Corporate Business Structure 2019
A distinctive feature of modern technology is the incredible speed of change. And this is not surprising, if you want to be the best in something - you have to constantly evolve. For once, this trend can be traced in the government regulation sector. Unbelievable, but it is a fact! Over the past 2 years, legal business structuring has changed beyond recognition.
Today, the world of corporate structuring is confidently moving towards a model of paying taxes in a country of vital interests. What does it mean? If in a simple way - your tax residency, company, office and bank account must match.
And while lawyers and bizdevy puzzled, and the banks require almost fluorography (they have been asking for “help from the housing office” for a long time), we will try to understand the solutions that are still working today. Also, I want to note that there is no single universal solution for everyone, everything is very individual ...
DISCLAIMER : I am NOT a representative of a law firm and do not provide services for registering or opening bank accounts. All the facts presented in this article are my personal experience that I received while doing business.
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And so, the main trends of business registration - classic offshore partnerships and extinct. They are not. Just accept ... So now they speak at numerous seminars, conferences and trainings. They can be understood. It is very difficult to open an account now even for a taxable company, not to mention an offshore company. Operating expenses for opening to offshore can easily pass / exceed for $ 20,000 and guarantees will be only 50% of success. But there is an alternative, risky (as, by the way, always), but there is. About her just below ...
Today, the company in the EU has become just a must have for business. Opening such a company is quite easy, it is relatively inexpensive, and it is easier to open an account. However, already at the first submission of financial statements you will understand that everything is not so simple, and it costs an order of magnitude more expensive than you originally planned ...
It's simple: if your customers are individuals, you go to BAT and pay tax; you sell your application (game, service) in the EU - get on BAT and pay tax; your customers - companies in the EU - become BAT and pay tax. You work with companies outside the EU zone - forget about dollars, and that means pay for the conversion.
Based on the current situation - the business has very few alternatives, namely:
Georgia, Hong Kong, United Arab Emirates, Singapore and the United States. But be prepared - to open accounts in the EU in 2019 for them is almost unreal. Therefore, we must look at local banks.
In Georgia, you have to prove that you really are doing business and show the center of vital interests in Georgia. Such a company will cost you an average of 3-5 thousand US dollars.
Local accounts in Hong Kong and Singapore will make you immediately taxable and you will lose all the delights of territorial taxation. Do not believe those who say the opposite. There are an incredible amount of precedents, when the tax only because of the local bank account deprived the company of its offshore status and charged taxes on the entire turnover. And yes, you must understand that every auditor and tax will decide in favor of the state, and not the business, especially in matters of replenishing the treasury.
UAE - a classic offshore - works with US dollars and euros. Half of IT activities in the territory of the Emirates is prohibited and sometimes can be punished with death (casino, dating, crypt, etc.) Weigh all the risks and then decide.
Singapore, Hong Kong and the United Arab Emirates will cost you a lot of money - from $ 10,000 just for registering a company. Additionally, you will have to pay the minimum office, account opening services. As a result, the final price will upset you very much.
Well, for dessert, like a cherry on a cake - USA. It's very simple, choose any state other than Delaware, which is notorious, and in many countries it is this state that is on the black list. Do not forget, create a virtual presence in the United States and show real offices. Most likely to open an account in banks such as Bank of America, Wells Fargo and Chase. The remaining banks in question.
Not a few important fact, recently there have been frequent cases when the owners of companies were denied a B1 / B2 visa and were obliged to make a work visa, only on the basis that they have a company and they will enter a business.
The rapidly growing business challenges the traditional banking system and government agencies. Over the past couple of years, many alternatives to classical banking institutions have appeared on the market, for example, electronic payment systems. Business increasingly uses accounts in payment systems for operating activities. BUT this is a temporary and very unsafe solution.
In the case of SCAMa, you do not get the money, even the parts. Also, starting in 2019, the bills began to experience more and more problems with correspondent banks, and because of this, they began to more closely monitor the company's activities and the payments themselves. If you do not have a package of documents for payment - this is a fiasco. If the prices for services are too high, it is a failure. If you can not confirm the reality of the services provided - this is a disaster.
These tools should be used only as a wallet, to receive money from counterparties and immediately send them to a reliable bank.
The advantages are that they will accept the “dirty” business (dating, casino, crypt) for servicing, as well as the offshore company.
Diversify your risks and keep in mind the plan "B", you should have a quick option to withdraw money in a safe place.
And what about the bottom line?
Today, the world of corporate structuring is confidently moving towards a model of paying taxes in a country of vital interests. What does it mean? If in a simple way - your tax residency, company, office and bank account must match.
And while lawyers and bizdevy puzzled, and the banks require almost fluorography (they have been asking for “help from the housing office” for a long time), we will try to understand the solutions that are still working today. Also, I want to note that there is no single universal solution for everyone, everything is very individual ...
DISCLAIMER : I am NOT a representative of a law firm and do not provide services for registering or opening bank accounts. All the facts presented in this article are my personal experience that I received while doing business.
')
And so, the main trends of business registration - classic offshore partnerships and extinct. They are not. Just accept ... So now they speak at numerous seminars, conferences and trainings. They can be understood. It is very difficult to open an account now even for a taxable company, not to mention an offshore company. Operating expenses for opening to offshore can easily pass / exceed for $ 20,000 and guarantees will be only 50% of success. But there is an alternative, risky (as, by the way, always), but there is. About her just below ...
Today, the company in the EU has become just a must have for business. Opening such a company is quite easy, it is relatively inexpensive, and it is easier to open an account. However, already at the first submission of financial statements you will understand that everything is not so simple, and it costs an order of magnitude more expensive than you originally planned ...
It's simple: if your customers are individuals, you go to BAT and pay tax; you sell your application (game, service) in the EU - get on BAT and pay tax; your customers - companies in the EU - become BAT and pay tax. You work with companies outside the EU zone - forget about dollars, and that means pay for the conversion.
Quoting Benjamin Franklin: “ In this world, only death and taxes are inevitable ”Believe me, and do not listen to registrars and other tax consultants - in the EU you will be forced to pay tax, whether you like it or not. Aggressive tax optimization is also not the best option. The tax authorities are no longer fools and do not think that you are smarter or smarter than them. They immediately calculate you, and with the new rules, when only 2,000 euros can be written off for expenses for importing services into the EU, and the tax should be withheld from the remaining amount (average amount of 20%). Work through these jurisdictions becomes really golden. Although if you are so fond of the country in which you have a company that you are ready to raise their budget, then this is your option.
Based on the current situation - the business has very few alternatives, namely:
Georgia, Hong Kong, United Arab Emirates, Singapore and the United States. But be prepared - to open accounts in the EU in 2019 for them is almost unreal. Therefore, we must look at local banks.
In Georgia, you have to prove that you really are doing business and show the center of vital interests in Georgia. Such a company will cost you an average of 3-5 thousand US dollars.
Local accounts in Hong Kong and Singapore will make you immediately taxable and you will lose all the delights of territorial taxation. Do not believe those who say the opposite. There are an incredible amount of precedents, when the tax only because of the local bank account deprived the company of its offshore status and charged taxes on the entire turnover. And yes, you must understand that every auditor and tax will decide in favor of the state, and not the business, especially in matters of replenishing the treasury.
UAE - a classic offshore - works with US dollars and euros. Half of IT activities in the territory of the Emirates is prohibited and sometimes can be punished with death (casino, dating, crypt, etc.) Weigh all the risks and then decide.
Singapore, Hong Kong and the United Arab Emirates will cost you a lot of money - from $ 10,000 just for registering a company. Additionally, you will have to pay the minimum office, account opening services. As a result, the final price will upset you very much.
Well, for dessert, like a cherry on a cake - USA. It's very simple, choose any state other than Delaware, which is notorious, and in many countries it is this state that is on the black list. Do not forget, create a virtual presence in the United States and show real offices. Most likely to open an account in banks such as Bank of America, Wells Fargo and Chase. The remaining banks in question.
Not a few important fact, recently there have been frequent cases when the owners of companies were denied a B1 / B2 visa and were obliged to make a work visa, only on the basis that they have a company and they will enter a business.
The rapidly growing business challenges the traditional banking system and government agencies. Over the past couple of years, many alternatives to classical banking institutions have appeared on the market, for example, electronic payment systems. Business increasingly uses accounts in payment systems for operating activities. BUT this is a temporary and very unsafe solution.
In the case of SCAMa, you do not get the money, even the parts. Also, starting in 2019, the bills began to experience more and more problems with correspondent banks, and because of this, they began to more closely monitor the company's activities and the payments themselves. If you do not have a package of documents for payment - this is a fiasco. If the prices for services are too high, it is a failure. If you can not confirm the reality of the services provided - this is a disaster.
These tools should be used only as a wallet, to receive money from counterparties and immediately send them to a reliable bank.
The advantages are that they will accept the “dirty” business (dating, casino, crypt) for servicing, as well as the offshore company.
Diversify your risks and keep in mind the plan "B", you should have a quick option to withdraw money in a safe place.
And what about the bottom line?
- The costs of operating activities will be high;
- Amounts for registration of companies and accounts from 10,000 dollars is the norm;
- You must understand the RISKS that you take on;
- Money in the bills - you will not be returned!
- When creating a structure, immediately calculate the worst option - tax losses when withdrawing dividends (if it is interesting, I will write a separate article).
Source: https://habr.com/ru/post/444870/
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