Brexit and incorporating an EU Company to do business

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With a ‘no deal’ Brexit looming now might be the time to consider forming a Company based in the EU to protect and continue trading within the union. Without the benefit of being able to see into the future what we do know as fact is that the UK voted to leave and thus creating confusion and doubts when importing and exporting goods and services as before.

Individuals who operate through a UK based Limited Company do have an option to create a Company within one of the EU states to benefit from any trade deals that the UK may, or may not be entitled to.

One option that we can advise clients, is to incorporate in the Spanish owned territory of the Canary Islands. These islands are probably more well known for their bustling tourism and sun-drenched beaches, restaurants, and bars. However, The Canary Islands happen to be part of the European Union by default by their ownership by Spain. Think of the Isle of Man – owned and part of the United Kingdom however self-governed for the purpose of taxation. The Canary Islands are in a similar position and come with some extremely attractive tax advantages.

The difference with The Canary Islands as opposed to places like the BVI, Seychelles and the Isle of Man is that they are an ‘onshore jurisdiction’ and therefore offer any EU existing tax treaties that are currently in existence. It also means that you can create your Company here with the peace of mind that you will enjoy the same financial, political, and legal security as elsewhere in the EU. Many Hollywood film Companies are even turning to the Canary Islands as a preferred venue to make their movies. Take Rambo 5, Fast and Furious 6, Jason Bourne and even the Star Wars franchise.

Forming a Company in The Canary Islands can be done from the UK without the requirement to travel by means of a Power of Attorney. Our agent can then act as if he/she was in your shoes, create the company and open the bank account. As with all onshore companies the requirement for submissions and accounts are needed and if the Company meets certain criteria it can benefit from as little as 4% Corporation Tax being the lowest in Europe.

Other options that we can assist with are company formations in Ireland, Bulgaria, Malta, and Cyprus who all have their own tax advantages and benefits of being part of the EU.

Remember that shares of these onshore companies can be held by an offshore parent company creating a perfect structure if you desire the need for privacy. Offshore bank accounts can also be operated through these onshore structures creating the perfect ingredient for a successful business.     

 

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