Description of activities
An issue of growing interest is the establishment of LTDs, an Anglo-Saxon-law type of company. This is the reason why Lexperto & Partners has decided to put its expertise at the service of the businessman. In most cases, a company driven by needs of greater profitability and oppressed by a bureaucratic system with off-the-norm taxation, tends to evaluate a solution for greater operational and fiscal convenience in compliance with current regulations. We remind that each case must be studied individually through an adequate intellectual and consulting contribution.
A company that is legally incorporated in countries which are members of the EU can lawfully operate in any State of the Community without particular constraints. It is natural that it should comply with administrative, social security and tax regulations, operating within the lawfulness of the activities carried out. For example, an English LTD company that operates in Italy, will have to establish a permanent organization in the territory of the State in the form of a branch of the holding or parent company located in the UK (this operation is called Branch establishment). This permanent organization is subject to the laws of the source State and not that of origin, that is where it is located and where business actually takes place, being attracted to both local taxation and local social security system; it should be noted that a concept such as permanent organization varies from State to State and firstly it must be particularly framed in relation to the country in which it operates; it should be added that these movements should not be aimed at avoiding taxes, but rather at making activities smoother and less bureaucratic. The income received by the CEO is taxed according to the place of production and to that of his residence. Existing bilateral treaties are aimed at avoiding double taxation.
In summary, it is known that Anglo-Saxon systems adopt the common law model which underlines a greater slenderness and simplicity than the italian civil law; those who instead operate exclusively on international and / or British markets and have operating activities located outside Italy, can benefit from multiple advantages through the forming of a LTD:
– Being subject to a more profitable average tax of 20% called Companion Tax
– Better access to credit given by the liquidity of the British banking system
– Current corporate accounts in the UK that are not subject to Italian law
– The duty to open a VAT number (VAT) only after £ 81,000 turnover
– Very low establishment costs – £ 1 capital
– Optional anonymity
– Faculty to set up a Dormiant “non-operational” company to allow the start up of a company that does not pay taxes in the UK until it is invoiced – Exclusion from the legislation of convenience instead prevailing in Italy
– Higher and more easily recognizable percentages of deductibility
– Greater visibility and credibility on international markets
– More attractive management fees
The firm follows the entire process of planning, training, opening, management and termination (Dissolution) of the LTD, as well as availing itself of local partners who are experts in TAX Advice, taking care of company’s accounting and requirements which have to be carried out in the UK.
Summary of services
– LTD formation
– Introduction to British Banks for the opening of the account
– Legal branch in the UK
– Virtual office included (forwarding mail, calls, mail to the desired address)
– Compilation of Tax return (Tax Annual Return) and accounting (Accountancy)
– Strategic and directional consultancy