Do you plan to set up a business abroad? Do you want to know how to choose the most suitable jurisdictions for your company?
Choosing a jurisdiction for your new business taking into account all the nuances can be hard without qualified assistance of international lawyers from SOWA Consulting.
Our specialists will develop a customised solution for your business model.
Estonia, Czech Rep., UK: respectable company for any type of business
Best option for business with low expenses. CIT – 1-3% on turnover
Tax benefits for IT and marketing business. VAT free
Best for business that does not plan to distribute dividends and want to reinvest its profit.
A hub to interconnect Asian and pro-european business. Tax free if registered in a free zone. Residence Visa for company owners is granted.
Mauritius, Vanuatu, Hong Kong, Curacao provide good conditions for forex, gambling, casino, money exchange business.
What you should think about when setting up company abroad
Before launching your new business make a plan of a cash flows: sources of a new company financing before it is self-sufficient; plan your dividends. Analyse your day-to-day operations, your products, clients and suppliers (is it b2b, b2c, b2g etc.), region of their location. This will help you to understand VAT obligations, custom duties, logistic expenses.
Income tax rate, withholding tax on distribution of dividends, royalties, capital gain tax, tax on purchase and sale of the property, tax on capital reinvestment and other are the taxes that have an influence on your Net Income. Make sure you know the rates.
Every business owner wants to receive dividends. Before starting a business consider DTAA between the country of your tax residence and your business to find out how much tax you need to pay to repatriate dividends.
On the stage of incorporation and at the end of each financial year of your business the cost of business maintenance in a good standing and compliant can be quite significant. Such countries as Latvia, Georgia, Ukraine, Romania require monthly bookkeeping reporting that means expenses on accountant. Cyprus, Malta, UK, UAE and others demand audited financial statements to be prepared and submitted. Also, for VAT payers VAT report should be filed quarterly. Such countries as Hong Kong, UAE require annual renewal of a business license. Apart of it, every year you need to pay for extension of registration address and other advisory services. If it sounds difficult for you trust this to SOWA Consulting who will keep your business in a good standing.
Some countries provide tax benefits for certain types of business in order to attract investments to this sector of economy. For instance Georgia has a special regime for IT and Marketing business giving it a zero tax for income, VAT exemption, 5% dividends withholding tax. UAE offers business registered in a free zones benefits from zero tax on income, capital gain and withholding tax.
Keep in mind that nowadays banks and payment service providers (EMIs) in most cases require real presence in the country of incorporation (substance). Before giving a green light on account opening they perform a exhausted due diligence on UBOs and shareholders, check for documents that confirm source of income and source of wealth, its legality and paid tax.
We can assist with finding the best banking solution that will accept you as a client, we advise on documents and making your business structure compliant with international rules and directives. At the output you will get a business transparent for the regulator and banks.
Lawyers of SOWA Consulting advice on regulation requirements to obtain licenses or permits for certain types of business in European Union, Singapore, Hong Kong, Georgia, UK, UAE and other jurisdictions such as but not limits to: