European Economic Interest Grouping
The European Economic Interest Grouping, the EEIG, is company structure based on EU law and is comprised by at least two members from two different European countries. The EEIG is like a partnership structure between two organisations in two different European countries. EEIG members must be legally independent but may have the same owner. Members of an EEIG are not required to be homogeneous and may be from different organisational structures and different professions.
An EEIG should, per EU regulation, assist its members in the realisation of their goals and must not pursue profits in its own name Thus, the line of business of the EEIG must always refer to the cooperation of the members and must not replace the activities of a single member. Thus the EEIG's are not subject to taxation themselves and their net income is taxed on the level of the members and as per their participation.
An EEIG can be set up as a joint purchasing or selling agency, as a cooperation of professionals (accountants, lawyers, advisors, data processors or for the joint handling of clients.
Why set up an EEIG?
- Companies can easily change business location within all European market countries.
- No authorised capital is required when setting up an EEIG;
- Incorporation requirements are simple
- Profits and taxation of an EEIG are distributed proportionally to the members.
- Profits can be set up aside as reserves of the EEIG, in the name of the members, not distributed to the members, and therefore not be taxed.
- EEIGs do not have to prepare balance sheets.
- EEIGs are not required to publish results.
- Members maintain their economic and legal autonomy, yet at the same time the EEIG maintains a legal capacity;
- Legal liability lies primarily with the EEIG itself.
- The liability of member companies with limited liability, as members of an EEIG, is limited to their capital.