Loading...
European Economic Interest Grouping 2017-07-19T15:38:09+00:00

European Economic Interest Grouping in LU

Definition

The European Economic Interest Grouping LU (EEIG) is a legal structure conceived for transnational cooperation between entities of the European Union. It can be used to carry out commercial, industrial, agricultural, craft activities or for liberal professions. The EEIG Luxembourg must comprise at least two different companies or legal entities with their head office from different member states. If its members are natural persons, they must have an activity within the EU but do not need to have their nationality or domiciliation in the EU.

Taxation

Regarding the tax aspect, the Luxembourg EEIG enjoys fiscal transparency and is not subject to the corporate income tax. However, it is subject to the VAT on its commercial activities, the communal business tax, and each member of the EEIG is personally taxable.

Members enjoy a large freedom when it comes to the organization of their contracts or the internal management of the group. They also keep their legal independence in conducting their business. The purpose of the EEIG is not necessarily to transfer the whole activity of the partners but to put in common an economic interest. The activity of the group should relate to the economic activity of its members.

Effective Instrument

The EEIG offers enterprises a reference framework for co-operation under the European Union legal system. It fosters and improves the economic activity of its diverse members, especially for SMEs interested in participating in European-based projects. Thanks to its flexibility, the EEIG empowers its members to respond immediately to possible changes in the co-operation conditions.

Contact Hance Law

EUROPEAN ECONOMIC INTEREST GROUPING

WE CAN HELP YOU SET UP EEIG IN LUXEMBOURG

Core Characteristics :

  • Autonomous and full legal competency: acting on one’s behalf is completely possible, through one or more administrators, whose powers of representation are directly derived from the rules of governing corporations, regardless whether they are members or not. It allows members to present themselves as a single entity in negotiating contracts and requesting loans or financial guarantees for public tenders.
  • European footprint: at least two members from different EU member states are required. Their main economic activity has to be carried out in different member states and have a history of economic activity in the EU before joining the EEIG.
  • Auxiliary body: it isn’t a profit organisation as it sets itself the objective of improving the achievements of its members by developing individual economic activities.
  • Flexibility: in terms of financing, freedom is absolute. No minimum capital is required for incorporation.

Our Services

WE OFFER SOUND LEGAL ADVISE FOR ALL OF YOUR CORPORATE NEEDS.

Ready to Talk?

WE OFFER COMPREHENSIVE LEGAL SERVICES FOR ALL YOUR CORPORATE NEEDS

Contact Us