Hi! I am Russian and am helping now to set up a protective offshore structure for legitimate business here in Russia. It will not be a complex setting: about two companies in a row. We need good degree of confidentiality though (as far as possible without recourse to trusts, as the owner wants to keep operational control in his hands). In the same time we would like to have a bank account in a respectable european bank, so most probably, the offshore jurisdiction should be within Europe as well.
I know, these requirements are a bit contradictory, but the main problem (who knows) is even worse: when you set up an arrangement with the european registrar or intermediary he becomes particularilly concerned about the nationality, as for the Russians connections with the mafia are presumed.
In these circumsatnces we are ready to reveal identity of the beneficiary and details of his business to the intermediary for KYC compliance, but on strict understanding that there would be no mandatory or other routine disclosures of the owners' identities to the state or the banks. As more and more States abate bank secrecy, I wonder, what options do we still have here?
We suggest, as a solution, that the second (lower) company can be in a European jurisdiction with whom Russia has avoidance of double taxation agreement, so the taxes will be paid in either country. The company will have a bank account where profits to be accumulated (at initial stage at least), and the upper "mother" structure will be a holding asset company, which theoretically can do well even without bank account (?). So the question is about this upper company: in what form and in what jurisdiction it can better be set up without causing troubles with the secrecy, and do you think, in general, is the scheme workable for our purposes? Regarding setting up, purchasing, and floating the lower company by the upper with keeping confidentiality of the beneficiary, in particular ?
Thanks!
p.s. If one wonders, why do we need secrecy if not for tax purposes -- publicity about having businesses in Russia is undesirable sometime just because of deficient property rights protection there, "foreign investment" element helps here
I know, these requirements are a bit contradictory, but the main problem (who knows) is even worse: when you set up an arrangement with the european registrar or intermediary he becomes particularilly concerned about the nationality, as for the Russians connections with the mafia are presumed.
In these circumsatnces we are ready to reveal identity of the beneficiary and details of his business to the intermediary for KYC compliance, but on strict understanding that there would be no mandatory or other routine disclosures of the owners' identities to the state or the banks. As more and more States abate bank secrecy, I wonder, what options do we still have here?
We suggest, as a solution, that the second (lower) company can be in a European jurisdiction with whom Russia has avoidance of double taxation agreement, so the taxes will be paid in either country. The company will have a bank account where profits to be accumulated (at initial stage at least), and the upper "mother" structure will be a holding asset company, which theoretically can do well even without bank account (?). So the question is about this upper company: in what form and in what jurisdiction it can better be set up without causing troubles with the secrecy, and do you think, in general, is the scheme workable for our purposes? Regarding setting up, purchasing, and floating the lower company by the upper with keeping confidentiality of the beneficiary, in particular ?
Thanks!
p.s. If one wonders, why do we need secrecy if not for tax purposes -- publicity about having businesses in Russia is undesirable sometime just because of deficient property rights protection there, "foreign investment" element helps here
