International business: basics, requirements and frequently asked questions

Every day we receive many inquiries: "How to register a company abroad?" Do I have to go abroad to set up a company? How long does it take to open a company abroad? What do I pay money for?"

Before making a decision, clients often spend weeks on research - reading forums, comparing jurisdictions, calling different companies, getting conflicting answers, using GPT chat to get reliable information.

Every entrepreneur planning to enter the international market must take into account the peculiarities of international economic relations, so before starting an international business, it is important to have not only a theory, but also a clear algorithm and action plan, an understanding of all procedures and all possible costs.

We have prepared a comprehensive material with answers and professional explanations to the most common questions about international business.

How to start a company abroad?

To start an international business, we recommend that you always contact law firms or consulting firms that will communicate with service providers abroad.

As a general rule, all foreign companies are registered by local lawyers who specialize in the laws of a particular country.

These are companies that have a real office and work at the place of registration, have access to state registers, communicate with government agencies, speak the language of the country and can perform legal actions at the official address Large international registrars often do not work with clients directly, but only through law or consulting companies that represent the interests of beneficiaries.

Do I need to go abroad to start an international business?

No, you do not need to go abroad. Modern technology allows you to do almost everything online.

Today, a foreign company can be registered in several ways:

Full online verification (the most convenient option)

In many countries, remote customer identification is available through certified KYC programs.

To do this, you only need:

• a smartphone;

• access to the Internet;

• a biometric passport (some programs may ask you to scan the chip to obtain data);

• take a selfie;

• provide a utility bill to confirm the address.

Most systems automatically recognize and translate documents, and Ukrainian biometric passports support NFC reading, which further simplifies the process of opening a foreign company.

Opening a foreign company by Power of Attorney

In some countries, such as Lithuania, Estonia, Moldova you need to issue a power of attorney to a representative of the local registration agent.

A power of attorney must usually be:

• notarized,

• apostilled.

But there are exceptions when there is a agreement on legal assistance, so a power of attorney in Ukrainian certified by a Ukrainian notary is accepted without apostille. The power of attorney must be sent in the original to Estonia, translated into Estonian, and the company will be registered without personal presence.

Personal presence of the director (rare cases)

For registering a company in Serbia, the director needs to obtain a local mobile signature (e-ID), without which registration is impossible. In this case, the director must visit Serbia.

Timeline for setting up a company abroad

The timeline for starting an international business depends on the jurisdiction and internal procedures of the registration agent.

As a general rule, the timeline for starting an international business begins only after the client has provided all the necessary documents and passed a compliance check.

For example, registering a company in Gibraltar takes only 1-2 business days. However, it should be borne in mind that the compliance check of a client can take much longer - up to 1 month. This is due to the fact that local agents approach new clients very carefully and thoroughly check all documents and sources of funds to comply with international anti-money laundering (AML) and financial monitoring standards.

General terms of setting up an international business:

1. Approval of the company structure - 1 business day;

2. Collection of documents by the client - from 2 days to 7 business days;

3. Compliance (verification of the beneficiary and structure) - 2-5 business days, if there are no additional questions;

4. Checking the company name and its redemption in the state register - 1- 4 business days;

5. Preparation of company documents - 1-2 business days;

6. Submission of documents to the state register - the time frame depends on the country;

7. Registration of the company - the terms depend on the specific country;

8. Request of company documents;

9. Apostille and notarization if necessary;

10. Delivery of documents to the client.

The authorized capital of a foreign company

The requirements for contributing authorized capital completely depend on the country where the international business will be opened. In some countries, this is just a formality, while in others it is a requirement without which it is impossible to start a business.

Swiss Authorized Capital Requirements in Some Countries

Switzerland

In Switzerland, authorized capital is a mandatory requirement for most forms of companies. For a GmbH, the minimum amount of capital is CHF 20,000 and it must be fully paid in before registration.

The procedure for contributing share capital includes several stages:

1. Opening a special bank account in a Swiss bank;

2. payment of the entire amount of the authorized capital;

3. receipt of a bank certificate of deposit;

4. submission of this certificate to a notary for opening a company.

After the company is entered in the commercial register, the amount of capital is unlocked and can be used in the company's business activities.

United Kingdom

In UK it is enough to declare the authorized capital - no actual deposit of funds is required.

The standard authorized capital of an English LTD company is £1. In practice, it is more common to use a charter capital of £100 or £1000.

Poland

In Poland, the procedure depends on the form of the company, but the most common is Spółka z o.o. (Sp. z o.o.), a full analog of the Ukrainian LLC, in which:

• minimum authorized capital of 5,000 PLN (approximately 1,300 euros);

• assets can be contributed in cash or in kind;

• The capital does not need to be contributed before the submission of documents, but it must be fully formed before the start of the company's activities and reflected in the registration documents;

• The capital is deposited after opening a bank account of the company in a Polish bank.

In fact, this means that the founders of a Polish company submit documents for registration (via S24 or notarized), obtain a KRS, and only then open a bank account and deposit the authorized capital.

What exactly do you pay for when setting up a company for international business

The question "what do I pay for besides a legal address?" in the field of foreign incorporation is one of the most frequent. It is important to understand that you pay not only for registration and collection of documents, but also for full legal support, advisory support and control of each stage so that the company is registered correctly, meets the requirements of the jurisdiction and can operate without risks.

You need to understand that starting a business abroad is not a one-time action, but a complex legal work that includes communication with government agencies, control of deadlines and compliance with all the requirements of foreign regulators.

• After registering a company in Cyprus, we must submit a separate application to the tax office to obtain a company tax number (previously it was assigned automatically).

• After registering a company in the United States, the EIN tax number can be prepared from 5 days to 2 months, and we fully support the entire process.

Basic list of what is included in opening a foreign company

• Consultation to assess the client's needs and business model;

• Selection of jurisdiction and optimal company structure;

• Provision of a list of documents for company registration;

• Collection of KYC package of documents;

• Assistance in filling out questionnaires;

• Online verification of the client or issuance of a power of attorney (depending on the country);

• Translation of documents/power of attorney, if necessary;

• Preparation of statutory documents, resolutions;

• Selection of a legal address;

• Submission of documents to the state register;

• Creation of a company;

• Receipt of documents from the register;

• Apostille/legalization (if necessary);

• Company registration for tax purposes;

• Submission of information to the register of beneficiaries;

• Obtaining a tax number (TIN, EIN, UTR - depending on the country);

• Obtaining a certificate tax residency;

• Sending original documents;

• controlling the timing and compliance with the requirements of the regulator.

How much does it cost?

The cost of setting up an international business consists of several key elements. Even if the base amount looks attractive, it is important to consider all associated costs.

The main elements of the cost of incorporation:

• Basic incorporation. Preparation of statutory documents, submission to the registry, obtaining certificates, entering data about the director and shareholder.

• KYC/AML verification. Mandatory identification of the company owner in all European jurisdictions.

• Registered office. Mandatory annual service for registering and maintaining the company in active status.

• Government fees. Fees related to company registration, which depend on the jurisdiction.

• Company documents with apostille. Required for opening a bank account, submitting documents abroad or confirming the status of the company.

• Secretary. Required when the country's legislation requires a local secretary.

• Nominee director/shareholder (if necessary). Used to maintain the confidentiality of the owner or in cases where the country requires a resident director.

For example, you received a commercial offer, which states that opening a company in Poland costs 1000 EUR. At first glance, the amount looks attractive, but it is important to take into account additional costs, without which the company will not be able to operate fully and legally.

These costs include:

• PESEL registration for founders or directors;

• obtaining an electronic signature;

• assignment of a tax number (NIP);

• submission of information to the register of beneficial owners (CRBR).

As a result, these additional procedures can increase the total cost of opening a Polish company to 2000 EUR or more, depending on the business structure and the number of participants.

What documents are needed to set up a foreign company

The standard package of documents includes:

• A foreign passport (biometric);

• Proof of residence (for example, a utility bill or bank statement with the current residential address);

• A description of the company's activities (Business description);

• Explanation of the business model and the origin of the expected turnover.

Depending on the jurisdiction, the registration agent, and the specifics of the business, additional documents or explanations may be required. For example:

• confirmation of the source of the owner's funds in an extended format (contracts, declarations, reports);

• bank statements on the availability of personal accounts and transaction history;

• CV of the director or beneficiary if the company's activities involve increased risks;

• Additional documents of the legal entity if the founder is another company (registration certificates, charter, register of participants).

Please note that if your residence is in the occupied territory, you will need to provide another address. Even an address in a city located in the territory controlled by Ukraine, for example, in Zaporizhzhia, can be considered as High Risk by foreign registrars, as they do not want to understand the nuances.

What is the difference between a "registered office" and an actual office and do I need a substance?

• Registered office (legal address). This is the official address of the company for government agencies and the registry. It is mandatory for the establishment of the company, but it is not the place of actual activity.

• Substance (actual office). This is the place where the company actually operates: keeps accounting records, stores documents, and employs staff. In some countries, a real office is required to confirm the actual presence of the company.

A legal address is usually enough to open a company, where correspondence from government agencies will be received. The basic packages for setting up a foreign company already include such an address in the price.

If you want an address for correspondence from counterparties, receiving mail or holding meetings, you will have to pay for this service separately.

In Romania a legal address provided by the registrar is sufficient to register a company planning to conduct international business. However, if the company receives a VAT number, it will need a unique address that differs from the base address.

The difference between shareholder, director and beneficial owner

In the past, the structure of foreign companies mainly included the following roles: director, shareholder and secretary. Now, when setting up an international business, the structure has changed a bit, and PSC (Person with Significant Control) and other roles are additionally distinguished.

• Director - manages the company, makes decisions and signs official documents.

• Shareholder - owns shares in the company and is entitled to receive dividends.

• Beneficial owner - the actual owner of the company who benefits from and has control over the business.

• PSC (Person with Significant Control) - a person who has significant control or influence over a company, for example, through voting rights or the ability to appoint directors.

• Company secretary is responsible for legal and administrative support of the company: maintains registration documents, minutes of meetings, and monitors compliance with corporate law.

• Authorized representative is a person specified in the power of attorney who performs the roles and actions clearly stated in this document. The authorized representative acts on behalf of the owner or director of the company within the powers specified in the power of attorney. These roles should be clearly documented in the foreign company's documents to comply with the law and compliance requirements.

What is included in the "renewal" of a company abroad?

Creating a legal entity abroad is not a one-time event. Any business structure requires regular annual maintenance (state fees, legal address, reporting, etc.). The very term "company renewal" means maintaining a legal entity in an active and legal status after incorporation.

As a rule, when a foreign company is registered, its maintenance is paid for a year in advance. However, it all depends on the country, the specifics of international business and the requirements of local legislation. The basic elements of the annual renewal include:

• payment for a legal address;

• renewal of the services of a nominee secretary or agent;

• updating the KYC data of the director and UBO;

• submission of statistical and administrative reports.

In countries such as The Netherlands, Lichtenstein, Luxembourg, in addition to the basic elements of annual maintenance, separate fees are paid for Due Diligence and services of local lawyers and accountants for the company's maintenance. Therefore, in these countries, the annual maintenance procedure is much more expensive, longer and has additional stages of verification.

Expenses after company incorporation

After establishing a company that conducts international business, it is important to consider the annual expenses required to maintain its current status and compliance with the requirements of the jurisdiction. These costs include:

• payment of annual government fees and charges;

• company renewal and maintenance of active status;

• registered office;

• secretarial or local agent services;

• accounting and tax reporting (mandatory even if there is no activity);

• annual renewal of KYC documents;

• nominee services, if applicable;

• payment of salaries, if there are employees;

• maintenance of substance (especially for structures operating in the field of international business and subject to increased tax control).

Who prepares financial statements?

The preparation of financial statements and their submission to the state authorities and tax authorities is carried out by a local accountant or an auditor with the appropriate certification.

Can my accountant prepare the financial statements of a foreign company?

Your accountant can maintain internal accounting spreadsheets and accounting documentation, but you need to take into account the specifics of accounting in each country and the requirements for paperwork (invoices, shipping documents, etc.).

If your company is doing international business, it is especially important to get advice from a local accountant or auditor on accounting and paperwork. This is especially true for companies operating in the international market and those registered in the EU, as the correctness of the documents affects the ability to prepare reports correctly.

In addition, it is important for European companies to work with a VAT number, the conditions for obtaining which and turnover limits differ in each country.

Don't forget that reporting is submitted not only for active companies, but also for companies that do not conduct business (dormant companies) or have no income.

Thus, you will definitely need a local accountant or auditor who is familiar with the specifics of international business to prepare reports, submit tax returns and VAT declarations.

Is it possible to transfer a foreign company to another registrar?

What should I do if I lose contact with a foreign provider or am not satisfied with the service of the current registrar or communication is difficult?

You can change the foreign company's provider, conclude a new agreement with a law firm and initiate a change of legal address. Depending on the country in which your company is registered, the procedure for changing the agent and legal address may differ.

For example, in the UK, in order to make any changes to the Companies House register, you need to have a authentication code, which is unique and kept by the current registration agent. In extreme cases (e.g., loss of communication with the agent), the company director can personally contact Companies House to restore access to the company and transfer it to another agent.

Outgoing fee and maintenance fee

It is common practice among foreign registration agents to charge an outgoing fee when a client takes the company and transfers it to another agent. Our mentality is not yet used to this, but in international business it is a standard practice that covers administrative costs and time.

Refunds for paid company maintenance services

If you transfer a foreign company in the middle of the year and have already paid for maintenance for a year in advance, as a rule, the funds are not refunded. This is due to the fact that when paying for a year, there is a package offer that is more favorable than a monthly payment. Therefore, it should be borne in mind that the registration agent will not refund the money already paid.

How to control the status of a foreign company?

The issue of controlling the status of the company and the agent is very important for every business owner. In addition to trusting the agent, you want to be sure that after paying his invoice, the company will be renewed on time and the reports will be submitted without delay. To control the status of the company, the company owner can:

1. order an up-to-date extract from the state register (if the state register is not open for public access);

2. request confirmation of reporting submission;

3. check the activity of the tax number;

4. monitor the updates of KYC data in the register.

The law firm provides not only communication with the agent, but also controls the deadlines for submitting reports and updating documents, and most importantly, provides the client with confirmation of the actual performance of each action.

Can I be denied registration

Yes, the registration agent can refuse you registering a company abroad, just as a bank or payment system can refuse to open an account.

As a rule, a refusal to provide services may be due to:

• submission of an incomplete package of documents;

• suspicious or unclear source of funds;

• prohibited type of company activity;

• activities that are classified as high risk;

• the company's multi-level structure does not pass the registrar's compliance;

• use of nominee services;

• the beneficiary or his family members or close relatives have PEP status;

• the owners are under sanctions.

Which country is the best jurisdiction for international business?

There is no universal answer to this question. The country for registering an international business is selected according to many criteria:

1. desired business model;

2. specific nature of the company's activities;

3. need to obtain licences or special permits;

4. counterparties and countries of their registration;

5. planned turnover and required currencies;

6. place of actual activity of the company;

7. beneficiary's citizenship and tax residency;

8. possibility of a personal visit by the beneficiary to register the company;

9. availability of a confirmed source of income for the beneficiary;

10. need to open an account with a local bank;

11. need to obtain VAT or EORI.

Which countries do Ukrainian entrepreneurs choose?

The choice of a country for starting an international business should be made based on an analysis of international economic relations and tax rules.

The fastest international business opening in 2025 is available in the following countries:

• Great Britain (UK Ltd) - from several hours to 1 day.

• Estonia - 1-3 days with e-Residency.

• Romania - 3-5 business days.

• Poland (Sp. z o.o.) - 1-3 days through the online system ePUAP.

The speed of registration depends on the readiness of documents and KYC.

Since each country has its own requirements for capital, directors, licensing, and post-registration procedures, the jurisdiction should be selected for a specific business model. A detailed analysis is available in our materials:

• How to open a company for international trade;

• Top 5 jurisdictions for IT business in 2025.

How will the Ukrainian tax authorities find out that I have a foreign company?

At the first consultation, we always draw the client's attention to the fact that the era of complete business confidentiality is over. Trade and Commercial registers of most countries are open to public access. Registration agents conduct a full-fledged Due Diligence of the client's documents and update this data annually. In addition, there are other sources of information in 2025:

1. Active exchange of CRS between banks and tax authorities of different countries;

2. Maximum compliance checks and AML data of financial institutions;

3. Submission CFC report in Ukraine by the beneficiary.

It is important to understand that there is a single rule for residents of Ukraine - your controlled foreign company falls under the rules of CFC declaration, even if the company has not yet operated or generated income.

Please note that foreign registration agents and auditors are not required to inform about CFC reporting requirements and liability in Ukraine. They focus exclusively on the requirements of local legislation and are not obliged to analyze the legislation of other countries. It is the understanding of international economic relations that helps to avoid problems when opening accounts and doing business abroad.

Typical mistakes when registering a company abroad

1. Focus only on low cost. The low cost of registration is the most common myth that entrepreneurs "buy into". Offers at the level of 500-800 EUR almost always mean only one thing: you will be submitted to the register and that's it. Everything else is for an additional fee. Compliance checks, legalization of documents, legal address, tax registration - all this gradually turns a "cheap" company opening into expenses of several thousand euros.

2. Choosing a jurisdiction based on the principle of "others do it." A common mistake is to register a company where it is "fast and inexpensive" or because someone you know has done it. Each jurisdiction has its own requirements for substance, KYC, and specifics of activity. The wrong choice of country often leads to blocked accounts, VAT refusal, inability to work with European counterparties, or a requirement to obtain a license, which the client learns about after the fact.

3. Incomplete or formal compliance package Every year, registration authorities tighten the requirements for documents. A refusal to open a company may occur due to any trifle: an outdated utility account, an unclear source of funds, the absence of a beneficiary's resume or an explanation of the business model. High-risk areas remain especially sensitive: crypto, financial services, gambling, forex, dropshipping.

4. Lack of accounting support. Any foreign company means not only registration but also regular reporting. Many entrepreneurs mistakenly think that if there is no activity, then there is no need to submit anything. This is not the case. Even a dormant company is required to report. The absence of a local accountant is almost guaranteed to lead to fines and problems with the tax authorities.

5. Ignoring the post-incorporation stage The appearance of a company in the register is only the beginning of the journey. After incorporation, a number of mandatory procedures need to be completed: notify the register of beneficiaries, obtain a Tax ID, apply for VAT or EORI, conclude an agreement with an accountant, undergo repeated KYC with an agent, and ensure proper storage of corporate documentation. Many clients find out about these requirements only after they receive a fine or when their bank account is blocked due to the lack of updated KYC.

6. Managing a company on your own without a local legal agent. Foreign companies receive official letters in the language of the country of registration, often with highly specialized legal wording. The client does not understand the content, does not respond on time - and as a result: fines, blocking access to the registry, termination of the legal address or forced closure. A local lawyer or agent is not an "extra expense" but a necessity for safe business abroad.

7. Belief in "complete confidentiality." The era of anonymous companies in Europe is over. In 2025, beneficiary registers will be open in almost all jurisdictions, and banks will automatically transmit data under the CRS. It is possible to try to hide the structure by using trust solutions and complex corporate structures - and it costs tens of thousands of euros a year. Therefore, it is important for businesses to establish a transparent and secure structure and focus on the international market, rather than looking for a "secret jurisdiction" that has long since ceased to exist.

How to choose the right jurisdiction and ensure the safe launch of international business

Launching an international business is a multi-stage process in which it is important not only to choose a country for conducting business, but also to determine the correct corporate structure, pass compliance, take into account the requirements of banks and provide further legal support. Each jurisdiction has its own rules: application processing timeframes, identification procedures, authorized capital requirements, and additional steps required after the company is established. That is why it is difficult for an entrepreneur to assess all the risks and hidden costs on their own.

The right jurisdiction allows you to optimize current and future expenses, successfully pass KYC procedures, and open an account with a bank or payment system without any problems. Professional legal support guarantees that your business structure will not only be formally formalized, but also fully prepared for legal work in the international market and interaction with foreign counterparties.