| Recommendations - Cyprus is a member of the EU and is obliged to perform the respective functions of monitoring of financial and other operations. In this regard, one should not ignore the other compelling for the work jurisdictions. - As a rule, Ukrainian companies use services only of the corporate secretary and nominee directors in offshore jurisdictions. This is not enough for the full maintenance of the company and avoidance of problems with the authorities. It is very necessary to use services of a corporate lawyer and an auditor. These are small costs enabling to form the business correctly and predict risks of the business (e.g., related to a recent explanation of the tax authorities of Cyprus, leading to significant taxation, including for prior periods of activity of a company). - To optimize taxation, which is usually reduced to price manipulations in activity of companies in offshore jurisdictions, provisions of legislation in the field of intellectual property should be used. - When establishing a holding company, benefits of Cyprus (or any other jurisdiction which has an agreement on avoiding of double taxation with Ukraine) are used, as a rule. Other jurisdictions more convenient for the investor are ignored due to possible tax consequences (with a view to lack of agreement on avoidance of double taxation with Ukraine). This is a blunder. Other jurisdictions can also be used and placed in an order to help to avoid double taxation and to satisfy the investor. - The companies ignore risks connected with indirect (through nominee directors) possession of offshore companies. A guarantee to avoid this risk is using trust. Special service from L.I.Group “Offshore jurisdiction” |
