3 January 2024

Company registration in Europe: where, how and why to invest money

 

If you have a business in an CIS country and want to expand your activities to European countries, or if you plan to start operations directly in Europe—this article is for you. We will discuss what an SE (Societas Europea in Latin) is, its advantages, and the regulations governing its activities.

So, in order. SE is a European company (a type of public limited company). Its formation allows you to conduct business in different EU countries using uniform rules.

CONTENTS:

  1. Regulators of European Companies’ Activities
  2. Where to Open a Limited Liability Company in Europe?
  3. Ireland
    1. Ireland for Entrepreneurs
    2. Setting Up a Company in Ireland: Advantages and Requirements
    3. Banks in Ireland: Is It Possible for a Non-Resident to Open an Account?
  4. Cyprus
    1. Cyprus for Entrepreneurs
    2. Setting Up a Company in Cyprus: Advantages and Requirements
    3. Banks in Cyprus: Is It Possible for a Non-Resident to Open an Account?
  5. Germany
    1. Germany for Entrepreneurs
    2. Setting Up a Company in Germany: Advantages and Requirements
    3. Banks in Germany: Is It Possible for a Non-Resident to Open an Account?
  6. England
    1. UK for Entrepreneurs
    2. Setting Up a Company in Britain: Advantages and Requirements
    3. Banks in England: Is It Possible for a Non-Resident to Open an Account?
  7. Netherlands
    1. Holland for Entrepreneurs
    2. Setting Up a Company in the Netherlands: Advantages and Requirements
    3. Banks in Holland: Is It Possible for a Non-Resident to Open an Account?
  8. Advantages of Buying a Shelf Company in Europe

By setting up a company in Europe, you get:

  1. A simpler way to do business in Europe (you can reorganize your activities under a single European brand and manage it without creating a network of subsidiaries).
  2. Greater mobility in the single market (the ability to transfer the registered office to another EU country without liquidation or reorganization).
  3. Establishment of a framework system for attracting personnel (people in different countries can work for you legally).

We will discuss this and much more in detail in the material.

Regulators of European Companies’ Activities

In the European Union, there are uniform rules for opening and operating companies. However, they may vary in some aspects depending on the country of registration. The list of authorities you will need to contact (state registrars, tax authorities, etc., measures applied to employees) may differ.

Also read: Company in Singapore, Hong Kong, the UK, or Switzerland: Ready-made companies in offshore and onshore, registration, and account

There is a management body called the European Commission. It issued and adopted the European Companies Regulation (ECS). According to its text, each company established in an EU member state can merge with a subsidiary without the risk of reorganization and operate throughout its territory. At the same time, the set of rules and the system of governance, reporting will be uniform.

You will not have to create a complex network of subsidiaries regulated by various national laws. This allows you to significantly reduce financial (up to 30 billion euros annually) and time costs.

Where to Open a Limited Liability Company in Europe?

Our company will assist you with company registration in any European country. Moreover, 2021 is a quite suitable time to start a business.

Company registration in Europe is not difficult, especially with our help. And we suggest considering one of five jurisdictions:

  1. Ireland.
  2. Cyprus.
  3. Germany.
  4. United Kingdom.
  5. Netherlands.

Now, why these countries.

Ireland

Ireland is located in Western Europe and is a member of the European Union. The main currency is the euro. Ireland is one of the most accessible (both in terms of cost of living and transportation) countries in the world. Its geographical location provides access to the largest markets on the planet, being close to Europe, the USA, and the Middle East.

Ireland for Entrepreneurs

The country has a low corporate tax rate of 12.5%. As a result, many international companies are registered here: Facebook, Google, Amazon, and Apple. In 2014, Forbes named Ireland the best country in the world for doing business. It currently ranks 11th out of 82 in the top regions for doing business.

Ireland is not an offshore jurisdiction. However, its legislation is quite lenient and allows both individuals and large enterprises to benefit from low taxes.

Company registration in Ireland is very straightforward. The level of bureaucracy is acceptable, and taxes are manageable, with favorable conditions for foreign investment.

Setting Up a Company in Ireland: Advantages and Requirements

First, the advantages:

  • Minimum share capital — 1 euro;
  • Corporate tax — 12.5%;
  • No problems with opening a bank account;
  • Double taxation avoidance agreements with 60+ countries.

Also, Ireland is the only fully English-speaking member of the Eurozone. This makes it easier to offer services and products both within the EU and worldwide.

Now, the requirements:

  • at least two directors and one secretary.
  • one of the directors must be a resident of the European Union (EU) or the European Economic Area (EEA).
  • registered office in the Republic of Ireland.
  • annual submission of a profit report to government authorities.

The main types of Irish companies are:

  1. Private company limited by shares (LTD).
  2. Company limited by guarantee (CLG).
  3. Designated Activity Company (DAC).
  4. Public limited company (PLC).
  5. Unlimited company (UC).

We also offer to purchase a ready-made company in Ireland.

Banks in Ireland: Is it possible for a non-resident to open an account?

Banking representatives in Ireland are much more favorable and tolerant towards our compatriots than their European counterparts. However, to open a corporate account, the physical presence of one of the directors is required. We recommend cooperating with Bank of Ireland and Ulster Bank.

Cyprus

Cyprus is an island country in the Mediterranean Sea, located east of Greece and south of Turkey. It is a full member of the European Union, situated in the center of three continents (Europe, Asia, and Africa). English is widely spoken on the island. The population of Cyprus is just over 1.1 million people. The economy is dominated by the market sector and online services (four-fifths of GDP). Tourism, finance, and real estate are the main industries.

Cyprus for Entrepreneurs

Recently, Cyprus experienced a banking crisis that hit the wallets of all businessmen associated with the country. However, dismissing the option of registering a company in this state is not advisable— it is quickly recovering and compensating for the losses.

Over the years, Cyprus has gained a reputation as a reliable, stable, and legal jurisdiction with some of the lowest taxes in Europe. There are almost 50 double taxation avoidance agreements in place.

Company Formation in Cyprus: Advantages and Requirements

First, the advantages of registering a company in Cyprus:

  1. corporate tax—10% on net profits of IBC;
  2. no taxation on income from dividends or securities;
  3. tax agreements with a number of countries, including major Western European and North American states, as well as almost all Eastern European countries.
  4. the founder of the company can be a citizen of any country, either an individual or a legal entity.
  5. 100% foreign ownership (office, headquarters, branches) is allowed without nationality restrictions.

A Cypriot company is ideal for creating investment funds and holding companies. Now, the requirements:

  • no minimum capital requirement;
  • annual tax declarations are required;
  • annual financial statements are required;
  • at least one director and one shareholder of any nationality.
  • a recommendation letter from the bank stating that the account is already opened is required.
  • to benefit from preferential tax conditions, a resident director is required.

We offer our assistance in opening a company in Cyprus or purchasing a ready-made company.

Banks in Cyprus: Is it possible for a non-resident to open an account?

The banking sector in Cyprus has suffered significantly in the past year. However, to open a company, you can have an account in another European country. Alternative options include Latvia, Seychelles, Switzerland, or the British Virgin Islands.

Germany

Germany is a country located in the center of Europe. It is considered one of the most successful countries in the Eurozone. It has a thriving economy, robust infrastructure, skilled workforce, and flexible education system. Germany has a highly developed banking system and double taxation avoidance agreements with more than 80 countries worldwide.

Germany for Entrepreneurs

With a GDP per capita of $37,900, opening a company in Germany is an ideal solution for business. Entrepreneurs here have enormous opportunities for networking and any field of activity. Every European country can be reached from Germany within a few hours by car, train, or plane.

Company Formation in Germany: Advantages and Requirements

Registering a company in Germany is an extremely strict but straightforward process with the right approach. Our company can assist you with this or provide a ready-made company. We work with local specialists who are familiar with all aspects of German corporate law.

You may be interested in: Buy a ready-made or open a business: Germany and Austria

Understanding local legislation is very important, and our staff is ready to assist you. We will simplify the process and set up your company in the shortest possible time.

Now some general information. There are five types of German companies:

  • Limited liability company (GmbH);
  • Mini GmbH — UG;
  • Public stock corporation (AG);
  • Branch;
  • Sole proprietorship.

GmbH is the most common form of commercial enterprise in Germany, which has:

  1. A minimum share capital of €25,000.
  2. A simple structure designed only for private companies.
  3. At least one shareholder (director).
  4. A registered office in the country.

To open it, you will need to visit Germany.

Mini GmbH (UG) is:

  • essentially the same as GmbH;
  • a company with a minimum share capital of €1;
  • a firm with one director (shareholder).
  • a business with an open local office.

To open it, you will also need to go to Germany; it cannot be done remotely.

AG is a company with:

  • a minimum share capital of €50,000;
  • standard corporate form for large public companies;
  • at least one shareholder;
  • strict regulation (as a listed company).

Now about partnerships:

  1. You can form a general (oHG) or limited (KG) partnership.
  2. There must be at least two partners, one of whom must be a GmbH company.
  3. Usually used for small and “family” businesses.

Don’t forget: foreign investors prefer limited liability partnerships KG.

Creating a sole proprietorship is:

  1. The simplest and least regulated form of company.
  2. Required registration of the financial company in the commercial register.
  3. Unlimited liability for all obligations and debts.
  4. Profit subject to German income tax at individual rates.

To obtain a VAT payer number for your company registered in Germany, it is mandatory to open a physical or virtual representation.

Banks in Germany: Is it really possible for a non-resident to open an account?

Opening an account at a German bank for a non-resident is a terribly complex and lengthy process. You need to approach a financial institution with a set of documents. Recently, large banks like Commerzbank and Deutsche Bank have been reluctant to cooperate with our compatriots. Smaller banks do not have such a range of services (internet banking, virtual services, etc.). Therefore, it is best to buy a ready-made company in Germany and transfer it to your name.

Useful: Offshore registration and sales worldwide from 1–2 days

We offer many options. For example, a mini-GmbH (UG). The company was established in 2015, and the bank account is registered with Commerzbank. The market reputation is established, taxes have been paid regularly and in full. And all this will cost just 10,000 euros. Notary fees and registration fees up to 900 euros. You indicate your business activity in the registration documents, while accounting services and legal address are ours. Call us!

England

The United Kingdom is a European country with a successful economy. Businessmen from around the world strive to open their company here. Investors and clients understand that if a company is registered in England, it can be trusted.

The UK for Entrepreneurs

Since April 6, 2016, England has introduced a mandatory PSC register for entrepreneurs. And from June 30, 2016, this information became public. So if you hope to remain anonymous, Britain is not for you.

The PSC register is a new mandatory register supported by the “Small Business, Enterprise and Employment Act (SBEE).” Private companies and LLCs must be opened by those who own more than 25% of the shares. The purpose of the PSC is to increase corporate trust and transparency in the United Kingdom, as well as to combat tax evasion and money laundering.

The following must create and maintain the register:

  1. Limited liability companies.
  2. Private limited companies.
  3. Limited partnerships.
  4. Societas Europaea.

If you need additional information, contact us. We will be happy to answer all your questions.

Company Formation in Britain: Advantages and Requirements

One of the most popular legal structures for business in the UK is the limited liability company. This is due to many advantages offered to directors and shareholders.

The main advantages of a limited liability company:

  • Tax efficiency;
  • Professional status;
  • Limited liability.

You also have the opportunity to obtain British citizenship and quite high profits.

Requirements for registration vary depending on the business sector. You need to check them additionally.

Banks in England: Is it really possible for a non-resident to open an account?

English banks work with non-residents, but reluctantly. You must provide documents about the origin of the funds. Therefore, we suggest simply buying a ready-made company with an open account and transferring it to your name.

Netherlands

The Netherlands (also known as Holland) is one of the founders of the European Union, OECD, and World Trade Organization. The country is located in the heart of Europe. It has a stable and successful economy (GDP per capita — $42,300), and its trade and investment policy is one of the most liberal in the world.

For this reason, thousands of international companies have opened in the Netherlands. The country is a world leader in the agricultural sector.

Holland for Entrepreneurs

A Dutch company can be registered with only one director and one shareholder with no restrictions on nationality or residence. The Netherlands has a liberal tax regime, including an extensive network of double taxation treaties.

Company Formation in the Netherlands: Advantages and Requirements

There are four types of Dutch companies:

  • Public limited company (NV);
  • Private limited company (BV);
  • Partnership;
  • Branches.

NV — a company with:

  • A minimum share capital of 45,000 euros;
  • Issued shares amounting to at least 20% of the share capital;
  • Shareholders of any nationality;
  • A registration with the Chamber of Commerce.

This form is ideal for companies wishing to attract additional investment.

BV — a company with:

  1. A minimum share capital of 1 euro.
  2. Shareholders’ liability limited to their contribution to the capital.
  3. Shareholders of any nationality.
  4. A registration with the Chamber of Commerce.

This form is the most common type of business in the Netherlands, especially for non-residents.

Partnerships and branches are suitable only for non-residents who already have an established and functioning business in any other European country.

Banks in Holland: Is it really possible for a non-resident to open an account?

Bank staff in Holland are more lenient towards our compatriots than their colleagues in other European countries. However, to obtain a corporate account, you need to show the transparency of your income and account for every single penny invested.

Read more: Company Registration in Hong Kong: A to Z Guide

We suggest not worrying about how to open your own company but rather buying a ready-made one. The best option is a limited liability form with a nominal share capital of only 1 euro. However, we strongly recommend depositing 500 euros. This will show both the authorities and the bank that the company is serious and legitimate.

Advantages of Buying a Shelf Company in Europe

The list of countries we provided above is not an exhaustive list of successful and friendly countries for our compatriots. There are others, such as the Czech Republic, which welcomes our entrepreneurs with pleasure. We are already ready to offer a ready-made company there.

For example, there is a company from 2008 registered in Brno with a trading focus (wholesale goods for outdoor activities). All accounting has been maintained by a Czech auditor from the beginning of the activity, and the average annual turnover was about 300 thousand euros. That is, the reputation in the market has been established and is quite successful. An account was opened with OTR, which is now closed due to inactivity, but we can reopen it in 1 day. The current owner purchased the company in 2012. Everything is honest, transparent, and profitable. You only need to properly deposit the share capital and transfer the documents to yourself.

We can also offer registration of any company abroad or a ready-made business in Europe. Call us today!

 

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