Are you taking advantage of EU law for your business?
Since 1985, a largely unknown EU regulation has made it possible to take advantage of tax advantages politically desired by the EU. This allows entrepreneurs to plan their long-term profits and thus their tax burden within the framework and under the strong protection of EU legislation. This results in new investment opportunities for companies through more available capital.
We will help you and create tailor-made concepts for you, so that you too can benefit from this advantageous EU regulation for your company. With our tried and tested know-how and an extensive network of specialists, we advise and accompany you all around the EEIG!
If you take a look at the current legal situation in the EU, you will quickly notice that many large corporations, most of which are represented on a multinational level, have lucrative tax saving opportunities at their disposal. To take advantage of these opportunities, we have our own legal departments and external consultants. At first glance, this advantage seems to be denied to medium-sized companies. A medium-sized company rarely has the financial means to employ a number of legal experts.
Another aspect is the financing of small and medium-sized enterprises, which is of elementary importance for the German economy. Unlike in Anglo-Saxon countries, this is still predominantly secured through traditional bank financing.
In the course of the further development of MaRisk and the tightening of supervisory law (Basel III), the requirements for the credit granting process at banks have become stricter. In particular, a stricter standard is being applied with regard to the creditworthiness of borrowers and the documents to be submitted. This development is accompanied by increasingly sophisticated rating systems in the individual institutions, which have an impact on lending and lending conditions. The applied criteria are often not comprehensible for the Mittelständler system-dependent.
A study by Commerzbank has shown that debt financing via banks is extremely unpopular among SMEs. 66 percent of companies try to make their investments without borrowing from banks or savings banks. The study even diagnoses a downright aversion to credit: "Despite, or perhaps because of, minor financing problems, companies are keeping a critical distance from debt financing.
Both aspects are positively influenced by an EEIG. Our business concept allows you to benefit from largely unknown EU tax savings and thus significantly improve your own investment potential.
What is an EEIG?
On 25 July 1985, Regulation (EEC) No 2137/85 of the European Council on the establishment of a European Economic Interest Grouping (EEIG) laid the foundations for the harmonious development of economic activities in Europe, similar to a national internal market.
The EEIG is an independent company form under European law but differs from other companies mainly by its purpose, which is to facilitate or develop the economic activity of its members in order to enable them to increase their own results.
Because of this auxiliary nature, the activity of the association must be linked to the economic activity of its members and must not take their place and the association cannot, for example, exercise a liberal profession in this respect. The concept of economic activity must be interpreted in the broadest sense.
In addition to the EEIG, there are other EU legal forms:
- SE(AG) approx. 1,650, of which approx. 900 in CZ / 180 SK / 250 in DE / hardly any in some countries
- SCE (cooperative) to date approx. 30 (approx. 10 SK / 4 DE / 2 FL)
- EGTC (European Grouping of Territorial Cooperation) only public law members, approx. 35 to date
1st Regulation (EEC) 2137/85
IMPORTANT: direct effect of an EU regulation as opposed to a directive, i.e. it can directly cash in on national law.
Compared to the EU Directive, the Regulation does not have to be ratified by the EU Member State. Once it has been approved, the EU regulation is binding for all members and overrides the respective national laws of all EU members. All EU basic regulations once passed are practically unchangeable. According to the EU statutes, this can only be done with the 100% approval of all partner countries.
Also the German tax office is bound to the European Union right and subordinated to it.
The following services are the focus of our activities:
1. membership in an EEIG
The EEIG is a group of member companies from different sectors. In addition to using the EEIG legal form as an auxiliary company in order to benefit from tax advantages and more liquidity, the EEIG offers a business community in which all members benefit from mutual assistance and the exchange of know-how.
As a member company of the EEIG, you benefit from the following services:
- Tax advantages through the use of the EEIG as an auxiliary company
- Member of the EWIV company pool
- Takeover of the entire accounting for member companies (optional)
- Taking over the tax consulting for member companies by the tax consultants cooperating with us (optional)
2. establishment of an own EEIG
The establishment of a separate EEIG is suitable for companies with a turnover of around EUR 5 million per year or more. In contrast to membership in an existing EEIG, the company becomes a member in its own EEIG. The foundation of the own EEIG takes place with the consultation of the InCircle EEIG after the company analysis in a 3 phase model. The company is accompanied beyond the formation of the EEIG.
Services during foundation by the InCircle EEIG:
- Economic analysis of the company together with strategic recommendations
- the constitutional documents and the seat of the EEIG
- the admission of members to the EEIG
- the assignment of benefits to the EEIG
- Entry in the register of EEIGs and their member companies
- Concept development of the tax representation
- Support during commissioning and practical support of the processes
- Consolidation of processes with the tax advisor and authorities such as the tax office
- IT consulting and the possibility of connection to existing systems