Shareholder Agreement for new business setup
30 September, 2020
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The Client filed a request to Interlegal for legal support in business setup jointly with his new partner.
Main task for Interlegal team was to create a corporate structure and to regulate relations with partners.
Despite all changes in cooperation with non-residents, foreign holding companies and shareholder agreements under English law are still used for business projects.
Today, holding scheme construction should take into account the recent changes in Ukrainian tax legislation due to adoption of Law No. 466 as for expanding the concept of withholding tax.
Cyprus is the most optimal variant for such purposes.
Such jurisdiction combines the convenience of company service and ability to use the principles of English law in shareholder agreement concluded at the company level.
To protect the Client’s interests, Interlegal team drafted the Shareholder Agreement, fixing the issues of profit distribution, options for deadlock settlement, specific conditions of partnership and withdrawal from business.
Apart from text of the agreement itself, Interlegal lawyers also analyzed the procedure for entering each partner into the Cypriot company and terms/procedure for the project financing.
With regards to longstanding practice and undeniable advantages, the Client launched the project based on Interlegal recommendations.
