SERVICE COMPANY SAVED $1.1M PER YEAR

A client — a global service company with annual revenue of around $10M — reached out to VM.Capital. The company needed to optimize its taxes, streamline payments from foreign customers, and build a sustainable profit structure for international projects. The key challenge was to receive payments directly from overseas clients without capital controls and create a profitable, legally secure framework.

VM.Capital provided a turnkey solution: incorporation of a company in the Kyrgyz Republic under the simplified taxation system (STS) with no turnover limits. Core business functions — sales and procurement, legal support, and marketing — were transferred to the new entity. In addition, invoices to foreign clients were issued directly from the Kyrgyz company, ensuring transparent international revenue flows and significantly reduced taxes.

The results were outstanding. The company now saves $1.1M in taxes annually, while maintaining real turnover from foreign clients. Profits are generated without currency control restrictions, dividends can be paid in USD and EUR with 0% tax. Over time, the company accumulated $3M for further projects.

Thanks to VM.Capital, the client built a reliable international profit center with a highly efficient tax structure: only 4% unified tax, zero dividend tax, and flexible settlements in multiple currencies, including Russian rubles.