International Structuring – is the process of legal and tax optimization of business by means of effective combination of various opportunities provided by different jurisdictions within one corporate structure, in order to increase profitability of business and achieve related business goals

Effective instrument for Ukrainian business

Preconditions of International Structuring:

  • annual turnover over
  • specific circumstances (creating effective corporate structure at the start-up stage, fund raising, participation in bidding, transfer to IFRS, commencing audit procedures, sale of business etc.)

Blocks of Instruments for International Structuring:

  • international instruments (repatriation of profits, trust mechanisms etc.)
  • local tools (unified systems of the taxation etc.)

Targets of International Structuring

• procuring 100% corporate control and holding of entire business in accordance with the laws of civilized jurisdiction
• “exporting” the risks of corporate disputes to the reliable jurisdiction (two or more beneficial owners) if it’s necessary
• separation of key assets (real estate, equipment, transport etc.) from the operational activity initially exposed to potential higher degree of risks

• combination of jurisdictions with trustworthy/due reputation
• implementation of offshore holding mechanisms
• utilization of various effective legal forms of holding (companies, trusts, foundations etc.)
• settling inheritance issues

• implementation of profit repatriation tools
• top/Final concentration of profits in “tax haven” jurisdictions
• utilization of tools for decrease of tax burden
• allocation/Transfer of tax base to the jurisdictions with the lowest taxation

• effective distribution of profits for further development of existing business lines and/or acquiring/setting up new ones
• reducing the cost of external financing via attraction of money outside Ukraine under better terms and conditions (through the transparency, Group structuring, specialization)
• opportunities for private and private placements

• sale of entire business with no tax consequences in Ukraine
• possibility of analogous sale of separate business lines
• settling the inheritance issues with maximum coverage of all wishes of the beneficiaries

  • IT-Consulting-service-img1

Stages of international structuring

Stage 1           Studying the Business and Targets of Beneficial Owners

  • undergoing due diligence procedures

  • interviewing

Stage 2          Elaboration of Target Corporate Structure

  • choosing jurisdictions

  • deciding on incorporation of sub holding companies and special purpose vehicles

  • elaboration of mechanisms on financing and profit distribution etc.

Stage 3           Elaboration of implementation plan

  • elaboration of the action plan on transition from the current to target structure in the context of stages, timing and cost

Stage 4           Implementation

  • incorporation, reorganization or liquidation of Ukrainian or foreign companies

  • getting concentration approvals of Antimonopoly Committee of Ukraine

  • legal support of agreements on transfer of assets

  • obtaining advance tax rulings from foreign tax authorities

  • on-going legal and tax consulting etc.

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