An important matter for every entrepreneur working in international markets is the registration of a corporate entity that would help to reach the relevant business objectives intended by that entrepreneur most effectively.
Choosing the proper jurisdiction for registration of the company and ensuring its optimal corporate structure are therefore significant factors for the entrepreneur’s commercial success.
In this case, cooperation with an experienced corporate consultant will help to obtain the correct professional advice. This should avoid the inappropriate decisions that may be made when choosing the country of registration and the corporate structure of the company.
In choosing a particular country of registration, the entrepreneur should take into account the following aspects:
- Tax criteria
- The general tax regime in the country of registration and types of tax exempt income according to legislation of the country
- Rules of the particular country regarding transfer pricing
- Legislation on controlled foreign corporations known as CFC rules
- Level of corporate tax levied to income of a company in the given jurisdiction
- Double tax treaties entered into by the relevant country and the particular criteria to be fulfilled to apply the conditions of these treaties in practice
- Registration criteria
- Forms of corporate entities that may be registered in the particular country
- Benefits and disadvantages of each type of company.
- Amount of the authorised capital and the requirements for its actual transfer into company’s account before registration.
- Criteria that regulate the status of founders, shareholders or members.
- Requirements for the directors’ residence and status.
- Timescale of registration procedure.
- Reputation criteria
The country where the company is registered and its global reputation may influence the attitude towards companies incorporated in the given jurisdiction by the banks and business partners, as well as government authorities in the country where the company actually operates.
- Price criteria
Incorporation and further maintenance of the company will involve particular legal as well as corporate costs. These will depend on the country where it is registered and the relevant requirements. The costs for the company maintenance in a particular country may be influenced by such aspects as:
- Amount of fixed state duties
- Average price level of legal services in the given country
- Requirements for certification of financial statements of a company by a licensed auditor.
Lexon Incorporations will carefully select the best jurisdiction for registration of the corporate entity, whether it is in the European Union countries or in other jurisdictions, in accordance with the objectives of the entrepreneur and his business model.