How to start your own business abroad. How to register a company abroad? (On the example of the UAE)

Domestic entrepreneurs are increasingly looking at the neighboring countries of Europe in search of a comfortable and cozy place to open their business abroad.
Moreover, they are not looking for an offshore in the classical sense of the word to hide income or savings, but a jurisdiction with a really working economy, which will make it possible to calmly build and develop their business while staying at home.

Where and how

And for this it is absolutely not necessary to rush somewhere to the Balkans or Scandinavia. Even states bordering on us, or located in one hour of summer, are quite suitable if you want to open a business abroad. For example, Hungary, Poland, Latvia, Lithuania, Czech Republic, Slovakia.

The seller can sell the goods to his own foreign company with a minimum markup and make the main margin already on subsequent resales to real buyers, paying income tax in the country of residence of his business.

Also, the export of goods through your own non-resident company allows you to completely eliminate the risk of non-return of foreign exchange earnings and prevent the accrual of penalties for such non-return.

It is also encouraging that often in the EU states there are no requirements for the mandatory sale of currency. There is one more good news: we have double tax treaties with all the mentioned countries, which allow residents of each of the states not to pay taxes twice.

These countries have never been included in the "black" lists and are not offshore according to the legislation of other states.

In addition, one should not forget that almost all EU member states are distinguished by stable tax laws, a favorable regulatory environment and a minimum level of corruption.

Interesting video on the topic:

tax haven

One of the most important advantages of owning a non-resident company is the legal minimization of tax liabilities. Many European countries have a lower income tax rate. In Poland and the Czech Republic, income tax is 19%, in Latvia and Lithuania - 15%, in Estonia only distributed income is taxed at all. Accordingly, if an entrepreneur reinvests earnings in business development (acquires fixed assets, replenishes working capital), he does not pay tax. In Slovakia, income tax is 22%. However, there is no tax on dividends, as well as tax on payment of dividends to a non-resident.

Latvia, Estonia and Hungary are ideal countries in terms of the tax burden on businesses. However, they are not considered offshore.

“Companies in these countries can be 100% foreign-owned, and the founders can be both residents and non-residents.”

Although there are also difficulties. For example, investing in the authorized capital of a non-resident is associated with the need to obtain an individual license. Yes, this restriction can also be circumvented, but then there is a risk of being caught by the regulatory authorities.

In addition, European countries have rather strict conditions for opening bank accounts. The client must not only have an impeccable reputation, but also confirm the legitimacy of the origin of funds. Especially when it comes to large sums.

However, you can open a business abroad and fill the statutory fund not immediately, but over a certain period (in some countries this is frequent practice). And replenish it, for example, from retained earnings.

Get started is cheap

Business abroad at the stage of registration does not always require the personal presence of the entrepreneur in the country. For example, you can create a company in Estonia or Poland online. In some other countries, these procedures can be shifted to the shoulders of a trusted person or intermediary. This, in fact, will depend on the cost of registration and its duration. But on average new company will cost 2000-3000 euros, and it will be able to start its activities after 2-3 weeks. The package of documents for registration, as a rule, is universal. In order to register a business abroad for a non-resident individual, only a passport is needed. If the founder is a non-resident legal entity, it is necessary to provide notarized copies of the company's Charter, an extract from the register of registration and the decision of the owners to create a legal entity.

The charter of the new enterprise should be prepared (or use a standard template, as in Estonia), memorandum of association, minutes of the founding meeting on the establishment of the company. In addition, the consent of the board members to hold these positions will be required. Moreover, it will have to be notarized and translated into the language of the country in which the company is located. There are separate requirements for the director of the company. For example, in Slovakia, only a citizen of this country or another EU state can be a leader. In the Czech Republic, the appointment of a director of a legal entity is allowed. In Estonia, Latvia, Lithuania, both a resident and a foreigner can perform the duties of a director.

A prerequisite for registering a legal entity is legal address. The cost of services for renting an address ranges from 300 to 500 euros per year.

When registering a business abroad, you will be required to open a bank account, to which funds will be deposited to replenish the authorized capital. True, often a start-up business is given a deferment for the monetization of the charter. When registering online, there are also subtleties.

Estonia requires a local ID-card. With its help, it is enough to go to the commercial register portal, fill in founding documents and a statement, answering question after question. In the same place, a starting account is opened in one of the Estonian banks.

However, in order to obtain an ID-card, you must permanently reside in Estonia and have a residence permit or right to reside. However, there is an alternative option - to issue the status of "e-resident". It is issued to foreigners who do not intend to live in the country, but want to do business there. They are provided with a special Digi-ID, on the basis of which they can also open a company remotely.

Registering a business abroad is only half the battle. It is important to ensure the reality of the company in order to avoid claims from tax and other government agencies.

The company must have a real office at a real address, the presence of local directors, a bank account in a local bank, the storage of financial documentation and reporting in the country of incorporation, the availability of staff, the implementation of real activities.

If it is not possible to fully meet these criteria, some of them can simply be bought. For example, the services of a nominee director in Estonia will cost 1,500 euros per year. This is a fee for actually being in the company. Any other director's services are paid separately at an hourly rate of 250 euros in case of any active actions.

It must be remembered that any gesture around the company and within it will cost the owner money. How much - it is better to check with local consultants for each specific case. For example, in Lithuania the cost of accounting support is about 1,500 euros per year. Issuing a power of attorney, notarization and apostille in Hungary costs about 350 euros. For each signature of a nominal representative on documents in Latvia, you will have to pay 40 euros. The cost of sending documents in Slovakia is 120 euros. For an extract from the commercial register in Poland, you need to spend 150 euros, and the fee for legal translation of documents in the Czech Republic is 50 euros (per page). Let's make a reservation that the final price of all these procedures will depend on the presence of intermediaries, and some operations can be carried out independently. But in some cases, the help of local lawyers is indispensable.

We bring from the pocket

It is far from always that the founders of the company are obliged to immediately fill the authorized capital with money. For example, in Estonia, when registering a company in the form of an LLC, capital (its minimum amount is 2,500 euros) can simply be declared. And the deadline for its formation must be indicated in the constituent documents.

In the Czech Republic, the authorized capital may even be 1 kroon. True, the regulatory authorities consider such companies unreliable. Moreover, the meager charter capital reduces the chances of obtaining a business visa. Therefore, it is better to replenish it with at least a couple of tens of thousands of crowns. Moreover, the money can be deposited within 5 years from the date of the company's incorporation.
In Poland, the minimum share capital is 5,000 złoty (slightly over 1,200 euros). At the same time, it can be filled not only with money, but also with tangible or intangible assets.

Business Abroad: Experience of Entrepreneurs

Andrey, entrepreneur, owner of a concert agency (Poland).
Formerly business registered abroad mainly in order to obtain a visa. That is, it was a formality. For example, I bought the first company with already ready documents, and he got himself a job there so that there would be fewer problems with registration. Since there can be no questions for a hired employee in terms of a visa or a “stay” card (temporary residence permit in Poland), while there are additional requirements for a business owner. For example, for a company to be profitable.

If everything is clean and transparent, then there are no problems with regulatory authorities. As well as attempts at corruption by officials. A couple of times we got caught for the fact that a person worked for us, but was not employed. However, this is more of an exception. Another thing I want to note is the timely and problem-free VAT refund, which is a big problem in our homeland. In general, now, if there is no idea for a business, it makes no sense to open a company just to move. It is better then to find an employer abroad and agree on employment. It's both easier and cheaper.

Evgenia, expert of the Strategy and Security Research Group (Slovakia).

In Slovakia, business migrants can be divided into two groups. There is a large “layer” of those who moved here to move their business here, through a Slovak company to open access to the EU market or to start a new one. The main thing is to work in a calm environment, with friendly clerks in the tax office and other offices. Another group is entrepreneurs who need permanent residence abroad. They either continue to run their business at home, and buy real estate and land for the Slovak company with an eye to the future, or simply move to live in Slovakia, renting out real estate, investing in financial instruments and enjoying quiet life. At the grassroots and middle levels, there are basically no problems with taxes and reporting in Slovakia. As well as with corruption. An exception can be called the migration police, where traditional incompetence and unwillingness to help happen. But, as a rule, in other departments everything is friendly and nice. Corruption starts higher, around government tenders and projects under European funds, where the support of local authorities is required.

Due to the current economic situation in our country, many Russians prefer to organize a business outside of it.

This is not surprising, since the conditions for developing a business in Russia cannot be called ideal: lengthy bureaucratic procedures when registering a business, an unstable political environment, high interest rates on loans for business development, corruption, and the virtual absence of state support for start-up entrepreneurs. Therefore, many of our compatriots decide to open a business abroad.

The sequence of steps when opening a business abroad

If you have already decided to open your own business abroad, then you should proceed as follows.

1. It is necessary to determine the scope of activity and whether it will be aimed at organizing services for the local population. it important point, since in some countries (for example, in the USA) for a business with a foreign address, easier working conditions and tax payments are created.
2. Select the country in which you would like to open your business. To do this, you need to study how developed the market for the services that you are going to offer is. On the one hand, if such services are not available in this country, you can become an innovator in this business and work in the absence of competition. On the other hand, if there is a large volume of the same services in this country, it is likely that your business will be uncompetitive. Therefore, you should carefully plan your advertising campaign.
3. Having finally decided on the country (or at least reducing the list of all options to three) in which you will develop your business, you should take care of the availability of investments in your own business or find a partner - a citizen of this state.
4. and country, visit the legal and economic consultation in your city. Visiting a specialist will save you time reading the laws of the countries you are interested in. In addition, you will be answered all questions regarding paperwork for starting your own business.
5. Carefully study the tax legislation of the state in which you plan to organize your business.
6. Having finally decided on the country and the direction of business, find a competent lawyer who will help you correctly draw up all the documents and give additional advice on doing business in the chosen country.

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How to choose the right country for starting a business

Let's single out the main countries that, according to the research of business analysts, are most suitable for organizing your own business. Consider the conditions for developing your own business in them in more detail.

1. Denmark.
2. Canada.
3. Singapore.
4. New Zealand.

1. Danish law allows foreign nationals to open own business on the territory of this country. It will be easier to do this if you have a residence permit. It is important to note that the tourism industry is well developed in this country. Therefore, by opening your own small cafe or eatery in Denmark, you will make right choice and your establishment will be in demand among tourists.

To open such a business, you will need an amount of $10,000 or more. Loans in Denmark are issued to foreigners with a temporary residence permit. The interest on the loan is approximately 7-12% per annum.

Another positive side of starting a business in Denmark is state assistance to start-up entrepreneurs, which manifests itself in tax cuts in the first year of doing business.

2. In the USA, excellent conditions have been created for starting your own business: low interest rates on loans, sparing tax laws (no turnover tax, VAT, many benefits for developing businesses), state support for start-up businessmen. In addition, in the United States there are no requirements for authorized capital, there are no customs duties on the export of products, and import tariffs are moderate.

3. Opening a business in Canada has a number of advantages: this country has the lowest cost of electricity in the world, favorable conditions for attracting investments, low cost construction works, low land prices, a large number of federal and provincial programs to support and develop small and medium-sized businesses. In addition, the country's official authorities provide support to start-up entrepreneurs, allowing them to assess their business potential. To do this, you need to answer the questions of the National Test for Entrepreneurs, which can be found on the Internet. Based on the test results, you will receive a list of tips, as well as an overall assessment of your business potential in a given country.

4. Singapore is rightfully considered one of the world's major financial centers. Often, our compatriots think about starting a business in this particular state. Excellent conditions have been created here for starting your own business: a high standard of living, a stable economic environment, the absence of crime, a developed financial infrastructure, a preferential tax policy for small businesses, and an attractive investment climate.

The most popular direction in business is the provision of all kinds of services (tourist, financial, transport). However, it is important to consider that in this state there are strict standards for construction, tourism,. The reasons for such control of entrepreneurs are the huge number of tourists visiting this country (6-7 million people a year).

5. New Zealand is a country ideal for entrepreneurship. First, its taxation and reporting systems are clear and simple, especially for small businesses. Secondly, in this state, most of the directions entrepreneurial activity does not require any permits, with the exception of some (medicine, restaurant service, real estate, trade alcoholic drinks) for which a license is required.

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The most popular types of business abroad

The most common abroad are the opening of hotels, hotels, bars, restaurants, cafes, bakeries, call centers, the production of materials for baths and saunas, the production of liquid rubber.

In each of the foreign countries there are the most common types of business there. Let's consider the main ones.

1. According to business analysts, the Philippines has long been recognized as the capital of call centers. It is not too difficult to organize a business in this country, since there are no rigid bureaucratic obstacles and legal restrictions. However, it is important to pay attention to the culture of this state, since it differs from the traditions adopted in European countries.
2. In Estonia, the most common business is the production of materials for saunas and baths. Opening a business in this country cannot be called a complicated procedure, the main thing is to draw up all documents in accordance with local laws.
3. Liquid rubber production is most common in Canada. Liquid rubber has been successfully used for corrosion protection of railway cars and swimming pools, for roofing and installation of concrete structures. Competently organized business in this country can bring a good income. At the same time, it is possible to produce liquid rubber not only for Canada, but also for export deliveries to other countries.
4. The most common type of business in Turkey is restaurant business. Opening your own business in this country is a simple procedure that takes only a few hours. The main problem at the stage of business formation is the legalization of Russian personnel, but with the correct registration of all required documents and she is allowed.

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Opening your own business- this always implies a lot of work, the application of all forces and incredible diligence. In many ways, the successful opening of a business depends on how ready you are for all the upcoming difficulties, and, unfortunately, there are a lot of them ...

But half of them can be avoided with a well-planned plan of all actions. All businessmen begin their entrepreneurial activities by drawing up a detailed and thoughtful business plan.

A business plan is all those points that you need to follow when moving towards success.

It is worth taking into account all the little things, and it is to the little things that you should pay special attention. Business is a very peculiar and tricky thing.

The success of a business can be disrupted by the smallest problem, which previously, it would seem, did not pose any threat to the prosperity of your business.

There are especially many such petty problems if you want to open your business abroad. We have only one citizenship - Russian. But what to do if you want, for example, in Germany or America?

We do not have citizenship and registration, but you can still open a business. In this article, we will look at how to open your own business abroad without being its citizen.

Opening a business abroad primarily involves buying commercial real estate. It is worth noting that in many foreign countries commercial property is much cheaper than in Russia. Russian real estate, of course, is acceptable for the wallet, but it is gradually growing.

New business ideas here: http://website/

This is due to the fact that the construction is mainly residential, but there are practically no commercial premises. If we have taken the target for Germany, then it is worth negotiating with the German government.

Permission to purchase real estate is not required, but to organize a business - this is all decided through the administration of the city where you want to do business. You need a visa, a passport, and identity documents, that is, a passport of a citizen of the Russian Federation, bank statements, medical certificates. They also need a carefully prepared business plan that they can review on demand.

After providing these documents, most likely, there will be an interview. You need to prepare for this, behave confidently, not worry, answer all questions competently. It is desirable to know the language of the country in which you are.

Success, of course, cannot be 100% guaranteed. But now there is a lot of support for investment in foreign business, and young businessmen can try themselves in such a difficult business ...

Favorable conditions for registering a company abroad: from $800 with a choice of jurisdictions, the possibility of opening accounts remotely, preparing and submitting all necessary documents.

View detailed rates...

To minimize costs when transferring online payments to a foreign bank account, you can create a merchant account.

Merchant account pricing…

Do you want to find the most profitable option for registering a company abroad, minimize costs, open the most suitable bank account?

Legal advice...

Probably, every businessman will agree that his own company is almost his own child, to whom almost all the time and effort of the "parent" is given. And of course, I want the “child”, that is, the business, to have the best conditions for development. Unfortunately, the current economic situation in Russia does not allow creating such conditions in full, so many founders began to think about registering their own company in other countries with a softer tax policy.

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A company abroad: what does registration of a business outside of Russia give?

We all know what gives a person the status of a citizen - this is certain rights fixed at the legislative level, and obligations to the state and its citizens. Belonging to a particular country partially determines the attitude of acquaintances. For business, the situation is similar - however, unlike individuals, "citizenship" for legal entities can be chosen even before the opening of the company.

What makes Russian founders register a business outside their home country? Each entrepreneur is looking for certain benefits depending on the specifics of the firm, but most often they are the following:

• legislature loyalty: lack of frequent checks by state bodies, security of data on founders and shareholders;
• reduced taxation or total absence of taxes;
• increasing the prestige of the company in the eyes of customers and partners;
• the opportunity to work in a foreign market or in close cooperation with international companies;
• simplified entry into the country of registration of the company for founders and employees (and sometimes obtaining a residence permit or even citizenship, as, for example, is practiced in Cyprus).

What kind of advantages a business will receive will depend on the chosen country. Let's look at the procedure for opening a company in different states and the advantages of individual jurisdictions.

It is important
Many people are concerned about the question: is complete anonymity possible when opening a company abroad? Unfortunately not: it violates basic principle banking system - "know your customer". However, in many offshore zones, information about the owner of the company, directors and shareholders is maximally protected: in the Seychelles, Belize and the Virgin Islands, data is available only to the registrar.

Stages of registering a company abroad

Country selection: step one

There are three groups of countries in which our compatriots prefer to register firms. Each group has certain advantages and the choice should be made based on the main goals of opening a foreign business.

Offshore zones

Offshore countries attract foreign capital with loyal conditions for non-residents. So, for companies operating outside the country of registration, tax benefits are provided, up to the complete absence of fees. An important part of the policy of many offshore zones is confidentiality: information about the founder is not disclosed.

Registration of a company in offshore zones has a significant drawback: business reputation company will be dubious. Many states do not recommend or directly prohibit local entrepreneurs from interacting with offshore companies, and also impose certain restrictions on the activities of such companies. The black list of offshore countries in each country is different: for example, in Russia there is a list approved by order of the Ministry of Finance of the Russian Federation dated November 13, 2007 No. 108n. The list includes 40 states, in particular the Seychelles, Maldives, Mauritius, Liechtenstein, Belize. In addition, when deciding on the registration of a company in another country, it is worth studying the provisions of the letter of the Ministry of Taxes and Duties of the Russian Federation of March 27, 2002 No. FS-6-26 / 360 "Information Exchange" and the instruction of the Central Bank of the Russian Federation of August 7, 2003 No. 1317 -U.

On a note
According to the instructions of the Central Bank of the Russian Federation No. 1317-U, offshore zones are classified into three categories:
1. Respectable jurisdictions: Montenegro, Hong Kong, Ireland, Malta, Switzerland, Singapore and others.
2. Classical offshore companies: Belize, British Virgin Islands and others.
3. Odious offshores: Andorra, Aruba, Liberia, Liechtenstein, Marshall Islands and others.

Jurisdiction with low and moderate taxation

In fact, these countries are not much different from classic offshore countries: they also have a system of preferential taxation for companies operating outside the state. In some cases, they differ from offshore zones in easier access to information about the founder.

And most importantly, a company registered in these countries will be able to participate in international transactions without restrictions. Jurisdictions with low taxation include, for example, Cyprus, Great Britain, Latvia and others.

Other countries

Registration of a company abroad is not only a way of tax optimization, but, as already mentioned, work in a stable legal field, increasing the credibility of the company on the part of international partners. Because of this, despite the high tax rate, registration in Asian countries is becoming increasingly popular. Traditionally, it is considered prestigious to open a company in the EU, the USA.

Advice
On November 24, 2014, amendments were made to the Tax Code of the Russian Federation aimed at large-scale deoffshorization Russian economy. Before making a decision to register a company abroad, we advise you to familiarize yourself with the new chapter 3.4 of the RF Tax Code “Controlled foreign companies. Controlling Persons.

Studying the country's legislation: step two

When opening a company abroad, the stage of familiarization with the laws of different countries is very important. This will help to understand the main aspects of the registration and further functioning of the company: the need for the services of a nominee director, opening an office and filing reports, the degree of control by the state, the policy of transferring data on bank accounts, etc.

Also, an important aspect to consider when choosing a state for registering a company is the study of the legal field in which it is planned to conduct business: in particular, the current list of offshore zones. For example, in Russia for companies registered in a country from approved list offshore, there is a ban on participation in public procurement.

Choosing the name and form of ownership of the company: step three

The procedure for registering a company and the type of taxation are largely determined by the legal form of business of a legal entity. For example, in the UK there are companies with limited liability(Ltd, an analogue of Russian LLCs, pay taxes in the general manner) and limited liability partnerships (LLPs, are not subject to taxation).

As for the company name. By analogy with Russian legislation it must include the organizational and legal form of the company (Paris LLC, etc.) and be unique, as well as not contradict the norms of morality, generally recognized and national, and not be misleading. For example, in Hong Kong, names indicating a connection with the government or the royal family are prohibited.

Documentation: step four

The standard package of documents required for registering a company abroad usually includes:

• application form for opening a company;
• a copy of the identity card of the founder (s);
• a document confirming the place of residence of the founder, for example, a utility bill;
• a letter of recommendation from a bank;
• company charter.

Depending on the country, additional paperwork may be required, such as information about the shareholders of the company (Cyprus), a business plan (Denmark), confirmation of the presence of an office (legal address), memorandum of association, minutes of the meeting of founders (Czech Republic).

Registration as such: the final stage

After choosing a country and preparing the necessary package of documents, all papers are transferred to the registrar, who checks them and sends them to government agencies. In some cases, after that, a decision can be expected: for example, Cyprus and the UK accept applications for opening a company remotely. For most countries, a personal visit to the registration authority by the founder or his legal representative is mandatory.

As a rule, the average registration period foreign company- 3-4 weeks. After a positive decision is made, the founder receives a full package of documents: registration certificate, charter, company seal. In some countries, the original documents must be kept by the secretary or registrar, only certified copies are issued to the owner.

Opening an account abroad as an integral stage of registration

An obligatory part of the registration and functioning of a foreign company is the registration of a current account. This procedure also consists of several stages.

Bank selection

It is not necessary to choose a bank from among the residents of the country in which the company is opened, it is enough to have a representative office. However, you should pay attention to the following features:

• The cost of services for opening and maintaining an account varies greatly and is not always proportional to the reliability and quality of services.
• Timing. The average duration of preparing documents in banks is usually 2-4 weeks, but there are also offers with terms of five days or more. Some banking organizations offer expedited processing.
• The convenience of paperwork for many businessmen is a key issue when choosing a bank: some organizations require personal presence, others open an account remotely.
• Convenience of work: the presence of Russian- or English-speaking employees, Internet banking, notifications.
• Kudos. When interacting with business partners, it is important to have an account in a reliable, trustworthy bank. You can learn about reputation from independent ratings of analytical agencies such as Fitch, Moody's, Standard & Poors.
• Requirements. A number of large banks, when opening an account, request not only a standard package of documents, but also recommendations from other clients. In some countries (eg Germany) you can only open an account if you have CEO having local citizenship.
• Privacy Policy. Despite the uniform legislation within the same country, some banks are especially careful to protect information about their customers. This is relevant in cases where the founder wants to be sure of non-disclosure of information about his personality.

Account selection

As a rule, banks offer different kinds services at different prices - depending on the list of included and additional services and quality of service. The choice is completely determined by the needs of the business: in some cases, it is necessary to minimize service costs, in others - to achieve the highest speed of processing transactions by bank employees.

Applying for an account

The standard package of documents submitted when registering a current account with a foreign bank includes:

• identification;
• registration certificate, company charter;
• documents confirming the authority of a person to open and manage an account (power of attorney, minutes of appointment of the general director, etc.);
• proof of origin of funds;
• in some cases - recommendations from other clients of the bank.

All documents, if necessary, must be translated and apostilled.

Issue price

The cost of registering a company will directly depend on the chosen country. It consists of mandatory payments and additional. AT without fail you will have to pay the state duty, contribute the authorized capital (from 1 euro). Some costs will require opening a current account of the company abroad (on average 700-1000 euros), translation of documents submitted to the registration authorities. Other types of expenses are optional and will depend on the situation and requirements of a particular state:

• deposit in the company account. Can be returned after closing the account;
• the so-called nominee service - the services of a nominee general director and / or shareholder, in some countries it is also necessary to hire a secretary. Cost - from 500 euros per year depending on the country;
• office rent;
• expenses for visiting the country for registration and registration of an account (if personal presence is required).

Do not forget that some payments will become regular, for example, nominee service, office rent, annual renewal of registration in government bodies, accounting services (from 250 euros per year), account maintenance.

Registration of a company abroad provides many advantages in doing business, however, it is a rather complicated procedure that requires the study of many nuances and legislation of different countries. For a person who is not an expert in international law, the whole journey will take a lot of time and effort, so most entrepreneurs resort to the services of professional registrars.

To do this, we have selected the 10 most common questions from among those that our clients ask us. Although we have answered each question based on the specific situation of the client, we hope that after reading this article you will have a clearer idea of ​​what to consider when opening a company.

1. Where is the best place to start a business?

Before thinking about the location of a new company, it makes sense to think about what your business plans are, where your customers and suppliers are, and where you are. These three main points will allow you to geographically determine the right place.

The next step is research. Factors to consider carefully include the following:

• available options for the business structure of enterprises;
• taxation system;
• possible incentives in your industry;
• the level of development of the industry;
• quality labor resources and prices in the labor market;
• infrastructure development.

This information will allow you to narrow down the list to a few countries or to one.

Our websites serve as good sources of information about all the advantages of a particular country in terms of doing business:

• https://www.hongkong-business.ru/ – about China and Hong Kong
• https://www.start-business-in-singapore.com/ – about Singapore
• https://www.start-business-in-estonia.com/ – about Estonia
• http://blog.offshore-manual.ru/ – about Hong Kong, Singapore, Estonia, Cyprus, Malta, Sweden, etc.

Detailed research is a vital necessity when starting a business. In order to avoid surprises in the future, the country must be chosen taking into account all criteria.

Read also “What is substance and why is it necessary?”

2. What about tax havens?

Traditional tax havens are very popular jurisdictions for clients looking to minimize taxes. However, upon closer examination, it becomes obvious that they are not suitable for the long term.

What attracts clients in offshore jurisdictions is that companies operating abroad are not subject to local corporate tax, information about owners and directors is not publicly available, and most offshore companies do not enter into agreements with other countries on the exchange of tax information.

However, due to these advantages, tax havens do not have a good reputation in the world, often associated with money laundering and tax evasion. Offshore companies tend to have difficulty opening bank accounts with reputable banks and are not taken seriously by customers and suppliers around the world.

As an alternative to tax havens, we recommend that our clients who want to minimize their tax liability register companies in countries with zero taxation, such as Singapore, Hong Kong and Dubai.

3. What are the requirements for registering a company?

Each country has its own requirements for registering companies, but there are a few points that are important to pay attention to:

• Shareholders: it is necessary to know whether the legislation of the country establishes the citizenship and residence of the shareholders. Most countries in the Middle East, for example, require at least one shareholder to be local and do not allow registration of a company owned only by foreigners. On the other hand, in the Philippines it is allowed to open companies with foreign participation, provided that the foreign shareholder resides in the country.
• Directors: as in the previous case, it is important to clarify whether the director must be a citizen of the country in which the company is registered, or the fact of residence in its territory is sufficient. Also, what is the minimum number of directors allowed in the company. Singapore, for example, may have one director, while Thailand requires 7.
• Requirements for a company secretary
• Registered address: all countries require companies registered in their territory to have a local legal address. In some cases, to comply with the law, a virtual office is allowed, in others, the authorities request a lease office space before the completion of the company registration process.
• Capital requirements: The minimum amount of capital required to open a company can vary greatly from country to country. For example, in Singapore the capital requirement is only US$1, while in Saudi Arabia companies with foreign shareholders are required to have a capital of US$27,000. In addition, some countries require that the amount of share capital be deposited into a bank account before the company is registered, while others allow the payment of capital after the registration process is completed.

Read also “Registration of a foreign company: is it legal?”

4. What if you do not have a local or resident director/shareholder?

If you are thinking about how to open a company abroad without having a local director, then we can provide you with nominee shareholders and directors. The nominee ensures that clients meet all the necessary requirements for registering a company, but at the same time does not play any role in the management of the company and does not have the right to sign banking documents. Prior to the appointment of a director, an agreement is made to protect both parties.

5. How long will registration take?

In fact, the registration time depends on the country and can vary from 1 week to 6 months.

If you need a company in a week, then the choice is given in favor of Hong Kong and Singapore. These countries have good system online registration, which greatly simplifies and speeds up the process.

However, to avoid surprises, it is essential to be realistic about the timing. The Doing Business website has a brief description of the time and steps required to register a company without foreign shareholders or directors, however, if your company does not fit into these criteria, the time frame can be much longer.

Read also “FAQ about registering a foreign company”

6. Where should I open a bank account?

Opening a bank account depends not only on your business plans, but also on the banks themselves. Unfortunately, in recent years, banks have become more cautious about opening corporate bank accounts. Due to the nature of the business, the place of incorporation and the nationality of the shareholders and directors, opening a bank account can be difficult.

For example, in our experience, companies registered in classic offshore companies face difficulties in opening bank accounts in reputable jurisdictions, so they have to turn to banks in other tax havens with less stringent requirements.

However, the first thing to consider when thinking about how to open a company abroad is the purpose of the company and bank account. If you are creating a regional company to serve local customers, then the best option will open a bank account at a local bank.

7. Do I need to travel somewhere to open a bank account?

As mentioned earlier, banks are increasing their requirements for opening bank accounts. You need to be prepared for what you need to present additional documents including sales contracts, leases and letters of recommendation from lawyers and licensing authorities. In addition, you will have an interview with a bank employee. Regardless of which bank you apply to, all shareholders, directors and persons with the right to sign bank documents are required to come in person to open a bank account.

8. How long does it take to open a bank account?

Opening bank accounts usually takes at least 4 weeks. For clients with high level risk bank may require additional verification or request a personal presence, thereby delaying the opening process. Practice shows that clients should be patient for a month before receiving the long-awaited set of current account numbers.

9. I want to apply for a visa for ease of travel and management.

Obtaining a visa is becoming more and more difficult, but it is not an ordeal that cannot be passed. For our clients deciding how to open a company abroad and obtain a work visa, we recommend the following:

• Sign contracts with local customers. The authorities will want to check if you really intend to do business in their country or if your company is just a front for a visa. You will need contracts and invoices indicating cooperation with local companies to apply for a visa;
• Invest at least $50,000 in your company. Even though most countries allow you to register a company with as little as $1, this step will show that you are ready to make a significant investment in the country. This will also serve as a good proof that you have a real business, and not for the sake of a visa;
• Plan to hire local staff whenever possible. Although not all countries have such requirements, before applying for a visa, it would be good to show that you are going to hire local specialists, and not just resort to the services of foreign workers;
• Do your own research on this issue. All countries have many requirements for applicants: the level of education, wages, work experience. It is important to take them into account at the stage of making a decision on how to open a company abroad. In addition, most countries have special programs for investors that you should take a look at and see how your company fits their conditions.

Now more than ever, countries are making it harder for companies to hire foreigners by preferring jobs to be filled by locals. The mere fact of registering a company is not sufficient justification for obtaining a visa. Companies and employees must comply with additional requirements.

See also “How to get a visa for a startup in Estonia? The new visa program is already launched!”

10. What about taxes?

Taxes are one of the main factors influencing the choice of a country for company registration, and rightly so. Taxation is considered the most important element. Each company must take it into account, especially after registration is completed.

Usually companies are required to submit monthly reports and pay monthly VAT, taxes on wages to make contributions for social needs. Submitted on an annual basis financial statements and pay corporate income tax. This applies to all companies in all countries. In case of non-compliance with tax laws, the company faces fines.

“Working for an uncle” is a pleasure for few people. Only a few manage to break this vicious circle. But Russian economic conditions- a big problem for a novice entrepreneur. Huge loan rates, low profitability, pressure from inspectors. What's the way out? Business abroad - let's start with the theoretical foundations.

Culture of foreign business

What is the main scourge of the business environment in Russia? This is a focus on big capital. Anyone who has learned the basics economics, knows that the basis of the market economy of developed countries is, on the contrary, small and medium business(MSB). It is he who determines the rate of economic growth, the structure and quality of the gross national product.

It is not surprising that the share of small and medium-sized businesses in the structure of EU GDP is 67%, and in some countries it reaches 80%. For comparison: in Russia, the share of SMEs in 2017 was about 20%.

How do other countries achieve such results? Here are a few key factors:

• Implementation in the EU of the practice of applying preferential taxation and the abolition of duties.
• Government support, including broad loan guarantees, subsidies and interest rate offsets.
• Other non-financial assistance, including advisory services, trainings, courses for young entrepreneurs.
• Doing business in favorable environment» stable economy and currency.

Business activities

Despite the different bases of legislation in different countries, economic theory is the same for all states. Therefore, both in Europe and the USA, as well as in Russia, an important basis for strategic planning entrepreneurial activity is the understanding and vision of the form and type of business that is planned to be established.

Based on the foregoing, the first criterion by which it is worth classifying types of business is its size. As we know, there are small, medium and large businesses.

The two main criteria by which they are usually divided are the number of employees and turnover / income. At the same time, specific values ​​of indicators that define the boundaries of business types may differ in different countries. Most often, just the number of personnel plays a decisive role in classifying a business as one type or another:

• 1-15 employees - a micro-enterprise, also referred to as a small business;
• 15-100 employees - small business;
• 100-250 employees - medium business;
• 250 and more employees is big business.

As we have already found out, the key to success is small and medium-sized businesses. It is he who annually generates up to 85% of new jobs in the EU, and in general, it accounts for about 66% of jobs in Europe.

At the same time, 70% of all representatives of European business are micro-enterprises with up to 9 employees. What are these enterprises? As a rule, these are shops and small production shops, travel agencies and advisory offices, service firms and outsourcing companies, rental business, food production and even catering establishments.

There are a lot of options for the direction of such a business - micro-enterprises and small businesses can be represented in any of the business segments.

Forms of business organization abroad

The forms of business organization in each country are determined by its internal legislation, in accordance with the traditions of doing business that have been formed over the centuries.

Each form of business organization is based on the property (capital) of entrepreneurs, and based on how it will be used, three main forms of organization can be distinguished:

• Private entrepreneurship (Sole proprietorship) is a form of organization when a business is solely managed by an individual entrepreneur who is inseparable from the business. They exist in most countries simplest form a business structure characterized by a minimum amount of taxes (in Russia - IP).
• A partnership is a form of organization where two or more people own a business. A partnership is also often referred to as a partnership. Depending on the country, it can be a legal entity (for example, in the Russian Federation) or a form of organization of individuals. In most countries, partnerships are not legal entities, so the participants respond with personal capital.
• Corporations - legal entities commercial focus. These are usually limited liability companies or joint stock companies.

The level of taxation in different countries of the world

Taxation of business is considered one of the decisive factors in the business climate formed in the country. Therefore, let's figure out where the weakest and toughest level of tax burden in the world is. For such an assessment, income tax, turnover tax, corporate property tax and the amount of insurance premiums are summed up.

So, the highest taxes are characterized by:

• Argentina - 137.3%, where 90% is VAT alone;
• Bolivia - 83.7%;
• Algeria - 72.7%;
• Colombia - 69.7%;
• Brazil - 69.2%;
• Venezuela - 65%;
• Italy - 64.8%;
• Gambia - 63.3%;
• France - 62.7%;
• Belgium - 58.4%.

At the same time, there are enough countries with a gentle tax burden:

• UAE - 15.9%;
• Saudi Arabia - 15%;
• Kazakhstan - 29.2%;
• South Africa - 20%;
• Croatia - 20%;
• New Zealand - 22%;
• Switzerland - 28.8%;
• UK - 32%;

Tax rates are indeed important, but don't overestimate their importance in overall structure business attractiveness. It is also necessary to take into account tax audits of the business and other audits by regulatory authorities, qualifications and cost. work force, fairness of competition, level of corruption, political risks, investment protection and so on.

Government support for business

One of such significant factors is government programs to support entrepreneurship. In developed countries, government support reaches unprecedented levels Russian entrepreneurs scale. Consider specific examples:

• USA. The Small Business Administration (SBA) has been operating since 1959 and has an extensive regional network. It provides financing, consulting, independent evaluation and auditing, suggesting measures to improve profitability. The main support is provided in 4 areas, in which there are more than 40 government programs Keywords: access to capital, education, provision of government orders and protection in courts.
• Canada. There are about 290 state programs for consulting, training and financing, more than 100 consulting centers, 150 business incubators, 36 IT clusters have been created.
• Germany, France and other EU countries. The most simplified registration procedures, low registration fees, educational and consulting support programs. In Germany, since 1978, there has been a program for financing risky business projects.

The difference between business in the Russian Federation and developed countries

Valuation of business in Russia and abroad made it possible to identify the range of problems that domestic entrepreneurs have to face when doing business in Russia. Among the factors that most distinguish the business climate in the Russian Federation from developed countries are:

• Limited access to financial resources: excessively high lending rates of 16-20% (in the US - 4-5%), the absence of "long" lending programs, the inability to take a loan for development and modernization.
• Bureaucratization: low interest of state and municipal authorities, frequency of inspections, frequency of changes in legislation in the Russian Federation.
• Corruption: high interconnection between the administrative resource and business, unfair competition, extortion.
• Quality of human resources: low professional training young employees, a small number of highly qualified personnel.
• High costs: cost utilities, real estate prices, high taxes and their growth.

Together with the low profitability of small and medium-sized businesses, all this rightly makes businessmen once again think about investing abroad.

How and where is it easier to open a business abroad

Any entrepreneur from Russia who is not familiar with foreign economic activity Starting a business abroad can seem like a daunting task. In this section, we will consider how to open a business abroad.

The first, and, perhaps, one of the main stages will be the choice of the country, so we will dwell on it in more detail. Choose a location to lead economic activity is based on the goals pursued by the entrepreneur.

Let's look at the three most common cases:

• tax optimization. For these purposes, Russians massively open companies in offshore zones and low tax zones: Panama, Maldives, Seychelles, Hong Kong, Malta, Cyprus, and so on. All these countries offer loyal taxation conditions to foreign investors if they receive income from sources outside the country of registration. For example, in Panama, only one tax has been introduced for such firms, which is $250 upon registration and $300 annually.
• Reliability of investments. The security of capital invested abroad, the stability of the legal framework is one of the most important factors in the business climate. Plus, a company registered in a reliable country will increase trust among partners. Among the minuses are high taxes, but they do not always solve absolutely everything. Among these locations are the UK, Poland, Switzerland, Belgium, the USA and some Asian countries.
• Simplicity and cheapness of registration. Deciding to work abroad real business, the entrepreneur is looking for countries with the most convenient registration conditions for him. The ranking of countries from the World Bank "Doing Business" will help with this:

1. New Zealand. Zero authorized capital, for registration you will need to go through only one procedure and spend more than 4-5 hours. The amount of mandatory payments is about $120.
2. Canada. Zero authorized capital, registration includes two procedures and will take no more than one and a half days. The cost of mandatory payments is about $170.
3. Hong Kong. Zero authorized capital, registration includes 2 procedures and takes an average of one and a half days. The amount of mandatory payments in total is 475 $.
4. Georgia. Registration of a company takes 2 days and involves two procedures. We will add the cost of mandatory procedures to the zero authorized capital - only $ 95.
5. Singapore. Here registration involves 3 procedures and 2.5 days of time. With zero authorized capital, the costs will be about $260.

Having decided on the country for doing business, we proceed to the main stages:

1. Study the legislation of the selected country. Corporate law differs from country to country. A detailed study of it will help to understand the nuances of registration, the need to hire a nominee director, reporting, and the degree of control by the state.
2. Prepare a business plan. This will help not only to understand business prospects and plan profitability and return on investment, but also to find partners, attract investors from outside.
3. If necessary, if required by local law, apply for a business visa.
4. Choose a title and form of ownership. Regardless of the country, the name must be original and comply with the requirements of the law. For example, by analogy with the Russian Federation, in China it is impossible to indicate in the title a connection with the government and the ruling party.
5. Prepare documents. The standard package of papers for registration includes an application, a passport, constituent documents (charter, memorandum of association), a letter from the bank, a document confirming the place of residence. In some countries, a business plan (Denmark), minutes of the founders' meeting (Czech Republic) and other documents may also be required.
6. Rent a room or use the services of intermediaries that provide addresses for registration.
7. Submit the package of documents to the registrar or intermediaries. In some cases, a remote registration procedure is provided (Cyprus, England).
8. After registration - select a bank and open an account.

Purchase of an operating company

Those who find the process of setting up their own firm too complicated can buy ready business Abroad. The purchase of an already registered company is seriously underestimated by domestic entrepreneurs.

• Firstly, it is an opportunity to acquire an enterprise “with history” economic activity, which in many countries gives the right to a residence permit.
• Secondly, well-established business processes make it possible to immediately work on business development.
• Thirdly, all this saves a lot of precious time and effort: it is possible to buy not only a package of documents, but also property, premises, a base of suppliers and customers.

The buying process can be divided into several stages:

1. Establishing cooperation with a business broker or an independent search for a ready-made business.
2. Finding contact with the owners, negotiating the terms and price of the transaction.
3. Checking the enterprise: assessment of assets and liabilities, conducting audit, legal verification of concluded contracts, litigation and litigation, arrests and other encumbrances, verification of the presence of unfulfilled obligations, surety agreements and so on.
4. Checking shares and shares in the company, in particular, studying the minutes of shareholders' meetings for the correct execution of corporate documents.
5. Conducting a deal. As a rule, the purchase of shares and shares in any of the countries is subject to notarization.
6. Entering information about the change of ownership in state registers.

Among the popular countries for investing in a ready-made business are:

• Germany: manufacturing and logistics companies or real estate agency. The amount of investment starts from 1 million €.
• Spain: everything related to tourism is in use here - souvenir shops, restaurants, nightclubs, entertainment complexes. But all this is a serious investment - to obtain a residence permit, it is enough to establish a company with a capital of 3 thousand €.
• Czech Republic: here you can get your own restaurant, brewery, printing company or, for example, massage parlor in the center of Prague. After the acquisition, the investor receives a residence permit, and after 5 years - permanent residence.
• Bulgaria: the most popular way of investing is investing in hotels. Education hotel business will not take much time, and the invested 500 thousand € will pay off in a few years of active work.

Sale of an overseas company

The case, as they say, did not go well, you see yourself in a different field of activity, or you are tired of everything and you want to return to your homeland - anything can cause the sale of assets abroad. But regardless of the reasons, we recommend following these tips:

1. Conduct an independent assessment of the company: the sale of the business should bring income, not losses. An independent assessment will allow you to see the real market value, justify it and defend it during negotiations.
2. Prepare before the sale: expand the customer base, improve financial statements, restructure debt, take inventory of assets, optimize workforce - this will increase the value.
3. Use the services of business brokers: intermediaries will save you from unnecessary hassle, negotiations with potential buyers and problems with paperwork.
4. Check if the authorized capital and shares of the founders have been paid. Make sure all shareholders are ready to sell their assets.
5. Maintain privacy. Do not talk about the identity of the buyer and the value of the transaction.

Business ideas that are not yet common in Russia and the CIS

Not news that the lion's share successful businesses in Russia, these are business ideas purchased under a franchise or simply stolen from Western colleagues. Take a look, perhaps among them there is an idea for you. In 2019 will be relevant:

• Production of paving slabs from tires. The production technology is simple: old car tires are converted into crumb rubber, a liquid rubber mass is produced by heating, which is poured into molds. The result is a durable and pretty paving stone. A wonderful family business - the payback will be 3-4 months.
• mobile hotels. A bus converted into a mobile hostel is a hit of 2019, especially for resort regions. In addition to all the amenities that the hotel provides, such a mobile home can itself come to the right place for guests. Payback - 1 holiday season.
• Mobile health food store. American company GMonkey has launched a chain of trucks selling delicious vegetarian meals to residents of Durham, Connecticut. Having proved that fast food can be not only tasty, but also healthy, the business founders paid back their investments within 1 year.
• Installation of color mats. Are there many flower vending machines in your city? Placed in crowded places, especially if there are no flower shops They will pay for themselves within six months. Of the benefits - a long shelf life of flowers, an automated sales process and a stir that will cause an outlandish machine among the inhabitants of your city.
• Toilet rental. British company ElizaJ rents comfortable and attractive portable toilets for outdoor activities. Flattering reviews from customers do not allow doubting the popularity of the service. In addition, the company is selling its franchise - perhaps you will become its first partner in the CIS.

Why not all good ideas take root in Russia

The Russian market is characterized by its specifics, so even seemingly good ideas from abroad can fail in Russia. What is it connected with? Let's look at a few obvious reasons:

• First, conservatism target audience. Russians are used to buying either cheap goods or goods from well-known and trusted brands. Anything new, even if it is of higher quality, does not arouse their interest.
• Secondly, it is low solvency. Not all Russians are ready to spend money on their hobbies and recreation, and therefore the entertainment industry works only for a wealthy client. New, even budget ideas, simply do not take root.
• Thirdly, business problems. Lack of access to credit money, corruption, administrative pressure, excessive bureaucratization. All this does not allow honest business to develop even with good ideas.

Conclusion

The culture of doing business abroad is fundamentally different from Russian realities, so a lot Russian businessmen trying to move assets abroad. The most cost-effective option is small and medium-sized businesses. Thanks to state support it not only bears fruit for the owners, but also becomes the locomotive of national economies.

The United States and European countries are the best in this matter: despite high taxes, they provide investors with the safety of investments and guarantee their unhindered withdrawal. At the same time, Russians are ready to invest not only in new enterprises, but also to buy ready-made businesses.

Where to blame entrepreneurs? Business development abroad. Dmitry Potapenko and Ugears: Video