News: About lawyers and “openers”

About lawyers and “openers”

Our company is founded by the lawyers. It employs lawyers. The tasks of clients are being considered and implemented by the lawyers. Why is the foregoing so important and why do we focus Your attention on this fact?

We will try to explain. The market of corporate services is rather complicated. There is a segmentation to the services of lawyers and the services of non-lawyers (as it is customary to say in this segment - "openers").

The Internet network teems with offers of "openers", who are ready to open a company in any jurisdiction at a low price through the providers in the country of registration. And the customer most often chooses them according to the price criterion.

Not understanding the consequences and not realizing that company registration is almost always one of the simplest and trivial actions. The real and actual work comes later, when it is necessary to maintain it (the company), namely: to plan cash flows, the tax base, to submit reports, to take the risks into account, not to "make a mess of things" in the form of fines, violations of legislation, etc.

We do not want to offend anyone, but misleading the clients so furiously is an offence. The client who started to work according to this scheme contacted us, and as a result of the foregoing scheme he has serious problems with withholding tax  and with his tax authority in principle.

Let's clarify in detail: the "opener" sold the company to the client that addressed to us as a solution to his business needs in terms of structuring cash flows under supply contracts. The scheme offered was exactly the same as described in the video at the link above.

However, given that the "opener" is not a lawyer, she forgot or did not consider it necessary to notify the client of the risks of withholding tax to be emerged when paying to a non-resident, if he does not confirm his residence at the place of registration (UK).

In principle, this scheme is not long-playing, and much less operating and efficient one, because the Scottish partnership will never be able to confirm its residency in the UK and will not be able to obtain a Tax Resident Certificate for the purposes of using double tax agreements.

Thus, a company that makes payments to it under supply contracts will be a tax agent and will be required to withhold 20% of the payment in the form of corporate income tax that receive profits.

There are dozens of such examples, when clients who have already committed significant mistakes in planning come to correct them. However, the price for these mistakes is almost always huge losses, leveling all the earned profits.

Our convincing request is as follows: please contact the professionals, the lawyers. Not necessarily to us, because there are a lot of worthy players on the market (namely lawyers, not in the category of "openers"), thereby You will save a lot of money, nerves, and most importantly - obtain an effective solution for Your business.