The Italian company incorporation: a business solution for Brexit
As Britain is no longer part of the EU VAT area, companies exporting in Europe are encountering extra costs. The Federation of Small Business (FSB) is revealing that its members are facing significant issues in dealing with 27 different rulebooks when they were used to deal with a single European rulebooks. The UK is no longer part of the EU, which means that sales tax is now collected by each country individually. Given the increasing magnitude of such continuous compliance with so many set of rules, many small firms are now considering the registration for VAT in multiple jurisdictions.
In this sense, a viable solution might be the incorporation of a Newco within EU territory. Doing so, UK firm might be able to exploit the VAT triangulation scheme, which make cross-border trade easier between EU member States.
Generally speaking, UK businesses that will continue to trade with the EU after Brexit need to be aware about how:
– Transfer VAT registration;
– Identify and Tax representative;
– Transferring financial guarantees or foreign account in the EU
– Open a secondary and representative offices in one of the EU member States.
Italy represents a feasible solution for those businesses who want have the economic and tax benefits connected to EU. In this sense, Italy has always been a country who attracted foreign investors especially in those sectors such as: tourism, food industry, manufacturing sector, agriculture, and real estate business. In Italy, the most common form of business is represented by Small and Medium enterprise which normally collaborate with other small business in a certain part of the production chain.
Italian incorporation may take various legal forms. For instance, traditional Limited liability company (“Srl”) offer guarantees for those who wants to be shielded by company debts. A Joint Stock Company (“Spa”) might be the solution for big firm who needs stock market investors trust in order to operate in its sector.
Whatever is the legal form of the Italian Newco, Italy company incorporation requirement generally are:
– Share Capital;
– The type of accounting;
– Legal Representative of the Company;
– Registered office of the Company;
Under previous circumstances, a viable solution for British Small enterprises might be incorporate a Limited Liability Company with one shareholder and one director. This company will be required to submit an annual tax return to the Italy Revenue Agency and a annual financial statement. Additionally, Audit of financial statement is not required if the company meets one of the following criteria:
– Turnover below €8.8 Million;
– Assets below €4.4 million;
– Less than 50 employees.
Brexit might be an obstacle or an opportunity for many small and medium business. EU VAT registration in Italy might solve the issues connected to taxation and other unexpected expenditures. VGS lawyers are able to assist you in Italian incorporation path suggesting the best solution according to your business needs. Please do not hesitate to contact us through the chat-box or the form you can find in this page.