Opening accounts
How to choose a jurisdiction for company registration?
The choice of jurisdiction for opening a company, first of all, depends on the goals and objectives that the owner of the business sets for himself, the legal form and type of activity. It is also worth taking into account the stability of the political, economic and tax system of the country, the level of asset protection, ensuring data confidentiality, the possibility of successfully entering international markets, expanding the geography of doing business, the possibility of finding new business partners, obtaining a residence permit or obtaining citizenship.
Our experts will help you choose a jurisdiction for opening a future company, guided by individual needs and business goals. We will analyze the activities of the future company, select the most appropriate jurisdiction and legal form, carry out registration procedures, open a corporate account and provide solutions to other related tasks.
What are the most popular countries for opening a company abroad?
It is profitable and available for non-residents to open a company in such jurisdictions as: the United Kingdom, Cyprus, USA, Estonia, Poland, UAE, Hong Kong, Switzerland. These countries have a loyal tax system and welcomes the creation of foreign business. For advice and assistance in choosing the most suitable jurisdiction for your business, we recommend contacting our specialists.
Is there an alternative to offshore today?
An alternative to offshore companies can be tax-free or low-tax jurisdictions that are not offshore (onshore). Also, “white” jurisdictions are very popular, which provide opportunities for optimizing taxation. For example, if the company's activities are conducted outside the jurisdiction, it is possible to apply preferential tax rates or no taxation at all.
Such jurisdictions are used if it is necessary to create a respectable company with low taxation. Among them: the United Kingdom, Hong Kong, Switzerland, Singapore, Cyprus, Montenegro, Malta.
How to register a company abroad?
Registration of companies has its own characteristics depending on the jurisdiction. In most cases, registration procedures should be entrusted to lawyers who will monitor compliance with all legal requirements and provide the entire turnkey service. If we summarize the process of setting up a company abroad, we can distinguish the following stages:
- preparation of documents for the client's profile;
- reservation of the corporate name of the company;
- sending the prepared package of documents to the registrar of the selected country;
- organization of the legal address of the company's office;
- opening a bank account abroad or in a payment system;
- formation of the final corporate package of documents.
What are the reasons for registering a company abroad?
Registration of a foreign company opens up new business opportunities, among them: the opportunity to open a company in a jurisdiction with a stable political and economic system, tax optimization, expanding the scale of trading, entering European and international markets, increasing business reputation, maintaining the confidentiality of beneficiary data, avoiding excessive bureaucracy and corruption.
Is it possible to register a company remotely?
Yes, you can register a foreign company remotely. For remote registration of a company, a local lawyer or a representative with a power of attorney is required. Or the simplest and safest option for registering your business abroad remotely may be to contact the specialists of our company. We will tell you which countries do not require personal presence and carry out all the necessary procedures for registering a company abroad without visiting the country, making the registration process as comfortable as possible.
Is it possible to buy a ready-made company abroad?
Yes, you can buy a ready-made company. There are countries that allow, for efficiency, to register a company with a nominee service with the possibility of further selling the company to a client for his business. Ready-made foreign companies are of two types. Active, who previously conducted business activities and the owners of this company decided to sell it. Shelf companies are companies that did not carry out activities and were created for further sale.
Azola specialists will advise you on ready-made companies and help you choose the best option depending on your needs.
What is a "shelf company"?
"Shelf company" or shelf company, is a previously registered company. Since the moment of registration, such a company has been in a passive state, no operational activities are carried out. In fact, the shelf company exists only documentarily without a real presence in the country of registration. The advantage of such a company is saving time on registration and its readiness to start your business.
What is a nominee service?
Nominee service is a service for providing a foreign company with a nominee director and / or shareholder (such persons are citizens of the company's country of registration), who can nominally hold shares and hold positions without the right to actual management. The nominee service is used to protect the privacy of the owners. Control over an enterprise using a nominee service is carried out by drawing up a declaration of the trust nature of the property.
What is an annual company renewal?
The annual renewal of the company includes the following actions necessary for the company to remain active in accordance with the laws of the country of incorporation:
- payment of state duty;
- extension of the lease of the legal address;
- payment for the services of a registered agent, if necessary;
- secretarial services;
- services of a contact person;
- payment for nominee services, if necessary;
- other necessary actions depending on the jurisdiction.
Our company is engaged in comprehensive support of foreign business, therefore, annually monitors compliance with all requirements of the country of registration, innovations in legislation, financial and accounting reports.
Who is a beneficiary?
Beneficiary (beneficial owner, beneficiary) - an individual who manages the business, has control over the adoption of key decisions, receives financial benefits from doing business, retained earnings.
Who can access information about the company's beneficiaries?
If the jurisdiction of incorporation of a foreign company has public registries of beneficial owners, then this information will be publicly available. If the registries are closed, then only the registration agent and the financial institution serving the company will know the information about the beneficial owner.
In which countries are beneficiary data closed?
Closed registers of beneficiaries mean that the information from the register is not publicly available on the Internet and is not available to the public. To date, registers of beneficiaries have been established in most European countries. Many of the registries are already publicly available.
To date, data on beneficiaries is closed in the following countries: Anguilla, Bermuda, Cayman Islands, Gibraltar, UAE, Singapore, Hong Kong, Seychelles, Marshall Islands.
What is a CFC?
A CFC or controlled foreign company is a company registered in a foreign jurisdiction, controlled and managed by a resident of Ukraine (over 50% of the total or individual ownership). This concept includes all organizational and legal forms: trusts, funds, partnerships, limited liability companies, etc. CFC rules began to operate in Ukraine in 2022 in connection with the implementation of international BEPS standards. 2022 and 2023 are transitional years, but new tax obligations are already applied to residents of Ukraine.
What jurisdictions are recognized by Ukraine as offshore?
The list of jurisdictions recognized by Ukraine as offshore zones was approved by the Order of the Cabinet of Ministers of Ukraine dated February 23, 2011 No. 143-r. According to the order, the following are recognized as offshore jurisdictions: Belize, Panama, Andorra, Monaco, Anguilla, Gibraltar, British Virgin Islands, Barbados, Bermuda, Seychelles, Marshall Islands, Cayman Islands, Samoa, Fiji and others. The list of jurisdictions recognized by Ukraine as offshore zones may be periodically changed as a result of amendments to the text of the order.
Registration of companies
Can citizens of Ukraine open accounts abroad?
According to the norms of the currency legislation of Ukraine, individuals - citizens of Ukraine, have the right to open bank accounts of any type abroad without obstacles.
Is it possible to open an account for an offshore company?
Every year it becomes more and more difficult to open an account for a company that has offshore status. In order to understand whether it is possible to open an account, you need to analyze the activities of the company, the scheme of work, the owner of the company and his business. There are banks, as well as payment organizations that are ready to open accounts for offshore companies. For assistance in opening an offshore account, please contact our specialists.
In which jurisdiction is it better to open an account?
When choosing a jurisdiction to open an account, there are a lot of nuances. Of course, it is best for any business to open a current account in the country in which the company is registered. But, this is not always possible, since most banks are willing to serve residents of their country and resident businesses. Loyal to non-residents are such countries as: Cyprus, Switzerland, Austria, Lithuania, Montenegro, Serbia and others.
How to choose a bank to open a foreign account?
To choose a bank, you need to start from the specifics of the activity, the scheme of work, the chosen currency, the residence of business partners, the reputation of the company's owners, as well as the availability of confirmation of sources of income and savings. Many banks, when working with foreign companies and citizens, set initial fees at the time of opening, minimum account balances, which may not always be convenient. Each situation requires a special personal approach and you need to make a choice only based on the compliance requirements of each bank and personal goals. Our lawyers cooperate with more than 30 foreign banks, so they will definitely select the most advantageous solution for you.
Is it possible to open an account for a company remotely?
This issue is very relevant and in demand in today's realities. Now we have a fairly wide range of banks and payment organizations ready to open an account online. When choosing a bank for remote opening, you need to take into account the procedure and compliance requirements. To open an account, it is necessary to prepare all documents for the company and business owners, fill out bank forms, go through the KYC procedure at the bank, in some cases prepare a business plan, go through a video conference with the manager upon request, and pay all initial commissions. Therefore, before making a decision, it is worth considering all the details of this process.
To get a positive answer in opening an account, we advise you to use the services of specialists who will help you go through all the difficulties in opening an account and get a positive result for your business.
Is it possible to buy a ready-made company with an open account abroad?
Possibly, but not desirable. Shelf companies are usually purchased already with a valid corporate account. But, when buying this company with an open account, we advise you to conduct an audit to avoid negative consequences. Also, please note that when re-registering a company and a bank account, detailed compliance is carried out for the new owner and director, partners of the company, and types of activities. Therefore, there are always risks in not passing this check and closing an existing account.
For what reasons can they refuse to open an account in a foreign bank?
In order to verify the client when opening an account, banks consistently follow the 2012 FATF Recommendations. According to these recommendations, among the possible reasons for refusing to open an account in a foreign bank are: providing false information by the client, falsifying or entering false information into documents, negative information about the company, its beneficiaries or counterparties of the company, lack of a license for some of the company's activities, the company's activities are diverse (the company performs more than two unrelated activities) and other reasons.
What documents are required to open a current account for a company?
Each of the foreign banks and payment systems has its own list of required documents and information for opening an account. The basic list that is most often requested is: a detailed description of the activity, information about partners, statutory documents, national and foreign passports for shareholders and directors, bank recommendations from any bank where a personal account is opened, utility bills (for gas or electricity) are not older than 3 months to confirm the address, as well as documents confirming the source of income (wealth) of the shareholders and the director of the company.
In addition to the list above, the bank may request additional documents. Our specialists provide the preparation of a complete set of documents for the requirements of each bank, please contact us.
What documents must a citizen of Ukraine provide to open an account abroad?
The volume of the package of documents depends on the jurisdiction and policy of the selected bank. Mandatory documents for submission are a passport (internal, international passport), utility bills, a bank statement on an open account in the country of residence of an individual, documents confirming sources of income (wealth). Also, it is important to provide information for what purposes a bank account is needed, a list of financial transactions that are planned to be carried out on the account, the estimated annual turnover, and more.
What documents do the bank need to confirm the welfare of an individual?
To confirm wealth, banks may require the following documents:
- a certificate from the place of work, which indicates the salary and/or an extract from a personal account;
- tax returns;
- documents confirming the receipt of an inheritance;
- documents that confirm the receipt of funds as a gift, the availability of such funds in the accounts;
- documents that confirm the sale of property;
- for the founders of the company - documents on the company, account statements, tax returns on the company, documents that confirm the payment of dividends;
- certificate of the presence of a deposit from the bank and documents that confirm the source of receipt of these funds and other documents depending on the jurisdiction and policy of the bank in which the account is opened.
In which foreign bank is it better for citizens of Ukraine to open a current account?
It all depends on the purpose for which an account is needed, what documents an individual has, whether they are ready to place a deposit on the account or have a minimum balance, which country they are ready to visit to open an account, or you prefer remote opening. We advise you to address this issue to specialists who will help you choose the right solution.
Is it possible to open an account for a Ukrainian in a European bank remotely?
The procedure for opening an account and its nuances depend on the policy of the selected bank regarding the opening of accounts for non-residents of the country where it is located. The direct presence of a client in a foreign bank is not always necessary to open an account. It all depends on the nature of the bank account, the size of the expected turnover, the category of the future client. Our company works with many foreign banks that can open accounts for our clients online or with a personal visit. The identification procedure and interviews with clients are carried out online, using instant messengers or in person.
What is a payment system?
The payment system is a licensed financial company that is focused on electronic servicing of corporate and private clients through online transactions. All payment systems operate on the basis of a license and their activities, just like banks, are regulated by law. The specialization of these companies is online payments, transfers and settlements without unnecessary bureaucracy.
Where is it better to open an account for a company: in a bank or in a payment system?
The Bank is a financial institution that performs cash settlements, accumulates cash and other valuables, provides loans and other financial transaction services. The advantage of banks for opening an account is the guarantee of funds on accounts by state authorities (EU), direct work with cash, the ability to transfer funds to deposits, a wide range of services.
The payment system is focused on electronic servicing of corporate and private clients, and provides customers with payments and money transfers through online transactions. The activities of payment systems, like banks, are regulated by law. Among the advantages of payment systems: simplified customer identification process; focused on modern calculation technologies; the ability to find a system with lower rates compared to banks; lack of strict requirements for the presence of a real office and company employees; the possibility of opening accounts for offshore companies; payment cards can be linked to PayPal and other systems.
Most foreign banks do not accept clients whose activities are associated with increased risk (such as financial intermediaries, gambling, cryptocurrency business). For this category of clients, it is possible to open an account in payment systems. In turn, payment systems cannot provide loans, but they are suitable for many companies operating in the field of Internet technologies, remote sale of goods / services, various types of Internet businesses and freelancers. Opening a bank account will be a priority option when it comes to a business that needs a variety of investment services or works with respectable international partners. Accounts in payment systems can be used as an additional tool, in addition to an open traditional bank account.
What is "KYC" and "Due diligence"?
All world banks, including European banks, adhere to the basic principle - Know Your Client (Know your client) in their activities and conduct a thorough check of the information provided by a potential client (due diligence verification procedure). The main purpose of these procedures is to get to know the client as closely as possible in order to avoid possible risks.
Traditionally, for Due Diligence and KYC procedures, the client is asked for documents: an identity document (passport), a document confirming the address of residence (utility bill, not older than three months), a document certifying professional qualifications (CV).
After a thorough analysis of the submitted documents, the bank forms an idea of the activities of potential customers with whom business relations are established.
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