Vistra’s Global Lead of Company Formation Simon Filmer recently talked to The Asset about how the Economic Substance legislations might affect Asian clients.
“Many businesses in Asia operate subsidiary companies in jurisdictions such as the BVI and Cayman, which means that any changes to those local laws will inevitably impact Asian companies,” said Simon.
However, in-jurisdiction substance will only be required if entities are conducting one or more of nine ‘Relevant Activities’ and the level of Substance required for different ‘Relevant Activities’ also varies considerably.
Simon advised that Asian businesses should stay informed about the substance laws, and keep themselves abreast of any developments in the legislative scope and filing requirements.
“Regardless of which category an entity falls under and the extent of Substance which may need to be established, if any, it is crucial that companies conduct a detailed assessment of their business nature and activities as soon as possible; and document any measures taken.”
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