UK small companies: how to survive to Brexit? To set up an Italian company is the solution
As Britain is no longer part of the EU VAT area, companies exporting in Europe will encounter extra costs. The Federation of Small Business (FSB) reports how its members are facing significant issues passing from one single rulebook to dealing with 27 different rulebooks.
The UK is no longer part of the EU and this means that taxes over sales are now collected by each country, on an individual basis. 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.
Given this scenario, a viable solution might be the incorporation of a Newco, or a branch or opening a VAT position and appointing a tax representative within a Member State. The above solution would allow UK companies to get into a VAT triangulation scheme, which makes cross-border trades towards Europe much easier.
Italy represents an appealing solution for those UK businesses who wish to benefit from the EU market, after Brexit.
Italy has always been a major business hub attracting foreign investors, especially in tourism, food industry, manufacturing, agriculture, and real estate businesses. Now, Italy is ready to host services companies too.
The incorporation of a company under Italian Law may take various legal forms. For instance, traditional limited liability company (“S.r.l.”) offers guarantees for those who want to be shielded in their personal assets, from company liabilities. While, a joint stock company (“Spa”) might be the solution for bigger investments which need a wider financial ground. The incorporation process would take between two and four weeks.
An Italian simplified limited liability company, an Italian branch or the simple opening of an Italian VAT position are even easier and quicker solutions to start immediately to operate within the European Single Market.
VGS Corporate Lawyers are available to assist you in setting up your business in Italy. Feel free to contact us at info@vgslawyers.com or fill in the contact form.