European Business SMEs (small-to-medium enterprise) - less than 250 people, annual turnover not exceeding 50 mln euro and/or annual balance sheet not exceeding 43 mln euro Full-time employees Turnover Balance sheet total Micro Small Medium-sized <10 <50 <250 Greece has the largest contribution of SMEs in employment (86,9%) and France has the smallest (63,2%). Criterium of independence: 1. Autonomous enterprise My enterprise employs 100 employees My enterprise has 15% shares in company B which employs 100 employees My total number of employees = 100 employees My enterprise holds less than 25% (capital or voting rights) in another and/or another holds less than 25% in mine Venture capital, university, institutional investor, small autonomous local authority (25-50%) ≤ 2min euro •ko% ≤ 2min euro ≤ 10min euro Madama ≤ 10min euro ←≤ wn•• * Exceptions ! : 2. Partner enterprise My enterprise has 35% shares in company B which employs 200 employees My enterprise employs 100 employees My total number of employees = 100 + 35% * 200 = 170 employees 3. Linked enterprise My enterprise employs 100 employees My enterprise has 55% shares in company B which employs 200 employees My total number of employees = 100 t 100% * 200 = 300 My enterprise holds at least 25%, but no more than 50% in another and/or another holds at least 25% but no more than 50% in mine My enterprise holds more than 50% of the shareholders' or members' voting rights in another and/or another holds more than 50% in mine. < 25% ; 50% > Pan-european forms of doing business in the EU (European economic interest grouping) Aim: to strengthen cross-border cooperation without generating profit Participants: at least 2 (up to 20) members from at least 2 different member states Registration: business register in a member state where the headquarter is situated Announcement: Official Journal of the European Union Legal status: „no” except Belgium and France Size: small, medium or large (up to 500 employees) Minimal capital: indeterminate by law (in-kind contribution) Structure: indeterminate, wholly dependent on its members One of three Transnational legal economic structure at European level Easy to create, implement and use Provides a flexible framework for transnational cooperation Well- established framework: ~1000 EEIGs - set up since July 1989 Purpose: to develop its members' activities and performances in the designated activity. Does not aim at shoving profit as a company 1980 - EEIG • • • so •• (European Company) (European Cooperative Society) Aim: business activity in all EU-27 Participants: indicated (implicite 2 units from 2 different member states) Registration: business register in a member state where the headquarter is situated Announcement: Official Journal of the European Union Legal status: legal body Size: large (medium) Minimal capital: at least 120000 euro Structure: one of two to be selected Aim: joint execution of ventures (even short-term or single ones) Participants: at least 5 natural Or legal persons from at least 2 different member States Registration: Business register in a member States where the headquarter is situated Announcement: Official Journal of the European Union Legal status: legal body Size: small or medium Minimal capital: At least 30000 eur Structure: one of two should be selected 2004 - SE 2006 - SCE (European Private Company) The SPE is / will be: A new European legal form Designers for SMEs May be set up and run following the same Company law rules all over Europe The main features of SPEs: Designed for SMEs but hos no size limitation It has legal personality Its shareholders have limited liability It is a private company Minimum capital requirement is € 1 20 ? ? - SPE 000 • • • : • • • T axation in the EU We need to address taxation matters at EU level to: Ensure fairness Make the internat market function better European Union does not impose taxes. This is done solely at the level of each country. Low fiscal burdens: Entrepreneurship stimulating Development enterprises Inflow of FDI Economic growth High fiscal burdens: Entrepreneurship hampering Investment outflow (capital and production) * FDI = foreign direct investment EU Member States are fully right to impose direct taxes, including both the rates and the range for both individuals and corporations. • • : : I • VAT harmonization in the EU: 1. Standard rate - min. 15%, no max. 2. Reduced rate - no lower than 5%, applying only for: basic food, pharmaceutics, books, magazines, papers, passenger transportation 3. Zero rate - mainly on intra-community supply Excise harmonization in the EU: 1. Manufactured tobacco products - at least 60% of the price (since 2014); at least 90 EUR per 1000 cigarettes 2. Alcohol and alcohol beverages - 1 l pure alcohol: 5.50 - 10.00 EUR 3. Energy products - from 21 to 421 euro per 1000 litres depends on a product Normalization, standardization and certification in the EU Focuses on safety to the consumer and the environment For the manufacturer of parts or components the legislation may not be directly relevant, however, since the buyer will pass down requirements to their suppliers, indirectly this legislation will be (very) relevant. _ The EU conformity assessment system: 1. Industry: health security life safety environmental protection 2. Food: GHP GMP HACCP • } • • • • • HARMONISED NEW approach OLD approach • basic requirements • detailed requirements • based on 8 modules ( A - H ) , • based on detailed rules , acts which are called Global Approach • for 4 groups of products • for 23 groups of products ↓ CCE marking ) motor vehicles chemicals pharmaceuticals processed food CE MARKING : ( Con for mite Ewropéenne ) • 1993 • the Manufacturer must draw up a Declaration of Conformity ( Do C) and takes sole legal responsibility • for : boilers , medical devices , machinery , pyrotechnics , toys , radios ect REGIONAL PRODUCTS IN THE EU : Geographical indications : PDO - covers agricultural products and foodstuffs made in a given area ; the whole production , processing or preparation takes place in the area PDI - promote and protect names of quality agricultural products and foodstuffs , covers agricultural products and foodstuff , processing or preparation takes place in the area TSG - highlights traditional character , either in the composition or means of production Agriculture ← Eun H ⑧ t ⑨ ggaf booked ☆μ lpll ⑨ m Flower → environment ⑧ O• BIO & ECO CERTIFICATES The European Eco label - is a voluntary scheme from 1002 to encourage businesses to market products and services that are Kinder to the environment EU logo for organic farming - proves that food products meet the requirements of integrated European food The European Ecolabel is for: - cleaning products - appliances - paper products - textile - home and garden - accommodation Organic Farming: - for processed products it means that at least 95% of the agricultural ingredients are organic European but non-eu certificates Recycling symbol: used for designated recyclable materials, % of recycted/used materials Green Dot: requires manufactures to take care of the disposal of any packaging material they sell, Manufacturer of the product contributes to the cost of recovery and recycling Council Regulation ( EG No 834/2007 of 28 June 2007 ↳ On organic production and labeling organic products HACCP - Hazard Analysis and Critical Control Point Threats: biological, chemical, physical From a producer to a customer GHP , GMP , HACCP Obligatory ( required by law ) : GMP / GHP / HACCP Voluntary ( expected by consumers ) : QACP / 150 0000 / 15014000