An examination of the financial report of a company is called an audit. It is usually presented in the company’s annual report prepared by auditors. It usually relates to a specific past accounting period. Audit report based on selective testing of company’s performance is the obligatory requirement once the audit is completed. The report includes an income statement, a balance sheet, statement of changes in equity as well as cash flow statement and explanatory notes with a summary of significant accounting policies attached.
An audit reflects the financial position of the company at a given date, including information with regards to whether everything what is owned by a company and what it owes is correctly recorded in the balance sheet and are its losses and profits properly assessed. The financial report must be prepared according to certain legal requirements. When the report is prepared, it must be approved by company’s executives (e.g. Board of directors) by making a judgment towards its accuracy.
Audits may also include: asking formal and informal questions, examining tangible items owned by a company such as mechanical and electrical equipment, obtaining written confirmations, testing and monitoring certain procedures being performed in the company’s premises.
Auditing standards The standards used for proper examining the financial report are set by a government. There are International Standards on Auditing (ISAs) available on the Internet, containing clear statements which should be addressed by auditors. They consist of introduction, objectives, definitions, requirements expressed by the phrase „the auditor shall”, application and other explanatory material.
There is also an e-Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements released in December, 2016 available on the Internet with translations in English, Arabic, Bulgarian, Danish, French, Georgian, French, Kazakh, Italian, Serbian, Russian, Spanish and Thai . It includes Consideration of Laws and Regulations in an audit of financial statements and amendments and other international standards, consisting of new requirements which address non-compliance with laws and regulations (NOCLAR) in the IESBA Code of Ethics for Professional Accountants.
Core principles of auditing There are general principles and responsibilities when it comes to General Auditing Standards as well as functions of the independent auditor AS 1001. For example, consideration of materiality in planning and performing an audit, having a direct effect on the determination of financial statement amounts. AS 1005 stating independence in mental attitude is to be maintained by the auditor or auditors. AS 1010, specifying training and proficiency of the independent auditor and stating that an independent auditor represents a person who is proficient in accounting and auditing. AS 1015, explaining due professional care requirements in the performance of work. Other divisions of auditing standards include general concepts. They give a detailed description of audit risk, audit evidence and relationship of auditing standards to quality control standards. General activities describe supervision of the audit engagement, audit documentation, using the work of a specialist and engagement quality review. Auditor communications describe communications with audit committees and communications about control deficiencies in an audit of financial statements. Audit procedures include audit planning, reporting and risk assessment. Auditor reporting includes requirements of reports, financial statements and dating. Matters relating to filings under federal securities laws as well as other matters associated with audits include a view on responsibilities and reviews of financial information.
Audits help to understand and evaluate company’s activities, consider company’s economic issues which may affect its business, identify risks, having an impact on company’s financial state and performance and afterwards generate a business plan which will help the company to improve all the collected data.
Manufacturing is the largest economic sector in the world, which is also one of the most important, directly and indirectly accounting for a large part of all economic activity and all jobs worldwide. It processes items and is dedicated to either creating new goods or adding value by producing finished goods for sale to customers or intermediate goods to be used in the production process. After the industrial revolution that began in Britain a few centuries ago, labour-intensive textile production was successfully replaced by mechanization and the use of fuel. Today, manufacturing creates jobs, technological development and an increase in international investment.
For this reason, some jurisdictions are leveraging manufacturing output and value-added exports to increase their operations, business performance and revenue, and to address the challenges and opportunities that manufacturers face every day in conducting their businesses.
According to Deloitte's 2016 Global Manufacturing Competitiveness Index, China, the United States, Germany, Japan and South Korea are ranked as the top five most competitive manufacturing countries in the world. These countries generate about 60% of global manufacturing GDP.
China Canada and its provinces compete on a global scale for investments that result in low production costs, low wages for factory workers, and the adoption of globally popular product mandates. As a result, there are some significant trends in Chinese manufacturing that can easily be highlighted. These trends include creating a globally competitive, expansive manufacturing business model, helping to create a competitive business environment for manufacturing in China and increasing sales in domestic and overseas markets. This fact can encourage start-ups to grow, invest and compete with other successful manufacturing companies.
United States The United States is successful in attracting investment in many of the world's most active industries, such as aerospace, auto assembly, pharmaceuticals, to name a few. The USA has signed an agreement with Germany to implement a dual vocational training program for the advanced manufacturing sector. US business policies focus primarily on technology transfer, sustainability, monetary control, and science and innovation, giving manufacturing companies (automotive in Detroit and high-tech in Silicon Valley) a competitive advantage.
Germany Germany retains a relatively high share of manufacturing exports. The country provides long-term support in government-sponsored science labs and national programs created to foster manufacturing innovation in areas such as solar and wind power and renewable energy (renewable energy sources accounted for 28% of the country's electricity generation in 2014). In addition to an energy revolution in the manufacturing industry, the country is striving to phase out nuclear energy.
Japan Japan has a technology-intensive manufacturing sector that dominates the global manufacturing landscape in most advanced economies. The country maintains manufacturing competitiveness as there is a close link between manufacturing competitiveness and innovation. Japan has strong potential to become one of the most advanced manufacturing jurisdictions in the world. The Robot Revolution Realization Council was established in the country in 2014 as part of the Japan Revitalization Plan, introducing infrastructure and energy resources for next-generation vehicles. Japanese companies account for 50% of the global factory robot market.
South Korea As the world leader in the manufacture of liquid crystal displays (LCD), smartphones and memory chips, automobiles, and the world's largest shipbuilder, South Korea is actively pursuing growth in free trade agreements with more than 50 countries. The country invests heavily in education and produces a large number of researchers every year. It is also known that supporting manufacturing innovation in South Korea with venture capital investments to boost high-tech startups is identified as a strategic priority.
With the right documentation and initial expenses, it is possible for a foreign citizen to open a bank account in Georgia. This international account and investment opportunity offers several advantages based on economic regulations and tax structures. Interest rates, tax laws and fees vary depending on the country in which you invest; Careful research and strategic financial actions could result in significant portfolio growth.
If one is considering opening a bank account in Georgia, one must enlist the help of international experts to guide them through the process.
Legal structures in Georgia Each international jurisdiction adheres to different legal structures for taxation and banking. Confidus Solutions helps you understand the nuances of each country's legal structure. In order to do business in Georgia, it is crucial that you have a thorough understanding of the financial and legal ramifications.
Initial investments The vast majority of bank accounts in Georgia require an initial financial outlay to secure the account opening. This value differs from bank to bank and also depends on variable exchange rates. An international financial expert will help navigate these conversions, as well as the various fees and minimums associated with maintaining a bank account. Make sure you understand the interest and growth rates associated with each prospective international bank account so you can maximize your returns while minimizing risk.
Tax structures in Georgia To get the best results and avoid bureaucratic and legal pitfalls, enlist the support of an expert in international finance and economics. This initial investment in proper processes and research will help avoid a litany of long-term costs and fees related to unforeseen errors and legal errors. Language skills, financial know-how and bureaucratic experience ensure that your account opening is processed smoothly and without unintended consequences.
In recent years, tax residency issues have become more important in tax returns for government, banks and tax authorities. Obtaining tax residency status in the UAE is growing in popularity for a number of reasons:
The UAE is expected to join the Common Reporting Standard (CRS) later than most other countries – from 2018. UAE residents and companies and individuals are generally not taxed on trading income, dividends, investments, bonds, etc. The UAE offers tremendous opportunities for international companies; Businesses are easy to start and run effectively.
Who can apply for UAE tax resident status? A UAE Tax Residence Certificate can be issued to an onshore company or individual but you must first become a UAE resident. This can be achieved in one of the following ways:
You can register a company in your name. There are no requirements for this company to participate in active trading; Basically, its main purpose is to support your tax residency status. This status is maintained on the basis of the onshore company, which must be renewed annually. You can buy properties worth over a million dirhams in the UAE. The owner must be a single individual or a married couple. If there is more than one owner (or if the couple's marriage is not officially registered), each person must invest one million dirhams in the property. Our package offer includes the application for a residence visa with the option of annual renewal.
UAE onshore companies Incorporating a company in the UAE is fairly straightforward and has proven to be an excellent vehicle for international trade as well as holding dividends and interest. A company incorporated for tax residency purposes cannot be just a shell and you must maintain some turnover in the company bank account.
Note that only UAE onshore free zone companies can be considered for tax residency purposes. Therefore, companies in Ras Al Khaimah will not be of any use in this regard.
If you decide to incorporate your onshore company in a free zone, consider Umm al-Quwain Free Zone: unlike many others, there are no share capital or statutory accounting and auditing requirements here. As with all free zones on land in the United Arab Emirates, your business will need a specific license depending on the type of activity you wish to undertake. An onshore company must also have a rented office - this service is included in our company package.
The monthly minimum wage in Latvia is 513 USD. Latvia has a public debt equal to 39.3% of the country's gross domestic product (GDP), estimated in 2012. In terms of consumer prices, the inflation rate in Latvia is 0.2%. The currency of Latvia is the euro. There are several plural forms of the name "euro". These are euros, euros. The symbol used for this currency is €, abbreviated to EUR. The euro is divided into cents; 1 euro is 100. Every year, consumers spend around 15,930 million US dollars. The ratio of consumer spending to GDP in Latvia is 0.05%, and the ratio of consumer spending to the world consumer market is 4.59%. Corporate tax in Latvia is 15%. Personal income tax ranges from 24% to 24% depending on your specific situation and income level. VAT in Latvia is 21%.
Gross domestic product Total Gross Domestic Product (GDP) valued as Purchasing Power Parity (PPP) in Latvia is US$48,362 billion. Gross Domestic Product (GDP) per capita calculated in Purchasing Power Parity (PPP) in Latvia was last seen at $25,058,836. PPP in Latvia is considered very good compared to other countries. A very good PPP shows that citizens in this country find it easy to buy local goods. Local goods can include food, shelter, clothing, healthcare, personal hygiene, essential furnishings, transportation and communications, laundry, and various types of insurance. Countries with very good PPP are safe investment locations. Total gross domestic product (GDP) in Latvia is 30.886 billion. Based on this statistic, Latvia is considered to be of medium economic strength. Middle economy countries support an average number of industries and investment opportunities. It shouldn't be too difficult to find worthwhile investment opportunities in mid-sized economies. Gross domestic product (GDP) per capita in Latvia was last seen at $16,003,623. The average citizen in Latvia has a very high level of wealth. Countries with very high per capita wealth have a longer life expectancy and a very high standard of living. Highly skilled labor can be found in many industries and labor is very expensive in these countries. Very wealthy countries offer safe investment opportunities as they are often backed by a diverse and thriving financial sector. The annual GDP growth rate in Latvia in 2014 averaged 2.7%. According to this percentage, Latvia is currently experiencing modest growth. Modest growth countries offer safe investment opportunities; Their expanding economy suggests that businesses, jobs and incomes will increase accordingly.
At the business incorporation and company incorporation stage, it is necessary to determine whether a license is required. When providing financial services such as B. banking, a license is usually required as the strict rules of EU law apply. The same applies to other money services in money transfers, financial institutions, insurance companies and insurance brokers, trading in bonds and securities, trading in jewelery and gambling. In some jurisdictions, chartered accountants, lawyers, notaries and bailiffs require a license. Building work on the site requires the purchase of a permit. Another type of sales tax should be applied if some jurisdictions require a seller's license and additional registration in the tax register, VAT payer register or the purchase of a tax exemption certificate.
Depending on the nature of the products, the licenses and permits may be required for different areas, for example for alcohol trade you may need a wholesale or retail license or a license for strong alcoholic beverages and beer. If the company conducts business related to the sale of excise products such as coffee, oil, tobacco or storage services for the above products, these activities require the acquisition of a license.
Pharmaceutics, drug manufacturing and activities related to narcotic drugs and psychotropic substances also require a special permit, which usually includes several criteria to be met, as the activities are directly related to human health care.
Commercial activities involving explosives, pyrotechnics and other explosive substances as well as all types of firearms and ammunition and other substances necessary for military purposes are strictly regulated and require a permit in order to be able to handle them. If the company provides transportation-related services such as freight or passenger transportation by air, rail, ship, or highway, a transportation license is required in most cases.
Postal and mobile services, social services, employment agencies, security companies, private investigators - all of these require a license. Activities that affect the environment such as geology, oil production, activities that may cause pollution, refuse and waste disposal and recycling, activities involving chemical substances and radioactive substances – also require a permit.
Hotels, hostels, guesthouses and other places relevant to tourism, as well as tourism operators and tourism agencies, require a permit.
Wood recycling, cultivation and cutting, surveying services - subject to approval. Hunting and hunting-like activities require a license. The same applies to anglers. The production and distribution of strategic resources such as gas, electricity and water require permits. In each jurisdiction, the list of commercial activities subject to licensing may be different.
Asia has a very rich cultural heritage that has been carefully nurtured through centuries of history. Today Asia is very attractive to international investors due to the fact that it has several large economic areas as well as several special areas with a thriving economy and favorable tax systems. Below is our top list of jurisdictions for international investing in Asia.
Hong Kong
Modern Hong Kong can offer a free market economy that relies heavily on international trade, the financial sector, the extent of export / import, including a fairly large proportion of re-exports. Hong Kong does not impose tariffs on imported items. Also, there are only four groups of goods subject to excise duty: high alcohol beverages, tobacco, hydrocarbon oil, and methyl-based alcohol. Currently, Hong Kong does not have any import / export quotas for anything. The Hong Kong government continues to peg the local currency (Hong Kong dollar) tightly to the US dollar, in support of an agreement signed in 1983.
The local government is actively developing the Special Administrative Region (SAR) to make it a desirable destination for mainland China Renminbi to achieve their internationalization in the business community. Residents are allowed to open savings accounts in RMB currency; In addition, Hong Kong public and Chinese government bonds were issued in RMB currency; as well as currently in the private and public sectors, RMB agreements are permitted. The Hong Kong government is working really hard right now to increase the additional use of RMB in Hong Kong's financial markets and is looking for an opportunity to increase the RMB ratio significantly.
Macau
Since establishing its local casino industry hotspot in 2001, Macau has attracted tens of billions of dollars in international investment, completely transforming the area into one of the largest global gambling hotspots. The Macau gambling and tourism industries have been heavily influenced by China's decision to relax travel restrictions on Chinese nationals looking for an opportunity to visit Macau. In 2016, Macau gambling taxes estimated over 76% of total household revenue. Macau's economy suffered quite a bit in 2009. It was a consequence of a global economic crisis, but the rapid economic growth continued somewhere until 2013. In 2015, Macau was home to approximately 31 million tourists, with an urban population of 646,800. About 68% came from mainland China. The services offered, mainly gambling, have boosted Macau's economic performance several times. Recently, however, the anti-corruption campaign carried out by the Chinese government has suffered slightly for the Macau gaming industry.
Singapore
Singapore is currently having a prosperous, well-developed free-market-oriented economy. Singapore government has hardly worked on and achieved an open and nearly 100% corruption-free government and business environment as well as strong economy, and quite high competitive (even by the Western standards) per capita GDP. Employment rates are extremely high, while the Singapore budget mostly relies on exports, specifically of consumer goods and electronics, IT & software, medical technology and devices, pharmaceuticals as well as on lively business, banking and financial industries.
Singapore is a famous destination for many international investors and entrepreneurs, especially in certain industries. According to financial analytics data it will continue to develop and evolve into Pacific Asia’s major business and high-tech hotspot. Singapore is a proud member of the 12-nation Trans-Pacific Partnership free trade agreement. It is also a part of the Regional Comprehensive Economic Partnership agreement. Back in year 2015, Singapore has established, along with the rest of the ASEAN participants, the ASEAN Economic Community.
China
Starting back in the late 70s, China has been working on it’s economy and market, rapidly going from internal government controlled closed market, to more liberal, open government planned system with profoundly internal market-oriented economy, leading to an increase of China’s impact on the global market. By year 2010, China has turned into the largest global exporter. Changes and reforms have started with slowly abandoning collectively planned agriculture, developing to introduce free-market pricing, decentralizing taxation, granting more autonomy for government-owned companies, expansions of the private sector, fast development of stock markets and introduction of a modern banking system as well as China’s access to international trade and investment.
China did undergo a number of reforms lately. During last few decades, Chinese government has renewed its support for government-owned companies in industries, which are strategic for country’s security and development. Such decision was made specifically to boost certain industries and make them more competitive on a global market. Such change of economy and the following benefits have dramatically impacted to a China’s GDP making more than ten times increase since year 1978.
Taiwan
Modern Taiwan has a prosperous free-market economy with overall decreasing government control over international investment and trade industries. Strategic production industries, such as production of electronics, machinery and petrochemicals, have given the major boost and factors necessary for rapid growth of economy. However, such factors as Taiwan’s diplomatic isolation, extremely low birth rate, and quickly aging population are several major long-term challenges that Taiwan’s government needs to face and solve.
Czech Republic has a corporate tax rate of 19%. Companies that operate under VAT have to pay tax on purchases at 21%. Certain services, like those related to foodstuffs (excluding essential child nutrition), some of the soft drinks, take away food, water supplies, medical equipment for disabled persons, children's car seats, and others, benefit from a 15% VAT rate.
The Republic of Cyprus or simply Cyprus is an island country in the eastern Mediterranean Sea and the third largest and most populous island in the Mediterranean Sea. Cyprus is north of Egypt, south of Turkey, west of Lebanon and Syria, north-west of Israel and finally – south-east of Greece.
As Cyprus is a former British colony, around 80% of the population is relatively fluent in English. Similarly, the legal system is also developed on the basis of the common law practiced in England. Cyprus is a free market economy which offers various opportunities including efficient tax planning for international companies. With top-notch accounting and legal services and an excellent geographic location, Cyprus is a great place to do business. The country is considered a leader among tax planning jurisdictions, so incorporating a company in Cyprus is an ideal way to protect your business. During the past decade, Cyprus' role in international tax planning has grown dramatically. As an EU member state, Cyprus has earned a reputation as a legitimate and reliable jurisdiction with over 40 double taxation treaties and some of the lowest taxes in the EU.
Advantages of acquiring a Cyprus shelf company Once you have decided that Cyprus is the right jurisdiction for your company, you can either incorporate a new company or purchase a ready-made company. Ready companies are legal entities that were formed some time ago and have been “sitting on the shelf” ever since for investors to buy and run that business. Based on this comparison, ready-made companies are also referred to as shelf companies. Buying a shelf company has several advantages.
The main goal of a shelf company is to provide the investor with a company with a clean history, as older companies are often perceived as more trustworthy, reputable and reliable than newly formed companies. Acquiring a shelf company is also faster compared to the process of forming a new company. This turns out to be a great advantage for many entrepreneurs who need to start trading as soon as possible.
Acquisition of a Cyprus shelf company Buying a shelf company in Cyprus is usually a simple and quick process. Companies specializing in the sale of shelf companies offer full service. This means that along with the company itself, they can also provide a full set of corporate documents, company secretary, registered office, nominee shareholders and directors, company bank account with internet bank and debit cards, VAT number and even support for the first year of operation possibly.
Usually the process of a shelf company acquisition is completely organized by the service provider and it only takes 24 hours before you can start trading. The process of buying a ready-made company can differ between different service providers, but usually 4 steps are required to buy a ready-made company:
Step 1. You select a company from a list provided on your service provider's website;
Step 2. Your service provider will send you a bill that needs to be paid;
Step 3. Submit a signed Know Your Client form, a copy of your passport and a utility bill in your name;
Step 4. The service provider prepares your chosen company and all the required paperwork including: all the company incorporation documents, an open share transfer agreement in your name, a Deed of Trust prepared for you by the shareholders and nominee directors and some other informative ones Documents . All documents will be sent to your address on the same day. Since the company is already registered and has a VAT number, you can start trading the same day.
It is important that you carefully consider which service provider is best suited to your needs, as the packages of services offered differ, as do prices and reliability. It is up to you to conduct full due diligence so that you can trust your service provider. For example, while some service providers offer shelf companies with a bank account already open, others offer the option of opening one after the company has been acquired, which will usually take several days. It is up to you to do a full due diligence for you to be able to trust your service provider. For example, while some service providers offer shelf companies with an already opened bank account, others offer an opportunity to open it only after the acquisition of the company, which will typically take several days.
Typically, shelf companies have a legal structure of a Private Limited Liability Company, which is also the most popular type of structure among newly incorporated companies. The popularity of this structure can be explained by the limited responsibility shareholders have in regards to the company’s debt and other liabilities. Also, the minimum capital is smaller in comparison to Public Limited Liability Companies – 5,000 EUR.
Offshore Shelf Company In case you are not planning to do business in Cyprus, you may benefit from even more beneficial tax structure. As an international entity you are allowed to conduct any legal business activity, make investments, trade portfolios of bonds and stocks as well as buy and sell real estate outside of Cyprus and not pay corporate tax at all.
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