Years ago, when Italian entrepreneurs discussed internationalisation, the greatest importance was attributed to the delocalisation of production.
Times and laws have changed, the principle of freedom of establishment within the countries of the European Union established by the treaty that established the European Community has been increasingly reaffirmed by the Court of Justice of the European Community (Centros ruling 09.03. 1999) (sentence issued on 12.09.2006 in case No. 196/04 Cadbury/Schweeps) and finally also the Supreme Court of Cassation with sentence dated 22/30 October 2015 (Dolce&Gabbana case) reiterated it.
Community legislation allows companies from each EU country and therefore, Italian companies, to set up companies in different European countries, with which to operate on the international scene and benefit from the more favorable taxation of some EU countries.
The United Kingdom is among the European countries the one to which Italian companies and Italian citizens look with greatest interest in consideration of light taxation aimed at the economic development of English companies (UK Companies) and for this, the development of the prosperity of the United Kingdom.
The perspectives and horizons of the Tax Authorities in the United Kingdom are very different from those of the Italian Tax Authority.
Each country has its own history and in British history the liberal theses have perhaps had more impact than others, opening up new horizons also in the economic field.
How can we fail to consider the contribution of Adam Smith who already at the end of the eighteenth century "came to the consideration that to promote the well-being of a nation, each individual, in compliance with the law, had to be free to pursue his own interest in his own way and to place both his labor and his capital in competition with those of other individuals. It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from the fact that they look out for their own interests.
The individual selfishly pursues his own personal gain but is aided by an invisible hand that pushes him to promote the public good that is not part of his intentions.
This last statement is particularly surprising given that for much of human history, acting in one's own self-interest (i.e., seeking to accumulate wealth) was perceived as deplorable and, in some cases, illegal." (Alan Greenspan – Adam Smith Memorial Lecture Kirkcaldy – Scotland 6 February 2005).
In the United Kingdom, and in the Anglo-Saxon world, acting in one's own interest is not evaluated negatively and this is perhaps the key to understanding fluidity, dynamism, in other words the expression also in the economic field of freedom, a fundamental value in Anglo-Saxon countries.
We thus understand the historical roots of the British world and the opportunity to become part of it to better manage economic activity on the international scene.
However, to access the international scene as protagonists, the incorporation of a company in the United Kingdom is not sufficient, adequate legal and tax assistance must be available to be able to develop operational strategies, appropriate contracts, the most incisive shareholdings, and the precautions that allow the creation of an efficient entity, which can operate dynamically in the main foreign markets, with efficiency and profitability, also maintaining, for those who wish, contractual relationships with Italian companies.
It is also necessary to have international legal and tax consultancy that is part of a network of law firms and accountants in the main countries of the world.
New horizons therefore open up but, to navigate towards new lands, a navigator who has profound knowledge of navigation is needed, in order to avoid tragic shipwrecks.
Milano, May 2nd 2016.
Avv. Giovanni Babino
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