You surely know, that in the EU member states, there is the possibility to carry out business also by means of the legal form Societas Europaea (hereinafter as „SE“). Have you known that this multinational form of business has several advantages for the companies, even if the process of its establishment may be more demanding?
Hereby we would like to announce, that accace offers to its client services connected with the establishment of SE and also consultancy services regarding accountancy and taxes concerning this company form.
SE has a unified form – of a joint stock company, whose business is based on the EU law to simplify free movement of capital and unify the legal rules regulating the companies.
As mentioned above, SE is established as the joint stock company on the basis of EU law, whereas its registration is made in particular member states in compliance with the law of the state where SE has its registered seat.
Forms how to set up the Societas Europaea
- merger of two or more joint stock companies or SE, which are governed by different legal systems,
- SE as a holding company established by two or more companies (LLC, joint stock company) which are governed by different legal systems or established by two or more founding companies having subsidiary or branch in other member state for at least two years,
- establishment of European subsidiary by already existing SE or by more legal entities governed by different legal systems or having subsidiary or branch in other member state for at least two years,
- transformation of joint stock company to SE in case such joint stock company has been having the subsidiary or branch in other member state for at least two years.
The minimum amount of the SE’s basic capital shall be EUR 120,000.
Benefits of Societas Europaea
- Change of the seat of SE
The possibility to remove the seat of SE within the entire EU without necessity to liquidate the company. The SE may change its seat several times in the year, i.e. so called country shopping.
- Tax optimization
The option to choose the best tax system is one of the standard motivation why to use SE. The other tax benefit results from the fact that the change of the SE’s seat does not require the company liquidation and therefore the silent reserves might avoid taxation. Tax benefits are concerned mainly to business with receivables and goods, purchase and sell of business share in companies, financing and to the software development or to the Internet services.
- More convenient business environment and higher legal confidence in business
The option to choose a suitable legal system which will be more stable for SE and which will provide for the company higher confidence and option to enforce its right.
- Saving of management expenses
The one-tier system of SE management enables to save administrative and overhead expenses in contrary to the ordinary joint-stock company.
Other benefits of SE are property protection and consolidation of assets structure (applying the treaties or deeds on investment protection), business image, „escape“ from the competence of local authorities etc.
In conclusion we would like to point out, that the issue of SE establishment is very complex one, so it might be useful to discuss the contingent details as well as analyze particular advantages that might be applied for your company, at a meeting in person. Please, feel free to contact us regarding the need of any further information at your convenience, we will be glad to meet you and answer all your questions.