Bullion Group

16/06/2020

23/02/2020

www.thebulliongroup.com
[email protected]

The Bullion Group Ltd. This page is our group company informative page, it has all the summary information relating to our subsiduaries, associates and services relating to the entire group.

04/10/2019

Benefits of forming a company in Liechtenstein

Liechtenstein is traditionally one of the most discreet and efficient financial centers of Europe. Liechtenstein could preserve its entrepreneurial traditions, but also was among the first low-tax countries to adopt the international standards on taxation.

The Principality of Liechtenstein is a real mini-state in Central-Europe. It borders the Swiss canton of St. Gallen and the Austrian province of Vorarlberg. Official language is German, although its citizens speak their own dialect. There are 11 municipalities in the country and as its name suggests, Liechtenstein is still a monarchy, the head of the state is Duke Hans-Adam II.

Liechtenstein didn’t become accidentally a decisive entrepreneurial and wealth management center. The financial sector produces the most revenue after the country’s industry. Famous banks are treating 195 billion Swiss francs of clients from all over the world. In addition the principality is a very important center of the insurance, asset and fund management industries as well as the nominee services. About 5,000 people work in the financial services, this is 16% of all workers in the country.

Liechtenstein is member state of the European Economic Association, but not joined the European Union. The country is still tied mostly to Switzerland, its currency is the Swiss franc. Due to the EEA membership the same rules apply to Liechtenstein’s financial market such as to the EU member states. Liechtenstein’s laws guarantee compliance with the highest standards, while the country’s financial industry remains among the most competitive markets.

In Liechtenstein the lowest corporation tax rate is 1,200 francs, there are lower values than this in Europe. It means that despite the clear tax benefits Liechtenstein can not be considered as offshore jurisdiction. The Liechtenstein companies can not be found in any blacklists, these are highly reliable and discreet structures. To form a company in Liechtenstein the beneficial owner will need a local director, who has a license to carry out its activity. The company registry of Liechtenstein only registers the data of the local manager, it increases enormously the discretion of the owner of the company.

In Liechtenstein companies and limited liability companies are the favorite forms of business for foreigners. Share capital of companies must be at least 50,000 Swiss francs and minimum 20% of the share capital must be paid up. In case of a limited liability company, the share capital must be at least 30,000 Swiss francs. Other popular business form is the foundation, because no registration is required. The ‘Anstalt” is a special enterprise type, which is characteristic only in Liechtenstein. It has no members or shareholders, it is an autonomous fund, commonly used for holding purposes. It is an excellent tool for royalties and real estate investments.

Dividends, commissions, royalties, interests paid by Liechtenstein companies to other countries are completely free from withholding tax.

For more information or to schedule a consultation, kindly message us.

03/10/2019

03/10/2019

Registering a company in Botswana, Africa

Botswana, officially referred to as the Republic of Botswana, is a South African country which happens to be Africa’s longest continuous multi-party democracy. It is bordered by South Africa on the south and south-east, Zimbabwe on the north-east, and Namibia on the west and north. Botswana is majorly occupied by the Kalahari Desert.

Botswana is known for 2 things: diamonds and wildlife (elephants in particular). The country is one of the leading diamond producers in the world, with its Orapa mine being the biggest diamond mine in the world in terms of value and quantity produced annually. The primary industries in Botswana are mining, tourism and animal husbandry.
Company Incorporation in Botswana

A company may be incorporated in Botswana as one of the following entity types.

Sole Proprietorship: A sole proprietorship is a company by a single person, known as the sole proprietor. He/she reaps the entirety of the profits and also bears unlimited liability for the business, implying that he/she is personally liable for any debts or obligations of the company.

Partnership: A partnership is similar to a sole proprietorship in all respects, except that it is owned by 2 or more people.

Private Limited Company: A private limited company in Botswana can be formed by 2 to 50 members. A Botswana private limited company is required to appoint at least 1 director (who must be a local resident) and 1 shareholder (who can be of any nationality). It must have a registered office in Botswana.

Public Limited Company: A public limited company in Botswana can be formed by more than 50 members. It must appoint at least 2 directors (1 of whom is required to be a resident of Botswana) and 7 shareholders.

Branch Office: An overseas firm may set up a 100% foreign-owned company in Botswana in the form of a branch office. It may be used to carry out business activities within Botswana, and calls for only 1 director and 1 shareholder for its incorporation.

Representative Office: A representative office is set up to purely for market research or promotion purposes. It is not allowed to carry out commercial or business-related activities.

Benefits of Company Incorporation in Botswana

Setting up a company in Botswana has the following benefits:

Botswana allows free outflow of capital and profits, and does not exercise foreign exchange controls or restrictions – fostering investment activity.

Botswana, being Africa’s longest standing democracy, has a stable political environment.

The literacy rate in Botswana is high, with the official language being English.

In terms of banking and finance, Botswana is one of the most developed countries in the continent.

Contact us today to register a company in Botswana for you.

27/09/2019

Set up Company in Luxembourg

Luxembourg is a small European country that offers important business opportunities that compensate for its size. Its central location in Europe allows it to have excellent connectivity to the EU markets and Luxembourg is just a few hours away from important European capitals and business centers like Paris, Frankfurt or Brussels. The country’s economic stability and its openness towards foreign direct investments are two other reasons why entrepreneurs choose to set up a company in Luxembourg.

Company formation in Luxembourg is straightforward both for national and foreign investors. The procedure is simple and quick once you have all the required documents.

How can you open a Luxembourg Fund?

Luxembourg is a well-known financial center where thousands of investment funds operate due to the business-friendly economic environment and the legislation that encourages such investments. This country has the second largest fund market in the world, after the United States, due to a large number of open-ended retail funds that are set up in Luxembourg. Most of the investors chose the form of undertakings for collective investment in transferable securities (UCITS) for company formation in Luxembourg.

Luxembourg is known all around the world as a leading location for setting up an investment fund and, between 1959 and 2010, over 3,500 funds were opened in this country, having net assets of over EUR 2 trillion. The local authorities encourage the foreign investors to come and set up a fund in Luxembourg, a location that is close to the main markets in Europe, offers a well-trained and qualified workforce and provides a stable economic and political environment.

The Luxembourg investment funds are divided into three categories: UCI (undertaking for collective investment), UCITS (undertaking for collective investment in transferable securities – designed for retail investors), SIF (specialized investment funds). These three categories of funds don’t have to pay taxes on their income and capital gains obtained in Luxembourg or a stamp duty on the share issues or transfers.

Our company formation agents can help you open any type of investment fund in Luxembourg and obtain all the necessary documents for operating it.

Requirements for opening a company in Luxembourg

Any company incorporated in Luxembourg needs to have certain documents that will attest to the existence of the legal entity in the Grand Duchy. The articles of association need to be drafted and the founding members must provide specimen signatures, passport copies, and other documents. Once these documents are drafted, they will need to be translated by a certified translator and then submitted to a public notary for authentication. The articles of association are later published in the Luxembourg Official Gazette.

The investors will also have to open a bank account in Luxembourg where the minimum share capital will be deposited. The name of the new company also has to be verified in order to comply with the requirements of the country. This verification can be made at the Trade Register and our experts can help you throughout these incipient phases. A Luxembourg company will also need the main office from where it can perform its business activities. If you are a foreign investor in the country, our partner lawyers in Luxembourg can help you purchase a virtual office at a prestigious business address and help you with the company formation in Luxembourg process.

What types of companies are available in Luxembourg?

There are several types of companies that can be registered in Luxembourg and the most suitable type depends on the investor’s business purposes. While some types of companies are more suited for small and medium-size businesses, others will favor large businesses or be suitable for those corporations that want to expand their activities in the Grand Duchy.

The following types of companies for those interested in Luxembourg company formation are:


• the public limited liability company (S.A.);
• the private limited liability company (S.á.r.l.);
• the general partnership (S.e.N.C.);
• the limited partnership (S.e.C.S.);
• the partnership limited by shares (S.e.C.A.);
• the co-operative company (S.C.)


The private limited liability company and the public limited liability company are two of the most popular business forms in Luxembourg. They require a specific minimum share capital and there are requirements regarding the managing and supervisory bodies of a public limited liability company.

A branch in Luxembourg is a good business option for a foreign company that wants to establish its presence on the market. The newly incorporated company will not be a legal entity in Luxembourg, instead, it will depend completely on the mother-company abroad.

Subsidiaries in Luxembourg are other type of companies preferred by foreign legal entities. Unlike the branch, these companies have legal personality and the foreign company is not liable for their actions. Luxembourg has a perfect blend of an attractive business environment, a stable economy, and numerous business opportunities. If you are interested in setting up a company in Luxembourg, our experts can help you from the earliest stages of company formation.

Together with our team of experts, you will be able to open a company in Luxembourg as quickly as possible and commence your business activities. We can also help you with other professional services like accounting services in Luxembourg.

How can you set up a SARL company in Luxembourg?

Foreign investors who want to open a limited liability company or SARL (société á responsabilité limitée) in Luxembourg, as it is known, need to provide the minimum share capital of EUR 12,500 in a bank account in the Grand Duchy. Also, they need to consider the following requirements for Luxembourg company formation:

• the shares or a SARL in Luxembourg are not transferable without an agreement in this sense;
• a SARL in Luxembourg can be set up by at least two shareholders and no more than 40;
• the company needs to be registered for tax purposes in Luxembourg;
• a name verification needs to be made with the Trade and Companies Register in Luxembourg.

For any information about how to set up a SARL in Luxembourg, the most popular business structure, our team of advisors is at your disposal at any time for company formation in Luxembourg.

Shelf companies in Luxembourg

Sometimes, foreign investors are more interested in purchasing a ready-made company in Luxembourg instead of forming one from scratch. Among the reasons why this is a proper option for their future activities, we mention registration the procedure which is practically inexistent. This means that a ready-made company is registered with the authorities in charge, and the only thing left to do is to observe the requirements for the transfer of the ownership that can be done in just one day. Shelf companies in Luxembourg are not subject to liabilities because they have no financial activities on the market. This is a solid advantage for foreign entrepreneurs in Luxembourg who want to apply for a bank loan in this country. However, it is best to talk to our consultants and find out information about the conditions for purchasing a ready-made company.

We are at your disposal with accounting services in Luxembourg

Our team of accountants can offer a series of accounting services for both national or international entrepreneurs in Luxembourg. Preparation of the inventory and journal register, VAT journals, submitting the annual financial statements, payroll services, tax advice and management, the monthly or quarterly payment obligations, personnel administration plus consultancy and management accounting are among the necessary accounting matters that a company in Luxembourg should receive. We can handle the above-mentioned accounting matters if you are interested in externalizing these services instead of opening an accounting department in the firm.

Virtual office services in Luxembourg

If you are a foreign investor who does not want to set up a company from scratch, you should know that the virtual office packages are at your disposal with a series of services. You can benefit from a prominent business address in the main cities in Luxembourg, and from a virtual office assistant that can handle the mail collection and forwarding via the email in respect with the conditions of the business owner. A local fax and phone number are at the disposal of clients, plus a private number for personal matters in Luxembourg. Also, the voice messages can be forwarded on email and if you request, we can collect the bank statements. You can also benefit from a meeting room for future meetings with potential partners or clients in Luxembourg. A virtual office in Luxembourg addresses to those who want to start a marketing verification before they actually register a business in Luxembourg.

Can foreign companies register subsidiaries in Luxembourg?

Yes, companies from abroad are welcomed to establish subsidiaries in Luxembourg in compliance with the Company Law and the Commercial Code. A subsidiary runs under the rules of limited liability companies, but it can also be incorporated as a joint stock company for a minimum share capital of EUR 31,000.

Reasons to invest in Luxembourg

Luxembourg has managed to maintain its economic stability throughout the global economic and financial crisis. The country’s economy is based on many types of business activities that prove to be a successful blend for the well-being of the Duchy. Financial services, manufacturing, retail, e-commerce, communications, and logistics, as well as imports and exports, are some of the most important and successful business fields in Luxembourg.

Luxembourg’s favorable legal and tax regime are the main attraction for companies that want to base their headquarters in a highly accessible and connected European business hot spot. Foreign companies in Luxembourg benefit from even more advantages because of a large number of double tax treaties concluded by the Grand Duchy with numerous countries worldwide. These treaties help protect against the double taxation of the foreign-source income, so taxpayers do not have to worry about paying the same taxes in both countries.

Investors in Luxembourg will also be pleased to find that the country has a skilled and multilingual workforce. Also, a large percentage of the employees in Luxembourg are cross-border commuters, another proof that the small country is open to international investments and collaboration. Finally, the quality of life in Luxembourg is another key factor that attracts business owners and employees alike. Luxembourg may be one of the world’s smallest countries, but it is also one of the wealthiest.

You can contact our representatives for company formation in Luxembourg if you have any additional questions.

25/09/2019

Benefits of Registering a company in Mauritius

Mauritius is a premier international business center located in the Indian Ocean. Over the past 20 years Mauritius has enjoyed unprecedented growth and socioeconomic development and has emerged as a political stable democracy that welcomes foreign investors and businesses. Mauritius has become a credible jurisdiction for offshore company formation offering a reliability and security to investors through its flexible regulatory framework.

The Mauritian Government actively encourages foreign investment and offshore activity through the Board of Investment. The government introduced wide ranging incentives to attract foreign investment and consolidation of the legal and fiscal framework has resulted in modern, user-friendly legislation that has contributed to the rise of Mauritius as a major offshore financial service center. The government’s development strategy centers on foreign investment and due to this Mauritius has attracted thousands of offshore entities.

The credibility of Mauritius for offshore investments has been solidified by adherence to the new international requirements involving combating financial terrorism and money laundering. This has facilitated Mauritius to enjoy a reputation as a trustworthy, well regulated offshore center with guaranteed confidentiality.

Key Benefits for registering a company in Mauritius

Forming a company in Mauritius is a simple, straightforward process regardless of whether you choose a GBC1 Company (a Resident Company) or a GBC2 (an Offshore Company). If correctly structured a Mauritius Company is an efficient, low-cost, legally tax efficient entity in which to conduct business. There are a number of benefits attached to incorporating a GBC1 and GBC2 company in Mauritius.

GBC 1 Companies features & benefits:

GCB1 Companies are treated as tax resident and are liable to pay taxes on their earnings however because of this they are also entitled to the benefits of the extensive Mauritian Double Tax Treaties. A GBC1 may be a locally incorporated company or may be a branch of a foreign company. Business must be conducted in a foreign currency and cannot engage in business in Mauritius.

Requires a minimum of one Director who must be a natural person (Eltoma can provide nominee Directors).

A minimum of one Shareholder is required who can be of any nationality and need not be resident in Mauritius. Corporate Shareholders are permitted.

A resident Company Secretary is required (Eltoma can provide this).

Business can be conducted internationally.

GBC1 Companies are regarded as being resident therefore are able to take advantage of the Mauritian Double Tax Treaties. The tax treaty is particularly favorable with India and Mauritius has become a popular location for holding companies for those trading or investing in India.

GBC1 companies can utilize the unilateral foreign tax credit which stands at 80% of the Mauritian Tax Rate, which leaves a residual liability of 20% of the Mauritian rate which is equal to 3%. There are current discussions on possible further reductions on this rate.

No Capital Gains or withholding taxes levied.

No limit on the carrying forward of tax losses.

No Withholding Tax on dividends, interest, royalties and payment of redemption proceeds.

Entitled to underlying tax credits on dividends if shareholding in Investee Company is greater than 5%.

Interest received on deposits in Mauritian bank accounts are tax exempt.

Inheritance tax, gift and estate taxes are not applicable.

No stamp duties, registrar duties or levies.

A branch of a foreign company may also have access to the tax treaty network provided that the local authorities are satisfied that effective management and control of the foreign branch is in Mauritius.

GBC 2 Companies features & benefits:

GBC2 Companies are private entities that conduct business outside Mauritius, a GBC2 Company is not allowed to conduct business in Mauritius. A GBC2 may be a locally incorporated company or registered as a branch of a foreign company. Confidentiality is a major benefit to a GBC2 and the identity of the beneficial owner can remain largely confidential. A GBC2 is a good structure for holding and managing private assets.

High degree of privacy protection (through the use of nominee Directors and shareholders).

Mauritius company formation permits 100% foreign ownership meaning no local nominee is required.

Only one Director and one Shareholder required.

Legal tax exemption for GBC2 Companies but no access to the Mauritian Double Taxation Treaty allowed.

No accounting or reporting requirements which minimise maintenance costs.

GBC2 company enjoys limited liability without any paid up capital (there is no minimum capital required).

No Withholding Tax on dividends.

No Capital Gains Tax.

No Stamp Duty on transfer of shares.

Free repatriation of earnings.

Migration from a foreign company to/from Mauritius is permitted.

Shareholders and Directors can meet anywhere.

Registered office and agent in Mauritius is required.

Conversion to GBC1 is permitted.

For more information or to find out how we can help you, kindly message or call.

23/09/2019

Benefits of registering a company in Monaco

The complete name of this type of company is “Societe a Responsabilite Limitee” (SARL). Basically, it can be translated into a “Society of Limited Responsibility”. SARL’s are established in order to engage in commercial activities. This means that holding companies and other passive business engagements are not permitted.

Background

Monaco is a sovereign city-state located in Western Europe on the French Riviera. It is officially called the “Principality of Monaco”. It is bordered by France on three sides with the other border on the Mediterranean Sea.

Its political system can be described as a “unitary parliamentary constitutional monarchy” with Prince Albert II its official monarch. It gained independence from the French

Empire in 1814. In 1861, its state sovereignty was officially recognized by the Franco-Monegasque Treaty. It enacted a constitution in 1911 and has a one house legislature. In 1993, it became a full voting member of the United Nations.

Monaco is famous for being a playground for the wealthy who enjoy the casinos, restaurants, and bars. The yacht harbor is filled with large expensive yachts. Crime is virtually nonexistent.

While the official language is French, English is very popular and spoken and understood by residents.

Since 2009, Monaco has been on the “white list” by the international watchdog Organization for Economic Cooperation and Development (OECD).

Monaco Company

Benefits

A Monaco Limited Liability Company (SARL) offers these benefits:

• Foreign Shareholders: Foreigners can own all of the shares in a SARL.
• Limited Liability: Shareholders liabilities limited to their contributions to the share capital.
• Two Year Tax Exemption: The first two years are completely tax exempt. However, U.S. taxpayers and all other subject to world income taxation must report all income to their governments.
• Two Shareholders/Directors: Two shareholders required where both can become the required two directors.
• Low Minimum Share Capital: The minimum required share capital is 15,000 Euro.

Monaco Limited Liability Company (SARL) Name

Every SARL must avoid selecting a company name exactly alike or too similar to any other company or legal entity’s name in Monaco.

The end of every SARL’s company name must end either with the words “Societe a Responsabilite Limitee” or its suffix of “SARL”.

Limited Liability

A shareholder’s liability is limited to the amount of his or her investment in the SARL.

Registration

Register of Commerce and Industry handles all applications for establishing companies. The government of Monaco requires that the following documents be filed along with an application to become a SARL:

• Applicant’s birth certificate;
• Applicant’s police record prepared within the past three months;
• Copy of applicant’s national identity card (passport, driver’s license, or national ID card);
• Curriculum Vitae (CV) of the applicant;
• Two copies of the Articles of Association;
• Three copies of a special form containing personal information of each shareholder;
• Summary of the types of business activities and an estimated first three year turnover;
• Formal application detailing the proposed business activities in Monaco; and
• Copy of office lease agreement.

Corporate shareholders must provide the following documents:

• Certificate of Incorporation issued by the commercial registry of the country the corporation was formed; and
• Board of Directors resolution subscribing at least the required minimum capital for the SARL.

Monaco SARL

Upon approval, the Register of Commerce and Industry office issues a Certificate of Incorporation with a unique identification number so the SARL can begin conducting business.

Shareholders

A minimum of two shareholders is required in order to form a SARL. Shareholders are not restricted from residing in other countries or being citizens of any country.

Shareholders can be natural persons or corporate bodies.

Shares are not freely transferable. In order to transfer shares, all of the shareholders must approve.

Bearer shares are prohibited.

Directors

A minimum of two directors are required for a SARL. Directors can reside anywhere and be citizens of any country. Directors may be individuals or legal entities.

Officers

A company secretary is not required. The SARL does not have to appoint company officers.

Registered Office and Agent

SARL’s need to establish a registered office address and appoint a local registered agent whose office can become the registered office.

Minimum Share Capital

The required authorized minimum share capital is 15,000 Euro. The share capital must be divided into equal full subscribed shares amongst the shareholders.

Taxes

Companies earning over 75% of their sales within Monaco are exempt from paying corporate taxes. New companies receive a two year “holiday” (exemption) from paying corporate taxes. After the first two years, the rates gradually rise starting with 8.5% in the 3rd year rising to 16.5% in the 4th year and settling in at 25% for the 5th year and beyond.

While Monaco is not a member of the European Union (EU), it is part of the EU Customs Zone where exporting services and products to EU members are exempt from customs duties.

There are no withholding taxes and no foreign currency exchange controls.

Monaco residents do not pay personal income taxes, gift tax, or inheritance taxes.

Note: U.S. taxpayers must report all global income to their IRS. In addition, everyone else paying taxes on worldwide income must declare all income to their tax authorities.

Time for Formation

Expect the entire formation process to take up to one week.

Shelf Companies

Shelf companies are not available to purchase in Monaco.

To find out how we can help you, kindly message us for more information.

19/09/2019

Registering a company in San Marino, Italy

SAN MARINO, the oldest Republic of the world (founded in the 301 a.c.), enjoys independent sovereignty having its own independent institutions; San Marino has acquired international status through acknowledgment from other States and adhesion to international treaties and organizations.

TAX LAW:

Corporation tax (IGR) The company income tax rate is 17% (proportional). The profits distributed to the owners/shareholders are not subject to additional taxation in San Marino (if the shareholders are resident abroad becomes necessary to evaluate the treaties between San Marino and the foreign country n the “double taxation”).

Tax with holding at the source The San Marino companies act as withholding agent (on behalf of the Revenue Service) when they correspond payments to subjects nonresident (both companies and individuals), in money or nature, for carried out performances(consultancy of any kind). The withholding tax rate is 20%.

Tax on commissions to agents / on advertising and data editing.The San Marino companies when paying out commissions to agents and/or representatives nonresident (both companies and individuals), are obliged to pay a tax rate of 6% when selling or promoting foreign merchandise or services (the rate is reduced to 3% when selling or promoting sammarinese merchandise or services). The San Marino companies when paying out remuneration to subjects nonresident (both companies and individuals) for advertising or data editing services are obliged to pay a tax at a rate of 3%.

Import tax The tax on the imports of goods and services connected to the goods is called “monofase” and has a rate of 17%. As a different concept from the “VAT” , this tax only affects the goods and the services connected when those enter San Marino territory, not the “added value”. The rate of 17% is reduced for specific categories of goods and according to their future use (i.e. personal computers or furniture for the company offices are taxed at 1% if they are instrumental to the activity). This tax is refund- able when the goods are exported, even when they have undergone transformation. (i.e. a San Marino based company I buys a product at 100 euro, on this amount the company pays a tax of 17 euro. When the Company sells the product at, let’s say 100% above its original value, the final price of sale to customers will be 217 euro (while with the VAT system, that would be 240 euro, considering VAT at 20%).

START UP AND REGISTRATION OF A COMPANY:

The type of companies recognized by San Marino corporate law are:

The limited liability companies (S.R.L.) and the stock companies (S.P.A.). Anonymous companies (S.A.) have been abolished effective September 30th 2010.
Anyone can own shares (up to 100%) of a San Marino company no matter the nationality and /or the residency(with limitations for trading companies where 51% of the shares must be owned by a SM resident and specific sector where a preventative authorization must be released by the Administration – see below).

In the majority of cases, the registration of a new company in San Marino is very simple and not subject to restrictions.

The main conditions are the following:

The owners/shareholders must be clearly identified by producing a valid I.D. and of “suitable integrity” by producing a clear criminal record and a non bankruptcy certificate;

The company business case must be lawful, feasible, determined and consistent with the business purpose;

The minimum company stock is according to the law:
€ 25.500,00 for the limited liability companies (S.R.L.),
€ 77.000,00 for the stock companies;

The administrative tasks for the start up and registration are fairly simple and can be fulfilled in about 20/30 days
The companies can be managed by a “sole director” or by a Board of directors (from 2 to 7 members).
The financial statements must be approved by the shareholders assembly by May 31st, every year.
The companies are required to present the following fiscal documents to the Revenue Service every year:
the income tax return (within June30th), and where necessary the declaration of “tax withholding at the source” (within June30th), the declaration of ” tax on commission to agents” (within June30th), the declaration of “tax on imports” (within June30th)

LIMITATIONS ON THE RELEASE OF A BUSINESS LICENSE :

For the following business categories the a.m. steps for the start up and the registration of a Company must be preceded by the authorization of the Administration (if there is a solid business plan behind the request, the authorization is normally granted):

1. the economic activities in the field of application of the 1997 Agreement between San Marino and the Italian Republic on the Mutual Regulation of the International Road haulage;
2. the economic activities of production and printing in the field of numismatics and philately;
3. the economic activities of construction in the field of building;
4. the economic activities of installation in the fields of pavements, coverings, plaster-work and house finishing;
5. the economic activities of installation and repair in the field of air conditioning, plumbing, distribution of water , gas and electric power;
6. the economic activities of construction in the field of road construction and repairs including the systems and nets below;
7. all the economic activities in the field of energy (excluded clean/renewable energies);
8. all the economic activities in the field of telecommunications;
9. the economic activities in the field of garbage management;
10. the economic activities in the field of real estate;
11. the economic activities in the field of rental and chartering of vehicles, boats and air crafts;
12. the economic activities of commission agent;
13. all the economic activities related to beauty treatment and personal hygiene;
14. all the economic activities in the field of weapons, explosives and gun powder;
15. all the economic activities in the field of private security and investigations;
16. all the economic activities in the field of services related to debt collection;
17. all the economic activities in the field of metal scrap “.

For the activities in 3, 4, 5, 6, 10 and 13 the authorization is not necessary when:

a) the company is registered in the form of stock company (S.P.A.) or limited liability company, and
b) the totality of shares belong to a San Marino resident, and
c) the majority of members of the board of directors or the sole administrator is a San Marino resident.

Furthermore, for the economic activities in the financial field (banking, investments, insurance, financing, fiduciary activity) it is necessary, other than the authorization of the Administration, the acceptance by the Surveillance Authority of San Marino Central Bank.

SUMMARY OF SAN MARINO FISCAL ADVANTAGES:

The type of companies recognized by San Marino corporate law are:

1. The existence of only one company income tax . Companies are subject to an income tax rate of 17% (proportional).
2. Simple and friendly fiscal system.
3. The profits distributed to the shareholders are not subject to additional taxation.
4. All costs supported in managing the company and attaining the profit are tax-deductible
5. Amortization: totally tax-deductible from the first fiscal year.
6. The profit attained can be completely distributed (there is no legal reserve, except for banks and financial companies)
7. Financial lease contracts: possibility of deduction according to the duration of the contract (other than that, for properties the maximum amortization rate is 4%). Minimum duration of financial lease: 24 months for personal properties, 48 months for real estate.
8. Possibility to take forward a financial loss in the 3 successive fiscal years
9. No VAT system. The tax on the imports of goods and services connected to the goods is called “monofase” and has a rate of 17%. As a different concept from the “VAT” , this tax only affects the goods and the services connected when those enter San Marino territory, not the “added value”. The rate of 17% is reduced for specific categories of goods and according to their future use (i.e. personal computers or furniture for the company offices are taxed at 1% if they are instrumental to the activity). This tax is refundable when the goods are exported, even when they have undergone transformation.

For more information or to find out how we can help you, kindly message us.