Start a business abroad
Cost of services
Reviews of our Clients
... our work on joint projects assured us of your high level of professionalism
What we offer
Business relocation:
- Assistance with the choice of a country for the relocation of an existing business, based on the essence of the client's business, its goals, and needs, as well as the geography of clients;
- Development of a relocation strategy: analysis of legislation in terms of regulatory requirements that may be imposed on investors (minimum amount of investment in the company, licenses, etc.);
- Recommendations on the choice of legal structure for business relocation: establishment of the new company from the scratch (a subsidiary of the Ukrainian legal entity), setting up a branch office, registration of the permanent establishment;
- Planning of expenses for the maintenance of the business abroad (taking into account expenses on annual renewal of the company, office maintenance, salaries of the employees, etc.);
- Assistance in personnel relocation from Ukraine: selection of the most optimal form of labor relations (employment agreement vs. civil-law agreement), payroll tax calculation, assistance with the elaboration of employment (civil-law) agreements required by local legislation, advising on specifics of Director and Founder employment, assistance in obtaining a temporary residence permit, etc;
- Assistance in hiring local personnel;
- Calculation of tax losses and other expenses when hiring local employees and expats;
- Determining the amount of the company's assets to be transferred abroad (movable, immovable);
- Planning and support of the process of transfer of assets: selection of the most appropriate form of transferring assets on the balance sheet of the foreign company (sale-purchase, contribution to the authorized share capital, etc.), valuation of assets, removing of assets from the balance sheet of the Ukrainian company and placing assets on the balance sheet of the foreign company;
- Selection of bank/payment system, support of the process of opening an account for a new company (filling out bank forms, assistance with KYC procedures, assistance in substantiating the source of funds for the beneficiary, etc.);
- Transfer of counterparties to the new company, support for the renegotiation of business contracts with them;
- Transfer of the Ukrainian company in "sleeping mode" or support of liquidation of the Ukrainian legal entity;
- Structuring the receipt of profits from a foreign company by shareholders (business owners), taking into account applicable taxation.
Starting a business from scratch abroad:
- Assistance with the choice of the country for setting up a business abroad, based on the client's business model, goals, and needs;
- Advising on regulatory, corporate, licensing, and other requirements in a particular country (comparative characteristics of several most favorable countries);
- Planning the costs of maintaining a business abroad (taking into account the cost of registration and annual maintenance of the company, office maintenance, staff salaries, etc.);
- Assistance in finding and appointing a director; advising on the peculiarities of employment relations with the director (consider the difference in appointing a local director and an expat);
- Assistance with employment of Ukrainian employees in a foreign company: selection of the most optimal form of labor relations (employment contract vs. civil law contract), Calculating taxes on wages, assistance in the preparation of the employment (civil law) contract, given the requirements of local legislation, support for obtaining a residence permit, etc;
- Assistance with employment of local staff;
- Calculating tax losses and other expenses when employing local staff and expats;
- Assistance in finding office premises and support in drafting lease agreements;
- Obtaining permits (licenses);
- Communication with banks on fundraising;
- Consulting on the most optimal way and support in the process of company financing (contribution to the authorized capital vs. granting a loan); advantages and disadvantages of each option;
- Determination of the amount of the company's assets that need to be registered in the company (movable, immovable);
- Planning and support of the process of "stuffing" the company with assets: the conclusion of contracts for the purchase and sale of real estate (calculation of tax losses), shares, etc.;
- Selecting a bank/payment system, supporting the process of opening an account for a new legal entity (filling out bank forms, assistance with KYC procedures, assistance in substantiating the source of funds for the beneficiary, etc.);
- Supporting the business activities of the company, advising on the application of local legislation, elaboration/verification of contracts to be concluded for compliance with the requirements of local laws;
- Structuring of profits from a foreign company by its shareholders (business owners), taking into account applicable taxation.
Documents required
The terms of registering a company abroad
The general term of company registration for Ukrainian individuals or legal entities in the EU and other countries is 1-2 weeks from the moment of gathering all the necessary documents.
What we guarantee you
You can look for local lawyers for this in the hope that you will find a specialist the first time. And you can get a guaranteed result in your native language and with Ukrainian, proven lawyers.Opening a business abroad with us is:
1. Ukrainian level service in Asia and Europe.
2. 100% understanding of your relocation needs. We solve all of them:
- closure of tax issues in Ukraine
- registration of companies, opening of accounts, compliance
- personal relocation and solution of migration issues
- accounting support, assistance in renting offices, premises, etc.
- translators, notary on site
3. Expertise and an extensive network of partners around the world, which allows you to choose a jurisdiction that suits your needs and work successfully in it.
4. Responsibility for the result. We predict risks and consequences, including the impact of relocation on the entire structure of your business.
5. We also help in the future to resolve issues related to CFC and taxation of your business.
Service packages offers
-
Analysis of the client's goals, situation, and business model to determine criteria for selecting a specific jurisdiction.
-
Provision of overview information regarding investment attractiveness of different countries and tax implications in various jurisdictions, tailored to the client's preferences.
-
Addressing client-defined issues (such as double taxation, tax information exchange, taxation system in the chosen jurisdiction, real estate acquisition, account opening, company registration, legalization abroad, determination of client's income sources in Ukraine and abroad, etc.).
-
Assistance in establishing the client's tax residency (considering property ownership, movable assets, family ties, registration, etc.).
-
Identification of risks associated with changing tax residency and strategies for risk mitigation.
-
Evaluation of the pros and cons of countries where no taxes are typically paid (a priori), where taxes may be waived under specific conditions, and where low tax rates are applicable (in comparison to Ukraine).
-
Provision of recommendations to the client regarding optimal jurisdictions for business relocation.
* Consultation is provided orally, with the option of documenting key points in writing upon agreement.
-
Analysis of the client's situation and reasons for personal relocation to a foreign country.
-
Selection of jurisdiction for relocation, including jurisdiction analysis, if necessary, compared to Ukraine.
-
Determination of the individual's tax residency: assessment of ties with Ukraine and the country of residence (property ownership, movable assets, family ties, registration, etc.).
-
Identification of types of income received by the individual in Ukraine and abroad.
-
Identification of risks associated with changing tax residency and strategies for risk mitigation.
-
Consultation on the grounds and specifics of legalization abroad, and obtaining a Temporary or Permanent Residence Permit.
-
Assistance in preparing a document package for legalization (obtaining a Temporary or Permanent Residence Permit), including search and engagement of local outsourcing if necessary (translators, notaries, obtaining documents in Ukraine by power of attorney).
-
Assistance with opening a personal bank account.
-
Organization of document submission for a Temporary or Permanent Residence Permit.
-
Support in submitting documents for consular registration (if required).
*Evaluation for up to 2 countries.
-
Preparation of a legal opinion for the selected jurisdiction* on:
-
Corporate income taxation in the new jurisdiction, tax residency, "minimum economic presence" in the country of company registration, and financial reporting submission;
-
Methods of financing the foreign company, profit repatriation schemes;
-
Taxation upon profit repatriation: taxation of repatriation income only at the jurisdiction level that pays the income, etc;
-
Necessity of declaring income of foreign companies in Ukraine and paying tax on their income in Ukraine, considering the client's situation;
-
Opening bank accounts (review of applicable KYC procedures and challenges related to the beneficiary's citizenship, source of funds, etc.);
-
Declaration of income of foreign companies in Ukraine and payment of tax on their income in Ukraine.
-
Assistance with company/sole proprietor registration, tax registration, bank account opening, and bookkeeping services (bookkeeping, payroll, VAT returns);
-
Assistance with director appointment and relocation/employment of employees;
-
Preparation of all necessary documents (including legalization of status in the EU, obtaining residence permits with the right to work, etc.);
-
Business operations planning (regarding potential tax implications, etc.).
*Analysis of 1-2 countries
How much does it cost to register a company abroad?
The cost of company registration abroad will depend on:
-
the number of founders and, therefore, the time we will spend on the process of collecting, and translating KYC documents and their subsequent provision / approval by the agents on site;
-
the format of company registration (remotely, by power of attorney, or in person at the notary, when visiting the country of incorporation);
-
the way of financing the company (e.g. equity contribution is more linear and understandable for the bank than financing through a loan, which will require prior verification of the lender, identification of the beneficiary and connected persons, verification of the transaction for compliance with the "market conditions" (arm's length basis), etc.);
-
the choice of the personality of the director (local / expat), the format of his leadership of the company (remotely / on-site) - depending on the chosen option document management (and our time costs) will be different (for example, the employment of an expat as the director must obtain a work permit, temporary residence permit, and therefore involves communication with the Employment Center, the Migration Service, the introduction of payroll accounting for the company);
-
the type of the charter (template or sophisticated, for example, containing certain restrictions on the delimitation of powers between the bodies of the company's board).
Choosing a foreign jurisdiction to relocate a business or register a company
What to consider when choosing a jurisdiction:
- available taxation systems for legal entities (profit tax rate, availability of simplified taxation systems, benefits for start-ups);
- requirements for the minimum investment in the authorized share capital of the company;
- applicable taxation in case of repatriation of profits (dividends);
- applicable taxation when choosing one or another form of company financing;
- taxation of income of individuals/employees (local and foreign personnel);
- the rate of the minimum wage of a natural person in a particular EU country;
- affordability (price) of the office rent;
- loyalty of the banking system;
- ease of communication and predictability of the tax authorities;
- the features of the customs clearance of goods, the peculiarities of the registration of the VAT payer and the procedure of reimbursement (depending on the route of the goods in the EU);
- company's maintenance costs (including office/land lease, maintenance of production facilities, if any, employee remuneration, bank fees, state duties, etc.).
Which countries in the EU / world have the best business taxes?
The answer to this question will largely depend on the specifics of your business, but the most common jurisdictions include:
- UAE (no taxes at all);
- Countries that do not charge tax on profits until they are taken out to the shareholder (Poland, Estonia, Latvia, Georgia);
- Hong Kong (territorial principle of taxation);
- Countries with low-income tax rates (Bulgaria, Hungary, Cyprus, Scotland, etc.).
Here are some examples.
Poland currently has two very interesting models of taxation:
- for "small businesses" and startups, which allows the application of a rate of 9% instead of 19%.
- model, which is a copy of the Estonian model of taxation and which allows not paying tax until the distribution of profits to the shareholder.
The UAE is attractive because there is no tax at all. That is, you can set up a company and it will not pay income tax in the UAE (regardless of the amount of profit). At the same time, the distribution of this profit to the shareholder will also be exempt from taxation. However, it is necessary to be careful with the choice of free zones, as depending on the scope of the company: only some free zones may suit you. In this case, the different free zones have their own requirements for the minimum authorized capital, the terms of its payment, the cost of the license, etc.
Estonia, Latvia, and Georgia are attractive due to the fact that if profits are not withdrawn to the shareholder, but are sent back to the business, companies registered in these countries have the opportunity not to pay tax on profits at all. Therefore, if you need a company that will be the so-called " wallet", that is, which will accumulate profits, which, in turn, will later be reinvested back into the business or spent on business needs, then these jurisdictions are a good option. Withdrawal of profit in favor of the shareholder should be carefully planned.
Why us
We are ready to help you!
Contact us by mail [email protected] or by filling out the form:Our successful projects
Steps of company registration for Ukrainian persons abroad
The following steps of the procedure can be distinguished as standard:
- The KYC procedure, collection of documents confirming the source of funds;
- Verification of the company's name for availability, and reservation;
- Preparation of power of attorney from the founder (notarized and apostilled) in the case of remote company registration;
- Determination of the amount and method of financing the company, preparation of supporting documents for the bank (loan agreement, protocol on the company foundation, and contribution of money/property in the authorized capital);
- Development of constituent documents, coordination with the client;
- Development of the company's charter in accordance with the client's wishes;
- Submission of documents for registration of a company;
- Obtaining registration documents, apostilization;
- Registration of the company in the tax office;
- Opening a bank account (KYC on the beneficiary in the bank, coordination of the business model with the bank, filling out the bank forms, assistance in identifying the client in the bank, etc.);
- Transfer of money to the statutory fund or plant of money as a loan.
The stages may vary somewhat, depending on the jurisdiction and the specifics of the case - the entire algorithm at the start of the work is prescribed by the lawyer, who will later be responsible for registering a business for you abroad.
The client receives the final package of apostilled registration documents of the company, as well as the keys to the bank account.
Tax planning for the company in the EU or another jurisdiction
We all understand that the procedure of company registration in Poland, Croatia or Georgia, or any other jurisdiction, is only the very beginning. The main thing you need to understand, even before starting the incorporation procedures, is whether the taxation of your business in the given jurisdiction will be acceptable for you and how it may be optimized.
It is with tax planning we suggest you start the procedure of starting a business abroad. The planning will include:
- Choosing the taxation system of a legal entity (based on the profit tax rate, availability of simplified taxation systems, benefits for start-ups);
- Planning of profit repatriation, analysis of taxation in case of profit repatriation (dividends in favor of the shareholder), taking into account the applicable double taxation treaties;
- Analysis of the taxation when choosing a form of financing a company (contribution to the share capital or a loan from a third party);
- Analysis of individual/employee income taxation, minimum wage rates for individuals in a particular EU country.
As a result, the client will get a clear idea of the tax losses he will incur in case of company registration in a particular country, as well as the most optimal ways of profit withdrawal, based on the applicable law.
Answers to frequently asked questions
The most common option is distributing dividends. But they can be withdrawn infrequently and under certain conditions. Also when withdrawing dividends in the country of registration of the company it is necessary to pay a certain tax (repatriation tax) in Ukraine (9+1,5%).
It all depends on the chosen country (in different countries the amount of state fees and the procedure itself are different). For example, in the Baltic countries - 1,500-2,000 euros. In Cyprus - up to 3000 euros.
Business relocation to the EU and other jurisdictions from Ukraine
Registering a company from scratch and relocating a business ultimately involve the same thing - namely, shifting the center of business interests to another country. At the same time, there are usually some additional points to be taken into account for relocation:
- relocation of personnel from Ukraine and/or hiring of foreign personnel;
- relocation of assets;
- the choice of the form of registration in another country (there are more options than just registering a business from scratch, namely you can create a subsidiary and structure the future flows within the group of companies; you can register a non-profit representative office, if the initial stages are planned simply "advertising" themselves in another country, while it makes it possible not to pay taxes)
- re-signing contracts with counterparties (some of them may leave, not wanting to work with certain jurisdictions, this should also be taken into account).
When we help a business move to another country, we simultaneously solve the problems of the key individuals of this business - helping them with employment in another country, obtaining a residence permit, etc. As a result, the client receives a comprehensive solution that will help the business not only stay afloat but continue to thrive.
Opening a bank account for Ukrainian citizens
A separate stage in the company registration procedure is opening an account for the company. This procedure in the EU banks is slightly different from our usual procedure in Ukrainian banks. First of all, by the severity of the checks and quite a long procedure for opening an account.
When helping with business relocation or opening a company for doing business abroad we also take on the task of opening an account in a foreign bank.
Most often the procedure will require the personal presence of the director of the company to be interviewed by the bank staff.
A list of documents for business registration abroad will depend on the jurisdiction where you are planning to start a business and the rules of the bank you choose.
Looking to start a business abroad? Don't hesitate to contact us!
Explore our services in International Business Structuring: view the presentation here!
Our publications on this matter
Our team
