De-offshoring and its impact on shipowners?
Today, non-resident company’s bank account is an urgent need for international business.
Cooperation with offshore companies is a common business practice, in particular, for shipping industry, whose business is not related to any certain state.
Actions aimed at currency liberalization in Ukraine still do not provide an opportunity for quick and convenient shipping business, as compared to engagement of non-resident companies and foreign banks.
Due to trends of BEPS launching, today many non-resident companies are existing without bank accounts.
The Client – large shipowner applied to Interlegal for assistance in work organization due to closing bank account of the principal operational non-resident company (shipowner).
The lawyers’ task was to propose the most optimal variants:
1) with the current shipowner preserved in the group of companies (without account);
2) with the shipowner company replaced by another one (with new account opened).
With regards to the Client’s business specification, Interlegal work team drafted the following:
1. Recommendations upon the agreements, whereunder the group companies will cooperate;
2. The best jurisdictions for cooperation, with regards to substance claims, probability for opening account;
3. Tax aspects and supposed expenses upon each selected jurisdiction;
4. Supposed risks (including tax risks) the Client may face during its activity.
Finally, the Client obtained several variants of cooperation schemes based on several jurisdictions, to be selected at its own discretion.
In future, each shipowner, still operating with offshore companies engaged, may face such changes.
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