Apostille


A special form attached to a public document issued in accordance with the standards of the Le Hague Convention of 1961. Documents issued in a convention country, which have been certified by an Apostille are entitled to recognition in any other convention country without any further authentication.


Assets


From the accounting point of view, assets of a legal entity are the entries on a balance sheet showing all properties (cash, inventories, securities, property rights, and goodwill) and claims against others. The assets may be applied to cover the liabilities of a person or business. 


Certificate of Good Standing


A Certificate of Good Standing is issued by the authorities of the jurisdiction of incorporation (or formation) to a legal entity. The document attests that the aforesaid legal entity actually exists and is in good standing owing to compliance with all requirements of the local laws (timely payment of annual fees and local taxes, if any, as well as filing of annual statements and/or returns where applicable).


Certificate of Incorporation


A Certificate of Incorporation is issued by the authorities of the jurisdiction of incorporation / company formation to a legal entity. The document bears evidence of actual offshore company formation and incorporation of the aforesaid legal entity with the authorities in accordance with the local laws. It contains some basic data about the company (name, date and place of registration, incorporation number, etc.)


Certificate of Incumbency


A Certificate of Incumbency of an offshore company is issued by its Registered Agent or authorities of the jurisdiction of the incorporation. The document attests that the person(s) listed is (are) actually director(s) and/or shareholders of the company.


Company limited by shares


Such company members' liability is limited to the amount unpaid on shares they hold.


Double Taxation Agreement (Treaty)


A Double Taxation Agreement (
Treaty)is entered into between two countries to eliminate the possibility that the same income or gains might be fully taxed in both. 


Holding company


A parent company which holds shares (interest) in another company or other companies.


Incorporation


The legal process of establishing a company (corporation), which entails submitting of definite documents to the authorities of a relevant jurisdiction, their further registration and issuing by the authorities of proper documentary evidences of the company's (corporation) legal existence.


Money Laundering


The process and technology of disguising, investing, and/or hiding the proceeds of criminal activities coupled with their "legitimization".


Non-resident


In relation to a jurisdiction: a legal or natural person not having its domicile and/or place of business in the given jurisdiction.


Offshore Company


An offshore company is a company incorporated outside the country of its main business activities and/or the place of residence of its principals, often in a jurisdiction with favourable tax laws, legal and financial benefits. A typical offshore company does not pay taxes in the jurisdiction of its formation.


Resident


In relation to a jurisdiction: a legal or natural person having its domicile and/or place of business in the given jurisdiction.


Tax haven


A jurisdiction where local legislation provides for considerable tax exemptions for non-residents.


Tax planning


The legal steps a natural or legal person plans and/or undertakes to lawfully minimize his/her/its tax liabilities.