Monte Carlo Trading Company Sarl (English)


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How and why create a Trading Company in MonteCarlo

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Monte Carlo Trading Company Sarl (English)

  1. 1. XXXX “Trading Company” S.a.r.l. by Consulting & Promotion Private Property 1 13/07/2009
  2. 2. Overview  This document explain the establishment of a Society "Sarl" Monegasque capable of marketing of any product / service. Private Property 2 13/07/2009
  3. 3. Current situation  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 Private Property 3 13/07/2009
  4. 4. 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) Private Property 4 13/07/2009
  5. 5. Possible alternatives  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; uro  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 ... Private Property 5 13/07/2009
  6. 6. 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 150% Private Property 6 13/07/2009
  7. 7. Objectives  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. Private Property 7 13/07/2009
  8. 8. Costs Constitution  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) Private Property 8 13/07/2009
  9. 9. Benefit  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% besides:  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. Private Property 9 13/07/2009
  10. 10. Timing  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, etc.. Etc.). Private Property 10 13/07/2009
  11. 11. Disavantages  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 customers.  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.). Private Property 11 13/07/2009
  12. 12. Advantages  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 opportunities);  Proximity to Italy, there is no real "frontiers" and therefore quick control and management of the activity. Private Property 12 13/07/2009
  13. 13. 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. Private Property 13 13/07/2009
  14. 14. Private Property 14 13/07/2009