Opening a European Business can be easy and beneficial
Even with our recent economic problems, the United States is still home to the greatest economy in the world. If this is the case then, why would a veteran American business owner or someone considering a business startup for the first time choose Europe as the destination for their company formation? Generally, two of a business’s top concerns are in the areas of capital protection and tax liability, and the many diverse countries in Europe offer outstanding opportunities to the American investor in both of these areas.
To bolster their own economy, many European countries have developed very friendly attitudes towards capital infusion from Americans and other nonresident investors. For instance, Ireland offers foreign investors 0% tax for the first three years of a corporation’s existence in most cases. This type of tax benefit is certainly not available in America to its native residents, and is just one of many examples of the corporate advantages which Europe offers to the United States businessman or woman.
Most European countries also ensure that the dreaded double taxation rule does not apply to American investors setting up shop in their country. If forming a company in a European country caused tax liability both at home and abroad, any other benefits would be outweighed by this dreaded taxation regulation. Fortunately, most European countries offer some type of company formation which allows for a single taxation occurrence.
And whether opening a company in Europe as a subsidiary, or whether you will be creating an entirely new business entity, shareholder and director regulations exist in some business form which allow for a minimum of one shareholder or director to be filed. And in many cases, your European business formation efforts can actually be subsidized depending on the country you choose. In Spain for instance, regional incentives exist if you’re willing to invest in a less-developed area of the country, and tax breaks sponsored by the EU are offered to the American investor developing a physical presence in Spain that helps reduce unemployment among young Spanish residents.
Many American investors considering forming a European business are concerned that their capital investment will meet with hefty fees, or that sending capital back home to the US will draw heavy fines or tariffs. If you choose a country like Belgium for your European corporate formation, the second most prosperous country in the EU, foreign capital entering or leaving the country is met with no restrictions. Belgium also has a unique tax break which allows multinational companies to offer management and financial services at virtually a zero percent tax rate.
The many benefits offered by the several distinct and unique European countries to an American investor are plentiful. Access to important geographical trade routes, attractive tax rates and strategies, asset and capital protection, and minimal reporting and regulatory requirements exist in many forms depending on the corporate entity you wish to form. Discussing your goals and desires with a seasoned European business formation specialist will ensure that you reap the many rewards offered to the American investor deciding to set up shop in Europe, and can get you set up quickly with minimal startup cost.
For more information about starting a European business see our friends at www.europeanbusinessformations.com