As different legal entities are usually subject to different taxation rules, it is essential to have a clear vision for your company, including its scope of activity and corporate structure. For tax planning purposes, it is crucial to choose the right legal structure for your business; otherwise, you risk incurring extra expenses that could easily have been avoided.
Read here about each of the most common legal company structures and decide whether you are going to register an LLC, LP, branch office or something different.
In general, all jurisdictions can be divided into classic offshore, low-tax jurisdictions and prestige jurisdictions. The prestige of a jurisdiction corresponds to its rank, which is determined by taking into account and evaluating information from the International Sanctions List, the OECD Gray or Black List and the EU Jurisdiction White List as well as data on the development of the financial markets and determining whether the jurisdiction ob FATF AML is deficient and whether there are money laundering concerns. These are the basic criteria that matter in determining whether the jurisdiction is prestigious or not. It cannot be considered prestigious if it is on a financial blacklist.
Austria, France, the United Kingdom, the United States of America and Switzerland are among the top five most reputable jurisdictions for incorporating a company.
A general overview of Austria
Registering a company or start-up in this jurisdiction allows the owner(s) to participate in all projects initiated by the Austrian government. The basic company types available are LLC, ULP, PJSC, PLLC, LLP, and JSC.
Taxes: The income tax rate is 25%, with a minimum corporation tax of EUR 500, plus 20% VAT and a capital tax that varies between 0.8% and 1%. If the subsidiary is registered within the EU, the tax rate on dividend income is 0%; if not, it is 25%.
Austria has agreements with more than 90 countries that enable companies to avoid double taxation. It has no exchange control. This jurisdiction ensures the confidentiality of business data.
A general overview of France
France is a respectable jurisdiction that allows your company to offer products and services bearing the mark of a European company. The basic legal structures available are SP, GP, PJSC, PJSC, LLC, CLS and LLPE.
France offers a number of options: the ability to obtain credit from French banks, the ability to obtain a residence permit, no taxation for companies registered in the country doing business outside of France, and no exchange controls. France has agreements with more than 89 other countries that allow companies to avoid double taxation.
A general overview of the United Kingdom
The UK is considered a respectable jurisdiction due to its high level of legal protection, a simple and transparent tax system, the ability to charge VAT and the availability of nominee services.
The basic company types available in the UK are PC, Limited Warranty Company, ULC and LLC. Again, there are no tax obligations for UK registered companies operating exclusively outside the country. Corporate tax rates depend on profit (between 20% and 24%). The UK has agreements with more than 100 countries that allow companies to avoid double taxation.
A general overview of the United States of America
The US offers a respectable, highly trusted jurisdiction for a company to register, allowing it to offer products and services bearing a US company's trademark. This jurisdiction imposes no tax obligations on entities designated as non-resident and also permits nominee services. There is no taxation for companies incorporated in the country that do all their business outside of the United States.
The basic legal structures available are private contractor, corporation, branch of a foreign corporation, representative office of a foreign corporation, partnership, LLC, joint venture, or LLJSC.
A general overview of Switzerland
The good reputation of this jurisdiction is based on several factors, such as strong business development, a dynamic economy and a track record of innovation. The most important corporate forms available in Switzerland are LLC, ULP, JSC, Commandite Partnership and Subsidiary.
Switzerland offers a high level of confidentiality, the world's leading currency, mechanisms to avoid double taxation, a reasonable tax system with tax rates depending on residence, income level and legal form of the company, tax optimization opportunities and the opportunity to set up service companies that can for the administration of the business activities of the parent company
Malta's Citizenship-by-Investment scheme is an ideal option for families looking to relocate their business and/or personal affairs to the European Union. The Maltese citizenship granted through this program is valid for life and can even be passed on to your children and their descendants.
Last year more than 1000 applicants took part in this program and contributed an additional one billion euros in direct investments into the Maltese economy. Malta has a stable political climate and above all a growing economy, even in times of financial crisis.
Maltese citizenship offers investors some advantages. First, you can travel to 166 countries without a visa, including Canada, the United States of America and the EU. Second, it gives you the right to live, study and work in 28 European Union countries as well as Switzerland, Norway, Liechtenstein and Iceland.
Malta is a stable, safe (it has one of the lowest crime rates in Europe) and neutral country with an extremely friendly population and a high standard of living (its education and healthcare systems have long been among the best in Europe). ). Malta's fusion of European lifestyle, Mediterranean quality of life, pleasant climate (with around 300 days of sunshine per year), delicious food and absolute security would be great for you and your family. Family claims include the primary applicant's spouse and parents, children under the age of 18, and unmarried dependent adult children under the age of 27.
As previously mentioned, once you are a Maltese citizen your children are automatically entitled to citizenship as well. Obtaining Maltese citizenship is a very efficient process and you will be informed of the outcome of your application in just four months. Note that the 12-month processing time for passport applications includes these four months. In addition to all these advantages, you can enjoy tax structuring advantages without inheritance tax, without wealth tax and without inheritance tax. Malta has double tax treaties with 60 countries. Furthermore, Maltese law does not require you to give up your existing citizenship as there are no restrictions on holding dual citizenship.
To apply for dual citizenship through the Citizenship for Investment Program the applicant must contribute at least EUR 650,000 to Malta while spouses must contribute EUR 25,000 (as do unmarried children under the age of 18). Unmarried children under the age of 25 but over the age of 18 must contribute EUR 50,000 each (also dependent parents aged 55 and over).
Applicants to the Citizenship for Investment Program of Malta must invest at least EUR 150,000 in government bonds. In addition to these requirements, the applicant must choose one of the following options: purchase a property for at least EUR 350,000, retain ownership for at least five years, or rent a property for EUR 160,000 for at least five years. After purchasing a property or entering into a property rental agreement in Malta, applicants will be issued with a Maltese identity card (eResidence Card).
As part of the programme, a four-stage process is implemented by the Maltese Government to thoroughly assess all candidates. All applicants must have a clean record with no criminal record and the Government of Malta conducts extensive criminal investigations with the International Criminal Court, INTERPOL and other authorities and sources. In addition, candidates must present a police clearance certificate before being accepted for a European passport.
In order to participate in the Malta Citizenship-by-Investment scheme, applicants are required to provide documentation regarding their health status. Applicants should prove that they do not have any contagious diseases and must be covered by international medical insurance. If all of these requirements are met, applicants face no further obstacles to becoming Maltese citizens.
Moldova emits 1.4 metric tons per capita of CO2. 3290 km² of Moldova's territory is covered in forests. and forest land comprises 10% of all the land in the country. The number of road motor vehicles per 1000 inhabitants in Moldova is 309.
Confidus Solutions not only deals with offshore companies and banks, but also offers all relevant business services that your company may need. Our professional team of lawyers and accountants will handle your routine corporate paperwork with ease. We can ensure all the support needed, including the legal framework and personal support, and these are things that give our customers the comfort they really deserve.
Our corporate services include following offers, but are not limited to:
AML solutions; Company dissolution; Insolvency and bankruptcy procedures; Drafting corporate documents; Acquisition of licenses and permissions; Nominee services; Asset protection and planning. We highly value needs of our clients, so we can offer you more services on case-to-case basis. Even though our central office is located in Europe – our numerous co-operation partners around the globe can help us find unique solution in any part of the world!
In general, a beneficiary is an individual who derives a profit or other benefit from something. In the financial world, a beneficiary refers to someone qualified to receive distributions from a will, life insurance policy, or trust. In business, it refers to a beneficial owner who ultimately owns and controls a business and/or other natural person on whose behalf a particular transaction is being conducted. Beneficiary is a person who exercises ultimate effective control over a legal entity or arrangement. The notions of ultimate ownership or control and ultimate effective control are useful in situations where ownership of the entity is exercised through a chain of ownership and does not clearly identify the direct and actual owner of the entity.
Importance of identifying a ultimate beneficial owner of the account Beneficial ownership is currently the main concern for anti-money laundering (AML) compliance professionals in banks. And there's a good reason for that. By developing comprehensive know-your-client (KYC) and other due diligence procedures before opening a bank account and throughout working with clients, banks have succeeded in fighting terrorism, tax fraud and other crimes. Large-scale fraud is often related to the inappropriate use of commercial structures. For example:
60% of abusive companies are involved in white-collar and financial crime; 75% of known criminal organizations use companies to cover up their activities. While banks risk losing their customers and profits after stepping up their KYC and other due diligence procedures again, this is usually done to meet increasing AML requirements from national governments and international institutions. Global AML standards dictate that understanding the ultimate beneficiaries of bank accounts is an essential part of any financial institution's AML program and can be achieved through extensive know-your-client and other due diligence processes.
Who exactly is considered the ultimate beneficiary of the bank account? The Fourth Money Laundering Directive of the EU (MLD4) is essentially aimed at the final beneficiaries. Under this policy, ultimate beneficial ownership is presumed in one of three cases:
A natural person holds 25% or more of the capital of the legal person; A natural person can exercise 25% or more of the voting rights during general meetings; A natural person is a beneficiary of 25% or more of the capital of the company. It is sometimes difficult to determine the ultimate beneficiaries of a company. The above policy also requires that officers be treated as beneficial owners if the above criteria are not met.
Ultimate beneficial owner and the nominees If a beneficial owner wishes to keep their name out of public records, the company can use a nominee shareholder service. The nominee shareholder is generally an independent third party with which the legal entity's shares are formally registered and held on behalf of a beneficial owner. The ultimate beneficiary of the company can enjoy actual ownership of the company while public ownership is held on behalf of the nominee shareholder. Generally, the true identity of the ultimate beneficiary is known only to the law firm or company incorporation service and the beneficiary himself.
The final beneficiaries usually do not want to lose control of their company, but they also do not want to be perceived publicly as the owner of the company. Therefore, it is crucial to create adequate documentation that proves the rights of true ownership. These documents include a Declaration of Trust and a Nominee Services Agreement and will be kept strictly confidential.
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Mon Aug 28, 2023 11:59 pm
