10 STEPS TOWARDS INTERNATIONALISATION AN ENTERPRISES’ GUIDE TO BUSINESS INTERNATIONALISATION
by Studio Martelli & Partners
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INDEX ■■ Introduction 4 ■■ 1. Why internationalise an enterprise? 7 ■■ 2. What prerequisites must an enterprise posses 9 to become internationalised? 9 ■■ 3. The internationalisation project: the main steps
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■■ 4. The choice of country-reference market
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The macro-economic variables 14 The countries where internationalisation is worthwhile
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The top 5 for internationalisation
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■■ 5. Five ways to internationalise an enterprise
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■■ 6. The strategic role of economic partners 20 ■■ 7. Business networks
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■■ 8. International taxation 26 ■■ 9. National funding and contributions 30 ■■ 10. European funding and contributions Projects
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financed by the IEB 33
EIF - the European Investment Fund Beneficiaries
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â– â– Studio Martelli & Partners 36
How we work 37
What we do
Our services 38 Internationalisation
International tender invitations
Enterprise Networks 39
Finance to enterprises
Contacts 41
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INTRODUCTION Internationalisation is the discovery, evaluation and exploration of business opportunities in the international market. IIn concrete terms, it is a process of adapting a product or a service, conceived and designed for a market or a defined environment, to other markets or environments, especially other nations and cultures. This phenomenon, which we increasingly hear being talked about and of which it is not uncommon to read of in the pages of the specialised press, is the natural result of the rapid growth of economic exchanges between countries which has occurred in the last 50 years. This market expansion, ultimately facilitated by the development of new communication technologies and not only, has guaranteed alternative marketing outlets to all those able to look beyond the horizons of the internal market. To date, a large number of enterprises have expanded and are expanding their own business making inroads in particularly receptive commercial contexts, which have high capital availability and are able to quickly absorb all kinds of products. The macroeconomic phenomenon which is talked about and widely experienced by many entrepreneurs, both large and small, is not only an expression of an expansionary corporate strategy, but is increasingly becoming an essential requirement for those suffering from contingent market downturn. Internationalisation is in fact, the necessary evolution of the traditional way of “doing business� and the only real alternative to the implosion of the internal market, gripped by: saturation of the productive sectors, competition from foreign matrix competitors, lack of consumption stimuli, excessive bureaucracy and, last but not least, the onerous tax burden on businesses and consumers themselves. Internationalisation is in fact, the necessary evolution of the traditional
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way of “doing business� and the only real alternative to the implosion of the internal market, gripped by: saturation of the productive sectors, competition from foreign matrix competitors, lack of consumption stimuli, excessive bureaucracy and, last but not least, the onerous tax burden on businesses and consumers themselves. As can be guessed, however, the process of internationalisation is not without its obstacles. Often, when a business approaches a foreign market independently, it is likely to suffer a condition of initial discomfort due to: a lack of political, economic, legal and social knowledge of the host country as well as undergo currency exchange rate risks or suffer as a result of language and cultural barriers. This guide may be useful to a business that decides to target an international audience in pursuit of the undeniable benefits that may ensue. Enjoy your reading.
Giovanni Battista Martelli - lawyer
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1. WHY SHOULD COMPANIES INTERNATIONALISE? Internationalisation is the natural development process of a company, allowing it to take advantage of new business opportunities in the international market. Internationalisation occurs when a company carries out one or more of the following activities: ■■ Production happens abroad ■■ Products are exported and sold abroad ■■ Partnerships are made with foreign partners ■■ Capital comes from foreign shareholders ■■ Production units are created in foreign countries Internationalisation is an excellent opportunity to do business overseas and especially, perhaps, for companies who might be struggling to compete in the domestic market. The goals that a company pursues through internationalisation are: ■■ to increase revenue ■■ to reduce costs ■■ to find new sales outlets ■■ to out-source or move business activities ■■ to optimise the tax burden and tax wedge In addition, internationalisation can represent the best showcase for businesses interested in finding buyers abroad for their production or for the company itself. These goals can be achieved when one or more of the following circumstances occur: ■■ When a product is developed that is suitable for one or more foreign markets ■■ When a particularly appealing business opportunity presents itself ■■ When there are strong contacts with foreign customers and suppliers ■■ When there are contacts with potential production partners and with potential foreign capital ■■ When supplies are needed from foreign suppliers ■■ When favourable conditions exist to reduce costs (a lower tax burden and lower labour costs)
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2. WHAT REQUIREMENTS DOES A COMPANY NEED TO BECOME INTERNATIONAL? You cannot think about crossing national borders to reach benefits and profits without first considering the present state of your company. You have to be certain that you have the following requisites: ■■ economic and financial stability; ■■ high-quality products suitable for target markets ■■ competitive prices ■■ reliable information systems ■■ resources (time, money and staff) to invest Finally, among the factors that should not be underestimated in a company’s internationalisation process, there is the presence of partners and reliable foreign counterparties: this will allow a company to drastically reduce any risks related to payments, transport of goods and investments. If a reliable foreign party is missing, the usual advice is not to proceed, even if all the other requisites are there.
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3. THE INTERNATIONALISATION PROJECT: THE MAIN STEPS In order to implement a successful internationalisation project, we need to carry out a series of activities: ■■ A self-assessment of the company’s merits and its production capabilities, in the short and medium term, in order to identify the resources to be allocated to foreign markets. This is implemented through the following: a. Balance sheet and economic and financial analysis based on the accounting data from at least the past three years b. Business plan, an essential tool for planning international development. This document allows you to describe a project in all its parts and to evaluate its feasibility and interest in economic terms ■■ Study and research in the target foreign market ■■ Search for potential partners ■■ Evaluation and Support of “Cooperation Agreements” (stipulating corporate contracts, establishing joint ventures, signing commercial and/ or distribution agreements, financial agreements, stipulating supply and/or subcontracting contracts, etc.) ■■ Evaluation and Support to obtain funding, financial assistance and subsidies, if required ■■ Financial and business-related Evaluation and Support in foreign countries after implementing the programme
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4. CHOOSING A TARGET FOREIGN MARKET Companies that want to internationalise have to consider many factors. These factors are the different variables which are related to geographical, demographic and economic factors as well as, and perhaps above all, cultural factors. That is why it is so important to conduct a thorough analysis of foreign markets, including in terms of cultural differences in relation to the market of origin. How can we do this? In order to choose a new market, we need to adopt a systematic approach. When choosing a target foreign market, we should analyse two elements: ■■ The attractiveness of the market, i.e. the likelihood of finding operators interested in the products or services offered by the company ■■ The accessibility of the market, i.e. the opportunity for the company to manage the new market while continuing business relations When choosing a market, though, we cannot simply consider the geographical and cultural “distance” between the company’s country of origin and its country of destination. This “distance” also entails differences with regard to language, culture, political systems, the level of industrial development, business management methods, the level of economic development, etc. We have to carefully evaluate many variables.
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The macro-economic variables The variables we should take into account in the initial screening phase of a target foreign market can be divided into three main categories:
Geographic indicators:
■■ the size of a country
Demographic indicators:
■■ demographic development
■■ climate ■■ morphological features
■■ number of inhabitants ■■ stratification of the population by age group ■■ population density
Economic indicators:
■■ Gross Domestic Product (GDP) ■■ GDP per capita ■■ availability of per-capita expenditure for personal consumption ■■ income distribution
These indicators help us broadly understand the economic characteristics and size of the target foreign market. But we need to integrate this information with data coming from a proper market research: an in-depth analysis that combines the general aspects of a market with a specific study into the sector of interest, including studies into: ■■ Size of the market ■■ Market features and functioning ■■ Type of consumers ■■ Distribution network, i.e. what are the existing distribution channels (buyers/ importers, agents, franchising, branch sales offices, FDI - Foreign Direct Investment) ■■ Sales prices and profit margins of operators
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■■ Competitors ■■ Analysis of legal, tax and customs issues ■■ Trade fairs of special interest Furthermore, it is worth analysing: the features of production that is already present on the market, i.e. local competitors; the distribution of market share among different manufacturers and the geographical coverage of the various players; the range of models and the types of promotion carried out; reference prices and terms of payment used; the guarantees offered; local regulations for certification; technical and health regulations; local regulations for labels; instruction manuals. Market research is useful, in particular, to define the export price of a company’s product on the basis of the following elements: the market price of competitor goods, any import tariffs or local taxes and any commissions for agents or mark-ups for importers and distributors.
The countries where internationalisation is worthwhile Within geographical macro regions, we can identify countries that effectively offer greater business opportunities for Italian companies. Each area is characterised by specific territorial and political and economic features, which lead to different potentials for development: BRICS Brazil Russia India China South Africa The BRICS countries are no longer considered emerging countries, since they now have mature markets. Through a form of banking consolidation, implemented in July 2014 in Brazil, the BRICS countries have become the privileged antagonists of the EU-USA regions. These markets are characterised by substantial financial resources, inclination to spend and interest in making investments.
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MENA (Middle East North Africa) United Arab Emirates (also thanks to Expo 2020 won by Dubai) Saudi Arabia Qatar (where the 2022 FIFA World Cup will be held) Iran Algeria Morocco By exploiting oil and natural gas resources, the MENA countries have now taken on the role of “luxury” players (UAE, Qatar) and are now capable of attracting events such as the Expo 2020 (Dubai) and the 2022 FIFA World Cup (Qatar), where European expertise will surely prove to be useful. Saudi Arabia appears to be a business area with a very high potential, yet still poorly considered within the internationalisation processes of Italian companies, despite being very interesting in terms of trade opportunities for all European manufacturers. A successful move in this market is to identify a top-level local partner in order to develop business relations in relative safety. Iran is an extremely interesting territory, yet it is relatively unknown. The expected imminent suspension of the embargo, which has affected this country for many years, makes it an ideal candidate as the new target market in the Persian Gulf for both the economy and trade. The countries in the North African region (Morocco - Algeria) are suitable for offshoring production activities since they are growing rapidly thanks to incentive policies for free-trade areas and industrial sites. ASEAN Singapore Indonesia Malaysia Korea Taiwan Thailand Vietnam Laos Cambodia In South-East Asia, in addition to the already mature markets of Indonesia, Malaysia, Korea, Taiwan and Singapore (which is viewed as the best marketplace for “Doing Business” in the World Bank ranking), other countries are emerging such as Thailand, Vietnam, Laos and Cambodia, especially in view of offshoring business activities or, at least, production, thanks to their low labour costs. A figure to take into account is the strong growth rate - 6.4% - of the ASEAN region.
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AFRICA SUB SAHARIANA Democratic Republic of Congo Mozambique Angola South Sudan Sub-Saharan Africa is the second largest trade area in the world in terms of growth: in 2013, its GDP grew by 5.5%. Its wealth is primarily due to the mineral resources and hydrocarbons found in its subsoil. Its lack of infrastructure makes this territory attractive for implementing different types of activities, especially for the building industry and major civil engineering works. Several prominent economists believe that the luxury segment is also of great interest to Sub-Saharan Africa.
The top 5 for internationalisation 1
Dubai (UAE)
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Singapore
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Abu Dhabi (UAE)
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Qatar
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Thailand
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5. FIVE WAYS OF INTERNATIONALISING A COMPANY It is essential for internationalisation to develop as a gradual process, consisting of a series of stages that ensure a reduction of the risks arising from carrying out business activities at the time a company enters a new market. The implementation of the first stages of this process allows for a realistic perception of the actual business prospects on-site.
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The internationalisation stages are:
1. Export
the company only directly sells products or services abroad according to demand, without first carrying out any kind of research or development activity on the target market;
2. Retailing
the sale of products abroad is carried out by local distributors. This stage involves the search and choice of players on-site who are able to increase product sales, however, in general, it does not require a business development stage abroad;
3. Self sale
it involves the opening of a foreign sales office, which organises the sale of a company’s products through targeted communication and marketing initiatives;
4. Base development
it determines the establishment of a foreign corporation under specific legislation, which organises the sale of a company’s products using a business facility that is specifically set up on-site;
5. Direct offshore investment (D.O.I.)
the company outsources its production and marketing activities entirely or in part in order to obtain a more effective coverage in the market where it is already present or to enter a new market. During this stage, the company tends to develop its products by adapting goods to the target market.
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6. THE STRATEGIC ROLE OF ECONOMIC PARTNERS When establishing and managing a business activity in a foreign country, an Italian company needs to select a team of reliable and expert local partners and collaborators. There are several types of contracts that can bind a company to a local partner:
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International Franchising
The franchisor, i.e. the company interested in establishing itself in a specific foreign country, allows the use of its organisational and trade policy on the basis of an agreement with one or more local franchisees (affiliates), including the right to make use of its knowhow, brand and trademark. The affiliate agrees to pay royalties and support all the investments required to implement adequate marketing of goods. In this type of agreement, the affiliates are located in countries other than the one of the franchisor (parent company), which is able to expand in foreign markets while maintaining “crucial� activities at its own premises. An international franchising agreement is available only when there are no obstacles to the development of a product and to a standardised brand in the various countries involved. One of the advantages is the fact that a company can have a particularly wide production range thanks to differentiated distribution between the various affiliates, depending on the needs of each market.
Piggy Back
The local manufacturer or distributor offers a foreign manufacturer or distributor the services of its distribution organisation. Here are, in short, the contents of the agreement defined Piggy Back, which involves two counter-parties: a larger industrial company (carrier), already present in the foreign market, which is in charge of distribution, and an Italian company that wants to enter the foreign market. The carrier is faced with an important decision, namely, choosing a product that can integrate the range that is already available in order to avoid any overlap with a product that is already on the market. This agreement is most useful when the distribution system of the market in which a company wants to enter is not easily accessible. In this case, contacts with the foreign client are only indirect since they are mediated by the carrier, which implements trade policies that the rider often cannot interfere with.
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Manufacturing agreements
On the basis of these agreements, a company enters a foreign market by transferring to a local partner the responsibility of the manufacturing process while maintaining control on marketing, distribution and service activities for the end customer. These contracts are limited to the implementation of products abroad, which are then sold on national and international markets. These include: ■■ Manufacturing contracts A company that aims to enter a specific country entrusts a local company with the manufacturing of its products, which are then redelivered to the contractor company that is in charge of managing distribution. In many cases, it may happen that the product is finished by the purchasing company, which enters the market as the official manufacturer. This type of agreement is used to overcome particularly challenging barriers situated at the entrance of a foreign market or if the size of the market does not justify having a companyowned manufacturing facility. It has many advantages: lower costs for processing, transport and bureaucratic obligations. But there is more to this. Thanks to its flexibility, the duration of the agreement may vary depending on the absorption capacity of the market. ■■ Licence agreements According to this agreement, a company (the licensor) grants another company (licensee) the right to use a specific technology, a patented manufacturing process or a brand in order to manufacture a certain product, as well as the right to sell it against payment. A licence is an agreement that involves granting a company the right to use a brand, patent or know-how, therefore it is co-essential compared to franchising, since a licence agreement is always present in affiliate relations.
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It is the best solution for entering a foreign market for companies that have substantial resources and expertise. Specifically, the licensor provides the licensee with technology or knowledge, as well as all the skills and information required to use a defined patent. A special form of licence agreement is the so-called cross-licensing, i.e. a reciprocal exchange of licences, in which the parties become licensees of each other. â– â– Joint-venture Joint ventures, conceived to organise more permanent modalities of cooperation, have now become Equity joint ventures, which determine the use of a dedicated corporate structure that is jointly controlled by its partners. Hence, this has given rise to a new legal entity involving both companies. The new company is established with mutual consent of the other two companies, which combine resources and expertise in order to carry out specific non-occasional economic activities and achieve common goals. It differs from non-Equity joint ventures, which are contractual and are therefore limited to the fulfilment of a single deal, after which the partnership is over. The role played by each partner within the initiative varies according to: a. The capital stock share that each partner company has in relation to the joint venture (which leads to the distinction between majority joint venture and equal joint venture) b. The degree of involvement in the management of the joint venture
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7. BUSINESS NETWORKS The establishment of business networks abroad, conceived to enhance the innovation capacity and competitiveness of companies in the market, represents a legal strategy that is increasingly used in the context of business internationalisation, since it ensures cohesion of purpose between the various companies and joint economic/business efforts. In practice, business networks are entitled to share the following: ■■ manufacturing and marketing programmes ■■ a common brand ■■ websites to activate e-commerce sales ■■ joint software to manage accounting, certifications, customs documentation, etc. Through network contracts, we can achieve significant benefits with regard to the reduction of the tax burden imposed on the target fund of the network. In fact, a partial exemption of the profits allocated by the companies is planned, which are to be used in the shared business project.
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8. INTERNATIONAL TAXATION The pursuit of an economic activity abroad by an economic Italian operator can be carried out through the opening of a permanent formal establishment (in the practice defined by the English term branch) or through the formation of an entirely or partially locally owned company, by the Italian parent company.. In certain cases, local law does not permit the establishment by a foreign fully controlled economic company operated by the latter, but requires the presence in the social structure of a local member who in some cases must hold a majority stake (at least formally) in the share capital of the incorporating company. A branch does not constitute an autonomous legal entity in relation to the parent company, although it is subject to taxation in the foreign country where the economic activity is carried out.
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Article 5 of the OECD Model, which was transposed into Italian in Article 162 of the Italian Tax Code, identifies a branch as “a fixed place of business through which the non-resident enterprise is wholly or partially carried out in the country”. With reference to a permanent establishment of an Italian enterprise abroad, we note that (in the absence of legal autonomy of the branch) the costs, revenue and any inventories become an integral part of the permanent establishment of the Italian company’s financial statements and contribute to the formation of its taxable income. From an accounting point of view, there is an obligation (under Article 14 of Italian Presidential Decree 600 dated 1973) to detect management performance relating to the financial year of the permanent establishment, with separate determination of the operating results attributable to it. In Italy a tax credit is recognised for taxes that have been definitively paid abroad on income produced by the permanent establishment (Article 165 of the Italian Tax Code). Since the permanent establishment is not a legally distinct entity in relation to the parent company, withholding tax on profits (net) that are assigned by the permanent establishment to its parent company generally does not apply. This application on the other hand is expected - but in some cases mitigated or eliminated by virtue of specific agreed clauses - in the case of distribution of dividends by a foreign subsidiary to the Italian investee. Given the lack of legal subjectivity of the permanent establishment, against recognised profit generated by it, as the - positive - difference - between revenue and costs, it should be mentioned that in situations where the permanent establishment is making a loss (negative difference between revenue and costs), there will be direct relevance in the accounts of the Italian parent company. Among the advantages of the permanent establishment, there is the opportunity provided in Article 12 of Italian Legislative Decree 446/1997, to deduct from the taxable income of the parent company’s share of income attributable to the permanent establishment located abroad. This, of course, is a result of the direct recording of positive and negative income components of the permanent establishment in the accounts of the parent company. A further aspect of significant importance is provided by the eventual sale to third parties of the business activities carried out abroad through the permanent establishment. In this case, as it does not have legal and patrimonial autonomy, the possible sale would be fully charged to the taxation of the Italian parent company as the difference between the tax values admitted in the financial statements (inventories, any tangible and intangible assets attributable to the permanent establishment) and the sale price. If, however, you were to decide to operate abroad through a subsidiary company, it should be noted that the subsidiary has full legal and tax autonomy, such that the income produced by it is subject to taxation only in the foreign country of residence. Except where the company is resident or domiciled in a country with low-taxation, the
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dividend may be distributed by the foreign subsidiary to the Italian investee company within the limit of 5% of its amount thereof, with an IRES rate of 27.5%.. Dividends do not form part of the IRAP tax base. This results, for all intents and purposes, in an imposition equal to 1.375% (27.5%*5%). Even the gain arising from the sale of the investment is subject to tax, if the conditions lay down in Article 87 of the Italian Tax Code are within the limits of 5%, generating effective taxation of 1.375%. The aforementioned rules do not apply when the subsidiary is resident or domiciled in a socalled “black listed” country. In this case, the regulations in Articles 167 and 168 of the Italian Tax Code (the provisions on controlled foreign companies and provisions on associated foreign companies, respectively) provide for transparency of taxation of income generated by subsidiaries residing there, regardless of the actual distribution of profits. Obviously, at the time of actual distribution, they will be subject to taxation once more. To avoid profits being directly attributed to the investee company, in accordance with the so-called principle of fiscal transparency, a specific request for non-application must be accepted, suitable to demonstrate that “the non-resident company or other entity effectively performs industrial or trade activity, as its main activity in the market of the country or territory of settlement”. It is therefore necessary, as confirmed by the circular from the Italian Inland Revenue Office that the company is effectively “rooted” in the economic fabric of the country in which it operates.. As an alternative to demonstrating the actual activities carried out in the country, it is possible for the taxpayer to show that the location of the subsidiary does not follow the localisation of income in a low-tax country. This, of course, is relevant only in cases where the subsidiary is resident in countries that have not been “black listed”. But this is not enough. In fact, it is not possible to use all the exemptions referred to in paragraph 1 of Article 167, if the subsidiary company achieves more than 50% of their income “from the administration, holding or investment in shares, holdings, loans or other financial assets, from the sale or the granting of the right to use intellectual property rights related to industrial, literary or artistic work, as well as the provision of services to persons who directly or indirectly control the company or the non-resident entity, companies controlling it or controlled by the same company that controls the non-resident company or entity, including financial services. The specific rules on transfer pricing (transfer pricing - Article 110, paragraph 7 of the Italian Tax Code), shall apply to the regulations referred to in the preceding paragraphs, according to which the price at which goods and services are exchanged between subsidiaries and parent companies must be assessed according to the normal value, in other words on the basis of the price that would be applied between third party businesses and independent
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parties. This aspect is particularly important as it is a condition to which the investigation and control bodies attribute greater importance. The framework is particularly complex and requires, in most cases, a thorough study of the goods and services exchanged, the reference markets, any market competitors and other factors specific to the market sector. In general, for companies operating in different markets through their subsidiaries, the preparation of a master file and National Documentation for each individual subsidiary is required. In light of the above, it is apparent that the choice between operating in a given country through a branch or a subsidiary depends on various factors. However, it can be said that the better choice is to operate through a subsidiary company, as this allows for the deferral of the imposition of taxation in Italy on profits earned at the time of their actual distribution, thus benefiting from limited taxation (1.375 %). However, in situations where the activity must be carried out in a country with low-tax, it is necessary, through specific application, to be able to prove eligibility for exemptions provided by Article 167 of the Italian Tax code which has been repeatedly mentioned. Finally for the purposes of completeness, it should be noted, that any dividend distributed by a company resident in an offshore country to its Italian investee is subject, in accordance with the provisions of the agreements against Double Taxation concluded between Italy and the country - reference market, to withholding tax equal to: ■■ 5% where the company’s holding is at least 25% of the capital of the company paying the dividends or ■■ 15% in other cases. There is however, no provision, for tax withholding or levy on any interest paid by a subsidiary company to a investee company (and vice versa) except in cases where the amount of interest has not been determined according to the rules that would have applied in the event that a participatory relationship between creditor and debtor subject existed. It should be highlighted that with particular reference to the possibility of obtaining an affirmative answer to the specific request for non-application of transfer pricing, the matter is particularly delicate and complex and therefore requires a specific test case.
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9. NATIONAL LOANS AND CONTRIBUTIONS The following provides a brief list of the funds provided in Italy that are currently accessible to businesses. These are contributions for consortia for internationalisation for the carrying out of promotional activities and contributions for Italian-foreign associations, authorities, institutions, chambers of commerce.
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■■ Subsidised loans for opening business structures abroad, for the launch and dissemination of new products and services or the acquisition of new markets (within the limits and conditions lay down in EC Regulation no. 1998/2006 of the European Commission dated 15.12.2006 “De minimis” aid). Article 6, paragraph 2, letter a of Italian Legislative Decree no. 112 dated 25.6.2008, converted with amendments into Law no. 133, 6 August, 2008.
■■ Subsidised loans for pre-feasibility and feasibility studies and technical support programs related to Italian investments abroad (within the limits and conditions lay down in EC Regulation no. 1998/2006 of the European Commission dated 15.12.2006 on “De minimis” aid). Article 6, paragraph 2, letter b of Italian Legislative Decree no. 112 dated 25.6.2008, converted with amendments into Law no. 133, 6 August, 2008.
■■ Subsidised loans for small and medium-sized enterprises - SMEs - exporters for the improvement and preservation of their financial soundness in order to enhance their competitiveness in foreign markets. (within the limits and conditions lay down in EC Regulation no. 1998/2006 of the European Commission dated 15.12.2006 “De minimis” aid). Article 6, paragraph 2, letter c of Italian Legislative Decree no. 112 dated 25.6.2008, converted with amendments into Law no. 133, 6 August, 2008.
■■ Promotion of investment in companies and joint ventures abroad. Law no. 100, 24 April 1990. Simest Spa, established by Italian Law no. 100/1990, is a private company, in which the Ministry - until 9.11.2012 - represented the majority shareholder, holding 76% of the capital. With the implementation of Article 23/bis, of the Italian Legislative Decree 95/2012, converted into Italian Law 135/2012, this investment has been disposed of in favour of Cassa Depositi e Prestiti (Deposits and Loans Fund), who purchased this public share. The Ministry however, still retains responsibility for directing and supervising said Company, pursuant to Article 2, paragraphs 1 and 3 of Italian Law 100/90..
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10. EUROPEAN LOANS AND CONTRIBUTIONS The European Investment Bank (EIB) is the European Union’s financial institution which operates as a development bank. Its funds come from transactions on the capital market and its shareholders, the EU Member States, who subscribe to the capital. Through the provision of loans and guarantees, the EIB facilitates the creation of public and/ or private investments and aims to attract other funding to the support projects it promotes.
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These projects may be of a different nature, but must pursue one of the following objectives: ■■ the development of underdeveloped regions of the EU; ■■ the modernisation of enterprises and the creation of new activities that cannot be fully financed from national resources; ■■ l’aiuto agli investimenti in infrastrutture di interesse comunitario che, per la loro ampiezza o natura, non possono essere finanziati unicamente da uno Stato membro.
Projects financed by the IEB IEB projects generally fall within one of the following areas: ■■ investments of job-creating enterprises; ■■ construction/modernisation of transport infrastructure (railways, airlines, road links, bridges, etc.); ■■ production, transfer and distribution of energy (e.g. heating gas); ■■ programs for a more efficient use of energy and alternative energy sources (wind, etc.); ■■ infrastructure telecommunications; ■■ natural and urban environmental plans (water, waste, pollution reduction, transport, etc.); ■■ industrial projects in the manufacturing sector (motor vehicles, pharmaceutical, aviation equipment, chemicals, etc.). The EIB’s lending activities are conducted not only in the EU but also in third world countries, and in particular in Mediterranean countries, Africa, the Caribbean, the Pacific, Asia and in Latin America. The Bank directly manages procedures relating to projects with a value equal to or greater than 25 million Euros.
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EIF - European Investment Fund The European Investment Fund (EIF) is the support and financing body for small and mediumsized enterprises. The EIF does not directly finance SMEs, but operates solely through financial intermediaries. The EIF provides venture capital for small businesses through venture capital funds and business incubators to support SMEs, acting as a guarantor for loans and guarantees granted to businesses by banks and other financial institutions. The Fund operates in two ways: ■■ investments in shares issued by the company ■■ guarantees to financial institutions that grant loans to SME
Beneficiaries Small and medium-sized enterprises operating in the European Union, candidate countries for which the process of accession is already in progress, EFTA and European Union neighbouring countries in the case of cross-border projects can all access funding. The Guarantee Fund for Italian SMEs is dedicated to: ■■ SMEs that are assessed as “economically and financially sound” ■■ SMEs in all production sectors with the exception of the primary production of agricultural products, transport, shipbuilding, automotive industry. ■■ SMEs operating in the agricultural sector (ATECO activity codes 2002 01.40, 01.50, 02.00) SMEs registered with the Chamber of Commerce ■■ SMEs with a Loss/Turnover ratio of no more than -5%
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STUDIO MARTELLI & PARTNERS Studio Martelli & Partners was founded in 1959 by Domenico Martelli. Later, with the addition of Giovanni Battista Martelli - lawyer, it specialises in the Corporate sector, moving towards business consultancy, tax planning and enterprise internationalisation. The structure of the law firm was further expanded with the addition of Anna Maria Tripodi - lawyer as Senior Partner, specialising in Criminal Law, Corporate Compliance and Fashion Law. Currently, Studio Martelli & Partners has head offices in the Italian cities of Rome and Milan, and offices in Dubai. Today the firm is a commercial player that flanks businesses.
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How we work
Studio Martelli & Partners has decided to work on a success fee or percentage fee, based on the results obtained, with regards to the implementation of the corporate business, working closely with the company until the target is reached. In relation to services: ■■
Internationalisation;
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Establishment of foreign companies, corporate strategic planning;
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Enterprise networks;
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Finance to enterprises;
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Research and support in international tendering procedures.
the firm works on predetermined billing, capped fee, in relation to the activities it performs.
What we do
The firm’s mission is to provide professional, competent and efficient support, attentive to the real needs of the Customer. Expertise in taxation, corporate matters and the experience gained allows us to provide advice and develop ad hoc strategies for corporate management based on excellence. Accuracy and personalisation of the service offered, makes Studio Martelli & Partners not just a simple law and consultancy firm, but rather a law boutique.
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OUR SERVICES Internationalisation Studio Martelli & Partners is able to provide the best support to companies that decide to embark on a path of internationalisation, offering its expertise in the field of international business management and ensuring companies the following services: ■■
legal assistance at all stages of the internationalisation process;
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assessment of the company’s potential for internationalisation;
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international contracts;
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consultancy for customs;
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identification and selection of strategic partners;
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development of business plans, feasibility studies and strategic business plans;
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establishment of local companies, branches or representative offices;
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international tax, duties and customs support;
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joint ventures, mergers and acquisition operations;
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completion of target missions.
The firm drives Italian companies towards foreign markets, putting them in contact with local business partners of a private or institutional nature and oversees the establishment of relations. The companies are encouraged to establish a direct business to business rapport, where the Firm has the role of facilitator in the transaction of liaisons between enterprises
International tender invitations Studio Martelli & Partners assists companies: ■■
Identification of international tender invitations;
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Participation support in tender invitations;
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Support with compliance requirements relating to tenders.
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Enterprise Networks Our in-depth knowledge of the legal instrument of business networks allows us to flank companies who wish to join with the aim of increasing their competitiveness and innovativeness (while also keeping their trade individuality) taking care of: ■■
analysing the competitiveness of the company and the factors contributing to improvement of the individual enterprise;
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identifying and promoting contacts with other companies potentially interested in the establishment of the Network;
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preparing a network program and a network contract between the companies identified;
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overseeing the signing of the contract on behalf of the participants;
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managing the network enterprise, as an executive body;
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locating ad hoc funding for the established/establishing network.
Funding to enterprises We plan effective business solutions also taking care to identify the most appropriate forms of finance for the implementation of projects, supporting business in the credit line access procedure:
Private Funding
Public Funding
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Private Equity
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European Funds
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Mini-bond
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Regional Funding
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Venture Capital
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publishing and graphic design UDB | studio Š 2014