what is the best way for a us company to incorporate in the european union

Last checked: 26/07/2021

Providing services abroad

If you take a registered business providing services (as an architect or tourist guide, for case) in the land where you live, you can offer those services in some other EU country without setting upwardly a visitor or co-operative there.

This can be useful if you want to:

• provide the service at that place just temporarily
• provide the service simply to a specific client living at that place
• examination the marketplace before expanding your company in that location.

In principle, you should exist able to supply services in some other European union land without having to comply with all of that country'south administrative procedures and rules (like obtaining prior authorisation to do business organisation). Merely you may demand to notify the public authorities that you will be offering services in their country. The other country must take valid reasons for imposing its requirements.

If you lot experience difficulties with public government, you can request assistance from our aid and communication services.

Note: If you offer telecommunication, broadcasting and electronic services, these services volition e'er be taxed in the country where the customer belongs. For a not-taxable person information technology is the place where he is established, has a permanent address or commonly resides. For a business organisation customer, it is the country where the business is established or has a fixed premises where this establishment receives service.

Despite this principle, you can't simply presume y'all can provide services without setting up a company locally. Whether you can or not will depend mainly on how often, for how long and how regularly you want to provide services.

Too, different rules might apply to sure sectors, for example:

• financial services
• healthcare services that may just exist practiced by members of a regulated health profession
• private security services
• gambling services
• notary services
• temporary work agency services
• telecommunication, broadcasting and electronic services

If you choose to register a company in another EU country, you will have to comply with national rules for the incorporation/registration of a subsidiary company, branch or agency and about of that state's rules for setting up a business organisation (including recognition of your professional qualifications and applying for the necessary permits). Compliance with national, European or international standards may as well be required.

To find out what to exercise in your case, inquire the bespeak of single contact in the country where you want to provide services.

The points of single contact provide data in the national language of their country. Many also provide data in other languages. The level of information and service offered can differ from one contact point to another.

Telecommunications, broadcasting and electronic services

If y'all supply telecommunication, dissemination and electronic services, these services will usually exist taxed in the country where the customer belongs.

Business customers

For a business organisation customer, it is the country where the business concern is established or has stock-still premises where this establishment receives service.

Non-taxable customers

For not-taxable persons, it is the identify where they are established, have a permanent address or usually reside.

Special rules for low almanac turnovers

There are some exceptions; these simplified rules mean you tin can choose to use the VAT rules of your own European union country (i.east. where you are established, have your permanent address or usually reside) if y'all meet the following criteria:

• you are established, have your permanent address or commonly reside in but one Eu country
• y'all supply telecommunications, broadcasting or electronic services to non-taxable consumers who are established, have their permanent address or ordinarily reside in another European union state
• the full value of your supplies of telecommunication, broadcasting or electronic services does not exceed EUR 10 000 (exclusive of VAT) in the current agenda yr, nor did it do and then in the preceding calendar yr

In this case, you lot won't need to register, file VAT returns and make payments in each of the European union countries where your customers reside (nor annals for the MOSS scheme). Instead, you accuse VAT to your customers at the charge per unit in your country, and pay and declare that VAT to the taxation authorities in your country.

If you benefit from a special scheme for pocket-size businesses in your state that allows yous to exempt your supplies from VAT up to a certain threshold, this also applies to your supplies of telecommunications, broadcasting or electronic services.

In that location is no difference between customers anywhere in the European union

While you are free to define your general terms and weather of sale, all your EU-based customers must have the same access to services (provided at your premises or electronically supplied services) as your local customers. If you offer a special cost, promotion or sales conditions, these should be fabricated available to all your customers irrespective of which Eu country they are located in, their nationality, place of residence or concern location.

The rules apply to online and offline transactions equally long as the sales are to the finish user (an individual or business that doesn't accept the intention to re-sell, transform, process, hire or subcontract their purchases). The rules do not apply to sound-visual services. For other copyright-protected on-line content, limitations due to territorial copyright limitations may still apply.

Access to online interfaces

Your customers must be able to access any version of your website they desire, for example, if they type in the Spanish URL of your website and they are connecting from Italy they shouldn't automatically exist re-directed to the Italian version. They must requite you lot their consent before yous redirect them and they have the right to withdraw their consent at any time.

Sales of electronically supplied services

If your customer is based in another European union land and wants to purchase electronically supplied services from you (such as cloud services, data warehousing or website hosting), they should be able to access and register for these services in the same way as your customers based locally.

If yous accept to cross a border to offer your service to a customer abroad, you might incur additional costs - for storage or to comply with administrative procedures, for example. Such additional costs might justify college prices to a client abroad.

Not certain what constitutes discrimination?

If you are non sure whether you're being illegally discriminated against by a trader or are yourself applying discriminatory conditions to your customers, inquire the relevant contact point in your country.

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Source: https://europa.eu/youreurope/business/selling-in-eu/selling-goods-services/provide-services-abroad/index_en.htm

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