Questions and Answers — What you've always wanted to know
The tax-free status of companies established in England and operating outside of England was abolished some time ago. Today, a so-called "Europe GmbH" pays taxes in Europe as well — in fact, just about the highest taxes in Europe. It is impossible to establish an Ltd. company in England anonymously, by contrast to the USA. A US corporation pays taxes in the USA, i.e. the minimum amount of $150 per year. In case the European public authorities request information about the corporation, it is thus able to prove that it genuinely exists in the USA. In the case of an Ltd. company, the European factory inspectorates very quickly detect whether it actually exists in England or only exists on paper. In other words, an Ltd. company’s commercial activity can be prohibited relatively quickly in England. A corporation that is founded in the USA does not to have to face this problem.
In conclusion, the foundation of an Ltd. company in England does not bring the founder any advantages whatsoever. By contrast, a US corporation can be registered in Europe as well and is highly respected all over the world. By contrast to the European requirements for a GmbH company, in a US corporation a single person can perform all of its corporate functions — that is, he or she can be the owner, partner and president or managing director all in one.
Obviously, a company aims to pay the lowest possible amount of taxes. In this respect, yet another key advantage is offered by US law compared to the GmbH law and German corporate tax regulations, in addition to the possibility of establishing a company anonymously. If a US corporation provides services, issues invoices and deposits its revenues in US bank accounts, it is taxed at a rate between 15% and a maximum of 34%. This represents a significantly lower tax burden.
Every properly registered US corporation can conduct business operations and establish subsidiaries all over the world. In order to operate outside the USA, the corporation requires a document known as an APOSTILLE, which is issued by the Secretary of State in Florida. This certificate is based on the Convention de la Haye (Den Haag) of October 5, 1961. According to the German Minister of Justice, "Public certificates issued abroad that are to be used in the FRG and to which an ’apostille’ has been attached for this purpose do not require any additional authorization. The apostille is a formal document in which the genuineness of the certificate is affirmed by the authorized public agency in the country in which the certificate has been issued, in accordance with Article 3 of the Convention de la Haye (Den Haag) of October 5, 1961 on the exemption of public certificates issued abroad from FRG legalization procedures (Bundesgesetzblatt 1965 II, page 875)."
The US Corporation is listed in the US register of companies, and after it has been formally registered as such in Germany it is treated like a German company. Similar procedures apply in other European countries. Corporations established in the USA can conduct many kinds of business operations. These are entered into the corporation's foundation document under the "purpose clause". The various activities of a US corporation do not have to be reported in any way to the public authorities. A "general purpose clause" permits the corporation to conduct all of the business operations that may be pursued in the USA without any specific formal permission.
We recommend the state of Florida as the best place to establish a US corporation. The fees for establishing a corporation are very inexpensive there, and both anonymity and one-person corporations are legally permitted. On account of the tax advantages and other legal advantages (for foreigners), we strongly recommend Florida for establishing US corporations. In addition to the fees for establishing a corporation (see the updated list of fees), you will also have to pay monthly administrative costs for the office service.
The corporation's shares are stamped with the value of the capital share in US dollars and the official name of the corporation.
— Capitalization and stock market flotation are possible
— Tax advantages
— Anonymity for the owner
— Exemption from liability
— Asset protection
— No inheritance tax