Globalization and enhanced virtual developments allow entrepreneurs and business people to look further than their home country when they want to set up a business. Depending on the proposed business activities, professionals can incorporate today in offshore jurisdictions or in traditional financial centers. Consequently, business professionals can choose the best possible location for their venture. Offshore company formation is not applicable to everyone and for every business activity. There are ample opportunities for activities and individuals who qualify. However, at times, the establishment within the European single market might be better suited.
Business formation and incorporation in a foreign jurisdiction allows business professionals to remove unnecessary administrative burdens that distract the business from instant growth. However, to avoid that problems occur afterwards, several rule must be considered.
Not all jurisdictions allow foreign services to enter their territory. Several countries collaborate in partnerships and internal markets. These environments harmonize legal frameworks to ensure the proper functioning of the market. Market entry is often arranged via a single point of entry. This means that rules in one country allow for access to a single market. The European Economic Area (EEA) is such an internal market. European company formations help professionals to find the appropriate place to incorporate. The ideal location is the result of combined factors like costs and fees, administration and taxation, and licensing.
The most appropriate business base of a company depends on the circumstances of the beneficiary as well as the corporate activities. A growing number of jurisdictions levy personal income tax on the world wide income of its citizens. Accordingly, traditional zero tax advantages may still be possible for the company but accumulated value and private use of the corporate assets.