A trading company acting as an agent on behalf of a principal company which receives commission income from the principal for its services.
- Minimized tax burden
Corporate tax will be levied only on the Agency company’s commission income (3-5% of total turnover)
- VAT number
Agency Company with a VAT number is an efficient solution for intra-EU trade
For example, Irish Ltd. with VAT or Cyprus Ltd. with VAT
European Agency company enters into agreements with business partners which normally do not work with offshore-based companies
- Agency Company will sign an Agency Agreement with an Offshore Principal.
- If Agency Company is a VAT payer, it will issue invoices with its VAT number. Agency Company representative will sign agreements and manage bank accounts in its name.
- Agency Company will be liable for corporate tax only on the amount of commission it receives by the Offshore Principal (3-5% of total income).
|CYPRUS||12,5% corporate tax on commission income||Yes.||Tax Resident Certificate available for access to Tax Treaties and EU Directives.|
|UK||20%-23% corporate tax on commission income||Difficult to obtain.||Opportunity to open account at UK banks.|
|IRELAND||25% corporate tax on commission income||Shelf companies with VAT available.||Irish bank accounts available|