Most businesses start exporting to Europe without establishing a formal presence there.
As business activities expand, the time may come when it becomes desirable to establish one or more business entities in Europe to deal with operations and administrative matters in a more convenient and tax-efficient manner.
Before deciding to set up business in a particular country, it is advisable to think through the alternatives.
The first step is to lay out clearly what the purposes of establishing your European business is.
As far as the European Economic Area (EU and EFTA countries) are concerned, it is important to remember that establishment in any country will also allow you to market into all of them. So the decision will not depend entirely on where your main target market is located.
COUNTRY CHOICE FACTORS
Operational Considerations: These include the location of your customers, availability of workforce, transportation routes, distribution centres.
Geographical Location: Convenience of access (airports, flying time), languages spoken, office availability, etc.
Set-up and Admin Costs: Start-up costs, paid-up capital requirements, ongoing administrative costs, annual administrative costs and fees, costs for attending meetings, office and staffing costs.
Ease of Start-up and Operation: Amount of form-filling, ease of establishing banking arrangements, annual reporting and audit requirements.
Restrictions: Foreign ownership rules, requirements for residency of directors, control of subsidiaries, ease of removal of managers, or agents, laying off of workers.
Business Structure: Type of entity: branch office, subsidiary, holding company, etc. Is the type of corporation you need available in this country?
Customs, VAT, etc: Customs treatment, revenue flows, value added tax treatment - these may vary significantly between EU member countries.
Profits and Taxation: Treatment of profits, corporate taxes, repatriation of profits and proceeds eventual of sale of business.
Personal Considerations: Residence preference, personal taxation, general preferences.
TAX EFFICIENT INTERNATIONAL OPERATIONS
In addition to you new company in Europe, you may need an offshore corporation to improve the tax efficiency of your overall international operation.
With our partners, we can provide formation and management services for several low tax jurisdictions: British Virgin Islands (BVI), British Anguilla, Panama, Seychelles, Samoa & Bahamas. We can also offer registrations in the following jurisdictions: Mauritius, Cyprus, Jersey, Gibraltar, Delaware, Belize & Liberia.
We can also provide ready made "shelf companies" as well as "name of your choice" incorporations.
We offer international trusts & foundations for wealth management solutions.
Other international services include: management services, mail, fax, telephone & email forwarding, nominee service, apostille & legalization, bank accounts, registered agent & office service, ship registration & certificates.
We can quarterback all of this for North American companies entering the European, foreign and offshore markets.
For immediate assistance with these complex topics, please call Tony Baker at 416-500-7287
or click here to contact us by email. |
