- possibility to obtain a residence permit in Lithuania;
- no currency control;
- VAT refund and accounting;
- opportunity to enter the European market.
ESTONIAThe advantages of registering a company in Estonia include:
- zero tax rates for non-residents;
- double taxation agreements with 60 countries;
- low level of corruption;
- direct access to the EU markets.
SLOVAKIAThe advantages of establishing a company in Slovakia include:
- possibility of obtaining a tax resident certificate;
- voluntarily registering a VAT taxpayer status;
- double taxation agreements;
- possibility of obtaining a residence permit.
BULGARIAThe advantages of registering a company in Bulgaria include:
- possibility to enter the European market;
- low tax rates;
- possibility to obtain a residence permit.
GERMANYThe advantages for registering a company in Germany are as follows:
- a reliable banking system;
- no banking control;
- low inflation;
- double taxation treaties with 70 countries.
SPAINMade up of 17 autonomous communities and having 2 autonomous cities, Spain occupies the bigger part of the Iberian Peninsula. Our experts will be happy to provide you with advice on registering a company in Spain.
FINLANDThe advantages of registering a company in Finland include:
- political stability;
- economic potential;
- flexible taxation legislation;
- strategic geographic location;
- opportunity to obtain a residence permit.
MALTAThe advantages of registering a company in Malta include::
- geographic position;
- stable political and economic situations;
- investor-friendly legislative framework;
- access to global markets;
- double taxation agreements with many countries.
Considering registering a company in the European Union? Need advice on purchasing an existing company in the EU? Why not contact YB Case?