The most common vehicle to set up a commercial or investment structure is the International Business Company . This entity can either take the form of a company limited by shares, with limited liability, limited partnership or limited liability partnership. It is usually set up in a business-friendly and tax-favorable jurisdiction.
International Business Companies may either be incorporated in onshore or offshore jurisdictions. Typical onshore jurisdictions are the Netherlands, Austria and Lituania while popular offshore jurisdiction are Switzerland, Scotland, Ireland, Malta, Belize, BVI, Nevis and Hong Kong.
Incorporation Services – where and what
In light of the new automatic exchange of information standards (with full transparency) an offshore company in a low tax and business friendly jurisdiction will be good enough if the single asset in the company is going to be a private bank/investment account.
If, on the other hand, the company is going to be operational the right jurisdiction will be determined, among other factors, based on the company’s purpose and the type of assets it will hold . Popular purposes for which business companies are incorporated are:
Holding company, i.e. a company which holds shares of another company or many companies (subsidiaries). It can also own real estate or other property. A holding company, if from the appropriate jurisdiction, may lower or completely eliminate withholding tax on incoming and outgoing dividends as well as capital gains.
Agency company, i.e. a company acting as an agent on behalf of a principal company which receives commission income from the principal for its services.
Trading company, i.e. a company that connects buyers and sellers within the same or different countries but does not get involved in the owning or storing of merchandise. A trading company is compensated by the seller usually with a sales commission.
Directorship Services – playing save
There are many reasons for clients to use an external Director to manage their investment structures. Some jurisdictions require a minimum of one company director who is a resident of that jurisdiction. In other cases, the local company register requires details of directors and/or shareholders and this information will therefore, be of public domain. And even if their details are not required to be published in a public registry there are a number of documentation and agreements, which need names, places and signatures of directors, which can have significant tax implications.
Therefore, it is advisable that the company’s effective ‘management & control’ place should be based in a proper jurisdiction and under the name of an external Director.
Our directors fulfill their role effectively, focusing on the objectives of the entities’ investors (shareholders, members or beneficiaries). With more than 10 years of experience in the fiduciary and fund industry our directors provide proven integrity and professionalism both in respect to applicable local law and with regard to investor’s goals.