Any company that is registered in a white hat jurisdiction list of the OECD, is required to keep records of foreign companies, even if it does not carry out any activity. In midshores (Cyprus, Great Britain, Hong Kong, Curacao), onshores (Switzerland, Germany), reports are submitted to regulatory authorities on time, in classic offshores (Panama, BVI, Seychelles) – presented at the request of the tax, local government agencies, bank.
If your non-resident firm is a controlled foreign company (CFC), reporting must be done from the first days of its existence, in many cases an auditor's report will also be required. If the company has not yet carried out activities, a "zero" report. Reporting is prepared in accordance with IFRS rules for a specific reporting period, which, as a rule, is equal to one calendar year.
Preparation of financial statements foreign companies– a rather painstaking process that requires knowledge of the intricacies of legislation and accounting standards, including both international and country of residence. Key Solutions specialists will help with the preparation of reports in accordance with IFRS requirements and, if necessary, prepare an audit report.
Why you need to prepare financial statements
In some jurisdictions, annual reporting is mandatory; violation of this requirement is subject to a fine, blocking of a bank account and in the future – problems with the intention to open a business abroad.
In addition, open accounting and financial reporting makes it possible to:
- to open a bank account without any problems;
- buy, sell a business;
- consolidate (merger) foreign companies;
- sell real estate that is registered to a non-resident company;
- avoid penalties.
Without financial reporting, it is impossible to register a foreign company with the tax office, to take advantage of tax incentives, if any. Often reports on the state of affairs in the company are provided to investors, business partners, banking or other institutions.
What is included in reporting services
Key Solutions Command:
- we provide consultations for foreign companies registered in various jurisdictions;
- we are engaged in accounting of non-resident companies;
- prepare tax returns;
- conducts due diligence of documentation;
- help to resolve difficult situations;
- we control the deadlines for filing tax returns and financial statements;
- prepare financial statements and audit report.
On your part, you only need to provide information about the country of jurisdiction, bank details, bank statements, invoices, contracts. All documents can be sent electronically, we do not require confidential information.
The preparation time takes an average of 10–20 days, the cost of the service depends on the country of jurisdiction and the volume of documents.
You can learn more about the provision of accounting services and reporting of foreign companies during a consultation with a Key Solutions employee.