Once we decide upon the most suitable tax jurisdiction for your needs and entity type (commonly a company) through our network of accountants, service providers, lawyers and tax experts we will instruct the creation of your company. This process is a fairly standardised with fairly the same information needed from all jurisdictions. Once all the information is provided and the company is created then we will ensure the maintenance of the Company and its compliance with the local regulations are met.
CYAUSE Audit Services Ltd and its global network of licensed service providers, registered agents, accountants and tax consultants are required to obtain all of the above information firstly to satisfy ourselves that we have sufficient information about our clients and meet the Know Your Client (KYC) requirements imposed by our local and international professional bodies we are accredited for. Whether or not the information we obtain to cover our internal firm policies is also disclosed to the local regulators for the company incorporation depends entirely on the jurisdiction selection as each jurisdiction has different laws and regulations in relation to the officers of the local companies created.
Nearly all jurisdictions have similar name restrictions for the new formed entities as such names are reserved either for the governmental bodies or for specific industry areas which require special licenses to operate. In some instances these names are prohibited as they are considered insulting, misleading or against the general public's good interest.
Following Europe's and the United States of America common attempts to fight against international crime and terrorist activities the majority of countries over the world have signed banking and taxing exchange of information. The countries that have not signed these agreements are commonly referred to as black listed jurisdictions and these are jurisdictions where banking activities are scrutinised by all international banks and rejected. The same applies for various tax credits. It is worth mentioning that such exchange of information only takes place among participating states in a strict manner following relevant protocols, agreements and international agreements between the countries.
Almost all tax jurisdictions (all "Tax Heaven") have joined the banking exchange of information agreements FATKA and CRS and TIEA as failure to do so would add them to the black list of all authorities and would cause significant operational issues primarily inability to transfer banking capital and the freezing of bank accounts.
FATCA which stands for The Foreign Account Tax Compliance Act (FATCA), requires that any financial institutions such as banks, investment firms and any service provider such as lawyers accountants and registered agents submit to the USA information about the the Ultimate Controlling Party and Entities tax jurisdiction. This information is updated annually.
CRS which stands for Common Reporting Standard is a mechanism whereas all participating banks automatically send information for their non locally tax resident clients who use "passive" banking facilities to their central banks and the latter the send this information to the ECB which maintains these data.
TIEA stands for Tax Information Exchange Agreement (TIEA) and it is currently signed by more than twenty countries; USA, Germany, UK, France and many others. Unlike the CRS and the FATCA, the TIEA is NOT automatic; it is upon request by a participating Government. To be pursued, the overseas Government must have serious, justified grounds for the enquiry which must be evidenced on solid grounds. If the strict procedures and evidence is accepted by the local Government (say the BVIs), then the BVIs may confirm the information the enquiring Government already has in its possession and NOT to disclose any other additional information held by the BVI.
The company will be created and you will be informed of the statutory obligations of the Company (depends on the jurisdiction) which we will assist you with. Some jurisdictions may require the preparation of management accounts at the end of each year to audited financial statements if an onshore jurisdiction is been selected.
Enquire See Available Jurisdictions