Business is often crowded within the same country. The transition to the international level can begin with the registration of a company in Europe. It is believed that this is not only prestigious, but also profitable: the tax burden is reduced, financial flows are optimized. Both transnational corporations and private entrepreneurs establish their firms in European states. What opportunities open up for those who choose a business in Europe for sale, and what needs to be done to achieve this? Each country has its own characteristics and requirements that not everyone likes.
Advantages of ready made business in Europe
As we have already noted, being the owner of a European firm is prestigious: the confidence level from customers and contractors is increasing and expanding activities geography. In addition, businesses for sale in Europe are:
- work in conditions of economic and political stability;
- increasing the security of assets and minimizing risks;
- access to a developed banking system;
- low interest rates on loans;
- the possibility of avoiding double taxation;
- the prospect of obtaining citizenship or a residence permit in the European Union.
The need to open companies in European countries arises from businesspersons who want to optimize their costs of doing commercial operations. In recent years, laws have appeared on global level that complicate the process of using classic offshore schemes, and interest in Europe has increased essentially.
Where to establish a firm in Europe: choose a country
The determining factors in choosing a country are its geographical location, peculiarities of legislation, economic and political stability, and the existence of agreements on the elimination of double taxation. Businessmen pay attention to global trends and at the same time use the opportunities provided by the European countries closest to us.
In the UK, companies are opened by businessmen from various countries. Reason is this state, being one of the world’s financial and merchant centers, provides non-residents with unique conditions.
- Having a company in the UK, you can enter into trade transactions in those countries that have introduced restrictions on working with “classic” offshore companies. There are no currency controls on British companies. There are no requirements for the citizenship of the director of the company – he/she can be a citizen of any country. The company’s assets are protected by British law, and its branches can be located in any EU country. Over time, a legal entity gets the opportunity to open an account in a British bank. A company in the UK means 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 enterprise in England in one of two organizational forms – LLP or PLC. First must consist of at least two partners operating outside the UK. If these conditions are supported by annual tax and financial reports, the LLP will not have to pay taxes. A similar scheme is sometimes called a British offshore scheme, although it is not such. UK doesn’t position itself this way. LLP does not require the creation of a charter – a simple agreement in writing or even verbal is enough. If you are not comfortable with this option, you can establish a company in the more popular PLC form. Such a company bears the tax burden regardless of the geography of doing business, but the company retains all the advantages of a British company, which, as a rule, more than compensate for the negative aspects. A closed joint stock company – PLC – must have a charter and at least one director, who can also be the sole shareholder.
Despite the fact that in Ireland all the profits received by the company are taxed, many choose this particular country.
- Advantages. The corporate tax rate here is one of the lowest in Europe. It is only 12.5%. Value added tax – 21%. Ireland has double tax treaties and many other countries. For reporting you will need: a tax report, a financial report with an audit, and an annual report. However, the director of the company must be resident in Ireland.
In the Czech Republic, entrepreneurs are given maximum freedom of action. A foreigner can quickly and easily establish his/her firm here, in some cases, without even having a special license to perform certain services. An almost ideal investment climate has been created in the country for commercial establishment and functioning. 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 bulwark of stability and reliability. Any business registered here immediately creates a positive business image.
Businesspersons of the CIS countries, thinking about where it is better to get small business for sale in Europe, single out Poland for themselves – it is the most advantageous geographically, there is no hard language barrier, similar mentalities. The country boasts a stable political and economic environment for many years, it is developing rapidly, so there is something for everyone. Business here is attractive with low tax rates, freedom of action within the framework of the country’s legislation, simplicity and accessibility in registering enterprise and an account, all you need is a passport.
Commercial activities have no boundaries, opening a business abroad is a real and feasible task for enterprising people. The European Union, without a doubt, is one of the most popular destinations where you can buy ready-made European business or pass registration on your own.