Registering a company abroad provides access to international markets, financial tools, and tax benefits. Some jurisdictions offer reduced tax rates or even tax exemptions for companies operating outside the country of registration.
Additionally, international registration grants access to global banking services and enhances credibility with partners. For example, companies registered in the EU or the USA enjoy a stronger reputation compared to those in countries with an unstable economy.
Certain jurisdictions also offer stronger owner protection and greater beneficiary confidentiality, reducing regulatory pressure on businesses.
Risks of registering a company for Ukrainians
The main risk involves compliance with Ukrainian tax legislation. From 2022, owners of foreign companies must report CFC (Controlled Foreign Companies), and their income may be subject to taxation in Ukraine.
Other factors to consider include company maintenance costs such as state fees, accounting and legal support, and financial reporting requirements.
Banking risks for businesses abroad
Opening a corporate bank account in a foreign country can be challenging due to strict transparency and source of funds requirements:
- USA: FinCEN (Financial Crimes Enforcement Network) and BOI (Beneficial Ownership Information Report) require companies to disclose their beneficiaries.
- EU: AML (Anti-Money Laundering Directive) mandates verification of beneficiaries and real economic activity.
- Hong Kong, Singapore: Banks apply KYC (Know Your Customer) and CDD (Customer Due Diligence) to verify owners and transactions.
- UAE: UBO (Ultimate Beneficial Owner) Regulation requires disclosure of ultimate owners.
In addition to traditional bank accounts, entrepreneurs can use alternative payment systems such as Payoneer, Wise, and Revolut.
