The twenty-first century has made the world of mankind immeasurably large and at the same time extremely compact, to say the least, cramped.
Export and import of services, raw materials, goods and equipment from other countries is not something exotic today, but has become an elementary necessity caused by economic and globalization factors. At the same time, the last decades have been marked by the widespread use of economic and financial transactions involving residents of low-tax jurisdictions.
It should also be noted that lately Ukrainian companies are increasingly entering the markets of other countries with their goods or services in order to expand their business.
In this regard, taking into account the extraordinary intensification of international business activity, the need for proper legal support of such activity grows confidently and steadily every year.
The complication and strengthening of banking compliance procedures, combined with the significant spread and implementation of FATF recommendations by many countries, create new challenges for business.
Controlled foreign companies (CFCs) – this term with an abbreviation most likely forever came into use not only among international lawyers, but also among accountants of many companies, who previously did not even think about the tax burden of their non-residents, a detailed study of the rules for determining the residency of individuals and others important novels proposed by the Ukrainian legislator.
Today, at almost every intersection, simple and quick registration of offshore companies is offered, or companies from “so close” emirates or from “extremely clear” Lithuania, which, although not classified as offshore, but the use of which still has certain limitations and features. At the same time, those who, at the same time, find out the purpose for which the client wants to register such a company or recommend specific tools for specific tasks, are much less. In our opinion, there is a significant lack of a comprehensive and balanced approach. Very often, clients first become owners of a non-resident company, and then try to find a problem that such a non-resident will solve.
We are sure that any business activity, including an international one, should be sufficiently planned, have clear goals, for the achievement of which it is necessary to choose an appropriate set of financial and legal instruments.
In any case, business processes should not be based solely on decisions made as a result of the usual copying of already existing economic models and, even more so, those inspired by widespread trends or trends. We believe that very often the answers to rather complex problems are relatively simple and are very close at hand, while they are usually sought in the plane of complex materials and structures.
