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Off Shoring - what is it? - Call Centers. - Maintenance. - Simply…..taking part of your business to another jurisdiction: - Call Centers. - Maintenance. - Engineering. - Corporate. - For this workshop we will look at CORPORATE.

Off Shoring - Corporate - Taking your holding or parent company to a jurisdiction outside of you home country. Why would you do that: Predictability of laws. Tax efficiency. Minority right protection. Foreign investor friendly. Specialized holding structures.

Off Shoring - Corporate - So you have set up your company and then comes along an investor and says lets set up an off shore company. WHY? - Protection of rights – drag and tag. - Minority control – directors and veto rights. - Foreign investor friendly - not knowing Egyptian laws.

Off Shoring - Where? Main offshore countries: British Virgin Islands. Mauritius. Caymans. Delaware. Gibraltar. Ras El Khima. Amsterdam. Luxembourg.

Off Shoring - So which one? This will depend on a number of variables: Operations of the business – EU, USA, Middle East, Africa or Asia. Market growth – where you heading? (EU, USA, Middle East, Africa or Asia). Off shore specialization – Luxembourg for finance. What is the preference of the investor? US investor, EU investor or ME investor.

Off Shoring - CONFUSED! Lets take a step back and recap: Off shoring is taking part of your business or setting up a holding company in a different county. We do this because some countries gives us better benefits for setting up a holding company. We can chose from a lot of different countries. We chose the country based on a number of variables.

Off Shoring - How do we set up an off shore company? STEP 1: Chose your jurisdiction Advantages: BVI - Cheap, flexible, low maintenance, no accounting, 0% tax. Mauritius - Egyptian embassy, flexible, low maintenance, min accounting, double tax treaty, 0% tax. Delaware - Egyptian embassy, cheap, flexible, low maintenance, some accounting, access to market. Gibraltar – access to market, 0% tax. Disadvantages: BVI - bank account, time difference, no Egyptian embassy. Mauritius - can be costly, higher KYCs requirements, accounting requirements. Delaware - can be costly depending on structure, US tax applicable, bank account. Gibraltar – bank account, expensive, accounting requirements, no Egyptian embassy.

Off Shoring - How do we set up an off shore company? STEP 2: Chose your agent

Off Shoring - How do we set up an off shore company? Similar process but with slight variations: Registered agent. KYCs – needs to be notarized Copy of passport Utility bill as proof of address – not old than three months Bank reference letter – temple provided CV Bank statement - 6 months Shareholder From. Directors Form. Source Of Wealth Form. Business Plan.

Off Shoring - Next Step Once the company has been set up the registered agent will provide you with the following: Certificate of Incorporation. Memorandum and Articles of Association. Shareholders Register. Directors Register. Share Certificates. Some jurisdictions/countries vary.

Off Shoring - Next Step II We need to link them Offshore buys Egyptian Company Offshore Holding Company Offshore Holding Company Company Company

Off Shoring - Next Step II For the off-shore company to acquire your company the following documents need to be notarized and legalized at: Your company’s embassy in that country, then The Ministry of Foreign Affairs in your country. Please take note – BVI – The Foreign and Common Wealth Office – London. Documents: Certificate of Incorporation. Memorandum and Articles of Association. Shareholders Register. Directors Register.

Off Shoring - Tricks of the trade! Jurisdiction: Chose one you will use for market growth; If you don’t need a bank account, it gives you more options; Budget properly (don’t go cheap as you pay for what you get); If investor is choosing, investor can pay for it! Having an Egyptian embassy there lowers your costs and time; Agents: Chose a good agent; Keep a good relationship with them; You can change agents if needed; Be the instructing party – you might fire your lawyer! Company: Pay your bills on time and avoid penalties; Keep all your paper work in order and copies of everything; Use your off shore company, don’t forget it!

Off Shoring - LETS TRY IT…. Company LLC or JSC. Activities Tech? Looking to expand where? US EU ME and Africa. What does the investor want? English/Common law. Bank account. Tax efficient. Low accounting.

Off Shoring - Q&A

Contact Us Levari Telephone: +2 010 1580 0009 Email: lucy@levarilaw.com Website: www.levarilaw.com