Recent years are characterized by tightening the regulations of businesses located in offshore territories that have been introduced by many leading banking and financial organizations. This is reflected in the general recommendations of organizations such as the FATF or OECD regarding the rules of operating with offshore companies revision as well as in the cases of rejection to process companies with a “weak” country of incorporation becoming more frequent in the top banks. A trend of the “convenient flag” becomes a thing of a past, and more and more company owners start considering the transition to the jurisdiction with low taxation level and also providing a high status for a company. Today we will tell you about the main advantages for businesses of opening a company with a registration in Europe.
1. Minimization or total absence of taxes.
To begin with let’s figure out which country registration is considered to be the European one. These are, first and foremost, the countries of the European Union, as well as the European Free Trade Association (EFTA) – Liechtenstein, Switzerland, Norway and Iceland. Despite last year’s BrExit, the United Kingdom is unlikely to sharply radicalize relations with the continent in the coming years, so such British companies like the Scottish LP (Limited Partnership) are still valued above any offshore ones. Thus it turns out that a company registered in Malta or Cyprus (that someone still consider as offshore by force of habit) is also a Eurocompany. European taxation is friendly enough if you choose the correct ownership form and the country of the flag. By the way, already mentioned LP has the 0% tax rate for income made from the operations outside the United Kingdom.
2. Opportunity to open an account in a reliable bank in a developed country.
Starting from January 1, 2017, many banks have adopted rules restricting to open accounts for companies with offshore jurisdiction. In some cases companies are forced to open corporate accounts in offshore banks with a low level of trust, which entails problems with transfers due to the lack of a developed network of correspondent relations, high fees for accepting / sending transfers and lending rates. Therefore, in order to be confident in your business, you should apply to a bank which reliability is confirmed by an authority and a state financial system.
3. Prospects of opening a merchant account in a reliable European bank.
Same as in the previous paragraph, a license issued by a European regulator will open the gates for opening and processing a merchant account in a strong bank to your company. In addition to significantly simplified process of accepting funds in dollars and euros, a bundle of merchant account and corporate account opened in banks with a high degree of confidence will make it easier to withdraw funds. Choosing the right registration significantly affects the conditions and rates of processing. In addition, the European merchant account gives you a green light to develop your business throughout the continent.
4. There is no need to submit reports and carry out audits.
According to the legislation of many European countries, the company may be relieved from liability to fill tax reports in case when all the owners or partners of the company are non-residents of this state. Furthermore when the company meets the parameters of a “small” one and unless otherwise is specified in the Statute, then you are free from performing a mandatory audit.
5. International expansion and acceleration of the company growth.
Considering the deep economic ties in the EU, setting up a company with European license is alike to a Schengen visa – you are faced with a huge market with no major barriers for business. Customers from other countries would also prefer an enterprise registered in a world-known country, rather than on an island that is difficult to find on a world map.
6. It is easy to do with RegularPay.
The list of additional services provided by RegularPay company also includes the assistance in registering a European company for your business in the shortest possible terms. Incorporation process is easy, the only thing you need to provide to register a company is your passport. Starting the cards payment processing on your website under the best conditions is reached when the processing bank is confident in the reliability of the merchant and the country of incorporation plays a major role there.