Amman · Jordan
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Cases · Tax, finance & assurance · International tax planning & transfer pricing
Fund a new overseas subsidiary
How should we put money into our new subsidiary abroad: equity or a loan?
WONE Global compares equity, loan and other funding routes on tax, exchange control and repatriation, and documents the chosen route.
Countries in the typical case United Kingdom · Nigeria
The situation
What is happening
What is at stake
Funding the wrong way can trap cash, trigger tax or breach exchange-control rules.
A scenario
Engineering services companyMid-sized company · from United Kingdom · in Nigeria
It is funding a new Nigerian subsidiary and will need to bring the money back later.
Where it ends Money in, and a way to get it out.
A representative scenario of the work WONE Global coordinates, not a specific client’s matter.
Also asked as “Capitalising a foreign subsidiary”“Minimum share capital and funding rules abroad”
The solution
How WONE Global handles it
WONE Global compares equity, loan and other funding routes on tax, exchange control and repatriation, and documents the chosen route.
Usually led by Finance & Treasury, with Tax & International Structuring, Banking & Capital Access and Corporate & Entity Services.
Step by step, in the scenario
- Week 1WONE Global compares equity and loan routes.
- Week 2Exchange-control registration planned.
- Week 3Funds sent and documented.
- ThenRepatriation route kept open.
Timings are typical. They depend on the countries, the authorities involved and how quickly documents are available.
Decisions
The decisions involved
- 01Equity, loan or a mix
- 02Capital rules, thin-capitalisation and exchange controls
- 03How funds can come back later
Outcomes
What you receive
- A funding structure for the subsidiary
- Loan or subscription documents
- Exchange-control filings where needed
This is a general guide. Your WONE Global professional confirms the work, timing and fees for your markets before anything starts.
Services
The services involved
One area of expertise usually leads; the others move with it. WONE Global keeps them connected across every country involved.
Who handles it
Finance & Treasury, market by market
The status of the lead service in the markets that matter for this case. A named WONE Global Partner acts under their own licence; where none is in place yet, WONE Global confirms availability before anything else.
- Nigeriain the typical case On request Availability confirmed before any work begins Bring a requirement →
- United Kingdomin the typical case On request Availability confirmed before any work begins Bring a requirement →
- Jordan WONE Global Partner Osama Abu Shrieha · Managing Partner Brief this Partner →
- Spain WONE Global Partner Darragh Brady · Partner CIB Finance Brief this Partner →
- India On request Availability confirmed before any work begins Bring a requirement →
- Saudi Arabia On request Availability confirmed before any work begins Bring a requirement →
- Singapore On request Availability confirmed before any work begins Bring a requirement →
- United Arab Emirates On request Availability confirmed before any work begins Bring a requirement →
- United States On request Availability confirmed before any work begins Bring a requirement →
Other markets: WONE Global covers 100 countries. Name yours in the requirement →
Amman · Jordan
Barcelona · Spain
Vienna · Austria
La Paz · Bolivia
Douala · Cameroon
Edmonton · CanadaWONE Global Partner · Canada
Peter S. Johnson
Discover
Where this case connects
The markets, corridors and guides behind this case, and the questions to put to Ask WONE below. Every link opens a page that links back here.
Markets in the typical case
Services and subject
Worked examples
How it goes in practice
Researched corridor journeys, and representative scenarios on the same subject. None is a specific client’s matter.
- UAE ↔ United Kingdom · researched journeyA UAE company sets up a UK subsidiaryRead the journey →
- United Kingdom ↔ GCC · researched journeyA UK professional or financial services firm opens an office in the Qatar Financial CentreRead the journey →
- Founder-led company · from Canada · in GermanyIts salesperson in Germany has started signing contracts, which may make the company taxable there.How WONE Global handles it →
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WONE Global Intelligence
Ask about doing business across borders
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