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Monday, 6 February 2012SITE MAP
SELF-FINANCING. LEASING OPERATIONS

The basic principle of defining all the possible types of activity available to a non-resident company, should be the notion that your company is the valid subject of economic activity, and is able to carry out the full range of operations available to any other foreign partner of your resident company, for example:

  1. Providing finance. The non-resident company, having funds at its disposal, can at any given time provide your resident company with credit, or make payments in connection with a foreign trading contract on behalf of the resident company.
  2. Transfer of equipment for leasing. It may be very profitable to use the non-resident company for leasing operations. The resident company can avoid import duties that it would otherwise have to pay when buying expensive equipment abroad and importing it into the country and instead, can lease the equipment from the non-resident company. In this way, the resident company can defer payment of customs duties, decrease its base for the purposes of property taxes and obtain future deductions in its taxable profits and enable the non-resident company to accumulate funds from the receipt of lease rentals.

There are no restrictions as regards financial cooperation between resident and non-resident companies - these might include joint financing of projects, investments, providing collateral for borrowing on security, as well as other financial operations.

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Baltic Representative:
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