Foreign Companies
Do you have agents or distributors in the US?
Do you have businesses in the UK?
Do you want to form a successful business in Japan?
Do you want to hold assets in Bulgaria?
Hodorov Law Firm recommends on forming a foreign company.
Nowadays the commerce crosses borders, and the business man who market his product or service solely for the local market in his local country where he lives, actually limits himself greatly. The competition in the local market might great, and it is wise to find a market whereas there is almost no competition at all. The target market might be in small numbers (small country) comparing to other markets. The demand for the product of service is small in the local market. There are many reason to turn the business to be global.
Hodorov Law Firm incorporates international companies fast and on a daily basis. Forming a foreign company in most states is done by local contacts in the foreign states, which incorporate the company on your behalf.
Incorporate a Company in UK
UK has decided in June 28th 2016 to exit the European Union. This move is called "Brexit" as a combination of the words "Britain" and "Exit". Nevertheless there are many agreements to be formulated and executed before UK will exit the European Union conclusively, and as long as it is still in a status of member, it enjoys all the financial and commercial benefits that a member is eligible to. The agreements to depart from the Union could take years to formulate and execute.
forming a company in UK is the simplest, fastest and cheapest procedure to open a company in Europe. Nevertheless, there are a number of limitations which came into being in 2015 in a new act, named the "Small Business, Enterprise and Employment Act 2015". This act dictates that all details about the holders of the controlling interest shall be submitted to a special database to be made available to the public, an obligation which will affect the privacy of the shareholders. This is a very different legal situation than any that is known in the corporate world of today.
For further information about the special database, click here
Incorporate a Company in Bulgaria
Incorporate a company in Bulgaria is a very simple process. the incorporation does not require to invest any initial equity capital. Starting the company is a relatively cheap, very fast and popular.
A Bulgarian company will pay 10 % of corporate tax on all income.
Incorporate a Company in Cyprus
Cyprus is a small country, very close to Israel, and is also a member of the European Union. Add that to the warm character of the Cypriots, and you have a winning combination, making Cyprus a very popular target for international business and commercial activity.
Incorporate a Limited Liability Partnership (LLP) in Scotland
Scotland is a state under the sovereignty of UK, which is characterized by a unique legal entity in the EU - the Scottish Limited Liability Partnership. this legal entity is European from one hand, and it has "flow-through taxation". What is "flow-through taxation"? It means that instead of taxing the partnership (like companies are being taxed with corporate tax), the partners in the partnership are being taxed directly, and that is done according to whatever tax the should pay. For example, if Mr. Joseph and Mr. David are both residents of Turkey, and they are also partners in a Scottish Limited Liability Partnership, they would not pay any tax in Scotland, and also Mr. Joseph and Mr. David will not pay tax in Scotland, but in Turkey, and this is according to the tax that they should pay as individuals - each partner by his own individual tax! Nevertheless, the Scottish Limited Liability Partnership is a European legal entity for all intents and purposes, a trait which is relevant for certain activities such as opening a European bank account.
Incorporate a Company in USA
USA has a certain type of company which does not require to pay tax in USA at all - the type of company is LLC (a kind of inbreed between a company and a partnership) which all of its owners are foreigners, and of which the entire business activity is made outside the USA. This combination of conditions makes the US LLC free of tax obligations to USA.
Opening a company in USA is a very simple process, very fast and very cheap. There is no requirement to arrive to USA in order to incorporate a company in USA, and the corporate documents are issued in a matter of days.
Incorporate a Company in Germany
Hodorov Law Firm is knowledgeable and experienced in opening a company in Germany easily and quickly. There are a number of ways to open a company in Germany. The first kind of company is GmbH, which in essence is a the regular and popular western-world "LTD" company.
The small disadvantage for opening a GmbH company for small business is the requirement to invest an initial equity-capital of 20,000 EUR in the beginning. Nevertheless, this money is not "frozen" and it can be withdrawn after the company formation as a payment for the various expenditures of the company.
In order to solve the GmbH disadvantage, requiring to invest such an amount at the very beginning, a second type of company in Germany was born, and became popular, by the name of UG. This type of company does not require any initial equity capital, but it impose the company to allocate a quarter of its income for an equity capital, until that equity capital will grow and reach the sum of 20,000 EUR.
In order to form a company in Germany, one must arrive to the country and meet with legal agents which are working in collaboration with Hodorov Law Firm, and with full coordination with the entrepreneur who wishes to form the company.
Incorporate a Company in the Netherlands
The Netherlands, as opposed to Germany, does not require to invest a minimum of equity capital in the incorporation of the company, but one still needs to open a bank account for the share capital.
In order the form a company in the Netherlands, the board of directors must be comprises of at least 2 directors, and at least 50% of the directors should be residents of the Netherlands, in order for the company itself to be considered as a resident of the Netherlands which is capable of doing business in the Netherlands. If that ability is not important, there are no such requirements from the Netherlands company.
In addition, there is a requirement to rent a local address for which the company could receive letters from the state (obtainable by legal agents working in collaboration with Hodorov Law Firm).
Incorporate a Company in Japan
Incorporating a company in Japan is a long and complex but also very interesting process. in Japan there are two types of companies:
Kabushiki-Kaisha (LTD) - a Limited company;
Godo-Kaisha (LLC) - a Limited Liability Company (a kind of inbreed between a company and a partnership);
The most recommended company for usual business is the KK. This is because in the GK, if a shareholder would wand to sell his share in the company, he must have the agreement of all the rest of the shareholders. In addition, in the GK, the shareholders must also be the company managers, and this is a disadvantage over the KK. A further advantage of the KK is the ability to turn it into a public company (the shares of which will be traded in the exchange, as opposed to GK).
Forming a company in Japan requires a company-name, business purposes and the identity of the company's first directors.
Moreover, it requires a physical address of an office, rather than a mere postal box (this item is obtainable by legal agents working in collaboration with Hodorov Law Firm).
As of April 2015, the new company does not need to have a local director (i.e a Japanese director), and one can settle with a foreign resident with an appropriate business visa, or a local representative only. Hodorov Law Firm recommends to initiate, concurrently with the formation of the Japanese company, the process of obtaining a business visa, with which the entrepreneur can stay in Japan and run the company.
Due to its complexity, and the necessity to write the company's Articles of Incorporation ("Teikan") in Japanese, the timeframe to incorporate the company in Japan is one to two months. The legal process involves about 10 steps to incorporate the Japanese company.
In Japan the entrepreneur is required to invest a sum of 5 Million Yen (about 44,000 EUR) as equity-capital in the company's bank account in the formation of the Japanese company.
The Japanese company has to submit tax reports to the Japanese tax authority on a monthly basis. In Japan, the corporate tax is 30%. In addition there is a "resident tax" and other taxes which does not pass the 2%. Nevertheless, Japan is part of 58 tax treaties and therefore there is a big chance that taxes can be minimized or offset.
Incorporate an Offshore Company
An offshore is a country which does not impose taxes on a company which incorporated within its jurisdiction (a.k.a 'Tax Haven"). Usually they are small islands, but the definition is also relevant to "continental" countries, such as countries in Central America and Africa.
In these countries there is full privacy of the company's shareholders' identity, and in addition the company can be incorporated "at a distance" - there is no need to arrive to these countries in order to incorporate the company.
Hodorov Law Firm opens companies on demand in the following countries:
In the Caribbeans:
- Dominica
- British Anguilla
- British Virgin Islands - BVI
- St. Vincent
In the Pacific, Marshall Islands;
In Central America:
- Belize
- Costa Rica
- Panama
In Western Africa, Liberia;
Open a Bank Account in a Bank Situated in an Offshore
The advantages of opening a bank account in an offshore are clear - full privacy, absolute control of monies, secrecy about monies and financial investments, and of course safes for keeping assets such as securities, diamonds and other valuables.
Hodorov Law Firm opens bank accounts in the following islands:
- Cayman Islands;
- St. Lucia
- St. Vincent
- Belize
- Other tax havens according to the client's will.
It should be noted that Hodorov Law Firm works with strict policies of Anti Money Laundering / Combating the Financing of Terror.