Registering translation business
Thread poster: eva75

eva75
English
+ ...
May 22, 2005

I would like to know if it is actually legal to register your business in one EU country, while living in another. As I move quite often, I'd prefer to register my business in my home country (the UK).

For the moment, I don't need to register for VAT, as I will be running my business only on a part-time basis.


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Isabel Hohneck
Germany
Local time: 06:47
English
+ ...
registering your business May 22, 2005

I would think it depends on your legal status as well as the applicable tax regime.

If you work freelance, you are typically subject to the local tax regime - wherever you live.
If you have any other status than that of a freelancer, you are subject to the local corporate and tax laws.

If you incorporate in one country and set up shop in another, you typically have to create a 'subsidiary' and, by default, you owe taxes in both (or more) countries. However, for some types of taxes there may be a double taxation agreement applicable to your specific 'country combination'.

Another question to consider is Social Security. In some countries, it is mandatory for someone working freelance to pay into Social Security....and there may be even more registration requirements...

To be safe, it would probably be best to contact the nearest Chamber of Commerce and get some advice from someone in the international business division.


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