Publications

Consider a company registered in the UK, Estonia, or the UAE, with a director listed in the local registry, while its employees work remotely from various countries. Meanwhile, the business owner resides in a different state, personally approves contracts, oversees finances, and makes key decisions. In such a scenario, where is the company actually managed? For international businesses, this question carries not only organizational implications but also significant tax and legal consequences. The country of registration does not always coincide with the country where the company is actually managed. Under certain circumstances, tax authorities may challenge a company’s claimed tax residency, determine the existence of a permanent establishment, or impose additional obligations.

An international payment may be delayed even when a company operates legally, has a properly executed contract, and fulfills all its obligations. The reason is a bank compliance check. A financial institution may request additional documentation to establish the economic substance of a transaction, verify its alignment with the client’s business activities, and assess potential risks. For a business, such a request often comes as a surprise—especially when timely payment is critical for settling accounts with counterparties or fulfilling contractual obligations.

As of November 4, 2026, mandatory identity verification with Companies House has been in effect for nearly a year. For many directors and Persons with Significant Control (PSCs), the deadlines for identity verification have already passed, while for others, they are fast approaching. Consequently, the primary task for owners of UK companies today is to check their status, ensure all requirements have been met, and promptly address any potential non-compliance. It is important to understand that completing identity verification and obtaining a Companies House Personal Code is only the first step. To finalize the procedure, one must correctly link this personal code to each relevant corporate role.

Turkey is opening up new opportunities for international investors, business owners, and private capital. In 2026, the country introduced a series of tax changes aimed at attracting foreign assets, fostering the growth of international companies, and creating a more favorable investment climate. Of particular note are the new rules regarding capital repatriation, tax incentives for foreign-sourced income, and special regimes for international business. However, effectively leveraging these opportunities requires proper legal structuring. It is essential not only to minimize taxes but also to ensure the transparency of the origin of funds, the legality of transactions, and the protection of assets.

Turkey attracts the attention of international entrepreneurs due to its strategic location between Europe and Asia, well-developed infrastructure, and opportunities for accessing new markets. In addition to providing a gateway to international trade, the country offers tax incentives for companies that invest in manufacturing, exports, technology, and other priority economic sectors. However, it is important to understand that registering a company in Turkey does not, in itself, guarantee tax benefits. Eligibility for these incentives depends on the nature of the business activities, the location of operations, the scale of investment, and compliance with conditions stipulated by law.

For an international fintech business, entering the European market often begins with obtaining a financial license. However, the authorization process can require significant investment, the preparation of extensive documentation, and considerable time for regulatory approval. For this reason, an increasing number of entrepreneurs are considering an alternative: acquiring an existing company that already holds an Electronic Money Institution (EMI) license. Lithuania is one such jurisdiction, boasting a well-developed fintech sector and a regulatory framework integrated into European Union law.

Launching a fintech business requires not only a technological solution but also the right regulatory model. This model determines which financial services the company can offer, whether it has the right to issue electronic money, and what operational requirements apply. The terms PSP, EMI, and AEMI are frequently encountered in the fintech sector. Although they all relate to payment services, there are important differences between them that must be considered before launching the business. A PSP (Payment Service Provider) is an entity that provides payment services. Such companies facilitate payments, money transfers, acquiring, and other payment operations. It is important to understand that "PSP" is a general concept rather than the specific name of a single, universal license. For instance, in the European Union, the relevant activities might require "Payment Institution" (PI) status.

When it comes to internal company policies, most entrepreneurs first think of documents regarding personal data protection, privacy, and cookie usage. Businesses have long been aware of the necessity of these policies, especially when dealing with clients from the European Union. However, corporate policies extend beyond personal data protection. There are many other documents governing company operations, client interactions, employee conduct, financial transactions, and public communications. For certain types of businesses, some of these are mandatory under the law or regulatory requirements.

Turkey remains a popular destination for investors seeking to purchase real estate, generate rental income, and obtain citizenship simultaneously. Turkish law allows for citizenship acquisition through real estate investments of at least USD 400,000, provided the property is not sold for a minimum of three years. However, the purchase itself does not automatically grant tax exemptions. It is crucial for the investor to structure the transaction in advance to meet citizenship program requirements while effectively utilizing tax benefits provided under Turkish law.