The state of San Marino lies in Southern Europe and has a long history and rich culture. San Marino barely covers 61 sq. kilometers of land. Because it is adjacent to Italy, the locals there speak Italian. There are barely 32,500 people living there. Despite this, the nation boasts the greatest GDP and the longest life expectancy in Europe. Industry, tourism, the financial sector (banks, intermediaries, insurance), and the free registration of foreign enterprises are the main drivers of the economy. Businesspeople from all over the world are drawn to the European jurisdiction to register a company there and gain access to the EU market.
Establishing an offshore business in San Marino
The finest countries for conducting business internationally are those in Europe. Especially those that don’t have tax requirements for employment and aren’t prohibited in other nations. San Marino is one of these nations. It is a tiny republic, of 60 square kilometers in size. It is situated in Italy, another nation in Europe. The country makes it very simple to set up an offshore business, so long as you are prepared legally and have enough spare time.
Features of San Marino business registration
The foundation of kingdom’s development is founded on a set of obedient laws for the populace. As a result, the majority of its citizens can conduct business here. A non-resident nearly never purchases a ready-made business operating in the operating market.
The country’s legal system does, however, allow for the registration of offshore businesses.
The contribution of the authorized capital, whose quantity is much more than that in other nations, is a requirement for the registration of a local company. A quantity of 25,600 euros must be put into a bank account to form a joint stock company, and 25,500 euros are needed to register an international commercial corporation. The state actively offers services for offshore company registration. This enables conducting business under favorable tax terms in a fully functional European jurisdiction. It does not impose taxes on offshore businesses.
Advantages of jurisdiction
Offshore company in San Marino is beneficial due to the:
Export-import agreements
This agreement was signed with the European Union. Thanks to this document, businessmen do not pay customs duties.
Official state currency
The euro is used here. Which is stable.
Financial stability
Doing business in the European jurisdiction. Your company will inspire customer confidence.
Tax-free job opportunities
This rule applies to offshore companies that receive income outside the jurisdiction. If you make money domestically, you will have to deduct 17% of the profits.
Organizational and legal forms of offshore companies
The following firms can be established in this country:
Joint-stock company
There are two types of this type of company:
- S.P.
- S.P.A..
International commercial company
Both types of companies can have at least one director and one shareholder. There are no residency requirements. For S.P., the minimum share capital is €256,000. For S.P.A, it is €77,000. After two months from the date of registration, half of the money is paid, and the remaining amount is paid after 1.5 years. The full permitted capital is paid within 60 days if there is just one participant in the JSC. An international business must have €256 000 in the capital. This sum needs to be transferred into a bank account within 60 days after the registration date.
Steps taken to start a company in San Marino
Several steps are involved in establishing a business in San Marino:
- You must verify that the company name is distinct there in the registry.
- Selecting a legitimate address.
- Creation of the association’s charter and bylaws.
- Paying the state tax.
- Paperwork delivery to the registration office.
Accounting specifications
International offshore businesses of the commercial variety as well as joint-stock companies may be registered in this state. The business won’t have to deal with accounting issues or file an annual report if it makes money abroad. If the company is not making any money, this is not required. Promising entrepreneurs have the support of the state, which does not obstruct their advancement. Even earning a government grant is a possibility.
San Marino’s tax system
The nation does not have currency controls, VAT tax, or stamp duty, although it does have a capital gains tax. The standard rate of corporate income tax is 17%; the reduced rate is merely 6.5%. For legal entities, the base rate of profit is 17%.
