This document explain the establishment of a
Society "Sarl" Monegasque capable of
marketing of any product / service.
In some CEE Countries there is a problem of any
refunds of value added tax and in particular the
taxation of profits, not adapted to the Company that
they intend to trade in goods or services
In Italy it is likely to indicate that the taxation imposed
on business profits is 50% (direct and indirect)
*see attached prospectus (p.6) *
These and other issues are the limits to corporate and
economic development in Europe
Current situation EEC Countries
With current legislation there is no progress
and the Anglo-Saxon model of "Trading
Company", a true expression of the free
market is not applicable to countries with high
taxes (including obviously, Italy)
Establish a Trading Company in other countries es :
Switzerland: the Constitution are fast but require a structure that is very
close to the Spa for the characteristics of real operations on the Italian
territory as well as other important limitations;
Not all costs incurred by the company are deductible from the profits ;
NON € Area;
England: it is apparently easier constitution but its remoteness prevents a
quick and direct control;
Other countries: not recommended.
NB And then unlikely if not improbable that a company with Head too far
from the Italian borders work "really" on the territory ...
Taxex in Italy (example)
NB: The following example is of course lack of real corporate data of the "Mother
House" and therefore do not consider that these were any exemptions, application
of reduced%, of which the company could use and that the amount of income
considered for IRAP is the same as that for IRES.
We imagined a Taxable Income (allegedly based on current tax and the "Field Studies"
in force for the Srl in Italy, amounting to about €75,000.00) on sales and income
arising from trading amounted to €100,000.00 :
it appears that the rate of increase in taxes payable amounted to 150% because :
- IRAP + IRES on base income euro 75.000,00
- IRAP + IRES on base income including increased euro 186.250,00
for a difference of EUR 111,750.00, which represents a percentage
Open a Company Srl (Limited Liability Company, Srl comparable
to Italian and other "European" but with less red tape in business
operations) in the Principality of Monaco;
Need to rent premises where the activity will be undertaken.
(The rent can also be relatively low operating costs on the local
market in an appropriate manner)
Development of business in the jurisdiction.
Terms of Registration Notary + public cost: €10,000 approx
Share Capital: €20,000 fully paid
Rent: €35.000/Year (the newly formed company can rely on
Business Center and the cost month is equal to €700/ca but
maximum for 6 months)
Secretariat €15,000 years (if supported a Business Center is the
cost stated above)
Tax advisory / administrative €10,000 years
Telephone + Fax + Internet €10,000 years (if supported a
Business Center is forfeitized)
Representation costs and travel : € ?
Taxation: see below (pag.9)
For Companies that perform less than 25% of their turnover
outside the Principality is in effect the total exemption from taxes
for a higher percentage, the maximum tax is 33.33%
Shall assume all the costs related to the activity itself (and
therefore, suppose that adds to fixed costs the "salary" to be paid
to the Director, it will be completely deducted from the profits of
the Company) and, moreover, they will not have to worry , being
the person totally exempted from payment of taxes in Monaco
Is there a program to help businesses "that requires the highest
tax brackets to be reached, the first and second year of operation
are NOT taxable, the third year the tax is calculated on 25% of
profits, the fourth year calculated on 50% of profits, the fifth year
in the 75% of profits and the sixth year on 100% of profits.
Months 1: to prepare the necessary
documentation to be submitted to the
Directorate of economic expansion "in Monaco;
Months 1: waiting for the answer;
Months 1: we need this time to estimate the
true activation of the Company (the
Constitution, research location, connections,
Costs of setting up relatively high compared to other countries, but offset by deductions and
exemptions significantly more money.
Overhead costs appear higher but to be asked in connection with the appeal of the
Principality, which may become an additional attraction for the better management of our
Taxation in the EEC is a topic of interest to customers who appreciate the convenient "tax" or
the ability to operate in "Tax Planning" for his company, which is impossible if you work with a
Company Law Italian (no need to abuse it because in any case it is not pleasing to the
Directorate of economic expansion that makes the controls).
The constitution of the Company is still subject to approval of the Directorate of economic
expansion of Monaco, which means that without the support of an accountant on the spot Ep
difficult (impossible) to establish an in Monaco.
The operation of the Company should include the presence of the individual member to
perform the work on site, this means that should be taken from the residence of the Chief
(who will enjoy the tax benefits of the Principality, but must demonstrate, according to Italian
law in force, their stay in Monaco for at least 6 months and 1 day / year) and must bear the
burden (rent etc.).
Lower taxes in absolute terms;
Safe from the prestige of the location and related
infrastructure (the loyalty of customers is also the
various events taking place during the year in the
Principality and that it "catalyst" for other business
Proximity to Italy, there is no real "frontiers" and
therefore quick control and management of the
Other possible scenarios
Opening the Sarl is also possible to exploit the address
for possible synergies in collaboration with other
entities in order to allocate the costs in various ways,
as required by existing legislation.
This addition to the savings, it could represent a
further opportunity for expansion of the business.