consortium or what for a buying group ?

[hostingtech]

Hi !
We are a group of European IT companies and we want to get together to get a stronger relation with the vendor, what would be the best way to do that ? I was thinking about a consortium? Where would be the best country to do that.

The idea is to centralize the purchase process.
thanks

 

[CyprusBusiness]

Hello

It depends on your goals and actual underlying IT activities.

Matters that you need to consider is VAT, transfer pricing for recharging expenses from consortium to each company (if applicable), and general relationship between each member of the consortium. Achieving a procurement benefit will only be optimal if the total benefit from procurement outweights the costs of setting and maintaiing the consortium.

An EU country such as Cyprus will be a good option for both legal and tax prespective. Group loss relief is also available to be utilised (if applicable).

Happy to PM you if you need more info.

 

[Onassis]

EEIG might be an option