According to statistics from the European Commercial Register, most companies within the EU are registered as Standard Limited Liability Companies (LLCs), with shareholders bearing no personal financial liability for the company other than the monies invested in its paid-up capital as shares.
The other three most common legal forms in the EU are the stock corporation (JS), limited partnership (LP) and limited partnership (LLP). While starting a public company usually involves a lot of legal work, it might be your best bet if you are planning to start a large company with investors and issue company shares. On the other hand, LPs and LLPs can be used in certain jurisdictions to achieve a corporate structure that minimizes taxation.
Onshore and offshore EU companies
There are certain differences between European onshore and offshore companies. Onshore companies can become tax resident companies in EU jurisdictions (such as Italy, Cyprus, Latvia, Netherlands, Estonia etc.) by incorporating in Gibraltar, Scotland or Malta.
European onshore companies typically require complex tax planning structures to minimize taxation. Some jurisdictions offer low corporate tax rates, making it easier to structure your business (e.g. Latvia or Cyprus). As long as an onshore company is tax resident in its territory, VAT numbers are usually readily available. However, in some countries it can be difficult to maintain this status. Double taxation treaties can easily be applied to resident businesses, but economic substance and presence are essential to receive tax benefits.
In offshore Europe, low taxation can be achieved through the use of a local tax system. It is possible to use agency structures to get a cheaper tax rate. Obtaining a VAT registration number for a European offshore company can be a little tricky - it is usually easier to buy a ready-made company.Â
Numerous shelf companies with sales tax identification numbers are waiting for you with us. If necessary, with our legal support you can purchase a shelf company remotely and assign a nominee director or a shareholder. Bookkeeping and record-keeping obligations are simplified and company maintenance can easily be carried out virtually or remotely.
