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Material matters are becoming increasingly difficult for tax purposes in Europe and worldwide, therefore some clients may prefer a stronger physical presence at the place of exercise than virtual office services. One of the possible strategies for increasing substance is the establishment of a functional office. Content issues usually arise when local tax authorities require confirmation that the company's operations are taking place in the country where the company is registered: they want to see that commercial activity actually exists in the specified jurisdiction.
A company of substance is a company abroad that resembles a classic “offshore” company but has what is called “substance” (presence), which means it has local staff who are paid, a local physical office has and has real local expenses for running a business, in other words – an administrative office. It's more like a real local company but has ties to the onshore business.
For more and more entrepreneurs, the economic substance of their company is becoming too much for them. Creating economic substance has become quite the gamble as tax authorities, banks and state institutions delve ever deeper into the two main questions: "Where is the real place of management and control of the company?". and 'Who is the beneficial owner?'
Confidus Solutions can offer Substance Office in various jurisdictions worldwide including numerous famous offshore jurisdictions. However, considering the complexity and efficiency of content delivery, we would strongly recommend considering the following jurisdictions as your first choice: Latvia, Cyprus, Lithuania and Hungary - as we can offer more advanced services in these states instead of just a virtual office, as well more solid reasons to believe that the company operates in the specific location. The question of the actual place of management and control of the company has recently become not only for tax authorities, but also for business partners, suppliers, banks and opponents due to the implementation of interstate tax legislation and the rapid development of international trade and online trade of crucial importance.
Administrative office in Cyprus
Administrative office in Latvia
Administrative office in Bulgaria
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