Until recently, there was a stipulation regarding classic offshore companies (Belize, Seychelles, British Virgin Islands) that such companies do not submit reports to the state tax authorities and do not have to prepare them. However, in reality preparation of accounts is mandatory as it is the key to the successful functioning of the business. The requirement to file returns can come at any time from:
- government agencies;
- fiscal service;
- bank.
When concluding transactions, partners may also take an interest in the financial condition of the company. Zero reporting is being prepared for new organizations. A report for the last few years may be needed when selling a business (corporate rights) or part of it.
As for mid-shore companies that are registered abroad (for example, in Cyprus or Hong Kong) and pay taxes, such legal entities submit reports, and an audit is also mandatory for them. Banks often require an audit report.
Employees of Key Solutions will help with reporting both for classic offshore and for midshore and onshore.
Why you should follow the reporting requirements
Timely reporting:
- Ensures the successful and continuous operation of a non-resident firm.
- Helps avoid blocking bank accounts.
- It will save the company from penalties, which means additional costs.
- Protects the firm from closing.
At the same time, a company that has problems with reporting cannot obtain a certificate from the tax office on registration, obtain documents in the country of jurisdiction and enjoy tax benefits, issue a certificate of the normal state of affairs from a legal entity, and also bears various image loss.
Types of reporting
Reporting usually involves two components:
- financial – balance sheet, bank account flow, profit and loss statement;
- non-financial (management) containing information about changes in the legal address, participants, share capital, etc.
Reporting is prepared in accordance with IFRS rules. The same form is suitable for presentation to the bank, partners, and tax authorities.
What you need for reporting
Key Solutions specialists do not even need to know the name of the company to compile a report, nor do they need any confidential information.
For an accountant to generate reports, it is enough to provide:
- Jurisdiction information;
- bank details;
- list of banking transactions;
- bank statements;
- invoices;
- contracts.
It is advisable to send bank statements immediately after the transaction, because if the account is blocked, access to them may be closed.
The cost of reporting depends on the jurisdiction and the number of banking transactions for the reporting period. Standard processing time – 10–20 days.
All documents are drawn up in electronic form, so we work with beneficiaries from any city in Ukraine.
Do you have any questions? Would you like a detailed consultation? Contact the Key Solutions manager by phone or formulate a question in electronic form and send it to us.