Company incorporation by requirement
Before incorporating a company, or even choosing a jurisdiction, you need to plan a corporate structure for your business, and, based on this, decide the purpose of the company you wish to incorporate. Understanding the business structure of your company is essential, as it will determine the jurisdiction and legal form of company you choose in order to best meet your needs.
However, very often our clients have specific requirements with respect to their future companies. While some are looking for an opportunity to reduce their tax burden, others want to preserve their anonymity and protect their confidentiality from potential creditors or state authorities. Nevertheless, understanding and clarifying your requirements is an essential part of the decision-making process, as it will affect the jurisdiction you choose for your company.
Our team of professionals can provide you with detailed legal consultation on business and planning strategies, as well as advising on a suitable jurisdiction for your company. As every company type and every jurisdiction has its own benefits and disadvantages, we strongly recommend that you contact us prior to proceeding with company formation.
Requirement: confidentiality protection
Confidentiality is a legal term, which under corporate law refers to a degree of privacy that companies can enjoy in order to keep certain information and documents undisclosed. In many countries, a list of directors is publicly available. From a tax planning standpoint, confidentiality is important. There’s a very fine line between protecting and hiding assets, and this issue can be resolved by consulting professional and competent lawyers and tax advisors.
In many countries, the law requires you to declare all worldwide assets, including property, vehicles, business assets, cash, stocks and shares, etc. and on the basis thereof the tax authority will calculate the payable tax. This applies, for example, in Russia. In Spain, non-residents only have to declare property and assets in Spain, and they are not entitled to an allowance against wealth tax. In any case, in many countries individuals must complete tax reports and failure to do so may lead to financial sanctions. Failure to submit a declaration may result from a lack of knowledge of how the process works.
Requirement: low-tax regime
Jurisdictions and countries offering a low-tax regime to domiciled and/or foreign companies are most commonly referred to as 'tax havens'. Generally speaking, a tax haven is a jurisdiction in which taxes are either applied at a low rate or not at all. Well-known examples include Panama, Belize, the Seychelles, the Cayman Islands, the Isle of Man and Hong Kong.
An offshore company is a company established in order to operate and perform business activities outside the jurisdiction in which it was officially incorporated, as well as outside (or
off the shores of) the place of residence of its directors, shareholders and beneficial owners, which may be crucial for corporate planning in certain legal systems. Usually, an offshore company is established in order to receive certain legal or tax benefits, to allow for a specific corporate structure or to protect the confidentiality of the beneficial owner and/or asset holder.
Requirement: low maintenance costs
In general, company maintenance includes any operations that ensure a business is active in its day-to-day endeavours. In addition, many low-tax jurisdictions require every international business company to undergo a company renewal procedure on an annual basis, by submitting a renewal application and paying a certain state fee. In terms of financial planning, company maintenance is normally understood as referring to those expenses associated with taxes, state fees, stamp duties, charges and any other costs that may arise from operating a company.
Requirement: prestigious location
If you are looking for an opportunity to establish a large, international corporation that is set to become an important player in the market, there are three criteria that will undoubtedly be at the top of your list: a reliable company name, a perfectly designed logo and a head office in one of the most prestigious jurisdictions in the world. “Prestige” is a widespread respect and admiration for someone or something on the basis of a perception of achievements or quality.
Confidus Solutions will help you evaluate all of the possible options and choose the most efficient, tailored solution to achieve your personal goals. We will help you analyse the possibilities and choose the best jurisdiction to match all your needs and requirements. If you require more information, take a look at our offered solutions or contact us for an offer unique to you.