THE SCF GROUP HAS BEEN FORMING AND MANAGING UK, IRISH & CYPRIOT COMPANIES FOR OVER 25 YEARS BUT THE REASONS WHY AND FOR WHOM HAVE CHANGED SINCE THE DECISION OF THE UK TO LEAVE THE EUROPEAN UNION

WHY & FOR WHOM?

THE UNITED KINGDOM

Why? The UK has long been deemed to be one, if not the most, attractive locations in which to establish a limited company in Europe. The reasons are many but include:

1. Lack of bureaucracy – Compared to virtually all of Continental Europe the UK is remarkably free of business related bureaucracy and is a ‘hot bed’ of entrepreneurial activity
2. Companies can be formed in as little as 3 hours and have virtually no capitalization requirements
3. English is the World’s main business language
4. The UK’s common law system is considered to be much more business friendly than the slow and codified civil law system in Continental Europe
5. London is without doubt the greatest financial and services center in all of Europe
6. Corporate taxes are much lower than the EU norm at around 19%
7. Individual taxation can be very advantageous for wealthy non-domiciled but UK ordinarily resident individuals
8. London is the main communications hub for Europe and indeed the World
9. The UK’s economy is between the 5^thand 6^th largest in the World

For Whom? Before Brexit the answer to this question was basically see all of the above! However, since the Brexit decision the need for individuals and/or companies previously content with trading from their home EU base to establish a genuine UK presence has greatly increased. In our view, as the UK diverges more and more from the current EU trading standard norms so too will the need for EU companies to establish a UK presence. With SCF, establishing that presence can be surprisingly cost effective and beneficial especially for those that want to establish genuine UK management and control but without the inherent costs associated with opening up their own office in London.

THE REPUBLIC OF IRELAND

Why? The Republic of Ireland has long sought to be an attractive location for multi-national companies and has long been a competitor to the UK for inward investment. Now that the UK is leaving the EU and Ireland is remaining, the attractiveness of Ireland has been greatly increased not least for UK companies needing to maintain an EU presence but nonetheless in familiar surroundings. The reasons are many but include:

1. Lack of bureaucracy – Compared to virtually all of Continental Europe Ireland, like the UK is remarkably free of business related bureaucracy and is also a ‘hot bed’ of entrepreneurial activity
2. Companies can be formed in as little as 5 working days and have virtually no capitalization requirements
3. English is the main working language of Ireland
4. The Irish common law system is almost the same as that of the UK and is therefore considered to be much more business friendly than the slow and codified civil law system in Continental Europe
5. Dublin is a significant EU financial and services center ranking only below Frankfurt and Paris
6. Corporate taxes are much lower than the EU norm at 12.5%
7. Individual taxation can be very advantageous for wealthy non-domiciled but Irish ordinarily resident individuals
8. Dublin is a major communications hub for Europe and is the home base for the World’s largest airline Ryanair and the Irish Flag carrier Aer Lingus

The Irish economy is per capita one of the wealthiest in Europe out ranking even Germany

For Whom? Before Brexit the answer to this question was basically see all of the above! However, since the UK’s Brexit decision the need for individuals and/or companies previously content with trading from their home UK base to establish a genuine Irish presence has greatly increased. In our view, as the UK diverges more and more from the current EU trading standard norms so too will the need for UK companies to establish an Irish presence. With SCF, establishing that presence can be surprisingly cost effective and beneficial especially for those that want to establish genuine Irish management and control but without the inherent costs associated with opening up their own office in Dublin.

CYPRUS

Why? Notwithstanding the banking and financial crises that hit Cyprus after the 2008 Economic Crash, it has successfully rebounded and now enjoys a much more stable economic environment. Unlike Ireland, it is not anticipated that Cyprus will specifically gain from the UK’s departure from the EU but nonetheless it’s liberal corporate and capital gains tax policies together with its continued full membership of the EU will offer many attractions especially for the smaller more cost sensitive client.

The advantages of using a Cypriot company are many but include:

1. Lack of bureaucracy – Its historic connection with the UK has ensured that Cyprus has far less bureaucracy than that of most continental countries
2. Ready Made Companies are available quickly or Own Name Companies in around 8-12 weeks
3. English is the main business language of Cyprus
4. The Cypriot common law system is almost the same as that of the UK and is therefore considered to be much more business friendly than the slow and codified civil law system in Continental Europe
5. Cyprus, like Ireland fully benefits from EU Directives and Regulations
6. The Corporate Tax rate is 12.5%
7. Capital Gains Tax generally only applies to Cyprus property and assets and not on the sale of international assets and/or shares
8. Individual taxation can be very advantageous for foreign residents

For Whom? Cyprus is ideal as a holding/investing and/or trading location especially for smaller and online business activities. Where required our Cypriot office can provide a full range of management and control services without the inherent costs associated with opening up their own office in Cyprus.