DOING BUSINESS IN EUROPE By Globalaw Limited www.globalaw.net MAP Doing Business in Europe 12 17 23 29 24 15 6 13 17 33 19 9 20 2 18 5 26 8 1 30 16 11 27 22 25 21 3 28 14 32 10 31 4 2 TABLE OF CONTENTS Doing Business in Europe Map ......................................................................................................... 2 Table of Contents .................................................................................. 3 Introduction & Contact ......................................................................... 4 Country Guides 1. Austria ............................................................................................... 5 2. Belgium ............................................................................................. 8 3. Bulgaria ............................................................................................. 14 4. Cyprus ............................................................................................... 19 5. Czech Republic ................................................................................. 23 6. Denmark ............................................................................................ 26 7. Finland .............................................................................................. 29 8. France ............................................................................................... 33 9. Germany ........................................................................................... 37 10. Gibraltar ............................................................................................ 52 11. Hungary ............................................................................................ 45 12. Iceland .............................................................................................. 50 13. Ireland ............................................................................................... 52 14. Italy ................................................................................................... 57 15. Latvia ................................................................................................ 60 16. Liechtenstein .................................................................................... 65 17. Lithuania ............................................................................................ 66 18. Luxembourg ...................................................................................... 73 19. Netherlands ...................................................................................... 78 20. Poland ............................................................................................... 83 21. Portugal ............................................................................................. 88 22. Romania ............................................................................................ 92 23. Russian Federation ............................................................................ 96 24. Scotland ............................................................................................ 100 25. Serbia ................................................................................................ 102 26. Slovakia ............................................................................................. 106 27. Slovenia ............................................................................................. 109 28. Spain ................................................................................................. 114 29. Sweden ............................................................................................. 118 30. Switzerland ........................................................................................ 122 31. Tunisia ............................................................................................... 127 32. Turkey ................................................................................................ 130 33. United Kingdom ............................................................................... 134 *As Greek legislation is currently subject to massive amendments in many aspects (e.g. tax legislation, labour legislation, etc.), due to the well known financial situation, please contact the local firm in Greece directly for guidelines and advice on doing business in their country. 3 INTRODUCTION Doing Business in Europe Globalaw Limited Dear Friends and Colleagues, Boulevard du Souverain, 280 As the President of Globalaw Limited, a network of more than 100 law firms serving B-1160 Brussels, Belgium key market jurisdictions around the world, it is my distinct pleasure to welcome you to the Doing Business in Europe Guide written and produced by member firms representing global regions which serves as an immediate resource to provide Tel: +32 2 645 2676 valuable and critical information about legal requirements to operate in their respective countries. Fax: +32 2 645 2671 Thus far, Globalaw has produced Doing Business Guides in Asia Pacific, Europe and [email protected] Latin America. These Guides represent the individual and collaborative expertise of www.globalaw.net the law firms contributing to these publications, further demonstrating the regional strength of the attorneys who comprise the Globalaw network. In fact, the total population of the lawyers within Globalaw exceeds 4,500 practitioners who bring and Information for each country offer a universe of practice areas to these key markets. may change over time. Please contact the primary contact at The Guides serve not only to demonstrate this expertise but also to provide an the respective Globalaw firm to immediate roadmap to learn more about doing business fundamentals in a concise, confirm that country's information. informative and “desktop” format for your ready reference. Contact details for each firm and In addition to the contributing firms, I would also like to acknowledge the folks at MCI primary contact are located at for their time and efforts to making this Guide a reality. www.globalaw.net. If you would like to learn more about the global resources of Globalaw, please visit our website at globalaw.net Best regards, Bryan C. Birkeland Globalaw President 4 AUSTRIA • Located in the heart of Europe with an area of 83.855 km² and a population of about 8.5 million people. • Austria is a federal parliamentary republic and member state of the European Union. • Official languages are German (prevalent) and regional – Croatian, Slovenian and Hungarian. • Currency: Euro (€). • Race/religion: Multicultural; prevalent: Roman Catholic. • Investment growth areas include, research and development, tourism, environmental technology, industry and agriculture. Due to its strategic location, excellent infrastructure, high quality of life and historic relations Austria is used as headquarters of many companies in the CEE region. BUSINESS PRESENCE • Some types of business activities require specific licenses and permits (banking, gambling, attorneys, medical services, • There are several types of corporate forms available in Austria. auditing, architects, etc.). Main types are: limited liability companies ("GmbH"); stock corporations ("AG"); open partnerships ("OG"); limited partnerships ("KG"); sole proprietorships ("eU"); and registered EXCHANGE CONTROL branches of foreign companies. According to the case law of • Austria is a member of the eurozone; therefore EU the European Court of Justice, corporate forms of other EU policies applies. member states may also be used in Austria. • To fight money laundering and the financing of terrorism, • Registration to the firm register is required; the firm register travelers entering or leaving the EU and carrying €10,000 is administrated by civil courts. or more in cash (or its equivalent in other currencies or easily • For some corporate forms certain formal requirements apply convertible assets, such as cheques drawn on a third party) have (for instance: notarial deed for LLCs). to make a declaration to the customs authorities. • Minimum stated capital of an LLC is €35,000 (reduction • Money laundering rules might require banks (but also other possible) and €70,000 for professionals) to report suspicious transactions. a stock corporation. • Some types of businesses are reserved to certain corporate TAXATION forms (for instance banking). Corporate Tax • Incorporations seated in Austria are subject to corporate tax. FOREIGN INVESTMENT RESTRICTIONS AND CONDITIONS • Incorporations having neither its seat nor its management in Austria are subject to non-resident corporate tax with respect to Restrictions in Real Property Acquisitions income in Austria. • Real property acquisitions by foreigners are subject to approval • Austria’s corporate tax rate is 25%. (except EU and EEA citizens). The requirements depend on local regulations. Individual Income Tax • Individuals residing in Austria are subject to resident tax. Restrictions in Equity Participation • Generally, there are no restrictions for foreigners in owning • Non-residents tax (their income in Austria) are subject to a non- equity in Austrian companies. resident tax. Approvals and Licensing • Austria's individual income tax rates are progressive at 0%–50% (four tax bands). • Most types of business activities require a trade license, which can be obtained from local authorities. Fees for trade Capital Gains Tax licenses are moderate. Some business activities require proof • Domestic capital income is