European Economic Interest Group
European Economic Interest GroupUpdated on Thursday 14th April 2016
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The European Economic Interest Group (EEIG) is a group with has legal personality that acts as an intermediate between a company and a partnership. Its objectives can be only as varied as the activity of its members. The EEIG can be used for commercial, industrial or agricultural activities as well as for liberal professions.
This instrument is useful for cross-border cooperation between companies established in the European Union. Our law firm in Luxembourg can help you decide whether or not this structure is suited for your needs and the expanding of your company activities within the EU.
Conditions for establishing an EEIG
The EEIG can be established by natural or legal persons. Its purpose is to help these individuals or companies in Luxembourg or other countries expand their business across the borders of Luxembourg and create a joint-venture in other EU countries.
For this partnership to be possible, at least two companies operating in two different European countries must be willing to join their activities. These activities must be limited to the economic activities usually performed by the two companies.
Because this group has an international nature, its founders must observe the specific regulations set forth by the European Community regarding the formation, dissolution and governance of the EEIG. Our attorneys in Luxembourg can guide you throughout the formation procedure and help you observe the laws governing the operation of this legal entity.
Forming an European Economic Interest Group
The EEIG is very similar to the Economic Interest Group (EIG), except that the latter does not have an international operation. Although there is a requirement for a minimum of two members, there are no restrictions as to the maximum number. The duration of the partnership can be limited or unlimited.
There are no minimum share capital requirements and the contributions can be made in kind or in cash. The members have unlimited liability.
The EEIG is taxed according to the country where the partner companies are based. If the companies are foreign, they will be subject to the Luxembourg tax on non-residents. If the EEIG has the status of a permanent establishment in Luxembourg, it will be taxed in Luxembourg on the income paid by the group. Our attorneys in Luxembourg can tell you more about the taxation principles.
For more information about the characteristics of the European Economic Interest Group or other business structures you can contact our law firm in Luxembourg.