San Marino is an old country with great traditions, the state located in Southern Europe. The area of San Marino is small – only 61 sq. km. San Marino is located close to Italy, that’s why people speak Italian there.
The population is only 32.5 thousand people. Nevertheless, the country has the longest life expectancy in Europe and the highest GDP. The key factors of the economy are industry, tourism, the financial sector (banks, intermediation, insurance) as well as the free registration of foreign companies. The European jurisdiction attracts businessmen around the world to register a firm there and get access to the EU market.
Opening an offshore company in San Marino
European states are the best jurisdictions for international business. Especially those that allow you to work without taxes, but are not blacklisted in other countries. One of these states is San Marino. It is a small republic covering about 60 square kilometers. It is located inside another European country – Italy.
It is quite easy to register an offshore company in San Marino, provided that you are legally prepared and have a lot of free time.
Features of company registration in San Marino
The principle of the kingdom’s development is based on loyal legislation for residents. Therefore, mainly residents can do business in this country. It is almost impossible for a non-resident to buy a ready-made company operating in the domestic market. However, the jurisdiction of the country provides for the possibility of registering offshore companies.
Registration of a local company is possible subject to the contribution of the authorized capital, the amount of which is significantly higher in comparison with the amounts in other countries. To register a joint-stock company, an amount of 25,600 € is required to be deposited into a bank account, and an international commercial company – 25,500 €.
The state actively provides services for the registration of offshore companies. This allows doing business in a full-fledged European jurisdiction on preferential tax terms. There is no taxation for an offshore company in San Marino.
Advantages of jurisdiction
Offshore in San Marino is beneficial due to:
- Export-import agreements. This agreement was signed with the European Union. Thanks to this document, businessmen do not pay customs duties;
- Official state currency. The euro is used here;
- Financial stability;
- Doing business in the European jurisdiction. Your company will inspire customer confidence;
- Tax-free job opportunities. This rule applies to offshore companies that receive income outside the jurisdiction. If you make money domestically, you will have to deduct 17% of the profits.
Organizational and legal forms of offshore companies
- Joint-stock company. There are two types of this type of company – S.P. and S.P.A.;
- International commercial company.
Both types of companies can have at least one director and one shareholder. There are no residency requirements. The minimum share capital for S.P. is € 256 thousand, for S.P.A. – € 77 thousand. Half of the amount is paid within two months from the date of registration, the rest – within 1.5 years. If there is only one participant in the JSC, the entire authorized capital is paid within 60 days.
The capital for an international company is set at € 256 thousand. This amount must be deposited into a bank account within 60 days from the date of registration.
Opening a company in San Marino involves several stages:
- The company name should be unique, you must check it in the register of San Marino before opening a firm there
- Choosing a legal address.
- Development of the charter and articles of association.
- Payment of the state fee.
- Submission of documents to the registration office.
Accounting requirements
In this state, it is possible to register international offshore companies of a commercial type and joint-stock companies. If the company earns money abroad, it will not have to deal with accounting and submit an annual report. This is not necessary if the business is not generating income. The state is loyal to promising businessmen and does not interfere with their development. There is even the possibility of obtaining a government grant.
Taxation in San Marino
There is no currency control in San Marino, VAT tax, and stamp duty, but there is a capital gains tax. Corporate income tax is 17%, and the reduced rate is only 6.5%. Concerning the Base rate of profit for legal entities on profit – 17%.
