Registration of oversea companies

(registration of offshore and onshore companies, preparation of all necessary documents)

“Business Solutions” company is one of few companies in Voronezh and Voronezh region which provides a full range of services for registering offshore and onshore companies in most jurisdictions of the world, both in classical tax-free countries and in highly industrialized countries.

Offshore operations are becoming more and more popular. Over the past twenty years, increasing demand for offshore is mainly explained by the growing political and economic instability, economic globalization, and constantly increasing taxes.

The most important reasons for registration of an offshore company are:

- Minimization of taxes;

- Protection and increase of assets;

- Management of risks;

- Reduction of costs;

- Confidentiality;

- Lack of bureaucracy.

Businessmen are looking for a safe place to protect their assets and investments, as well as for legitimate ways to reduce taxes, trying to get the advantages and benefits that are not available in their own countries. Offshore gives them all these benefits.

For many companies, construction of offshore schemes is the most convenient and profitable way to enter international markets.

Here are the main types of businesses that could use offshore schemes:

Export-import operations

Offshore companies are often used to construct schemes of import and export of goods. This allows you to regulate the amount of customs duties and value added tax. In this case, an offshore company acts as an intermediary between a Russian company and a foreign partner. Apart from regulation of invoice cost, this offshore scheme allows to overestimate the costs of transportation and cargo handling. Recently, in such operations English companies are widely used.

Investments

Offshore companies can invest their profits in the form of deposits, buy company stocks, as well as buy property worldwide.

Construction of holding structures

Offshore schemes are widely used for construction of holding structures.

Intellectual property

Ownership of intellectual property (trademarks, patents, copyrights, etc.) is another widespread field for offshore companies. Competently built-up offshore structure can minimize the tax burden and protect intellectual property rights.

Getting a license for work in the Forex market

Offshore schemes are often built up in order to get a license for brokerage and financial activities, for example, for working in the Forex market.

Yacht and Ship Registration

The very first activity of offshore areas was registration of ships and yachts. Many offshore centers have access to the sea and provide the most favorable conditions for the owners of ships and yachts, for example, Belize, Panama and Cyprus are used for this purpose.

Banking and Financial Activities

Registration in offshore zones followed by construction of offshore schemes allows to obtain a license to conduct financial and banking activites, as well as to minimize taxation while providing a full range of banking services.

Tax optimization

Sometimes offshore company registration is made so that a company could provide services to a Russian company, thus increasing the self-cost and reducing the income tax. Accordingly, net income is increased.

Ownership and management of property

It is no secret that the owners of 60% of Russian non-residential property are foreign companies. Registering real estate on offshore companies allows to hide true owners of the property, protect assets and in many countries it reduces or completely exempts from paying property tax.

Liquidation of Russian companies

In the light of innovations to the Criminal Code of the Russian Federation, providing criminal responsibility for the use of designations for liquidation of Russian legal entities, it becomes more and more popular to liquidate an LLC through offshore. With this scheme nor actions are taken that could be legally qualified as crime.

Provision of services

Specialists in the areas of IT, SEO, consulting, and many others have customers both in Russia and abroad. By registering an offshore company and receiving payments for services rendered into its accounts, it is possible to reduce tax expenditures to almost a zero. In this case it is good to use a company registered in Belize, the Seychelles or BVI (British Virgin Islands).

If you want the scheme to look more respectable, a European company is included into it, for example, a British company. Then all payments will go to the British company, which has a high reputation, on the basis of a contract concluded with it. To avoid tax losses in the UK, the British company acts as an agent performing services on its own behalf, but at the expense of an offshore company. After receiving the payment, the British company takes 3-5% as a reward, and the remaining amount is transferred to the account of the offshore company. Tax is paid only from 3-5% of the agency reward.

In the field of international transportation

Most often Cyprus companies are used here that provide advantages of the Agreement on avoidance of double taxation concluded between Russia and Cyprus. Use of classical offshore is possible, but it could lead to withholding tax.

In the field of construction

Russian company signs a construction contract with a company in Cyprus and makes payments for work performed to the account of the company. The Cyprus company concludes, in turn, a contract with another Russian company, which performs works, but at significantly lower prices. As a result, all the profit is deposited in the account of the Cyprus company.

In order to reduce the size of the profit received by the Cyprus company, a classic offshore is introduced into the scheme, which either gives a loan and the Cyprus company pays interest on it, or provides services (there are options).

Use of a company of other jurisdiction is possible, but not reasonable, because of tax withholding.

Dividend payout

When dividends are paid from Russia to Cyprus withholding tax is only 5% (subject to certain conditions). However, payment of dividends in any other jurisdiction leads to tax withheld from the source at the rate of 15%.

This scheme is a convenient way to return capital invested in Russia.

Leasing operations

It is best to register a leasing company in Cyprus. This company buys equipment for funds received in the form of a loan from a classic offshore, and gives it for lease to a the Russian company.

The Russian company is paying lease payments to Cyprus, which reduces its taxable income. At the same time, thanks to the double taxation avoidance agreement, the source does not have to pay tax.

As a result, the income received by the Cyprus company will be taxed in Cyprus, however, as the Cyprus company pays interest on the loan to a classical offshore company, the taxable basis will be reduced. Offshore is not liable for tax - all profits earned in the form of interest on loans remains in the use of the owner.

Using agent schemes

In order to simplify cash flow agent schemes are commonly used.

Onshore companies are full taxpayers, while they only pay a fixed annual fee (dutyl).
In offshore companies registers of shareholders and directors are closed. This means that this information is not available to third parties. Same information about the register of shareholders and directors of an onshore company is open, and any person may obtain information about the company from the public authority.

Onshore company are selected primarily because of the fact that in many countries, such as Ukraine, there are certain restrictions on transactions with offshore companies. Often this results in greater control over transactions with the company, the deposit of funds or with the limitations of the allocation of costs to self-costs (list of offshore zones of Ukraine Cabinet of Ministers).

Business with the use of an onshore company is becoming more respectable. Such business takes the form of a foreign business, for which it is difficult to see any involvement into the local business or resident. Such business becomes a kind of distant from offshore areas and obtains a reality of an external contractor.

Using an onshore company you will be able to enjoy the benefits of agreements on avoidance of double taxation. In international tax planning, when using an onshore company, taxes of the company itself are firstly optimized, and then those of the group of the client’s companies. Also in these countries such forms of business can be organized that are fully exempt from corporate taxes (for example, LLP type companies in the UK).

Onshore companies are often used in agent schemes of business. This is an agent agreement of an onshore company with an offshore company without disclosing the beneficiary (the principal), which allows to optimize taxes of the onshore company.

Onshore companies are used to hold assets (while using a more complex scheme), obtain dividends, interest, royalties (between the countries that signed an agreement on avoidance of double taxation), build up holding structures.

Offshore and onshore registration requires confidentiality. All our business processes are designed in such a way that allows us to provide our clients with a high degree of confidentiality and protect information during the registration of offshore companies.

If you decided to register an offshore, we will help you to choose the jurisdiction which will be the most suitable for your business. As a rule, offshore registration takes up to 2 weeks and requires a minimal set of documents - in most cases a scanned copy of your passport and residence registration (or temporary registration) is just enough.

If you do not have time to wait and you need a company right now - the best choice for you would be already existing offshore and onshore.

How to find out about the cost of services and order a professional consultation?

Contact us by phone 8 (473) 257 38 03, write an email to the address: Этот адрес электронной почты защищен от спам-ботов. У вас должен быть включен JavaScript для просмотра. or send a message to our employee using the feedback form.