FAQ

Frequently Asked Questions

Questions and answers: What does the term "fiduciary relationship" mean in connection with the trust? Like many other expressions, this term comes from the Anglo-Saxon law (common law). The translation means 'The full form of foreign property management' and is established between the founder of the trust (so called Settlor) and so called Trustee , who is a holder of the trust and manages the assets of a trust for the benefit of a third person (so called Beneficiary), who is entitled to the benefits of the property . This relation always requires contractual trust agreement, Treaty for the management of foreign assets. Certainly, this is just a general interpretation, because the fiduciary relationship may have many other forms, and also in the context of trusts the fiduciary relationship varies in individual legal systems, in which this form is used. Interesting is the fact that the legal institution of trust is been gradually getting into the continental legal system, for example, in the new Civil Code of the Czech Republic it can be found under the title“ svěřenský fond“. What does it mean “Virtual office” and what does this service include? We provide this service from September 2014. We will provide a “virtual office” for your foreign company in the country of registration. This office outwardly appears to be 'real', with all the advantages and conveniences of a real one. Within this service we will provide you with phone and fax numbers in a given city, which will belong exclusively to your company. We will credit you with our Slovak-speaking staff, which will operate these lines, and at the same time staff will handle your corporate agenda, forwarding mails to you, etc. If necessary, on behalf of your company's name we will register an Internet domain, arranging the hosting on your website and e-mail addresses. This service is essential for those entrepreneurs, who would, in some cases, doubted be by financial authorities for the place of performance e. g. the provision of services. This service is financially much more favourable than renting a private office in the country, including its furnishing, equipment and hiring staff. The service is available only for those companies, which we provide with a registered seat. What shall I look out for when buying a company? What are the risks of purchasing an unknown company? Buying an unknown company: Recently, we have often came across cases where the customer „buys“ an elder, well-functioning -unknown company that is declared as a 'totally clean' and later there will be raising issues from the past, such as unpaid invoices, contractual liabilities or no dispatched returns and unpaid taxes. In the event that you are going to buy a company that carried out economic activity in the past and you are not aware of its business and financial history , it is important to have the screening process performed, so called 'Due diligence' (see below) of that company. Under the authority for such an audit - we are able to perform it. Certainly, even on the basis of the screening, it is not possible to declare that the company is 'absolutely clean', but the detailed screening significantly reduces the risk involved in purchasing of such a company. What are the off-she companies? What do the terms off-shore business and off-shore company mean? Off-shore companies: In the public eye, off-shore companies are often seen very negatively, as some mystical, intangible companies, which were based on tax frauds. Such a negative image is a contribution of the media as well, however, the fact is that all of the companies, which do not perform any economic activity in the country of registration, are called off-shore companies, therefore we can deduce that the off-shore company can be either 'on-shore' company which does not carry out an economic activity in their own country, but only abroad. Some countries, such as Cyprus is tend to be remembered as a mid-shore countries. Possibly the earliest concept of off-shore companies developed in ancient Greece. Greek merchants escaping from uncompromising tax collector from Athens used the proximity of independent Aegean Islands, where they could offer their products to Athens´ habitants. Establishment of modern off-shore companies, however, is closely related to the England and the Anglo-Saxon law- common law that was implemented in the legal systems of all the British colonies, forming the basis for the formation of offshore companies, mainly in the former colonies and adjacent areas such as the Isle of Man, British Virgin Islands. Business activities of the off-shore companies does not differ at all from enterprising of the on-shore companies, they are based on Memorandum of Association or Deed of foundation , where business objects are defined as well as other terms and conditions. The only difference is that in the country of establishment there are much more favourable conditions for taxing entities, accounting and use of the generated profit. Some countries do not require bookkeeping at all, thus save considerable costs of these services. Also, in most countries there is paid a fixed annual tax, so the administration of the company is a zero, actually. Off-shore companies and trusts are designed primarily to protect property and ownership and to preserve the confidentiality, for both natural and legal entities and when these are used wisely, it can mean considerable saving on taxes, with no serious conflicts with the financial administration of the country. What is an off-shore bank account? What services are provided by off-shore banks? Off-shore banks and off-shore bank accounts: Off-shore bank´s business is mostly identical to the ' normal ' on-shore bank´s business, the difference is that they are based in the off-shore country using the more favourable taxation (tax mitigation). Banks are governed by internal rules as well as the legislation of the country of residence, and they are controlled by the relevant financial supervision authorities of that country. These banks provide the usual banking services, for example opening an account for individuals as well as for business companies, available in every country in the world. Furthermore, they offer transfers within client´s accounts, transfers within the Bank, as well as international transactions within the SWIFT. Some banks also issue credit cards that also support payments via the Internet, as well as withdrawing cash from an ATM available in every country. However, such a bank should be selected with due care. In choosing it is necessary to consider the possible risks, as well as the price of services. The best way is to accept advice from a person who is able to provide references for the Bank, also able to check which company shall carry out a financial audit and supervision of the Bank above. The history of the Bank has a great 'explanatory power'. What does the term due diligence mean? The site is emerging, the term 'due diligence', what does it mean in connection with any person, Bank or company? Due diligence: The term comes from the American legal system; it is commonly practice among American businessmen. It actually means due caution against a partner, with the necessary prudence particularly in the preparation and conclusion of commercial contracts, but also in other matters, such as tax, financial, legal, etc. due diligence of the company. In case of companies this means a global audit of their activities, trade relations and especially their financial discipline. In the relationship between the Bank and the client it shall mean personal due diligence, it means sufficient identification for qualified access to the business relation - opening an account. For client authentication is in most cases required to submit at least two different types of personal documents, bank references, event. abstracts of accounts, sometimes the commercial purpose, identification of business partners, CV, etc.
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