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What to look for when choosing a country for a foreign company

Updated: Dec 26, 2023

What to pay attention when choosing a country for a foreign company establishment

In import and export, a foreign company can be used to carry out payments and transfers from Russia or, conversely, to accumulate revenue in Russia and other countries.

This approach allows you to concentrate financial flows within the corporate structure and avoid unnecessary intermediaries.

Let's consider four factors that are important to consider when registering a company abroad:

  • Are there any restrictions in the selected country related to the presence of foreign shareholders, especially from the Russian Federation? We recommend choosing countries that are loyal to foreign shareholders, such as the UAE, Hong Kong, or Cyprus.

  • Issues of “transfer pricing”, that is, what prices to set between companies from the same group, but registered in different countries.

This affects the taxation procedure within this group, so work through the issue to exclude claims by the tax authorities of Russia and other countries of abuse of tax advantages within the group.

  • Are there requirements for the “presence” of the company in the country of registration (availability of employees, office, and other assets)?

If the budget is very limited, then it is better to choose a jurisdiction where the costs of organizing a presence are minimal. For example, Hong Kong, BVI, or Seychelles.

  • About jurisdictions from “gray” zones, the difficulty of opening an account and obtaining the necessary licenses.

Payments from such countries take longer, banks request more documents and refuse more often, so it is important to choose a prestigious jurisdiction to successfully open an account after registration.

Our experts will choose the best option for you and tell you about all the stages of company registration, including opening a corporate account.

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