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This form of business can be chosen by different types of business entities such as trusts, corporations, and individuals. LLCs do not put the assets of their shareholders at risk by separating personal liabilities from those created by the company. The establishment of a limited liability company in Europe often requires the preparation of incorporation documents, the deposit of a minimum share capital, and registration with the Commercial Register. The management of the LLC is usually entrusted to the members (directors and shareholders), but in some cases the decision-making power in the company may be delegated from the founders of the business to hired managers.
Opening an LLC in Europe offers many advantages, the most attractive of which is the limited liability of the owners. This means that in case something goes wrong, the owner will be liable for the company’s debts up to the amount of the authorised capital. Another important advantage of choosing a limited liability company is the capital that is required at incorporation. Many European countries have reduced the authorised capital requirements for this type of company. One of the best examples in this case is the Netherlands: those who want to open a Dutch limited company only need €1 as authorised capital. Of course, the total costs will be higher, but the Netherlands remains one of the cheapest European countries to start a company.