Registering a company in a foreign jurisdiction to develop mobile applications for Google Play and Appstore.

What are the reasons for registering your company abroad;

• Most of your clientele located abroad;
• Bank makes absurd demands in terms of submission of documents confirming the cooperation with other companies (example: a contract confirming the cooperation with the App Store, Google Play, etc.);
• You specialize in developing mobile apps for the App Store, Google Play, etc.;
• Your income exceeds 30.000 USD per year;
• Burdensome constant communication with the tax authorities;
• Your investors are based abroad;

Jurisdiction

Registering a company in an offshore jurisdiction, for the implementation of mobile app development is undoubtedly an effective solution to the issues of taxation and personal security for company owners (beneficiaries). To this day, a decent replacement offshore has no organizational structure.

Since 2004, the trend of minimizing taxes had gained it's momentum among legislators. Some measures to combat tax avoidance were taken at governmental level and have proven to be ineffective.

Control measures include:

• Acceptance of changes in contracts "for the avoidance of double taxation" with certain offshores;
• Adoption of special rules concerning licensing requirements in the country of provision;
• Introduction of new requirements for banks conducting customer payments to complicate cooperation for both sides;

These and other measures are not part of some coherent philosophy of Roman law but a short-term solution.

Nevertheless, the development of legislation continues and improves.  For example, the European Union has adopted new rules of e-commerce, which will unify the situation within the EU.

Currently most developed and transparent legislation of virtual business is in United States. On the other hand the United States is the state of the case law and its administrative structure provides some sparsity in the legislation of each state so in any case, running a business requires a good legal training.

How to withdraw your hard-earned money

When the choice of jurisdiction and registration is completed, it is advised to open an account in "decent bank". Such banks are not fond of offshore companies with low turnover. There are two ways to solve this problem:

• First: charge any law firm, it will ensure to take a lot of stress off - as a company specializing in these services has a team of professionals with experience in the area. Though technically the task can be completed without additional help, it'll speed the progress sufficiently and take communication with bank of your hands.
• Second: open an account yourself, you'll have to attend bank in person and provide requested documents.

Documents required to open an account

Since the combat with money laundering, drugs, guns trafficking and other illegal schemes is conducted very thoroughly, it is advised to be prepared for a very long and meticulous examination of your persona. 

Depending on the impression you made additional documents could be required:

• second document conforming identity ;
• diploma;
• property ownership documents;
• the vehicle registration and driver's license;
• founding documents for your other companies;
• bills for utilities;
• revenues and expenses checks;
• cash-flow reports;
• expanded list of planned counterparties;
• letters of recommendation from other banks.

In general, banks do not miss the opportunity to get a full picture of their future client and wants to make sure that you are a law-abiding citizen who plans to do legitimate business. Number of additional documents required depends solely on the existing experience from you in the bank.

As for withdrawal and taxes planning business model, here are two ways to get your money:

• You can transfer money to your personal bank card - this option does not relief you of paying taxes;
• You can issue a corporate card for more convenient use without having to pay additional taxes at all;

When planning a virtual business model following factors should be considered:

• difference in the type of business - services or trade, it is a question of principle. For example, registration of the company for the appstore , registration of the company for google play , registration of the company to develop mobile applications , in general, this one, and check company for the domain is completely different and therefore the conditions for such companies may be different.
• Licensing in the country of registration of the operating company (provided or not provided for by the legislator).
• licensing in the state of the client (provided or not provided for by the legislator).
• Availability
• agreement "on avoidance of double taxation".
• Requirements for location of servers as the main asset of the company.
• Dimensions and stock regular government fees.
• capital requirements of the company.
• requirements for accounting.
• Availability
• taxes when doing this or that business inside and outside the jurisdiction.
• Difficulty closing the company in case of necessity and consequences of bankruptcy for the beneficiaries.

Компания Law&Trust International has extensive experience in registration of the company to develop mobile applications for the registration of the company cooperation with appstore, for registration of the company cooperation with google play, staff of highly qualified professionals who offer you a high quality legal services to elect the most comfortable and economical structure for your business and will accompany the whole process of registration. For more information, contact the our specialists .