Storify News | De-offshore business encourages beneficiaries to seek new jurisdictions for their international structure.
Offshore and account opening problems
Many beneficiaries have already faced various problems of classic offshore companies and their banks in Europe, namely:
disclosure of registers of beneficial owners of foreign companies;
refusal to open an account, depending on the place of registration of the company;
banking checks and enhanced monitoring of offshore transactions;
forced closure of accounts.
And this is not the whole list of problems that have occurred in the banks of Cyprus and Latvia. Similar problems may soon be expected by companies with accounts in banks in Hungary, Montenegro, and other Eastern and Middle European countries.
Moreover, for several years, some jurisdictions have refused to open bank accounts at all to companies whose beneficiaries are Ukrainian or Russian citizens. Among such jurisdictions, for example, Hong Kong and Singapore.
Offshore companies already need to prepare for the disclosure of their beneficial owners and further assets in the form of automatic exchange of tax information according to the Single Reporting Standard (CRS).
To avoid problems in offshore jurisdictions, there is a strategic solution – entering the US market.
Starting a business in America
Why should open a company and a bank account, as well as register a trademark in the United States in the near future?
There are at least 10 reasons below.
Reliable legal system
The US legal system is a pledge of free enterprise and business protection. American courts, for example, in the state of Delaware, have established themselves as the most progressive in corporate law. By the way, Delaware even provides for the maintenance of the share register of the corporation on the blockchain technology.
Extensive selection of states
The most requested of the 50 states to register in Delaware. Also popular are New York, Florida, Texas, California, Wyoming, Nevada, and South Dakota.
Contrary to the erroneous opinion of some experts, Delaware is not offshore. Therefore, starting a business in Delaware or another state is a reliable alternative to offshore companies.
At the same time, you can either open a business from scratch or buy a ready-made business in the USA
American companies can work effectively not only in the United States but throughout the world. This allows you to work confidently in regions such as Europe, the Middle East, and Asia.
Creating a business in America opens up a huge market for goods and services for foreign entrepreneurs. After all, the United States confidently occupy the first place in the economy among all countries of the world. American GDP for 2017, in particular, amounted to about $ 19.4 trillion. This, by comparison, is 58% more than in China, which is in second place.
Using this, some Ukrainian companies have been operating in America for many years. This is now especially true for the IT industry.
As practice shows, Ukrainian startups in IT and online business operating in the United States effectively use Ukrainian talents. Such entrepreneurs know how to make money. In particular, they attract funds in the United States and use programmers, designers, copywriters and other specialists in Ukraine. So, the American market creates jobs and helps to develop entrepreneurship in Ukraine.
Consequently, the US-Ukrainian business (especially business on the Internet) is profitable and attractive for both countries. So, America gets a quality product or service at a low cost, and Ukrainian talents find a job with a higher salary. As a result, all parties win.
Success on Amazon
The United States is replete with stories of business success in various fields.
Among the world-famous examples is Ring startup, which has an R & D team in Kiev, which Amazon recently bought for $ 1 billion. By the way, this was one of Amazon’s biggest purchases.
Another example is the massive earnings on the Internet. Small businesses already know how to make money on Amazon. This may be basic or additional income at home. By the way, the work with Amazon itself can easily suggest ideas for a business, which business to open and how to start a business. Remote work at home, among other things, is very popular. Subsequently, you can automate your online business and receive passive income. Implementing their business ideas, Ukrainian entrepreneurs achieve great success on Amazon.
To run a business on Amazon, you may need to open a company and an account, as well as register a trademark in the United States, as making money online without these tools can be problematic. For example, to receive payments for the Amazon referral program (earnings on clicks), you should open an account in a US bank. Trading on Amazon, in turn, suggests that trademark registration will be required.
Creating an American company allows entrepreneurs not only to make money on the Internet and get money into their bank accounts but also to attract investments in the USA and Ukraine.
America recently lowered federal corporate income tax from 35% to 21%. This is an unprecedented tax cut of as much as 2/5.
As a result, the combined (federal and state) corporate income tax rate fell below the weighted average rate for all OECD countries. So, US taxes have become much more competitive.
At the same time, many corporations founded by non-residents can manage only by paying a federal tax. Moreover, business operations can be efficiently optimized.
Stable banking system
Having opened a bank account in the USA for their American company, foreign entrepreneurs can receive, use and save their funds in reliable banks. It is noteworthy that depositors of American banks are insured up to $ 250 thousand. In contrast, a similar guarantee in the EU is only € 100 thousand.
Personal data privacy
US law, as a rule, ensures the privacy of data on the owners and managers of US companies. Thus, the state company registry does not usually contain information about shareholders/participants and directors of a corporation / LLC.
Also, the United States does not exchange tax information and is unlikely to join the EU Automated Exchange of Tax Information (CRS) standard in the near future.
Finally, one of the advantages of opening an American business is the potential to live and work not only in their own country but also in the United States. For starters, you can get a visa B1 / B2. This is an American visa for business and tourism. It is usually issued for 10 years.
Further possible options such as:
EB-5 investment green card;
investment visa E-2;
L-1 transfer visa for transfer within a group of companies;
working visa H-1B for specialists;
O-1 work visa for professionals with extraordinary abilities; or
another US visa.
In this case, immigration to the United States is possible, but not required. It all depends on personal preference.
Thus, the United States is the optimal jurisdiction for business abroad. Obviously, states are much safer than offshore and European jurisdictions. Therefore, it is necessary to open a company in America now.