What programmer need to know about offshore companies


Internet and modern information technology radically changed our understanding about the relationship of employee and employer. Ceased to be a rare jobs that do not require the appearance of an employee in the office of the employer, and supervise the work of information systems, are often thousands of kilometers. Revolution in technology requires a revolution in the business organization that is not associated with a specific place and can be anywhere in the world. In this case we are talking about the business of IT-technologies. One effective tool for solving such problems is the use of offshore companies. There are many definitions of “offshore company”, but the purpose of this article is not in the academic study of this phenomenon, so we restrict brief and perhaps somewhat unexpected definition. “Offshore company” – a way of changing business conditions, while not changing his location. It is obvious that business conditions are caused by the country in which a businessman is registered. It is no secret that Ukraine can not boast of the ease of doing business, as well, and diligence in their creation. For example, in Index of Economic Freedom of the World for 2010 , compiled The Heritage Foundation , Ukraine ranked 162 place, passing in front of him, many countries, including Honduras and was (99 place). It would therefore be quite reasonable to choose their own favorable business conditions, if the people who should do it on duty are concerned only squeezing money from those who can earn their own. Typically, business is conducted either by single entrepreneurs or companies who are single, united, registered in a particular country. Each country has a very rigorous approach to the issue of expanding the list of its citizens and for access to its territory of foreign individuals. These same countries often sets a very liberal regime of a foreign company that will act in their interest. In connection with the establishment of the company and considered as a priority fashion.

On offshore business is written very much about how to use treaties to eliminate double taxation and how to optimize tax rates, how to protect their assets and much more. Put reading these articles for later, when these assets will and financial flows will be worth it, so that they change to 5% justifies the construction of complex circuits. To put it simply, we need not burden themselves with the solution of problems in the second level, when not yet passed the first level. The first level is required to organize the business so that the sale of their work place as comfortable as possible and at the most favorable terms.

Thus, to determine the components necessary to conduct business:

company (legal person), bank account, and demand for services in the field of IT :-)

to select the country of registration (jurisdiction) will proceed from simple registration, reputation and the reluctance of the governments of these countries to interfere in the activities of these companies, if it is not related to drugs, money laundering and is not conducted within these countries. Among the countries that first come to mind – are: Belize, British Virgin Islands, the Seychelles and Panama. Of course, between them is not only geographical differences but these differences are best left to professionals. What unites the companies registered in these countries, it is not necessary to file tax returns. For extend hospitality to these countries require the payment of a single annual fee, which shall not exceed $ 300.

In contrast to the use, creation of a company abroad requires less knowledge than creating a website, but nevertheless, the task is very responsible. Conditions for solving the problem defined by the legislation of two countries: country of residence, presumably – is a favorite Ukraine and the countries where the climate is milder and whose benevolence to our business, we want to use. Laws need to know the country well, and as recommended by Comrade Bender honor. The process of creating a company that will participate in the proposed business abroad, in Ukraine’s legislation is called “making investments abroad.” CM Decree “On Currency Regulation and Currency Control” stipulates that for investments abroad to obtain permission from the NBU, such permission is practically impossible, so this path is discarded as a dead end.

And here we have the support of the legislation a second country, which allows it to be the real owner of the company at a time when such holder has officially stated quite another person. This is similar to the process of buying options – people are too tight on another link, and get on your site. In common law (common law), these relationships are called “trust”, and to be quite accurate «bare trust». In this case, you (and only you) will even be a document certifying that the holder of you.

Offshore companies are engaged in special company – loggers, who for your money as the provision of services will register a company will provide its director, the official (nominal), the owner, a document confirming that you are the owner and still hand over power of attorney to manage the affairs of the company .

important to remember that if you did not officially place an interest (equity) company in its own name, then NBU will not have any reason to believe that you have investments abroad.

now is to talk about opening and managing bank accounts. On grasping paws of the Motherland and there should not be forgotten. We are talking about 208 article of the Criminal Code, which prohibits private individuals to open and use foreign currency accounts abroad. In this case, the account is opened for the company, which is an independent legal entity and officially does not connect. Pravda with you, the mention of you all will still be as beneficiaries, and it will be stored in the bowels of the bank, the bank often requires a personal presence of the one who declared in as the beneficiary. So the choice of bank is very responsible process. Current account management tools let you do it with the help of the internet and without the personal signature of securities. For those who fear even the mention of the beneficiary there is a service account management law firm, but it is quite another and soon money belongs to the second stage.

deciding on the establishment of the company is always necessary to take into account the economic component of this project. Although this process is not all measured in money. For example, in your company will not come and the tax inspector will not find out how much justified the price set by you, or whether the costs incurred by operating activities. Having been around for several years, and faithfully fulfilling their commitments, the company starts itself becomes an asset that is worth some money, and can serve as a tool for the acquisition of major assets. And yet the economic component. Standard costs associated with the creation and life of the company consist of the following articles: registration fees, nominee services, service director, the state registration fee, the fee for the registration address. The list is tentative and must be specified for each jurisdiction separately. Choosing the cost of services, we must remember that many of the company’s method of “swamp” initially show only the cost of registration, gradually increasing it by providing services that are inherently necessary. Very often, opening a bank account, his service and even simple conservation also requires a cost, which you need to know before opening an account.

To reduce the financial burden, the company can create some enterprising persons to whom it will be framed.

So, it all came together: the company’s bank account, the demand for information services.

To start earning money the company enters into a contract with the customer for services. There are two main ways of contracting such a company: the first is the signing of a Director who is behind this charge a fee of about $ 50 or the second, when you do it yourself by proxy. How to choose a matter of taste and attitude towards acceptable risk, because the signed documents on behalf of the company unwittingly suggest about your relationship. Received on account of money does not apply to foreign exchange earnings and are not required to return to his homeland. Sooner or later, a partial refund of the money is highly desirable.

There are several legal ways the money is transferred to Ukraine from abroad: the import of cash transfer through different payment systems and the transfer through a bank account.

In the first stage, as a rule, we are talking about small amounts, and the question of their income in Ukraine can be solved simply. For example, you get the corporate plastic card companies, which allows one day withdraw a certain sum of money. In case of withdrawal of currency abroad, it must be remembered that in accordance with the Instruction of NBU “On the translocation of currency precious metals across the customs border of Ukraine under condition of oral declaration may be brought up to 10 000 euros, while subject to a written declaration may be import more than 10 000 euros, but worth to remember that the declaration signed by the person and stored somewhere. When exporting currency from a country where it was obtained should also be remembered, local limits. So out of Russia, provided a written declaration can be brought out 10,000 U.S. dollars. To cash in currencies other than the bill include checks, but due to the fact that their redemption is necessary to show a passport, and the requirements for declaring the same, this tool is unattractive. The same thing can be said about the systems to transfer money such as Western Union, because their use involves a transfer of cash to the operator in the country of origin and to produce identity documents upon receipt.

When larger amounts have to resort to non-cash transactions using your bank account. How to use the bank account set Instruction of NBU № 492 on the opening, using and closing in the national and foreign currencies. Immediately it is worth noting that, whenever possible, avoid excessive amounts of transfers, so as not to arouse interest. This raises the legitimate question: what amount is excessive? For example, the Law of Ukraine “On prevention and counteraction to legalization (laundering) of proceeds of crime or terrorist financing said such a sum, an amount equivalent to 150 thousand UAH. With that amount begins financial control over the content of financial transactions and submission of relevant information to the supervisory authority. Older sum equal to 80 000 UAH, so it’s wise not to go beyond the threshold of 10 000 dollars in one account.

use this channel of funding would require the conclusion of a treaty between the foreign-registered company and a person registered in Ukraine. The word “registered” is used specifically to draw attention to the following. You should not draw on foreign companies and individuals in Ukraine as labor. Due to the fact that an individual will be located on Ukrainian territory, the detection of this fact, the government may be tempted to interpret that the company has a permanent establishment in Ukraine that may entail a lot of unpleasant things that begin with registration requirements permanent establishment and tax registration, although how to do it with a company registered somewhere in the islands seems vaguely. Besides a question on the declaration and payment of income tax. The Regulations provide very limited list of grounds for depositing funds at the expense of the individual, and among these few specified payment for work done, so you should weigh the pros and cons before you choose the method and basis of making money through a bank account. However, there is another way to get money from abroad is not particularly coming into conflict with the Ukrainian orders. This use of electronic money, from which we can recommend MoneyBookers, which provides several options for getting money from the cash deposit of the bank card, to obtain a debit MasterCard card without opening an account in Ukraine can be found on the Internet and other payment systems. Another circumstance worth mentioning.

Law of Ukraine “On Foreign Economic Activities”, establishes that in order to engage in providing services to a foreign company the individual must be registered as an entrepreneur. In general, the manual also thinks.

option with the creation of a legal entity which provides services to a foreign company gets the money and pays taxes fairly well known. Also, an individual, a registered employer may provide various services to obtain payment to the bank account.
And finally, all the same, give a little disclaimer:

In accordance with Article 212 of the Criminal Code provides for liability for willful tax evasion.

Y. Azarov, 25.10.2010

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