Outsourcing of International Business Companies and Bank Accounts

The trend of universal “deoffshorization” dictates its own conditions. Recently, such terms as “substance”, “due diligence”, “compliance”, “PEP” have been used in the business environment without translation. The use of international business companies in export-import operations and asset management (including bank accounts) should not be vulnerable to OCED control “filters” in the form of BEPS, MLI, CRS and other tools to combat “incorrect tax competition”.

Within twenty years, K.A.C. Group has registered thousands of offshore companies around the world. However, in today’s realities, they are only tools for owning and managing assets, generating passive income, protecting against motivated actions of Ukrainian regulatory authorities, and raiding. At the same time, it is necessary to take into account the forthcoming reporting on CFCs (controlled foreign companies), and, accordingly, issues related to transfer pricing.

In export-import operations, as a rule, international business companies are actively involved trade partners, which until recently have been generally called “offshore companies” regardless of their tax and resident status.

With the active implementation of BEPS, MLI (anti-erosion of the tax base) plans and information exchanges, companies have difficulties opening bank accounts not only during due diligence (customer identification). The main objective is compliance with Complianse, and the main requirement is to link the company’s business to the country where the bank account is located.

We offer a comprehensive product named “international business company and a bank account in one jurisdiction” (with full compliance with Complianse terms) for export-import operations in the following areas:

Northern Europe – Estonia; Central Europe – Poland, Czech Republic; Southern Europe – Cyprus, Hungary, Bulgaria, Romania; Asia – Turkey, UAE, Hong Kong. These countries are not included in any “black lists”, they do not have high tax rates, as well as double tax treaties with Ukraine.

K.A.C. Group offers to its clients the services which will make the operation of their non-resident companies and bank accounts as comfortable as possible:

• Organization of an optimal local office with a real lease, secretary on the phone, courier mail, receipt and sending of e-mails;
• Participation in the production of documents with partners, bank and local authorities, i.e. full creation of the history of “substance” at the place of registration of the company, including the binding of the beneficiary to this jurisdiction;
• Accounting, preparation and submission of reports, audit of European companies;
• Obtaining a European VAT number, preparing and submitting VAT reports;
• Obtaining certificates and other documents from foreign tax authorities in the context of international agreements on the avoidance of double taxation;
• Ongoing consultations on tax issues, issues related to local law;
• Registration of the legal status of a citizen of Ukraine as a beneficiary of the company at the place of registration and in Ukraine;
• Liquidation of a CFC under Article 170 of Law of Ukraine 466-IX with tax-free registration of its assets in the ownership of the beneficiary;
• Representation of international business companies in state and regulatory bodies, both at the place of registration and in Ukraine;
• Representation in foreign banks, preparation of the client for the passage of the identification procedure (due diligence). Our lawyers also work with archives of tax authorities, banks, administrative bodies, and notaries, collecting the necessary “case” for a client for a foreign bank. Creating the necessary “history” of the client. Support during the compliance procedure;
• Outsourcing work with the bank. Maintaining company status within the framework of compliance. Preparation of documents requested by the bank, correspondence, etc.
• Assistance in opening accounts in reliable European and American payment systems.

In the process of registration and subsequent outsourcing of an international business company, K.A.С. Group experts accompany the client from the first consultation in our office to their personal representation in a foreign bank.