Establishing a company abroad
In many instances, establishing a company overseas is the best way for entrepreneurs to achieve their business goals, by allowing them to operate much more effectively than if the company was established in Israel.
Managing a business through establishing a company abroad serves a wide range of companies dealing with international trade, as well as company owners seeking to act in markets which do not hold formal trade relations with the State of Israel. Entrepreneurs active in over-regulated industries may also alleviate many hardships by establishing a company in another country.
Many countries, mostly smaller ones, are interested in promoting international business activity within their territories, and encourage so through by providing unique tax benefits to foreign investors, in exchange for establishing companies within their jurisdiction. The nature of these benefits varies from country to country, as is the case regarding reduced companies tax, tax exemptions on dividends and sometimes even exemptions from submitting annual reports to the authorities.
In order to establish a company in one of these countries (dubbed tax shelters), one must take numerous criteria into account:
• The tax rate for the desired activity
• Regulatory restrictions imposed on foreign investors
• Requirements regarding to the privacy of the company’s information
• The authorities' requirements regarding annual reports
• The degree of governance of the local currency and financial transactions
• Regional stability with regards to the government, security and political atmosphere
• Application of international tax treaties
• Required processes to establish and register a company, and expenses thereof
• The possibility of managing the company through trusts
• Yearly expenses and fees imposed upon establishing a company
Notwithstanding the negative connotations relating to tax shelters, it is important to note that operating in these countries is entirely legal and there are no restrictions whatsoever on establishing a company or bank account overseas. However, many countries and the Organisation for Economic Co-operation and Development (OECD) are attempting to decrease the attractiveness of off-shore companies by imposing various sanctions in order to keep investments in their own country.
Moshe Strugano & Co specializes in registering and establishing companies abroad, and provides its clients with comprehensive legal support in all matters pertaining to this subject matter. Years of experience in international business activities provided the firm with a high level of proficiency regarding legislative, tax and procedural arrangements surrounding the process of registering and establishing companies in various financial locations around the world. These and more are key factors in fulfilling the company's business goals to the fullest extent.
In addition, the firm provides its clients with a wide range of effective, creative and innovative solutions to legal and business issues arising during the process of establishing a company aboard, as well as constituting a “one-stop-shop” firm which provides across the border comprehensive services.
Legislative, tax and regulatory arrangements are likely to vary significantly from country to country, as well the country's attitudes and policies towards foreign entrepreneurs establishing business activities in their territory. Accordingly, the crucial decision of the destination in which the company will be establishes – which may be the most important factor in its success - should reflect the unique and personal business goals and interests of each client.
Moshe Strugano & Co accompanies its clients in this endeavor while tailoring a package of services and solutions to suit the business goals of each and every client. The legal facilitation provided by the firm includes the process of deciding whether to establish a company abroad, choosing the ideal destination to establish it in, through the actual registration and establishment of the company with the relevant authorities, to providing comprehensive legal counsel for any commercial matter in the company's day to day activities.