Confidus Solutions employs a wide range of experts in different fields: lawyers, real estate experts, bank agents, accountants, tax consultants, and other professionals. Our company is capable of providing legal aid, accounting, business support, and corporate services worldwide. We can assist you with services regarding doing business in New Zealand.

New Zealand business consulting & solutions
Order one of the offered New Zealand business services and preparation of possible solutions will be undertaken. Confidus Solutions, in conjugation with a multitude of experts (New Zealand local including), develops a strategy and creates a unique tailor-made corporate solution for each customer. Once the communication is established, you will receive a list of documents and information required to proceed.

A checking account is a deposit account opened at a bank that allows numerous withdrawals and unlimited deposits. The checking account is the most liquid account and can be easily accessed at any time using ATMs, checks, online banking, credit or debit cards. Due to its properties, the checking account is also known as a sight or transaction account.

Many financial institutions offer checking accounts for very low monthly or yearly fees and banks have traditionally used this service as a loss leader. Loss leader is a marketing term that involves offering a product below its market value in order to attract consumers. Once consumers have been lured with free or cheap checking accounts, banks offer them more profitable products such as mortgages, personal loans, life insurance investments, or retirement funds.

Checking account features
Various types of checking accounts have been developed to meet the needs of users. These can be student accounts, business accounts, and joint accounts for households. As a rule, current accounts do not offer any interest due to their liquidity.

Current accounts can be easily set up for private individuals in bank branches. For corporations, you may need to go through a specific process depending on banking rules and government regulations. The checking account is one of the most practical solutions to keep your cash available for all transactions, e.g. For example, to pay your bills, buy goods online, and pay with a credit or debit card in a store. The current account is the simplest banking service and is used by almost all bank customers worldwide. This account gives you the freedom and convenience to access your funds instantly with no additional charges except in some cases transaction fees.

Some banks offer checking accounts with a certain credit limit that you can use in an emergency. If this is the case with your transaction account, you can have peace of mind knowing that you have access to extra cash at any time. In the meantime, you should be more careful not to exceed your balance without an important reason. Typically, this short-term loan comes with huge interest rates. For some people who like to spend whatever cash is available, a checking account with a line of credit may not be the best option.

Today, banking accounts for the largest share of the Luxembourg economy in terms of net worth and turnover. Back in 2017, according to the Global Financial Centers Index, Luxembourg ranked 18th among the most competitive financial centers in the world, while at the same time ranking third among the most competitive banks in the European Union. Luxembourg has a narrow specialization in the field of cross-border finance management. Due to the fact that the domestic market of Luxembourg is quite small, the country's financial center is mainly focused on the international market.

To date, there are 144 banks in Luxembourg. More than 120 of them are actually branches and subsidiaries of international banks. Luxembourg's financial sector is currently one of the largest contributors to the domestic economy. The total net worth of Luxembourg banks is roughly estimated at almost 760 billion euros. Luxembourg is also the world's second largest investment center after the US.

Below you can find an overview of the 6 largest commercial banks in Luxembourg.
Deutsche Bank Luxembourg S.A.
Total volume of assets in year 2015: ~ €80,023,000,000

Annual total profit in year 2015: ~ €289,000,000

One of the biggest German banks - Deutsche Bank has successfully established a subsidiary bank on the territory of Luxembourg back in year 1970. Back in the days it was one of the first foreign subsidiary banks in the post-World War II period. Deutsche Bank Luxembourg was one of the original financial institutions which were incorporated in the state. Today Deutsche Bank Luxembourg S.A. provides wealth management services to wealthy private individuals and clients, issues international loans as well as provides agency services, corporate and investment related banking services, and retail investment services.

CACEIS Bank Luxembourg
Total volume of assets in year 2015: ~ €46,082,000,000

Annual total profit in year 2015: ~ €84,000,000

CACEIS originates from France. It specializes in fund management. CACEIS is a part of Credit Agricole Group - a French banking cooperative comprised of 39 smaller local banks. The bank was established in year 2003 and today one of the biggest financial institutions in the country. CACEIS provides wide range of services, including different kinds of deposits and custody related services, wealth management, transfer agency, as well as institutional and corporate banking services.

Banque et Caisse d'Epargne de l'Etat (BCEE)
Total volume of assets in year 2015: ~ €42,797,000,000

Annual total profit in year 2015: ~ €230,000,000

The Banque et Caisse d'Épargne de l'État (also known as BCEE) currently is the biggest domestic financial institution in Luxembourg. Better known as Spuerkeess in local language, it was established in year 1856 and since then is fully owned by the state of Luxembourg. The bank provides wide range of commercial and corporate banking services, including fund management, project investment, and narrow specialized private banking. Bank's long term credit rating according to Moody's is Aa2, which is a high grade.

Société Générale Bank & Trust
Total volume of assets in year 2015: ~ €36,399,000,000

Annual total profit in year 2015: ~ €406,000,000

Societe Generale Bank & Trust is one of the oldest international financial institutions based in Luxembourg. It was originally established as a branch bank of Société Générale Alsacienne de Banque (also known as OGENAL). In the past well known as Luxbanque Société Luxembourgeoise de Banque S.A., the bank had changed its name to Société Générale Bank & Trust S.A. back in year 1995. Societe Generale Bank & Trust currently provides a great variety of banking services and products, including wealth management, securities trading and fund management, provision of corporate financing services both in Europe and globally.

BGL BNP Paribas
Total volume of assets in year 2015: ~ €32,969,000,000

Annual total profit in year 2015: ~ €152,000,000

Banque Générale du Luxembourg (also known as BGL) was incorporated back in year 1919 as a local bank. In year 2009, BGL became a part of the international BNP Paribas Group. Today Banque Générale du Luxembourg offers banking products mostly in retail banking, individual wealth management, as well as corporate and institutional investment banking and fund management. BGL BNP Paribas' long term credit rating according to Moody's is A1, which is upper medium grade.

UniCredit Luxembourg S.A.
Total volume of assets in year 2015: ~ €19,728,000,000

Annual total profit in year 2015: ~ €64,000,000

UniCredit Bank historically was one of the first international financial institutions to operate on the territory Luxembourg. The bank is a part of UniCredit Group, which was established by a merger of several banks from Italy, Germany, and Austria, in addition to acquisitions in Central and Eastern Europe. Currently UniCredit Group runs several branches and subsidiaries in almost 50 countries of the world. The bank provides wealth management and corporate banking services and had been granted a long-term credit rating of A3, upper medium grade, according to Moody's.

Material matters are becoming increasingly difficult for tax purposes in Europe and globally, therefore some clients may prefer a stronger physical presence at the place of exercise than virtual office services. One of the possible strategies for increasing substance is the establishment of a functional office. Content issues usually arise when local tax authorities require confirmation that the company's operations are taking place in the country where the company is registered: they want to see that commercial activity actually exists in the specified jurisdiction.

A company of substance is a company abroad that resembles a classic “offshore” company but has what is called “substance” (presence), i.e. a business, in other words – an administrative office. It's more like a real local company but has ties to the onshore business.

For more and more entrepreneurs, the economic substance of their company is becoming too much for them. Creating economic substance has become quite the gamble as tax authorities, banks and government institutions delve ever deeper into the two main questions: 'Where is the real place of governance and control of the company?' and 'Who is the beneficial owner?'

Confidus Solutions can offer Substance Office in various jurisdictions worldwide including numerous famous offshore jurisdictions. However, considering the complexity and efficiency of content delivery, we would strongly recommend considering the following jurisdictions as your first choice: Latvia, Cyprus, Lithuania and Hungary - as we can offer more advanced services in these states instead of just a virtual office, as well more solid reasons to believe that the company operates in the specific location. The question of the actual place of management and control of the company has recently become not only for tax authorities, but also for business partners, suppliers, banks and opponents due to the implementation of interstate tax legislation and the rapid development of international trade and online trade of crucial importance.

Top selection:

Administrative office in Cyprus
Administrative office in Latvia
Administrative office in Bulgaria
Importance of economic substance
Establishing economic substance in a registered jurisdiction can be critical to verification by local tax authorities. However, the process of creating substance must be carefully evaluated beforehand, as under certain conditions it can run counter to your initial goals and business structure. The substance needs to be addressed in order to avoid a higher tax burden on your business and to avoid major tax disputes with your tax authority.
Corporations have relied on “offshore” or non-resident structures for many years to reduce or defer taxes and improve returns for investors. This is particularly popular with private equity and real estate structures. But increasingly, and particularly within the EU, tax authorities are demanding more if the reason for tax non-resident status and/or local tax exemption is to be given. Usually "more" is interpreted as having more substance and physical presence in the indicated jurisdiction.

Today there are still many structures that are set up in such a way that there is what is known as double non-taxation, meaning that there is no effective tax levied in either country on the total proceeds generated within the structure. The ultimate goal is to prevent the granting of treaty benefits to international corporate structures that are only geared towards the advantageous conditions of the applicable double tax treaty.

When there is an advantage in having a substance
Having substance is an advantage if you are contemplating the formation of an offshore or onshore entity and want the highest possible protection in terms of recognition by international and local tax authorities. To avoid problems, your international corporate structure must be set up as an actual and "real" corporate structure.

Based on the actual role the company plays in your worldwide structure, there must be a relevant level of "real" activity. In practice, this means, for example, that the registered office of the company should not be the same as that of hundreds of other companies and the director of the company should not be the director of hundreds of other companies at the same time. That means your company address should at least be unique and the managing director should have a real function in the company.