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WHAT IS A TAX HAVEN ?

Tax havens are places that have a lot of tax advantages. The word « tax haven » is neither legal nor science. In comparison to a country’s 35 percent income tax, a nearby country’s tax rate is just 12 percent, making it like a tax shelter. Countries with no income tax, on the other hand, are clearly safer tax shelters than those with a 10% tax.

The most common understanding of tax havens is that a jurisdiction where a corporation (IBC or any kind of company) can be registered can be entirely tax-free as long as it does not do business in that country.

Some tax haven states have gone further. In some tax havens (such as the British Virgin Islands), all companies (whether domestic or overseas) have been exempted from corporate tax and income tax. Of course, even in tax haven countries, such companies should pay some fixed annual government fees in lieu of taxes.

A tax haven’s rules, policies, and precedents are typically structured to lure foreign developers and investors. Apart from the lack of taxation of commercial revenues, such appeals can also involve incredibly quick incorporation, easy registration process, absence of requirement to report financial statements to the government, absence of the need to publicly reveal personal details of owners and directors, and absence of any minimum payment capital required, flexible company regulations, developed financial system, exemption of foreign exchange control, simple accounting and bookkeeping requirements.

Therefore, a tax haven or « offshore financial center » (more formal term) is usually a country with a very attractive business environment designed to attract international business.

WHICH IS THE BEST COUNTRY FOR OFFSHORE COMPANY REGISTRATION?

There is no best offshore jurisdiction. There are more than 40 jurisdictions around the world that provide different scopes of financial and financial benefits for international business. Therefore, they are more or less eligible to become offshore tax havens.

The future location of your offshore company may depend on the following variables, such as its geographic location, language used, country’s prestige, type of legislation and judicial system, price of registration and management, speed of registration, type of business you are engaged in requires an offshore company, and of course the scope of services provided.

WHY ARE THE OFFSHORE JURISDICTIONS INTERESTED TO REGISTER TAX FREE COMPANIES ?

Most tax havens are small countries with small populations. Therefore, even a relatively small income can and does make a difference. When registering with the IBC, you only need to pay a government tax of US$100, and then the new IBC’s annual payment of US$100 is multiplied by the thousands of active offshore companies in the registry to turn into millions of dollars in budget income. And nothing has ever burdened the country’s infrastructure.
That’s just the tip of the iceberg. The influence of non-government is even greater. The total professional fees paid by all offshore companies to local registered agents, company managers and managers exceed government revenue. In addition, offshore funds are settled in offshore banks, insurance companies and investment funds.
All in all, like Belize, the successful offshore financial industry provides many people with jobs, career opportunities and income. In many countries, offshore service industry has actually lifted the country out of desperate poverty and entered the developed world. The offshore service industry has created a demand for high-quality telecommunications, office space, computer equipment, business software, office furniture and various business supplies. Ultimately, all offshore income is filtered to all other areas of the economy.
The result is that the country’s overall prosperity and social stability have greatly increased. In turn, this enhances the country’s independence-especially its ability to withstand economic and political pressure from foreign governments.

IT IS LEGAL TO OWN AN OFFSHORE COMPANY?

Yes, it is. Owning shares in an offshore company directly or indirectly is no different from owning a domestic commercial company. Of course, you should consider entering offshore business and some appropriate suggestions.
Many high-tax countries have some countermeasures in their tax rules for offshore financial centers. In particular, some governments impose differentiated withholding taxes or fines on income directly paid from certain domestic companies to companies in certain offshore countries/regions.
Therefore, it is best to check if your country has any type of « offshore blacklist » or any discriminatory rules for dealing with offshore companies.
A qualified tax consultant or accountant at home should be able to clarify this issue. An offshore company is the same as any domestic company, except that the offshore company does not bear too much tax burden, does not require any start-up capital, and is easier to form and manage. Your tax officer wants you to believe in other circumstances, but strictly speaking, there is no law prohibiting the ownership of an offshore company.

THERE SEEM TO BE DIFFERENT TYPES OF OFFSHORE COMPANIES - WHICH ARE THE BEST ?

The main advantages are:
– No or very low taxation of profits and capital gains
– Confidentiality, no personal information is recorded in public files
– Asset Protection
– Flexibility of the company: no paid-in capital, no need to announce business objects, minimum requirements for directors and shareholders, rapid establishment, etc… Company’s decision-making process is extremely flexible;
– Minimal reports: no public review, no financial reports, no tax returns, and no financial information. All in all-streamlined, despicable international business machine…

WHAT ARE THE ADVANTAGES OF USING AN OFFSHORE COMPANY?

Offshore companies only have different names in different places. The most popular name is IBC-International Business Corporation. Other names you may come across are non-resident companies, exempt companies, special permission companies, international companies or commercial companies for short. In Belize, the main type of offshore company is IBC (International Business Company). Regardless of the name, all these entities are legal entities, or « legal persons » in legal terms, and their tax benefits are included in the actual laws of the country in which they are registered. Sometimes, as was the case with the recent rename of the BVI Commercial Company, the well-known name will not be exactly what you can find in the law. The most popular name for offshore companies is IBC-International Business Corporation.

FOR HOW LONG WILL OFFSHORE COMPANIES CONTINUE TO EXIST ?

Despite the political and economic pressure exerted by « big countries » (EU, US, Australia, Canada, China, Russia) and some notorious organizations (such as the OECD and the Financial Action Task Force), a large number of merchants all over the world vote with their wallets and choose to merge their businesses overseas. In fact, every wealthy person usually puts part of his assets abroad. As a result, the offshore has penetrated all aspects of the global economy. Offshore companies and offshore accounts have a lot of wealth and are still growing. The « critical mass » of global offshore wealth was created long ago and is growing every day.

FOR HOW LONG WILL OFFSHORE COMPANIES CONTINUES TO EXIST ?

Although most offshore tax havens do not need to submit any financial records formally, they still have some basic requirements for bookkeeping and record keeping of international business companies. Such requirements are usually very simple and easy to comply with. They would rather reflect what a reasonable offshore company owner would reserve for his company even if the law does not require it.
In general, proper records can reassure company owners. This aspect is particularly important when an offshore company is owned by several people.

Is THERE ANY DIFFERENCE BETWEEN A DOMESTIC COMPANY AND AN OFFSHORE COMPANY ?

In terms of internal composition, there isn’t much of a distinction! An offshore corporation is a legal entity (company) that is licensed only outside of the country/region where the beneficial owner’s domicile is based. However, the word « offshore » has traditionally been synonymous with a business. It is not only founded outside of its owner’s home world, but it also enjoys a variety of advantages that are not entirely domestic. Domestic businesses must pay income tax (which can be very high), while foreign businesses are tax-free.

WHY ARE CERTAIN TERMS IN THE OFFSHORE COMPANY'S NAME PROHIBITED ?

If you want to use the IBC name for banking, insurance, reinsurance, trust, registered agent services, asset management and other activities, you need to obtain specific approval first. You can use restricted activity terms, but only through pre-licensed procedures for specific activities. For example, to use the word « bank » in your IBC name, you must first apply for a bank license from the Central Bank of Belize. Not easy, but it can be done.

Another type of restricted words are those that mislead the official sponsorship or connection with the Republic of Belize or the Belize government or any other country or its government for similar sponsorship. The final decision to approve all such sensitive names belongs to the Companies Registry. If there are sufficient logical or commercial reasons, the Companies Registry may allow the establishment of an IBC with a « sensitive » name.

The third set of restricted words is open-ended and is largely determined by the International Business Companies Registry. Any obscene words or expressions will be rejected. Names that are suspected of being copied or that are too similar to existing company names will be rejected. In short, the name restriction here is to protect the public from misleading.

DOES THE INTERNATIONAL BUSINESS COMPANY NEED TO HAVE AN INITIAL LUMP-SUM OF CAPITAL ?

No. Belize IBC has no minimum paid-up capital requirements. The owner of the intermediate bulk container can freely decide the amount of legal capital to be stated in the establishment document of the intermediate bulk container. In addition, the owner of the intermediate bulk container can decide to subscribe and pay up only part of the legal capital, while the rest remains unissued and unpaid. The law also does not stipulate a deadline for when the legal capital must be paid in. This is determined by the shareholders. Like many other offshore financial centers, Belize also recognizes that private companies can conduct business with any capital or no capital at all. For all legal and practical reasons, this is true-you can start an IBC in Belize with only one dollar of capital

WHAT IS THE CURRENCY OF CAPITAL FOR AN INTERNATIONAL BUSINESS COMPANY ?

Any currency can be used to denominate and issue Belize IBC shares. The US dollar is the most often used capital currency and it is also the currency used to measure IBC’s government license fees. IBC shares in Belize can also be denominated in several currencies at the same time.

IS iT A REQUIREMENT FOR AN IBC TO SET UP A FULLY OPERATIONAL OFFICE IN BELIZE ?

No. The only mandatory legal requirement is to have a « minimum mandatory representation system » in the country/region. This can be solved by having a registered office and registered agent in Belize. This service is usually provided by Bolster (as a licensed registration agent) for all international business companies that we register and maintain for our clients. If your business situation requires it, you can provide several optional services for offshore companies, such as mail and fax forwarding, document re-mailing, and phone processing. These services provide your IBC with a more « brick » appearance. However, by definition, IBC should not conduct business locally except for business transactions with other IBCs. Simply put, Belize IBC may not sell anything to Belizeans. However, Belize IBC may still do several things in Belize without infringing on its status as a tax-exempt company. In other words, IBC can own and operate bank accounts in Belize, and maintain professional relationships with lawyers, barristers, accountants, bookkeepers, trust companies, administrative companies, investment consultants or other similar personnel who conduct business in Belize. Belize prepares or maintains books and records internally. Belize holds board meetings or member meetings in Belize, rents an office space in Belize for communication and record keeping, and it can also own ships registered in Belize.

MAY I BE THE ONLY SHAREHOLDER AND ALSO SERV AS DIRECTOR OF MY IBC ?

Yes, of course you can – although this may not be the best configuration for tax optimization purposes.

WHAT IS THE CURRENCY OF CAPITAL FOR AN INTERNATIONAL BUSINESS COMPANY ?

Any currency can be used to denominate and issue Belize IBC shares. The US dollar is the most often used capital currency and it is also the currency used to measure IBC’s government license fees. IBC shares in Belize can also be denominated in several currencies at the same time.

MAY I HAVE ANOTHER COMPANY HOLDING SHARES IN MY OFFSHORE COMPANY ?

Yes, company shareholders are allowed to participate. Company directors are also allowed.

WHAT IS THE PURPOSE OF THE NOMINEE DIRECTOR ?

The main purpose of using nominee directors is to prevent the public from knowing that there is a direct relationship between the beneficial owner and the offshore company. Hiring nominee directors or nominee managers in an offshore company helps avoid the implicit meaning of the beneficial owner’s tight control and operation of a particular offshore company (the concept of « management and control »). Therefore, in essence, the main purpose of nominating directors is to protect the confidentiality of customers.

Nominee directors can perform various management functions, otherwise they will need to be performed by the beneficial owner or someone directly related to them. The actual participation of the nominee in the daily affairs of the offshore company may vary according to the needs and circumstances of the owner. Generally, the more the nominee participates in the daily management of IBC, the more expensive this service is for offshore companies. As the name suggests, the participation of nominees is often (but not always) nominal. In this case, all the actual functions of the company’s regular management are usually performed by the company owner and act as the « representative » of the IBC according to the authorization letter. For more information on this topic, please refer to the « Company Management » chapter.

WHAT IS A CERTIFICATE OF GOOD STANDING?

The Certificate of Good Reputation (CGS) is an official document issued by the company registrar. CGS confirms that a specific company legally exists, has complied with all management requirements for its existence in a formal registration agency, has performed all government duties, and has paid taxes payable in accordance with the « Income and Business Tax Law ». Therefore, since the date of issuance Relative to the « good reputation » of the company registry. In terms of form and content, a good reputation certificate is usually similar to an IBC’s initial establishment certificate.

A good reputation certificate is used to formally confirm whether an offshore company has continued to exist legally after it has been in operation for a period of time. CGS confirmed that the status of an independent legal person (legal person) has not been revoked and is not invalid for a specific offshore company. The company has not merged with another company, has not applied for dissolution, and has not been revoked and delisted.

Most banks will regularly ask for new creditworthy certificates from offshore companies that have accounts in their books. As long as the IBC is more than one year old, this requirement is a standard procedure. Any other party (for example, a potential business partner) can ask CGS to ensure that your own company legally exists. You can request and obtain a good reputation certificate from the company registry as needed. This is a standard service provided by a registered agent. Since the certificate of good reputation is basically a « snapshot » of the company’s legal health at a specific moment, it is meaningless to order CGS in advance without special needs.

If, over time, the offshore company does not receive proper maintenance or fails to pay the renewal fee, it will lose its good reputation and will eventually be removed from the registry. For such companies, of course, the « Certificate of Good Reputation » will be issued only after paying all overdue fees and restoring a good company status. It is possible to restore a « bad » company, but it is costly and takes some time.

Some beneficial owners of offshore companies usually ask for a certificate of good standing for their own company, so as to check whether their registered agent has completed the work of maintaining the good reputation of IBC. This is a good management habit, and we only encourage it.

CAN ANYONE REGISTER A COMPANY IN CYPRUS OF ARE THERE RESTRICTIONS?

There aren’t any such limitations. Anyone, regardless of nationality, residence country, or other circumstances, may register a business in Cyprus. The owner of a Cyprus-registered business does not have to be a Cypriot citizen.

HOW LONG DOES IT TAKE TO REGISTER A COMPANY ?

When using the expedited procedure, the name of the company is usually accepted by the Companies Registrar in around a week. It takes about 5 working days from the time the name is accepted to the time the company is registered.

WHAT ARE THE DIFFERENT TYPES OF COMPANIES I CAN REGISTER ?

Companies come in a range of shapes and sizes. This includes a company with limited liability by shares, a company with limited liability by guarantee, a foreign company’s branch, a Societa Europea, and a foreign company’s re-domiciliation. The most popular form of company is a private limited liability company.

CAN MY COMPANY HAVE ANY LINE OF BUSINESS WHATSOEVER ?

Any currency can be used to denominate and issue Belize IBC shares. The US dollar is the most often used capital currency and it is also the currency used to measure IBC’s government license fees. IBC shares in Belize can also be denominated in several currencies at the same time

IS IT A REQUIREMENT FOR AN IBC TO SET UP A FULLY OPERATIONAL OFFICE IN BELIZE?

A typical company’s Memorandum and Articles of Association would enable it to provide a broad range of services. Certain financial services and operations, on the other hand, are restricted and require a license from the Cyprus Securities and Exchange Committee or other regulatory bodies. A Forex business, for example, requires a license.

CAN THE SAME PERSON BE A SHAREHOLDER AND DIRECTOR OF THE SAME COMPANY?

Yes, indeed. Any individual may be a company’s Director and Shareholder at the same time.

WHAT IS THE MINIMUM 'SHARE CAPITAL' OF A CYPRUS COMPANY?

Cyprus law does not enforce a minimum share capital obligation. The majority of small businesses have a capital share of 1000-2000 euros. Capital Share is also higher in larger businesses.

OES THE SHARE CAPITAL HAVE TO BE PAID?

The Provided Share Capital must be deposited into the company’s bank account and used exclusively for business purposes.

IS THE IDENTITY OF THE ULTIMATE BENEFICIAL OWNER OF THE COMPANY PROTECTED?

Except for the bank in which the company will have a bank account, the law firm or other service provider who assists with the management of the company will not disclose the identity of the beneficial owner of the company to others.

CAN A COMPANY REGISTERED IN CYPRUS OPEN A BANK ACCOUNT ABROAD?

Yes, indeed. A Cyprus-based corporation can open a bank account anywhere in the world.

DOES THE BENEFICIAL OWNER OF THE COMPANY HAVE TO COME TO CYPRUS TO OPEN A BANK ACCOUNT IN CYPRUS?

No, it’s not true. Many law firms and other service providers act as competent intermediaries for different banks and can handle the process without the intervention of the company’s owner. Furthermore, bank introducers have the authority to certify the documents that the bank needs before opening a bank account as true copies.

CAN THE ULTIMATE BENEFICIAL OWNER OF THE COMPANY MANAGE SOME OF THE AFFAIRS OF THE COMPANY ON HIS OWN WITHOUT THE CONSTANT SUPPORT OF THE NOMINEE DIRECTORS?

Yes, indeed. A Power of Attorney may be granted by the corporation to the beneficial owner, allowing him or her to open bank accounts, carry out the company’s business operations, enter into contracts, and so on.

WHAT ARE THE RESPONSIBILITIES OF A COMPANY REGISTERED IN CYPRUS?

Within 60 days of incorporation, a Cyprus company must file with the tax authorities. Audited financial statements are also required by the Companies Registrar and the Inland Revenue Department. In addition, every year, any company must pay a tax of 350 euros to the Companies Registrar. Any corporation must hold Annual General Meetings and file an Annual Return of financial statements with the Registrar of Companies.

MAY NON-HONG KONG RESIDENTS INCORPORATE A LOCAL LIMITED COMPANY IN HONG KONG?

Yes, it is. Non-Hong Kong residents can establish a local limited company in Hong Kong.

THERE ANY REQUIREMENT ON THE MINIMUM AMOUNT OF PAID-UP CAPITAL UPON APPLICATION FOR INCORPORATION OR COMMENCEMENT OF BUSINESS?

The Companies Ordinance does not stipulate minimum requirements for minimum share capital. A local stock limited liability company shall consist of at least one founder member owning at least one share of the company.

IS THERE ANY REQUIREMENT ON THE AMOUNT OF NOMINAL SHARE CAPITAL AND THE NUMBER OF FOUNDER MEMBERS OF A LOCAL COMPANY LIMITED BY SHARES?

According to the Companies Regulations, there is no requirement for the minimum amount of paid-in capital of a company.

CAN THE REGISTERED OFFICE OF A LOCAL LIMITED COMPANY BE SITUATED OUTSIDE HONG KONG?

Not possible. The registered office must be located in Hong Kong.

CAN A SOLE DIRECTOR OF THE COMPANY ACT AS THE SECRETARY TOO?

Section 154(1B) of the Companies Ordinance expressly prohibits the sole director from acting as secretary. In addition, Article 154(4) of the Companies Ordinance stipulates that if the sole director of the corporate secretary is also the sole director of the company, a private company cannot appoint a corporate secretary.

HOW TO MAINTAIN A HONG KONG LIMITED COMPANY? SHOULD I FILE ANY DOCUMENTS TO THE GOVERNMENT?

A local private company with share capital should submit an annual return every calendar year (except the year of company establishment) within 42 days after the anniversary of the company’s establishment date. For other local companies, the annual return should be submitted within 42 days from the date of the annual general meeting (AGM) or within 42 days after the written resolution passed in place of the annual general meeting. The audited and verified copy should be submitted to the account opened at the annual general meeting. Non-Hong Kong companies should submit annual returns within 42 days after each anniversary date of the company’s registration under Part XI of the Companies Ordinance.

WHAT ARE THE CONSEQUENCES OF LATE FILING OF AN ANNUAL RETURN?

Local companies and non-Hong Kong companies with share capital must pay higher registration fees in order to be late in submitting annual returns. Please pay attention to the registration fee for late submission of the annual return. In addition, companies that fail to submit annual returns or fail to file annual returns may be prosecuted and, if convicted, should pay fines imposed by the court.

HAVE I DONE MY JOB IF I FILE AN ANNUAL RETURN FOR MY COMPANY ON TIME EVERY YEAR?

In addition to submitting annual returns, registered companies must also submit other statutory documents to the Companies Registry for registration in accordance with the various provisions of the Companies Ordinance. The company and its directors, secretary or manager must ensure strict compliance with the Companies Ordinance when submitting statutory returns to the Companies Registry.

WHAT ARE THE NEW REQUIREMENTS OF THE COMPANIES ORDINANCE 2018?

According to the Companies Ordinance (ie the Amendment Ordinance), all companies incorporated in Hong Kong must: • Identify and determine who has/has significant control over the company. • Maintain an important register of controllers so that law enforcement officers can visit as needed. Except for listed companies.

IS A REGISTERED NON-HONG KONG COMPANY UNDER THE COMPANIES ORDINANCE REQUIRED TO KEEP A SIGNIFICANT CONTROLLER REGISTER IN HONG KONG?

According to Article 16 of the Companies Ordinance (Chapter 622), if a company is a registered non-Hong Kong company, it does not need to maintain an important controller registration in Hong Kong. Only local companies established and registered under the Companies Ordinance or the old Companies Ordinance need to maintain an important register of controllers.

WHO OR WHAT ENTITY QUALIFIES TO BE A SIGNIFICANT CONTROLLER?

In the following situations:
• A natural person who has significant control over the company is a person who can be registered.
• Registrable legal entities, such as shareholders who have significant control over the company, that is, shareholders of the company, may be eligible.

WHAT MAKES A PERSON HAVE SIGNIFICANT CONTROL OVER A COMPANY?

When one or more of the conditions are met:

The person directly or indirectly holds more than 25% of the company’s issued shares, or, if the company has no share capital,
the person directly or indirectly holds more than 25% of the company’s capital or profits.The person directly or indirectly owns more than 25% of the voting rights of the company.

• The person directly or indirectly has the right to appoint or remove a majority of the company’s board of directors.

• The person has the right to exercise or actually exercise significant influence or control over the company.

• The person has the right to exercise or actually exercise significant influence or control over the activities of a trust or company whose trustee or member meets any of the first four conditions related to the company.

WHAT ARE THE CONTENTS OF SIGNIFICANT CONTROLLERS REGISTER?

For a significant controller, the particulars required are:

• Name

• For the registerable person, provide the correspondence address, ID number (if the person does not have an ID card, passport number and issuing country); for a registered legal entity (such as a company), its legal form, registration number, and place of establishment (Applicable law) and the address of the registered office

• Date of becoming an important controller• The nature of company control

IS IT NECESSARY FOR A COMPANY TO KEEP A SIGNIFICANT CONTROLLER REGISTER IF IT HAS NO SIGNIFICANT CONTROLLER?

Yes it is. If the company knows that it does not have an important controller, it must state this fact in the important controller register.

WHAT IS A DESIGNATED REPRESENTATIVE?

The company must appoint at least one representative as its representative to provide law enforcement officials with assistance in the registration of important controllers of the company.

WHO MAY BE A DESIGNATED REPRESENTATIVE?

The company’s designated representative must be a shareholder, director or employee of the company (the person is a natural person in Hong Kong), or an accounting professional, a legal professional, or a service provider licensed to engage in trust or company business.

WHY CHOOSE FORMATION AS A MALAYSIA PRIVATE LIMITED COMPANY (SDN BHD) ?

In Malaysia, the most common business entity is a private limited company. Its legal status is distinct from that of its owners. Directors are only partly responsible for the company’s debts and losses. The words « Sdn Bhd » are generally included in the name.

WHAT IS THE INCORPORATION PROCEDURES ?

1. Complete the Online Incorporation Form / Email us the necessary details [proposed company names, main business activities of the new company setup, photocopy of all directors & shareholders I/C or passport, most recent residential addresses of all directors with proof of address such as utilities] (if different from IC), data on paid-up capital (minimum RM2; maximum RM2,500), percentage of each shareholder’s shareholding].

2. We’ll verify the company name’s availability and get back to you within 24 hours.

3. We will email you our payment quote once we have received the details and verified the name. The business name will be reserved at your request upon receipt of payment.We will prepare the complete collection of registration documents once SSM has approved the name.

4. All directors and shareholders sign papersWe will continue to incorporate the business with the Malaysian Companies Commission once all of the documents have been signed (SSM).

7. SSM issues a Notice of Incorporation.

8. We will contact you all necessary documentation for records once the business has been incorporated.

WHAT ARE THE REQUIREMENTS TO INCORPORATE A PRIVATE LIMITED COMPANY?

The following are the prerequisites for forming a private limited company (identified by the words ‘Sendirian Berhad’ or ‘Sdn. Bhd.’ appearing alongside the company name):
1. A minimum of one subscriber to the company’s securities (Section 14 CA);

2. a minimum of one resident director (Section 122); and a minimum of one resident director (Section 122).

3.A company secretary who is either

* a member of a professional body prescribed by the Minister of Domestic Trade, Cooperatives, and Consumerism; or a person who is not a member of a professional body prescribed by the Minister of Domestic Trade, Cooperatives, and Consumerism.

* A person who has been granted a license by the Malaysian Companies Commission (SSM)

WHAT IS THE INFORMATION REQUIRED FOR INCORPORATION?

1. Proposed company names

2. Principal business activities of the new company setup

3. Photocopy of all directors’ & shareholders’ I/C or Passport

4. Both directors’ current residential addresses, along with proof of address such as utility bills (if different from IC)

5. Data on paid-up capital (min RM1 or max RM2,500)

6. Percentage of each shareholder’s shareholding.

HOW LONG DOES IT TAKE TO INCORPORATE A PRIVATE LIMITED COMPANY IN MALAYSIA?

The entire incorporation process will take 5-10 working days from the date that directors and shareholders sign the incorporation documents.Please bear in mind that the timetable for integration is highly dependent on the quality and completeness of data and records, as well as the availability and stability of SSM’s MyCoID online system.

ONCE A MALAYSIA COMPANY HAS BEEN INCORPORATED, WHAT ARE THE POST INCORPORATION ISSUES NEED TO BE CONSIDERED?

You can immediately begin your business activities after your Malaysia company has been established. If any of the following apply to you, you can need to do any or all of the following:Open a bank account.If your company needs one or more licenses, you can need to first acquire the requisite licenses before starting up.If applicable, register for the Goods and Services Tax (GST). If your annual turnover exceeds RM500,000, GST registration is not necessary. If you like, we will assist you in registering for GST.You must open an account with the Jobs Provident Fund if you intend to recruit local staff (Malaysians and/or permanent residents) (EPF) As part of their retirement fund, a share of local workers’ wages will be paid to the EPF Board on a monthly basis. Please visit the EPF web portal for more information. If necessary, we will assist you in setting up your company’s EPF account and managing your employees’ payroll.You must select a fiscal year end for your company, which can be any date within 18 months of the date of incorporation. According to Malaysia accounting principles, you must keep track of your profits and expenditures (bookkeeping). We may provide bookkeeping services on a weekly, monthly, quarterly, or annual accounting basis, depending on the number of transactions.

WHAT ARE THE PROHIBITED WORDS CAN’T BE USED FOR THE COMPANY NAME?

The following are the basic concepts and features of names that can be used as a business name:Names must be written in the proper language and spellingIf a name includes words that are not in Malay or English, the meaning of those words must be given.Names that are neither blasphemous nor likely to offend the general publicNames that don’t have any religious connotationsSuch names that aren’t too generic, such as « Attempt Bhd. » or « Beautiful Sdn. Bhd. »Person names shall be taken from the directors’ names as mentioned in the Memorandum or Articles of Association. Individual names, on the other hand, may be considered if they are taken from the director’s or promoter’s immediate family, such as the names of children, father, wife, grandfather, or grandmother. It is important to have proof of family ties. If the company’s name is derived from an individual name of an established group of companies, a consent letter from the group of companies with such individual names is required.

WHAT ARE THE COMMON REASONS THAT THE PROPOSED NAME APPLICATION WILL BE REJECTED BY SSM?

The proposed company name is identical to those already in use, which can create public confusion (unless a consent letter are granted).The proposed company’s name is identical to the previous name of an established company, which may cause public representatives to become confused.The name of the proposed company is forbidden by the Companies Act of 1965 or any other related Acts.The proposed company name, for example, Ekor Ayam Sdn Bhd, is not appropriate for use as a company name.

WHAT IS SSM AND CCM?

Suruhanjaya Syarikat Malaysia (SSM) is the Malay word for the Malaysian Companies Commission (CCM). They operate as a government agency that incorporates and registers companies, as well as providing public access to company and business information.

WHAT IS BUSINESS LICENSE REQUIREMENTS IN MALAYSIA?

Businesses must comply with some sort of licensing before they can legally begin operating, which may be a general license, an industry/sector specific license, or an operation specific license. Legislation mandates the issuance of business licenses, which are regulated by a variety of federal departments, legislative bodies, and local governments. Registrations and permits are all part of a business license. Industry, market operation, and location all have different enforcement criteria.Business licenses can be divided into three categories based on their function:

(1) Licenses in general

(2) Industry-specific licenses

(3) Licenses for specific activities

WHAT INFORMATION IS NEEDED FOR BANK ACCOUNT OPENING

Multiple banks will have different conditions for opening a bank account, and certain banks will also require you to visit their physical location before approving your application.

You should go to the bank to learn about the conditions and procedures for opening a bank account. Please provide us with the following details so that we can assist you in preparing the resolution for the bank account opening:

The name, branch, and address of the bank

Account form – for example, current account, internet banking, foreign currency account, and so on.

Opening Account Resolution Sample/Format as given by the bank

Bank’s preferred legislative forms and the number of copies needed (e.g. Form 24, Form 49, Memorandum and Articles of Association and etc.)

Approved signatories’ information (IC name, IC number, and designation (if not a Company Director))

Operating mode (solely or jointly or etc.)

WHEN THE NEW COMPANY CAN PROCEED WITH BANK ACCOUNT OPENING

After the business has been successfully incorporated (SSM has issued Form 9), you can submit an application for a bank account, along with all the required documentation (such as a resolution for bank account opening, approved true copy of the authorizers’ IC/passport, statutory forms – M&A, Form 9, Form 24, Form 49, and so on).

Some banks accept pre-incorporation submission of application forms and verification of approved signatories to speed up bank account opening. Please talk with your banker(s) about this.

CAN OPEN BANK ACCOUNT WITHOUT A PHYSICAL PRESENCE IN MALAYSIA AND HOW LONG DOES IT TAKE?

In general, Malaysian banks require all directors/authorized signatories to be physically present in Malaysia for the signing of official documents at the time of account opening.

Some banks, on the other hand, will approve documents signed in person at one of their international branches or witnessed by a notary public. Furthermore, On a case-by-case basis, banks can request additional documents.

Be aware that all Malaysian banks must adhere to strict laws and regulations. Before opening a new account with a company, they will perform a thorough series of checks and inquiries on their potential clients. This is a part of their regulatory enforcement and strict anti-money-laundering policies, as well as a way to minimize their risks in the event of a possible default. As a result, a business that engages in illegal activities would find it difficult to engage in such transactions.

To prevent any delays, we strongly advise our clients to be present in Malaysia when opening a bank account. Before approving a bank account, a bank reserves the right to require the beneficial owner to be physically present.

WHAT TYPES OF BUSINESS ENTITIES ARE AVAILABLE TO OPEN IN OMAN?

Limited Liability Company (LLC) is the best way to explore if you want to set up a legal company that allows you to trade with limited constraints, hire your own staff, and have a bank account in Oman.

Free zone (FZE) is a good choice alos for companies who only need a few trading opportunities in Oman. There are four free zones in all.

Branch office. When supplying a particular government contract, a foreign firm may open a branch office. Under this setting, no other business can be conducted.

Representative Trade office. The office will encourage and advertise their products’ selling and/or production in Oman, as well as facilitate contracts.

DO I NEED AN ENTITY IF I PARTNER HAVE A DISTRIBUTOR AGREEMENT WITH A LOCAL OMANI COMPANY?

You don’t have to. It’s a good idea to choose your supplier carefully and get your legal framework drawn up by a tier one or two national or foreign lawyer.

WHAT ARE THE REQUIREMENTS TO SETUP AN LLC IN OMAN?

Individual shareholder
a. Passport copy
b. Bank statements to prove you have funds to setup an LLC
c. Police clearance certificate from home country or country of residence
Corporate Shareholder
a. Commercial registration certificate/Certificate of incorporation
b. Memorandum (MoA) and Articles of Association (AoA)
c. List of shareholders and directors from the international investor (officers’ certificate or similar)
d. Shareholders/Board Resolution
e. Audited accounts (latest)
f. Bank Statements x 6 months prior to incorporation
g. Constitutive contract of NEWCO (i.e. Articles of Association)
h. Authorized Signatories’ document

WHAT ARE THE BENEFITS OF SETTING UP IN A FREE ZONE?

100% foreign ownership (minimum two shareholders)

10-30 years tax free on profits and dividends

No customs dutiesNo restrictions on sales within the GCC;a standard 5 per cent GCC customs duty applies

No restrictions on the repatriation of capital or profits

No customs duties

No minimum capital requirements

Competitive labour and utilities costs

DO I REQUIRE A SPONSOR IF I SET UP A BUSINESS ENTITY?

For most sectors you do not need a sponsor for any entity for a Freezone.

HOW LONG TO SETUP AN LLC IN OMAN?

There are several uncertain factors that make sticking to total schedules impossible.Our experience shows that after the investor has submitted all of the necessary paperwork, the whole process could take four to six weeks.

HOW MUCH IS IT TO SET A COMPANY IN OMAN?

This completely depends on your business activity, your nationality, whether you set up a LLC or a free zone LLC.

HOW DO I GET A WORK OR INVESTMENT VISA?

Before you can get your visas, you must clear a series of barriers and procedures.

A Public Relations Officer, or PRO, is expected by any organization in Oman.

PROs are in charge of handling governmental records and papers in various government departments, such as passport applications, job cards, and business registration reports and approvals.

WHEN CAN I OPEN A BANK ACCOUNT?

Oman’s banks are very strictly regulated, and you will need to go through the hoops before opening an account.Whilst some banks are more flexible than others, there are strict processes and procedures to achieve before a person can open an account.
Contact us for more details.

DO I NEED TO LEASE A WORKPLACE (OFFICE, WAREHOUSE ETC) TO SET UP A TRADING COMPANY?

Once you’ve licensed your business with the ministry of commerce and industry and the chamber of commerce, this is the first mandatory condition.

DO GCC COUNTRIES HAVE ANY BENEFITS OF OPENING AN LLC IN OMAN?

GCC nationals and corporations had no extra incentives as a result of the new adoption of 100 percent control of LLCs for all countries (Jan 2020).

WHAT TYPES OF COMPANY WILL BE SET UP?

An international business company is a company registered under the International Companies Act 2016 (Seychelles). The company type can be a private limited company (Pte Ltd) or a limited liability company (LLC).

TIME FRAME AND QUOTATION OF THE INCORPORATION PROCESS?

As soon as we receive all the documents and payment, the registration process only takes 3-4 days.You just need to submit 2 types of documents:

Scan in Color of Passport

Scan of Address Proof in English (Utility Bill, Bank Statement,…)

WHAT ABOUT THE FILING OF ACCOUNTS?

There is no need to archive any accounts, but accounting records must be kept.

WHAT CONFIDENTIALITY IS GRANTED TO AN IBC?

The information of the beneficial owner of IBC must be disclosed but it will never be disclosed. No one can find your confidential information

WHERE SHOULD THE OFFSHORE COMPANY OPEN A BANK ACCOUNT?

The Seychelles is a small island in the Indian Ocean and the capital and national administrative center are located on the largest island of Mahe. Since the country gained independence and privacy, the jurisdiction has been opening up many types of businesses, especially the financial services industry. Opening a bank account for your Seychelles is a convenient and beneficial solution for international businesses.

Our experienced bank executives can assist you in opening bank accounts in existing banks and remote banks and provide tailor-made banking service support according to your needs. The banks we recommend are characterized by high transaction and payment efficiency. Remote account application can be performed through all modern communication methods.

WHAT IS THE TIMEFRAME FOR AN OFFSHORE BANK ACCOUNT OPENING?

When the bank gets the completed application papers, the clock begins ticking. A large number of records and details from the beneficial owner are included in the application documents. We have no control about how long consumers take to fill out paperwork to receive a limited number of due diligence papers.

It will take anywhere from a few days to several months from the moment the file is deposited in the bank before the bank sends an acceptance or denial notice. Bankers can ask new customers to provide instructions or other documentation in certain situations. The timer would apparently stop before the requested information or files are given.

IF I USE A NOMINEE DIRECTOR, HOW CAN I CONTROL AND OPERATE THE BANK ACCOUNT IN SEYCHELLES?

The beneficial owner’s arrangement with the technical director is regulated by the standard Terms & Conditions of Business and, if applicable, a more detailed client-manager agreement.

The process of transferring any orders and details from the customer to the manager, as well as the fact that the account signatory shall never act on his own without the explicit permission of the beneficial owner, will all be decided by such an arrangement.

Since you are the only source of guidance to the Director, and the Director would remain inactive in the absence of those instructions, you are the sole person in possession of the account.

WHAT TYPE OF LOCAL REGISTERED ADDRESS IS REQUIRED TO OPEN A COMPANY IN SINGAPORE?

One of the bare minimums for establishing a business in Singapore is getting a local registered address. The registered address must be a physical address in Singapore, not just a PO Box (PO Box).

Under the Home Office Scheme, residential addresses can be used as a Corporate address. To use residential premises (owned or rented) for home office purposes, prior permission from the Housing Development Board (for HDB flats) or the Urban Regeneration Authority (for private properties) is required.

DO I NEED TO INVEST S$50,000 FOR REGISTERING MY BUSINESS IN SINGAPORE?

Only foreigners who wish to move to Singapore under the Singapore Entrepreneur Pass scheme to run their newly founded Singapore business must invest a minimum of S$50,000 in paid-up capital at the time of company creation. Entrepreneurs in the area (i.e Singapore citizens and Singapore Permanent Residents) International entrepreneurs who are relocating to Singapore under the Singapore Employment Pass scheme do not need to spend S$50,000 to register their business. The only minimum expenditure required by the authorities is a paid-up capital of S$1 at the time of company registration in Singapore.

WHO CAN ACT AS THE COMPANY SECRETARY FOR A SINGAPORE COMPANY?

To act as a company secretary for a Singapore company, an individual must meet the following requirements:

A Singapore resident (i.e., a Singapore citizen, a Singapore Permanent Resident, or a foreigner with an Employment Pass or Dependent Pass); in addition

A individual who is familiar with the Singapore Companies Act and has the necessary experience to perform the duties of a company secretary.

It’s worth noting that the company secretary cannot be the company’s sole director. Furthermore, unless the Singapore Company Registrar, ACRA, requires it, a private company is not required to designate a properly qualified individual as a company secretary. To put it another way, a Singapore private limited company is not allowed to hire a public accountant or a company secretary who is accredited by the Singapore Association of the Institute of Chartered Secretaries and Administrators.

CAN A COMPANY SECRETARY FROM ANOTHER COUNTRY ACT AS COMPANY SECRETARY FOR A SINGAPORE FIRM?

Only a Singapore citizen, such as a Singapore Permanent Resident or a Singapore Employment Pass or Dependent Pass holder, may serve as the company secretary of a Singapore company.

HOW LONG MUST I KEEP MY SINGAPORE COMPANY'S ACCOUNTING RECORDS?

Accounting documents, as well as any other document that may justify the company’s business activities and financial status, must be kept for at least five years after the transactions or operations to which they apply are completed.

WHAT ARE THE PAID-UP CAPITAL REQUIREMENTS FOR SINGAPORE COMPANIES?

Accounting documents, as well as any other document that may justify the company’s business activities and financial status, must be kept for at least five years after the transactions or operations to which they apply are completed.The business must have a minimum paid-up capital of S$50,000 if you are applying for a relocation visa Entrepreneur Pass (EntrePass).Although there is no official minimum paid-up capital threshold for relocation visa Employment Pass (EP), we suggest a paid-up capital of at least S$50,000 to increase your chances of EP approval.The minimum paid-up capital requirements would be determined by the applicable licensing requirements if the company’s business is a controlled business (e.g., travel agency, recruiting agency, financial services, etc.).Singapore has abolished the principle of approved capital. The paid-up capital may be listed in Singapore Dollars or any other major currency, but Singapore Dollars is the most convenient choice. Whatever capital you mention is called paid-up capital, and you must inject this sum into the business. The company’s paid-up capital can be used for all of the company’s business needs. There is no obligation that this money be deposited in a bank account for a certain amount of time.You have two choices if you choose to list a company with a paid-up capital greater than the minimum of S$100:Option 1: At the time of incorporation, list a higher paid-up capital.Remember that any amount of paid-up capital you mention must be deposited into the company’s bank account. We have some fiduciary obligations in this matter because we will be serving as your company clerk, and we must ensure that the necessary paid-up capital is injected into the company. As a result, if you want to mention a paid-up capital of more than S$100 at the time of incorporation, you must first deposit the funds with us. We will deposit the paid-up capital sum into your company’s bank account once it has been established. Please note that the maximum paid-up capital that Hawksford Singapore will consider under this option is S$100,000. Option 2 is needed if your paid-up capital is greater than S$100,000.Option 2: After the company is registered, increase the paid-up money.You can raise the paid-up capital at any time after the company is registered if you choose this option. The procedure in this case is as follows:Establish an organization with a minimum share capital.Open a business bank account.Funds are injected into a bank account.Prepare documentation for a capital increase.

FILL OUT THE APPROPRIATE PAPERWORK FOR A CAPITAL INCREASE IN YOUR COMPANY'S STOCK.

After that, we’ll prepare and file the requisite paperwork with the Company Registrar to represent the company’s updated paid-up capital. Note that there will be a charge for any extra work required for items 4 and 5.Option 1 is preferred by the majority of our clients because it is less expensive and quicker. The balance of your paid-up capital is deposited into a different ‘Client Deposits’ account with us and transferred to your corporate bank account as soon as it is available. Hawksford Singapore offers this service exclusively for the benefit of its clients.Please let us know which choice you want.

WHAT ARE THE GUIDELINES FOR NAMING A SINGAPORE COMPANY?

The first step in the Singapore company registration process is to reserve the company’s desired name. The name of a corporation must first be approved before it can be registered. The approval process is very fast, taking less than an hour if the name does not clash with an established name and does not involve any sensitive or offensive terms.

We will file the name approval application for your company as soon as you engage our incorporation service before preparing the incorporation papers. Following the filing of a name approval document, the Company Registrar will usually notify the applicant of the application’s outcome within one hour. The following are the three possible outcomes:

Outcome 1: Name is Approved

If name is approved, this is good news and we will proceed to next steps of incorporating the company.

Outcome 2: The Name is Listed

What does it mean when a person’s name is mentioned? It means that the application for a new name has been submitted to a relevant government authority for review and approval. This normally occurs when a company’s name includes one or more terms that may indicate a particular form of business operation in Singapore, such as a controlled business activity. « Economic, » « bank, » « college, » « internet, » « publishing, » and other words are examples.

The review and approval process can take 1-2 weeks after the name has been referred. You can either wait for the results or apply for a different name at this stage.

3rd Result: The Name Is Rejected

The Business Registrar will reject the name if it is found to be similar/identical to an established name or includes unfavorable keyword(s). If the name is turned down, you have two options:

If there is a valid reason why the name should be accepted, an appeal may be lodged with the relevant authorities.

It will take 3-5 days for the name appeal to be processed.Send a new name for consideration.

DOES A SINGAPORE COMPANY REQUIRE A LOCAL RESIDENT DIRECTOR?

Yes, a Singapore company is required to have at least one local resident director. In order to qualify as locally resident, the person must be:
Singapore citizen; or

Singapore permanent resident; or

holder of an Employment Pass (the Employment Pass must be from the same company for which he/she wishes to serve as a director); or

holder of an Entrepreneur Pass (the Entrepreneur Pass must be from the same company for which he/she wishes to act as a director).

A director must be at least 18 years old and a natural person. Directors of companies are not allowed. You may fulfill the criteria for a local resident director in a variety of ways:

If you want to run your business from Singapore, you’ll need to apply for a work visa under your new company’s name (employment pass or entrepass). You will take on the role of local resident director once your work visa has been accepted.

Your problem is solved if you have a local partner or know a trustworthy person in Singapore who is willing to serve as the local director.

Most foreign entrepreneurs and businesses that establish a Singapore company without relocating to Singapore, on the other hand, use our nominee local director service. No shareholding in the company is needed, and our nominee director service does not get involved in company operations or banking matters. See Hawksford Services FAQs for more detail on our candidate director operation.

CAN A FOREIGN INDIVIDUAL OR A FOREIGN COMPANY BE 100% SHAREHOLDER OF A SINGAPORE COMPANY?

Yes, the Singapore Companies Act requires foreign individuals or organizations to own 100 percent of Singapore companies. Additionally, there are no limitations on the types of business practices that a corporation may participate in. Foreigners are not expected to obtain any special approvals. To put it another way, there is no distinction between a local and a foreign individual who wants to start a business in Singapore.

WHAT IS THE MIN. AGE REQUIREMENT FOR DIRECTORS & SHAREHOLDERS OF A SINGAPORE COMPANY?

A Singapore company’s directors and shareholders must be at least 18 years old.

HOW LONG DOES IT TAKE TO INCORPORATE A SINGAPORE COMPANY?

Since the whole process is computerized, the actual incorporation of a business can be done in a matter of hours following due diligence approval. However, depending on the following factors, the overall process will take anything from one day to a few weeks:

Reservation of a name. A company’s name must be reserved before it can be incorporated. The name reservation process can be completed in less than an hour if there are no objections to the proposed name. The name approval process can be delayed by a few days or weeks if the proposed name clashes with a current name or includes sensitive terms that require review by appropriate authorities.

Documents for incorporation are signed. This is a clear and fast process if you are in Singapore. However, if you are located outside of the United States, the logistics of signing and submitting signed documents can take several days.

WHICH FREE ZONE CHOOSE?

In the UAE, there are about 40 free zones in use, with more on the way. Each Free Zone is based on one or more commercial categories, and licenses are only applicable to businesses that fall within those categories.

One of the most appealing aspects of creating a business in one of the UAE’s Free Zones is that there are no limits on foreign ownership, and businesses are regulated by an autonomous Free Zone Authority (FZA), which is in charge of granting operating licenses and controlling the operations of companies within the Free Zone.

Since the UAE is now a global business center and an excellent location for establishing a company or a representative office, determining the best Free Zone in which to do business in the area can be a difficult challenge. A common misunderstanding is that a Free Zone Company is the same as an offshore company; but, despite their similarity, they have somewhat different characteristics.Your business you want to conduct would have a significant impact on selecting the Free Zone that best meets your needs. The principal Free Zones and their license activities include:

Dubai Multi Commodities Centre (DMCC) – Commodities Trade and Exchanges

Jebel Ali Free Zone (JAFZA) – Trading, General Trading, Service, Logistics and Industrial

Dubai International Financial Centre (DIFC) – Banking, Financial Services and Legal

Sharjah Media City (SHAMS) – Trading, General Trading, Services, Industrial and Educational

Umm Al Quwain Free Zone (UAQ FTZ) – Trading, General Trading, Services, Industrial and Educational

Ajman Free Zone (AFZA) – Trading, General Trading, Service, Logistics and Industrial

Hamriyah Free Zone (HFZA) – Manufacturing, Trading, General Trading, Service, Logistics and Industrial

Ras Al-Khaimah (RAK) – Trading, General Trading, Service, Industrial and Educational

Fujairah Creative City (FCC) – Media, Consulting, Communications, Design and Technology.

WHAT ARE THE BENEFITS TO ESTABLISH A FREE ZONE?

In addition to enabling shareholders, directors and employees to obtain residency visas in the UAE, the benefits of a Free Zone include:

100% foreign ownership (no requirement for a local partner/sponsor)

100% repatriation of capital and profits

100% corporate and personal income tax exemption

Absence of currency restrictions

Large variety of activities

Modern, efficient communications

Logistic efficiencies due to business cluster effect

Serviced desks and offices for SMEs and start-ups

Excellent support services.

WHAT DOCUMENTS IS REQUIRED?

Investors can either declare a new company as a Free Zone Establishment (FZE) or a Free Zone Company (FZC) – a FZE has one member, and a FZC has two or more – or merely open a branch or representative office of their current or parent company in the UAE or elsewhere. An FZE or FZC is a limited liability company governed by the rules and regulations of the Free Zone in which it is established.

In order to begin the process of setting up a Free Zone Company, we will require the following documentation and due diligence from all shareholders/directors of the proposed new company:

Certified Passport Copy and UAE Visa/UAE entry stamp (if non-resident)

2 x Proofs of Address (dated within 3 months)

Bank or Professional Reference Letter

Curriculum Vitae (summary of professional history)

BOLSTER GROUP’s Company Application Form

Please note that some Free Zones may request a detailed business plan, depending on the business activity of the proposed new company. BOLSTER GROUP has a variety of templates in order to assist you.

WHAT ARE THE MAIN STEPS TO SET UP A COMPANY?

Step 1: Business activity
You can first outline your business activities before entering a free zone. There are thousands to pick from, and the ones you choose will decide which free zone you will set up shop in.Since some free zones appeal to specific activities, you’ll need to know in advance. Working with a business setup specialist while making this decision is a smart choice because it has such a big impact on the remainder of the process. We are familiar with approved practices and can recommend free zones that are most appropriate for your business.

Step 2: Company name
The next step is to give your company a name. When naming a company in the UAE, there are a few items to consider. You must follow a series of naming conventions that are both stringent and simple to follow.You should avoid any offensive or blasphemous language. Avoid names of well-known organizations and avoid abbreviations if naming your company after yourself. You must also check that your chosen name is available to register.

Step 3: License Application

Working with a business forming expert is recommended in this process. We will apply your application on your behalf and collaborate with the appropriate free zone authority to ensure a simple and convenient company creation.

Step 4: Apply for your visa (Special UAE)
If you want the cheapest license in the UAE, you’ll almost definitely want the cheapest free zone visa as well. A free zone with the assistance of a business setup specialist is the most cost-effective way to apply for a visa. You will sponsor anyone for their visas if you have a UAE business license.This may be a partner, parent, or infant, as well as a domestic worker like a maid.The maximum number of visas you can submit is determined by the size of your company, the setup you want, and, in the case of dependent visas, your personal earnings.

Step 5: Opening a corporate bank account
The opening of your corporate bank account is the last step in the process before you can start trading. Unfortunately, rigid anti-money laundering laws will make it impossible for international businesses to obtain corporate banking services. Working with a professional in the industry helps the procedure go even more quickly.

At BOLSTER GROUP, we have close connections to both local and international banks and will quickly connect you with the one that best fits your needs, including setting up face-to-face meetings if necessary.

WHAT ARE THE ADVANTAGES OF CREATING A FREE ZONE COMPANY? IS IT EASIER TO SET UP AN OFFSHORE COMPANY FOR THE SAME PURPOSE?

A Free Zone Business is more costly than an Offshore Company, and the process normally takes 4 to 6 weeks. It is, however, an onshore company (with some offshore characteristics). This form of business is perfect for market entry because it will provide you with a physical presence in the UAE, including office space and visas, without requiring a local sponsor.

A Free Zone Company has offshore characteristics in the sense that all business needs to be carried out offshore/internationally or within the Free Zone itself.

WILL I RECEIVE A LICENSE ONCE THE COMPANY IS INCORPORATED?

All Free Zone enterprises have a trade license that represents their activities. It is possible to receive licenses for practices such as banking, manufacturing, industrial, engineering, and services, and, as previously mentioned, most Free Zones specialize in a single industry.

CAN I CARRY OUT BUSINESS ANYWHERE WITH A FREE ZONE COMPANY?

No, you can only carry out business internationally (outside the UAE) or within the Free Zone itself. You are not allowed to carry out any business on the mainland of the UAE. If your target market is mainland UAE you will need to establish a UAE Onshore Company with a local sponsor. BOLSTERGROUP can also assist with this.

ARE THERE ANY RESTRICTIONS ON BUSINESS ACTIVITIES?

Yes. Depending on the nature of business, some external approvals may be required from certain Ministries or regulatory authorities for particular activities. For example, an investor looking to set up an educational or training practice may be required to seek approvals from the Knowledge and Human Development Authority (KHDA). If there are no external approvals required, the Free Zone Authority will carry out its own review of proposed business activity during the incorporation process.

WHAT ARE THE STATUTORY REQUIREMENTS OF A FREE ZONE COMPANY?

Since each Free Zone has its own regulatory body, criteria differ from one to another.  M any, however, follow a similar pattern. A Sole Establishment with one shareholder and a Free Zone Company (FZC) with two or more shareholders are the two types of companies that can be formed in the Free Zone.

A business manager must be designated, and this person will be responsible for the day-to-day operations of the company, as well as the operation of the bank account and the signing of any contracts on the company’s behalf.

HOW MANY RESIDENCY VISAS WILL I BE ALLOCATED?

This can largely be determined by the form of office/premises chosen. A Virtual Office/Flexi-Desk solution will typically be allotted 2 or 3 visas, while the capacity of an actual office room will determine how many visas are allocated (generally 1 visa per 10sq. m).

IS IT POSSIBLE TO OBTAIN A TAX RESIDENCY CERTIFICATE FOR THE COMPANY?

It is possible to apply for a Tax Residency Certificate for a Free Zone Company and this can be extremely beneficial if the intention is to use the UAE’s network of double tax treaties.

IS THERE A MINIMUM CAPITAL REQUIREMENT FOR COMPANY FORMATION IN A FREE ZONE?

The amount of money you’ll need is determined by the jurisdiction and the type of business you want to start. The amount of money needed ranges from AED 1,000 to AED 300,000. With a few exceptions, this capital does not have to be deposited in a bank in the name of the company (DMCC, Tecom FZE). No capital needed for branch companies.

CAN I SPONSOR ANY MEMBER OF MY FAMILY?

To begin, you must have a valid residency visa in the UAE. You won’t be allowed to sponsor anyone else’s without that. A recorded tenancy contract in the UAE is also required, as well as proof of a minimum salary of AED 5,000 for a spouse, AED 10,000 for a spouse and children, and AED 20,000 for a parent or parents.

To sponsor a child or spouse you will also need to provide the UAE consulate with an attested marriage and/or birth certificate from the country of origin – this must be legally translated if it is not written in English or Arabic.

The criteria for sponsoring non-family members – such as domestic staff – is slightly different. For example, only certain nationalities of maid can be sponsored, they must be sponsored by married males, and their visas are only valid for one year (standard residency visas can last one, two, or three years). Some Emirates will also require an official letter from an employment agency when sponsoring domestic staff.

If you’re a woman trying to sponsor your dependents, the laws could be subtly different. Women will normally only support dependents if they have a legally legalized and attested divorce or death certificate for their husband. Some Emirates, such as Abu Dhabi, would only allow women to sponsor dependents if they work in those occupations that pay over AED 10,000, such as engineer, teacher, doctor, nurse, or some other medical-related occupation.

The cost of sponsoring a dependent visa application will depend on the free zone you set up in and its associated immigration center. However, prices usually start at around AED 2,500.

ARE THERE ANY RESTRICTIONS TO IMPORTING AND EXPORTING OF GOODS?

You must first obtain a Custom Code Letter from a similar free zone portal, which is provided to all UAE ports, allowing you to import or export merchandise in accordance with port and customs procedures.

WHAT INFORMATION WILL I NEED TO COMPLETE MY COMPANY FORMATION?

To start a company, you’ll need to come up with a unique name for it. Each director and shareholder must also include their full name, residential address, date of birth, nationality, business occupation, telephone number, town of birth, and eye color.

CAN I USE MY HOME AS THE REGISTERED ADDRESS FOR MY NEW COMPANY?

You are free to use your home address, but we do not suggest it. All, including marketing departments and the general public, will be able to see your home address. Most businesses choose to use our registered office service, which provides a prestigious London corporate address while also allowing you to hide your home address from the internet.

WHAT IS THE ELIGIBILITY FOR REGISTERING A UK COMPANY?

A UK limited company can be formed by anyone over the age of 16. While directors and shareholders do not have to be UK citizens, the company’s registered address must be in the UK.

DO I NEED TO APPOINT DIRECTORS AND SECRETARIES FOR MY NEW COMPANY?

At least one of the company’s directors must be over the age of 16. Directors are legally responsible for the day-to-day operations of the company, as well as the filing of reports and official paperwork. A director may be from another organization, but at least one of the directors must be an individual. Appointing a company secretary is not required by law for a private limited company, but some prefer to do so.

AS A DIRECTOR, DO I HAVE TO PUBLISH MY HOME ADDRESS ON THE PUBLIC RECORD?

Both directors must have their home address as well as a service address. Both addresses may be identical or dissimilar. You can, however, keep your home address private and off the public record by using a different service address. Our director’s address service helps directors to keep their home address secret from the internet, marketing companies, and the general public.

IS THE DIRECTOR'S HOME ADDRESS PUBLICLY AVAILABLE?

The home address of a director will be kept private, but their service address will be made public. A director must have their home address as well as a service address when forming a corporation. These may be the same, except in this situation, your residential address would be on the public record as your service address.That is why the majority of company directors choose to use our director’s address service, which allows them to conceal their personal address from the general public.

WHAT ARE THE POINTS TO REMEMBER WHEN REGISTERING A UK LIMITED COMPANY?

1.Your business name should end in « Limited » or « LTD. »

2. At least one shareholder and one director should be named (one person can be both)

3. The directors and shareholders can be from any country and live anywhere on the globe.

4. The registered office address of the new company should be in the United Kingdom (our company formation packages provide a registered office address in the United Kingdom as normal — even if you live abroad).

5. All appointments (directors and shareholders) should have their names and addresses sent.

6. A UK limited company’s minimum share capital is £0.01, with no upper limit.

7. One share is the minimum number of shares that must be given (this is selected by default, assuming there is one director who is also the sole shareholder of the business)

Using our safe online registration system, you can register your UK limited company. After completing our simple application form, you can review and save the details before submitting it for review. If you want pre-submission analysis, our formations experts will thoroughly analyze your application before sending it to Companies House for approval.

You may also take advantage of the assistance of a committed personal manager. When you choose this choice (£19.99) at checkout, your appointed personal manager will communicate with you to hold your hand and direct you through the entire process of creating a new business. Previously, Companies If the House approves your application, your company will be created, and we will give you all of the necessary registration documents. After that, you can begin trading! Upon incorporation, we will give you the following documents:

An email copy of the business registry with first entries

A certificate of incorporation

Share certificates

Memorandum and articles of association

WHAT ADDRESS SHOULD I USE TO REGISTER MY NEW COMPANY?

A registered address in the United Kingdom is provided by law for all businesses. All official (Companies House and HMRC) correspondence will be sent to this address, which must be a physical address in the United Kingdom. Anyone with access to the internet will be able to see your company’s address.

WHAT ARE THE ADVANTAGES OF REGISTERING A LIMITED COMPANY IN THE UK?

Incorporating in the United Kingdom is much less expensive and requires much less time than in most other nations. A UK business can be established in as little as a few hours. There are no minimum capital requirements, and establishing a corporation does not require the services of a lawyer, accountant, judge, or notary.

DO I HAVE TO BE A UK RESIDENT TO FORM A COMPANY?

Your company must have a UK registered office address, even if you are not a UK citizen.

WHAT DO I NEED TO KNOW WHEN CHOOSING MY NEW COMPANY NAME?

If you are registering a new private limited company, you must choose a unique name for your business. Your company name must end with either “Limited” or “Ltd”. Your name cannot be the same (or similar) to another registered company’s name.

SHOULD DIRECTORS LIVE IN THE UK?

Directors don’t have to live in the UK, but companies must have a UK registered office address.

DO I NEED TO BE PRESENT DURING THE COMPANY FORMATION PROCESS?

No, you can complete the entire process online without even leaving your home or office! Your new company documents will be emailed to you in PDF format on the day of registration.

DO I HAVE TO BE A UK RESIDENT TO FORM A COMPANY?

You are not required to be a UK resident to register a limited company.

DO I NEED SHAREHOLDERS FOR MY LIMITED COMPANY?

A limited company (limited by shares) must have at least one shareholder. There’s no limit on the maximum number of shareholders. However, you can be the sole shareholder (in addition to being the director), owning 100% of the company. The price of an individual share can be any value. You can choose a low share value, such as £1 per share.

HOW AND WHEN DO I RECEIVE MY NEW COMPANY DOCUMENTS?

As soon as Companies House approves your company registration, you will receive electronic copies of your Certificate of Incorporation, Memorandum and Articles of Association, and Share Certificates for all shareholders. Printed and bound copies of these documents will be posted to you within 24 hours (if applicable).

WHAT IS A PERSON OF SIGNIFICANT CONTROL?

Any person who owns more than 25% of the company is a person of significant control (PSC). This person must meet the following conditions:

They own more than 25% of the company’s share

They hold more than 25% of the company’s voting rights

They hold the right to appoint or remove the majority of directors

They have the right to exercise significant influence or control or already do so

If a trust or firm (and not an individual) is forming this new company and it satisfies the above conditions, the PSC of that trust or firm should be listed as a PSC of the new company.

HOW CAN I REGISTER A DORMANT COMPANY?

At Companies House, there is no special provision for registering a dormant business. You may make it inactive, however, by notifying HMRC that you have not begun trading and have no intentions to do so in the near future. Only after you’ve got your Exclusive Tax Reference can you do this (UTR). If you don’t already have one, one will be mailed to your registered office address three to four weeks after you’ve registered your new business.

WHEN WILL I GET MY AUTHENTICATION CODE?

Your authentication code will be sent to you once Companies House has authorized your company. You’ll be able to see this in your online company manager portal.

DO I NEED A SOLICITOR OR ACCOUNTANT TO REGISTER A COMPANY?

If you don’t already have it, one will be delivered to your registered office address three to four weeks after your new company is registered.

What Types of Business Entities Can Foreign Nationals Open in the United States?

Limited Liability Companies, or LLCs, are widely known, but they aren't the only type of business you can start as a foreign person. You can also incorporate a C-Corporation, which, unlike an LLC, is not eligible for "pass-through" taxation and instead pays tax on profits as a corporation while simultaneously paying taxes as an individual on dividends earned.However, there are certain advantages to forming a C-Corporation, namely the various forms of stock interests that owners can have, which can result in bigger dividends if your firm generates a profit.

Can I work for my company in the United States if I am not a citizen?

Unfortunately, you would require a green card in this situation. You can always work for your corporation from your native nation if you don't have one.

Is it necessary for my company's legal address to be in the United States?

It can be found anywhere in the world, in fact. Keep in mind that you'll need a registered agent in the United States in addition to your American mailing address.

Is it possible for my company's name and address to serve as my registered agent?

Although it is technically possible, most multinational entrepreneurs will not be able to do so. To make this work, someone must be physically present at your company's address during all normal business hours to take and process payments. forward important government documents. Otherwise, you should probably just hire a professional registered agent service.

Why opening a bank account is the most complicated step?

You will need to visit the bank.

Due to US money laundering laws, banks are required to know their clients.

This will mean you will need to travel to the US and obtain visas to do so.

Opening a Business Bank account for your company can be done once you’ve formed the LLC and received your EIN.

This is by far the most challenging hurdle because it can require a trip to America to physically apply at a bank branch. If you choose this route, you’ll need to call the bank ahead of time to make sure you’re bringing all of the required documents. Different banks may have different requirements, so contacting them first is a must.

Is it necessary for me to open a bank account in the same state as my LLC?

No, your LLC's bank account does not have to be established in the state in which it is created; nevertheless, the bank must be located in that state.This means you can travel into a convenient international airport, such as New York, and visit a bank branch to open a bank account with a bank that is also located in the state where your LLC is formed.

What are the many sorts of businesses that can be formed in Turkey?

In Turkey, a legal entity might be a joint-stock company, a limited liability company, a collective or commandite firm, a cooperative, or a branch.

Is it possible for a foreigner to start a business in Turkey?

Yes, foreigners have the same rights as nationals when it comes to forming businesses. Turkey welcomes international investment in a variety of sectors.

In Turkey, how quickly can you start a new business?

If all of the documentation are in order, a company can be formed in two weeks.

Does my company need a registered office?

Yes. In Turkey, a newly created company must have a registered office. This also applies to international company branches.

What are the steps for forming a business in Turkey?

The business owner must draft and submit the Articles of Association, have the company paperwork notarized, have the minimum share capital deposited, and apply for registration.

In Turkey, what is the minimum share capital?

The minimum share capital required varies by company type. For joint stock firms, this amount is more than for limited liability companies: 50,000 TRY vs. 10,000 TRY.

What are the conditions for establishing a bank account in Turkey?

Because the company's share capital is deposited upon incorporation, the bank account is required. Banks will typically request the company's registration certificate as well as other documentation attesting to the founder members' identities. As per the bank's policy, certain fees apply.

In Turkey, do you require any specific licenses?

Yes. Import and export activities, for example, are controlled, and business owners who engage in these activities must first get particular licenses before engaging in actual trading.

What are the corporate taxes in Turkey?

Turkey's corporate tax rate is 20%, but lesser rates are available. There are also payroll taxes, real estate taxes, social security taxes, and other taxes to consider.

What are some of the benefits of investing in Turkey?

Your company must have a UK registered office address, even if you are not a UK citizen.

How long does it take to form a business in Malta?

The process of forming a corporation in Malta is simple and normally takes only a few days. However, the length of time it takes to incorporate a business is dependent on whether all of the required documents and paperwork are accessible, as well as the sort of business being formed.

The information and papers are subsequently forwarded to the Registrar of Companies. A business can usually be formed within 24-48 hours if the individual or firm is an EU citizen or entity. Even though non-EU citizens and companies can still establish a company in Malta, there are some restrictions if they plan to conduct business primarily and directly in Malta.

What types of companies can be incorporated within Malta?

Standard commercial corporations, such as limited and public liability companies (Ltd and plc), as well as commercial partnerships, can all be formed in Malta. There are, however, particular provisions that allow financial and banking institutions, investment companies, organizations that handle hedge funds, portfolios, and investments, SICAVs, and protected cell firms to be incorporated for insurance reasons.

Is it possible to set up a corporation to store abroad interests and trade at the same time?

Yes, this is a viable option. A corporation can be formed to engage in trading while also holding local or international investments. If the firm is a single-member corporation, meaning it has just one shareholder, it is only permitted to engage in one primary activity.

What is the meaning of corporate domiciliation, and may a company founded in Malta re-domicile?

A company's domicile is the jurisdiction where all of the company's legal documents and correspondence are received.Relocation or re-domiciliation of enterprises is also permitted under Maltese law. This means that a corporation registered in another country can be de-registered and re-registered in Malta as a body corporate.

What are the corporate taxes in Malta?

The corporate tax rate in Malta is set at 35% and companies incorporated in Malta are subjected to tax in Malta on their worldwide income.This is irrespective of where the source of income is from and where it is received. The Maltese tax legislation also consists of processes that help eliminate double taxation.

What are the advantages of forming a corporation in Malta?

Malta is a well-regulated nation with a variety of legislation allowing many types of entities to operate, including private and public businesses, trusts, foundations, and protected cell firms. Intellectual property, remote gambling, financial services, and maritime/aviation are just a few of Malta's strong industries. Malta is a global player in the pharmaceutical industry.

Several Medical cannabis production and processing are regulated by research laboratories and a law. The costs of forming and managing a business in Malta are quite inexpensive; in fact, professional services and fees are significantly lower than in comparable European nations.

Malta has an effective tax system that has been recognized by the European Commission and the OECD, which allows qualifying shareholders to obtain a partial refund of company taxes paid.

What are the rules for naming a company in Montenegro?

The first step in forming a Montenegrin company is to reserve a name for it; a company cannot be formed without an approved name initially. The chosen name must not clash with any other existing name and must not contain any derogatory or humiliating terms, according to the standards for a corporate name.

Is it necessary for a foreigner to visit Montenegro in order to start a business?

You do not need to be physically present in Montenegro to start a business. You can complete all of your incorporation documentation online, even if you are not physically present in Montenegro. The director must be present at the bank to open an account.

Who is eligible to start a business in Montenegro?

Anyone above the age of 18 can start a business in Montenegro, regardless of nationality.

Who is eligible to become a shareholder in a corporation?

An individual or another corporation, including a foreign corporation, can be a shareholder. The law of Montenegro allows for 100 percent foreign ownership of a firm. As a result, a foreigner can become the sole shareholder of a Montenegrin corporation.A foreign firm can establish a 100% owned local corporation in Montenegro (often called as a subsidiary company). The most common type of corporate structure for foreign companies operating in Montenegro is a subsidiary company. This is owing to the liability protections and tax advantages offered by this structure.

Will the names of the directors and stockholders be revealed?

Yes, the public has access to basic information about a company's shareholders and directors.The official crps.me registry site has information about the company.

In Montenegro, what kind of business formations are available?

Sole proprietorships, partnerships, and limited liability companies are all legal business entities in Montenegro. The most frequent legal structure in Montenegro is a private limited liability company (PLLC). See Business Structures in Montenegro for further information.

Is a registered address required for a corporation to operate in Montenegro?

According to Montenegrin company law, any company must have a local Montenegrin address as its registered address before it may be formed. For legal purposes and to receive official communication, your firm must have a registered address. This is also where you should keep your statutory records. The address must be a commercial location and cannot be a PO Box number (residential address are allowed in a limited number of circumstances).

If you have a corporate office and want to use it as the registered location, make sure the company secretary is located there and that the business's statutory books and records are kept there. If you utilize a corporate services firm, the registered address service might be provided for a price.

Do I need any business licenses in Montenegro to run my business?

You may need a business license from the applicable regulatory authorities depending on the type of business you plan to run. A restaurant, for example, and a financial services organization, for example, will both require a license from their respective regulatory agencies.
Fortunately, in Montenegro, bureaucratic red tape is kept to a minimal, and most sorts of enterprises do not require a license. Even if a license is required, you may rest assured that your licensing application will be approved quickly, efficiently, and simply.

What is the best way for me to structure my business in China?

A wholly owned foreign enterprise (WOFE) is a firm that is regularly set up by international businesses.

A branch (permanent establishment (PE)) or a representative office can be established by businesses that do not want to form a legal company (RO). The activities of ROs are confined to liaison and marketing.

There are numerous other types of company entities.

The Catalogue for Foreign Investment Industry Guidance offers lists of industry categories where foreign investment is prohibited, restricted, approved, or encouraged.

Is it important to have directors and a physical office in China?

There are Under Chinese corporation law, there are no age, nationality, or residency limits on directors.

As its registered place of business, a firm must have a physical office. It's not a good idea to have a virtual workplace. Chinese officials have the authority to conduct unannounced office visits to ensure compliance or audit firm documents.

What are Free Trade Zones (FTZs) and how do they work?

Shanghai, Fujian, Guangzhou, Tianjin, Henan, Hubei, Liaoning, Shaanxi, Sichuan, Zhejiang, Chongqing, and Hainan are among China's 12 FTZs. These were created with the intention of promoting trade.

Each FTZ has its own set of incentives. For transporting commodities between FTZs and international destinations, they could include streamlined firm registration and filing requirements, tax rebates, and exemptions from customs charges and import taxes.

In China, what are the legal requirements of employers?

Employees must be given employment contracts. If an employee does not sign an employment contract with the employer within one month of starting work, the employee is entitled to 200 percent of their salary.

What are the financial statement filing requirements under the law?

The fiscal year of the corporation must coincide with the calendar year, ending on December 31.

The accounts for the company should be produced in line with PRC GAAP. Regardless of turnover or assets, they must be audited annually by a Chinese-registered certified public accounting firm.

Financial statements for WOFEs must be filed with government agencies such as the Ministry of Commerce and the State Administration for Industry and Commerce.Annual and intermediate reports to the National Enterprise Credit Information Registry are also required.

What are the corporation tax and withholding tax rates for a business?

Tax Unless a reduced rate or special exemption exists, resident enterprises (including WOFEs and PEs) pay 25% Enterprise Income Tax (EIT) on their worldwide profits. The name of corporation tax is the EIT.

When does EIT have to be completed?

EIT is usually paid to the tax authorities within 15 days of the month or quarter's end. The same deadlines apply to tax returns.

What are the personal tax rates in China, and do you have to pay social security?

Personal income taxes are levied at progressive rates ranging from 3% to 45 percent.Dividends paid to non-resident individuals are subject to a 20% WHT (subject to an applicable DTT).Employers are required to pay up to 40% of an employee's base income in social security contributions, which includes statutory pension contributions. Employees must also pay social security contributions, which are collected on their behalf by their employers.

What are China's primary indirect taxes?

The main indirect tax is VAT, which is levied at rates of 16 percent, 10%, and 6%. Different sectors or activities may have lower rates. In addition, there are consumption taxes ranging from 1% to 56%, a land appreciation tax (30% to 60% of gain), customs fees, stamp duty, and environmental taxes.

Is a local partner required to start a business in Russia?

Most of the time, a local partner is not required; nevertheless, certain areas, such as energy and telecommunications, have limits on full foreign ownership.

Is it a requirement to have local shareholders and directors?

No, this isn't required, although it's worth noting that a foreign director will require a work permit in Russia. Prior to receiving a work permit, foreign citizens are not permitted to work in Russia.

Is it necessary for me to have a Russian address? If so, how do I go about getting it?

Yes, a Russian business must have a local address that is recorded in the Trade Register. We can assist you with virtual office services if you require a local address.

Is it necessary for me to travel to Russia to register the company?

No, our clients must travel to Russia to complete the incorporation process. We can assist them in registering the business remotely using a power of attorney.

How long does it take to establish a business in Russia?

The minimal time required to register a business in Russia is two weeks.

What is Russia's business tax rate?

In Russia, the current corporate tax rate is 20%.

Is it necessary for a new business to perform an audit? If that's the case, do you provide this service?

No, new businesses are not required to be audited. Companies must audit the year prior to the reporting year, therefore if a company is formed in 2020, its first audit – if one is required – should take place in 2021. We offer auditing services.

What are the steps for opening a company in Qatar?

International firms who want to extend their operations in Qatar can either create a branch or form a new company. The appointment of a representative is a prerequisite for foreign businesses conducting business in the country. One of our Bolster agents can assist you by answering your concerns regarding the procedures for forming a Qatari company. All investors who desire to start a business in Qatar must take the following steps:
1.Trade company name Registration
2. Bank account opening;
3. Articles of Association submission to the Commercial Companies Control Department;
4. Articles of Association Authentication;
5. Chamber of Commerce and Industry Registration; 
6. Corporate Tax Registration;
7. Trade License Issuance from the Municipality of Doha.

What types of companies can I open in Qatar?

Limited liability companies, public shareholding corporations, and branches are the most frequent forms of corporations in Qatar. There are a variety of company structures available, including partnerships, joint partnerships, and limited partnerships, as well as joint ventures. In Qatar, foreign investors frequently choose to form a limited liability corporation. A Qatari national or a group of Qatari national shareholders must possess most of the company (51 percent).

There are two special investment zones that stimulate foreign business formation and provide investors a favorable tax and regulatory environment. Companies formed in the Qatar Financial Centre are governed by a separate legal structure based on English common law. Companies registered under this unique system can access the Qatari market and have full foreign ownership. More information about this unique Center may be obtained from one of our Bolster representatives.

Can I establish a branch in Qatar?

Yes, you may open a branch in Qatar as long as you follow a few guidelines. The first step, for example, is to get a decree from Qatar's Ministry of Economy and Commerce. Process of forming a branch in Qatar is lengthy, but it entails the preparation of a number of paperwork as well as government clearances. Let one of our Bolster representative guide you.

What is the most common corporate structure for foreign investors?

The most common corporate structure established by foreign investors in Qatar is the limited liability company (LLC). Any foreign entrepreneur requires one or several local partners to get involved in the business and to act as the majority shareholder, hence possessing 51% of the company.

Should you not want to have a local partner, you might contact a Bolster representative that will advise you on your business set-up. 

Can I purchase a shelf company in Qatar?

Indeed, buying a shelf company is a foreseeable possibility when it comes to start an incorporation process in Qatar and skip the registration. 

Transfer of ownership is the most important process to consider when deciding to buy a Qatar shelving company. It's good to know that a shelf company is already registered in Qatar, is kept on shelves until it ages, is inactive and therefore has no debt.

Foreign entrepreneurs have many reasons to consider buying an inventory company, including the ability to start a business immediately after the transfer of ownership takes place. In addition, the company has the potential to be a good candidate for bank loans due to its clean historical background and lack of debt.

How much is the Company taxation in Qatar?

Qatar's tax system is low, with minimal tax on corporate profits and no tax on labor income. Qatar has a corporate tax rate of 10% and a high gas and / or oil exploitation rate of 35%.

There is no withholding tax, capital gains tax, payroll tax or wealth tax on dividends. Qatar does not charge VAT. 

Can foreigners acquire property in Qatar?

New law enforced in 2020 allow foreigners to own real estate in nine locations in Qatar listed in the resolution. Moreover, a foreigner has the right to rent Qatari real estate in 16 locations identified in the resolution for a period of 99 years.

The resolution also grants permanent residency to foreigners who own or rent real estate, provided they stay in the country 90 days per year. Residency will be granted to foreigners once they have completed the purchase or rental of real estate in Qatar. Owners or renters of property worth at least QR730,000 (about US$200,000) will obtain residency permits for themselves and their families. Foreigners who own or rent Qatar real estate worth at least QR1 million (about US$274,725) will receive permanent residency benefits, including free health care and free education, for themselves and their children.

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