Where an entity is incorporated within a relevant jurisdiction and it is carrying on a ‘relevant activity’ including banking business, insurance business, fund management business, finance and leasing business, intellectual property business and holding company business,  it must meet the substance requirements, unless it can show that it is tax-resident in another jurisdiction.  If the entity is not tax resident in its jurisdiction of formation, it is required to perform (with regard to the nature and scale of the activity) activities directed and managed by adequate numbers of employees and with adequate expenditure and appropriate physical offices or premises in its jurisdiction. 

The new ‘economic substance’ legislation now has been enforced in most British Overseas Territories, Marshall Islands and other jurisdictions.   Have you dealt with this issue?   You cannot ignore this new rule, as the consequences will be heavy fines on the companies. Should you need to set up a physical office, to recruit numbers of employees to work locally, we may be of assistance. You should be aware that in most jurisdictions there is now a deadline to report your ANNUAL classification with supporting information.