PROFEL is a Global Business Services provider in the fields of corporate administration, fiduciary services, accounting/bookkeeping, and business advisory services directly addressing the needs of international clients.  We navigate clients through the maze of the offshore sector and provide products at affordable prices with the utmost attention to high quality of service. We aim to help you expand into new markets, run your businesses more effectively, and take advantage of new possibilities.

Professionalism, confidentiality, reliability, and integrity are the hallmarks of our business philosophy. Our team of professionals are dedicated at ensuring that your needs are fully understood while providing you with unrivaled service and expertise.

Registration of a European/International Company:

The registration of  a European (EU based) company can be the most profitable business decision you will ever make, but it has to be done properly, with a thorough understanding of the local market place and with flawless attention to detail.

Profel’s team of professionals specializes in the intricate field of European company formation and company incorporation. They have the knowledge and contacts to ensure that your European company formation project runs smoothly from start to finish.

At Profel we offer a full turnkey service for company formation in Europe, which includes:

  • A wide range of Company Incorporation packages;
  • Rapid formation shelf companies;
  • Bank accounts, nominee directors and office services;
  • Tax planning and offshore trusts and companies;
  • Managed services, and business consultancy.

We also offer something that money simply cannot buy – the reassurance, security, and confidence that you will gain from the knowledge that you are dealing with a team of company incorporation professionals so there’s no need for you to spend hour after hour mastering company incorporation law, or trying to recruit people that you can trust – we’ve already done that for you!

Uses of international companies:

International Trading

If a firm has significant business in a third party jurisdiction it is often possible to reduce the overall tax position by transferring management and control to a more tax efficient location. For example, if a British firm purchased a given type of good in Italy for resale to the Middle East it would seem inappropriate, to say the least, that such a transaction should be subject to UK corporation tax.  A potential solution would be to set up a company in a low tax area such as Cyprus to specifically control these transactions. If this is done correctly and does not offend the anti-avoidance provisions of the Taxes Act, 1988, it should be possible to benefit from for example the Cypriot corporate tax rate of 10.00 %.

Obviously, any remittances back to the UK may be subject to full UK taxes.  However, those funds not so required should be available for investment elsewhere. In respect to Cyprus, the fact that it has an extensive double taxation treaty network, demands the submission of annual audited accounts and, in this example, is strategically placed, all goes to prove the commercial veracity of the establishment of the Cypriot company/office. Even better, in certain circumstances it may be possible to reduce the flat 10.00% tax rate by inserting an offshore limited partnership (this being tax free) with taxes only being paid on the proportion of profits earned by the Cypriot company in its capacity as the “general partner”. ‘Limited’ and ‘passive’ partners having no direct tax consequences.   Therefore, if no direct fiscal remittances are made to the relevant high tax ‘mother’ country, all profits earned by the passive partner(s) will be totally tax free.

Investments

Offshore/Tax Exempt companies can often be used as an investment conduit in order to allow money/assets to grow in a tax friendly environment with you, as opposed to the taxman, deciding if, when and how much money should be repatriated.

Property Companies

In certain circumstances there are significant tax advantages in having properties held by appropriate domestic and/or offshore mechanisms. For example, for non-domiciled individuals in the UK, a local company owned in turn by a tax-free company (such as a Cyprus company) can legally avoid all capital gains taxes.  The reason for this is that “shares” are considered “moveable” property under British law and capital gains realized by a non-domiciled individual through his or her interest in the offshore ‘tax free’ company is not a British taxable event unless the gains are directly remitted.

Further, by using appropriate tax treaties it may also be possible to arrange “back-to-back” loans to virtually eliminate domestic tax liability on rental payments. In respect to Continental property acquisitions, even in jurisdictions such as France, Spain and Portugal is also possible – with correct planning – to avoid CGT or equivalent taxes and various property acquisition duties (which are extremely high in the case of France) by using double taxation treaties/companies. However, whilst Britain and Portugal have very favorable tax laws especially for non-domiciled individuals, the French fiscal system always demands local professional advice.

Family Asset Protection

One of the major objectives of many tax mitigation clients is to ensure that wealth established during their lifetime is not fettered away by future generations/circumstances. To avoid this tax planning firms can often provide a whole range of ‘tailor-made’ companies, trusts, foundations and establishments which can be used together with many of the other tax mitigation mechanisms already outlined. In particular, they can often be formulated to allow, whilst the original “settler” is alive, for initial investment flexibility followed by a “fixed” structure upon his or her demise. In addition, with the correct advice, “asset protection schemes” can also legally avoid the almost universal “forced heir-ship” provisions of civil law jurisdictions.

Intellectual Property

In many cases offshore/tax exempt companies can be very successful in exploiting the various international withholding tax rates for dividends, royalties and interest. For example, it is very common, for a nominal consideration, to transfer patent, copyright or trademarks in favor of an appropriate offshore/tax exempt company before significant appreciation. Once acquired it then being possible to issue intellectual property (IP) sub-licenses or exploitation rights to appropriate third party structures.

Yacht / Vessel Registration & Management

Without doubt in recent years there has been a great transfer of merchant navy registration from traditional areas like Britain, Norway and Greece to offshore shipping jurisdictions such as Cyprus, Panama, Liberia, the Isle of Man, and the British West Indies. Correctly advised, an individual can also benefit from such tax free/low tax environments.   Apart from the lower registration fees it may also be possible to rent or charter a vessel without any significant, or even any tax repercussions. Such benefits together with the ability to maintain a world wide respected flag (such as Cyprus’) have meant that few private yachts of any size are today registered in their home territory.

Serviced virtual Offices:

Telephone answering and forwarding; fax forwarding, and messaging, using your company’s name.

Transferring your existing Company Administration to Profel:

  • Our 1st Year Transfer Package includes
  • No Transfer Costs
  • Free Tax Planning Advice
  • 10% off our Standard Fees*

If you are unsatisfied with your current service provider then why Email us at: profel@profelltd.com.

* This does not include any government duties, franchise taxes or set rate duties and/or accountancy fees. It is always at the discretion of decline new business without having to give a reason.

What type of Company do I need?

It is vital to know when to use a Tax Planning Company and when to use an Offshore Company – A mistake can cost Thousands!

Tax Mitigation Jurisdictions can be divided into two distinct types ‘Tax Planning’ and ‘Offshore’ Jurisdictions. The former are basically territories that benefit from double taxation treaties with other countries that can be used to reduce or defer corporate, dividend, royalty, capital gains or inheritance taxes.   Such territories are often also part of economic groupings such as the European Union, which in turn allow special treatment of tax and/or dividend/interest payments between member states.

Offshore/International Business Corporation (IBC) Jurisdictions on the other hand, rarely have tax treaty benefits (or if they do they will normally be with their former colonial or supervising power) but are nearly always tax-free or require the payment of an annual exempt/franchise tax.   As previously stated, tax planning jurisdictions are generally required for trading, consulting, and active business activities whilst offshore/IBC jurisdictions should only be used for ‘passive’ and/or holding vehicle purposes such as asset ownership.  For further clarification please contact us at: profel@profelltd.com .

Tax Planning Jurisdictions

  • Generally recommended for those actively trading:
  • Cyprus (member of the EU and the Euro zone);
  • Hong Kong.

Offshore/IBC Jurisdictions

  • Generally recommended for holding and/or passive activities:
  • Seychelles;
  • British Virgin Islands (BVI).