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Doing business worldwide

Blog about doing business internationally.

The European Union was created in 1992. Today it unites 27 states with a total population of almost 450 million people. 19 EU countries have introduced a single currency – the euro. The Maastricht Treaty establishing the European Union based on the European Economic Community was signed in 1992. To date, 6 countries have candidate status for accession to the European Union

The complete list of states along with the dates of accession to the EU is as follows:

  • Belgium (since January 1, 1958)
  • Bulgaria (from January 1, 2007)
  • Croatia (from 1 July 2013)
  • Denmark (from 1 January 1973)
  • Germany (since January 1, 1958)
  • Estonia (since May 1, 2004)
  • Finland (since January 1, 1995)
  • France (since January 1, 1958)
  • Greece (since January 1, 1981)
  • Ireland (from 1 January 1973)
  • Italy (since January 1, 1958)
  • Latvia (from May 1, 2004)
  • Lithuania (since May 1, 2004)
  • Luxembourg (from 1 January 1958)
  • Malta (from 1 May 2004)
  • Holland (since January 1, 1958)
  • Austria (since January 1, 1995)
  • Poland (since May 1, 2004)
  • Portugal (since January 1, 1986)
  • Romania (from January 1, 2007)
  • Sweden (since January 1, 1995)
  • Slovakia (from May 1, 2004)
  • Slovenia (from May 1, 2004)
  • Spain (since January 1, 1986)
  • Czech Republic (from May 1, 2004)
  • Hungary (since May 1, 2004)
  • Cyprus (from May 1, 2004)

What is a subsidiary? Description and definition of the concept.

Subsidiaries are created to expand the activities of the main company. Such a company can only operate under the leadership of the parent (parent) company since the subsidiary was initially created with the funds of the parent company, or the agreement states that the subsidiary is subordinate to the parent company. Therefore, the subsidiary is not responsible for the actions of the parent company, whatever they may be. The parent company is responsible for the subsidiary to the state and its regulatory authorities since it completely manages its activities. Subsidiary – an enterprise created as a legal entity by another enterprise (founder) by transferring part of its property to it in full economic jurisdiction. The founder of the subsidiary approves the charter of the company, appoints its head, and exercises other owner’s rights with the subsidiary, provided for by the legislative acts on the company.

Starting a business in the EU countries

Citizens register companies in the EU for different reasons and pursue different goals.

Someone uses this opportunity not for profit, but as an immigration tool. By registering a company in a European country, you acquire the opportunity to obtain visas for family members in a simplified manner, it is possible to obtain a residence permit (residence permit), and in the future, the right to permanent residence (permanent residence) in the selected country, the standard of living in which can be considered relatively high and the cost of living is relatively low.

Someone is attracted by the opportunity to conduct business according to the civilized, predictable rules of the European state.

Many are interested in the duty-free market of the European Union, where the total population is five hundred million people and it is possible not to overpay for doing business, due to low business costs.

The most frequent choice of the organizational and legal form of an enterprise in the EU countries is made in favor of CJSC. As for the procedure for registering a company, it is individual. For example, in some countries, a personal presence is required, and somewhere you can register virtually.

Compared with classic offshore territories located on small islands and archipelagos of the Pacific and Indian Oceans and the Caribbean Sea, the procedure for registering a company in European countries will be more complicated. In addition to taxes, the need for audits, and financial statements, disclosure of information about the owners of the company will be required.

It must be remembered that in Europe you need to pay for the annual renewal of the company. In European countries, the cost of renewal is fixed, it includes payment for the services of the legal address (agent) and the director of the company, sometimes accounting support is required – somewhere a financial report is required to be submitted once a year, and somewhere quarterly or monthly.

To open a new company or expand your business to another EU country, you can contact the relevant government contact centers and inquire about the rules for starting a business in a particular country.

As an EU citizen, you have the right to open your own business or become an individual entrepreneur in any EU country, as well as in Iceland, Norway, or Liechtenstein, and also, open a branch of an existing EU company if it is registered in one of the EU countries.

Conditions vary from country to country, but the EU encourages its members to simplify this procedure: for example, register a business within three working days, set a fee of no more than one hundred euros, perform all registration operations with one administrative body, and do it via the Internet.

The countries of the European Union have opened special contact centers, the so-called “Points of Single Contact” (PSCs), – state online portals that will allow you to learn about the rules, regulations, and formalities of registration, as well as to complete all administrative procedures via the Internet.

You no longer have to go to different authorities in different countries.

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