Starting a Business in a Eurozone Country
Discussion
Its early days but I am looking at expanding an existing business into a Eurozone Country and am trying to see the best way to structure the business.
At the present time we import products from EU/ Eurozone countries buying in Euros and sell in the UK hence we have currency exchange costs etc.
There is a opportunity to expand into another market in an EU country with our product range selling through a subsidiary of one of our UK customers in that country.
The Options are
1. Set up a new company in the new EU market, buy from existing suppliers in Euros, sell in Euros to subsidiary of existing customer in the new market and then transfer profit back to UK or keep profit in EU New Co if tax rates in that country are beneficial.
2.Our present Company buys in Euros, sells in Sterling to UK existing customer and let them handle internal money transfers between their UK head office and EU subsidiary.
3. Our present company buys in Euros, then re-exports the products ( although they may never touch these shores), selling in Euros to the customers subsidiary, keeping all money transactions in the UK.
Are there any other options?
What option would you guys do and why?
Cheers,
Tony
At the present time we import products from EU/ Eurozone countries buying in Euros and sell in the UK hence we have currency exchange costs etc.
There is a opportunity to expand into another market in an EU country with our product range selling through a subsidiary of one of our UK customers in that country.
The Options are
1. Set up a new company in the new EU market, buy from existing suppliers in Euros, sell in Euros to subsidiary of existing customer in the new market and then transfer profit back to UK or keep profit in EU New Co if tax rates in that country are beneficial.
2.Our present Company buys in Euros, sells in Sterling to UK existing customer and let them handle internal money transfers between their UK head office and EU subsidiary.
3. Our present company buys in Euros, then re-exports the products ( although they may never touch these shores), selling in Euros to the customers subsidiary, keeping all money transactions in the UK.
Are there any other options?
What option would you guys do and why?
Cheers,
Tony
I have a bit of experience in this.
Although the EU provides harmonised trading, each member state is free to impose country-specific conditions such as requiring that ownership of a company established in their country is at least 51% owned by a local entity.
Countries towards the eastern fringes of the EU (i.e. Bulgaria) have attractive tax levels such as 10% flat rate corporation tax but tend to be the more restrictive in terms of local ownership. And also, these countries don't use the Euro so there are currency fluctuations to take into account - although business to business tends to be done in Euros regardless.
I've recently set up a European Cooperative Society business (domiciled in Sofia) and if you can find four others (businesses or people), it's worth looking at.
To be honest, it's a complex issue but many business are looking at doing this for obvious reasons. I would advise that you speak to your regional Department for International Trade rep / office. They provide some very good advice and help.
Don't hang around though. It is far from clear what's happening on the trade deals / Brexit front and it is entirely possible that things may get a little trickier later on.
Although the EU provides harmonised trading, each member state is free to impose country-specific conditions such as requiring that ownership of a company established in their country is at least 51% owned by a local entity.
Countries towards the eastern fringes of the EU (i.e. Bulgaria) have attractive tax levels such as 10% flat rate corporation tax but tend to be the more restrictive in terms of local ownership. And also, these countries don't use the Euro so there are currency fluctuations to take into account - although business to business tends to be done in Euros regardless.
I've recently set up a European Cooperative Society business (domiciled in Sofia) and if you can find four others (businesses or people), it's worth looking at.
To be honest, it's a complex issue but many business are looking at doing this for obvious reasons. I would advise that you speak to your regional Department for International Trade rep / office. They provide some very good advice and help.
Don't hang around though. It is far from clear what's happening on the trade deals / Brexit front and it is entirely possible that things may get a little trickier later on.
StevieBee said:
I have a bit of experience in this.
Although the EU provides harmonised trading, each member state is free to impose country-specific conditions such as requiring that ownership of a company established in their country is at least 51% owned by a local entity.
Countries towards the eastern fringes of the EU (i.e. Bulgaria) have attractive tax levels such as 10% flat rate corporation tax but tend to be the more restrictive in terms of local ownership. And also, these countries don't use the Euro so there are currency fluctuations to take into account - although business to business tends to be done in Euros regardless.
I've recently set up a European Cooperative Society business (domiciled in Sofia) and if you can find four others (businesses or people), it's worth looking at.
To be honest, it's a complex issue but many business are looking at doing this for obvious reasons. I would advise that you speak to your regional Department for International Trade rep / office. They provide some very good advice and help.
Don't hang around though. It is far from clear what's happening on the trade deals / Brexit front and it is entirely possible that things may get a little trickier later on.
Yes I at first thought that I could just open up another company easily but the govt in my target country want to me live there !Although the EU provides harmonised trading, each member state is free to impose country-specific conditions such as requiring that ownership of a company established in their country is at least 51% owned by a local entity.
Countries towards the eastern fringes of the EU (i.e. Bulgaria) have attractive tax levels such as 10% flat rate corporation tax but tend to be the more restrictive in terms of local ownership. And also, these countries don't use the Euro so there are currency fluctuations to take into account - although business to business tends to be done in Euros regardless.
I've recently set up a European Cooperative Society business (domiciled in Sofia) and if you can find four others (businesses or people), it's worth looking at.
To be honest, it's a complex issue but many business are looking at doing this for obvious reasons. I would advise that you speak to your regional Department for International Trade rep / office. They provide some very good advice and help.
Don't hang around though. It is far from clear what's happening on the trade deals / Brexit front and it is entirely possible that things may get a little trickier later on.
Thats something the Mrs might not like and would be detrimental to the overall business over here.
Cheers,
Tony
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