Proposal for Structuring International Business and Attracting Investments
This document presents a detailed proposal for structuring a group of business companies for international expansion and tax optimization, as well as a plan for organizing work to attract investors.
The document includes options for company establishment, service descriptions, advantages and disadvantages of various approaches, and a detailed plan for creating a startup accelerator and attracting investments.
For the attention of a potential partner
Continuing the discussion on business structuring, we are ready to offer you the following.
Structuring the group's business companies with a focus on international expansion and tax optimization.
2 options are proposed for establishing companies for business development and attracting investments.
The options can be implemented both separately and simultaneously.
Option "West"
This option is intended for creating an SPV company established for the development and attraction of American (Western) investments into one specific project.
Our services include:
  • Support for the establishment of a legal entity in the USA (Delaware C-Corp, LLC).
  • Registration of IP rights for the project to the company.
  • Organization of accounting and tax reporting.
  • Support for the company's bank account opening process.
  • Placement of investment proposals, search for investors.
  • Execution of investment agreements (SAFEs, Equity Loans).
  • Support for the ongoing corporate and business activities of the established company.
Advantages and Disadvantages of the "West" Option
Pros:
Establishment of a company in the largest, most promoted investment jurisdiction. For this jurisdiction, there is no need to report CFC (Controlled Foreign Company) in Lithuania.
Cons:
Relatively high effective tax rate when withdrawing dividends to a Lithuanian tax resident.
Option "East"
This option can be used (1) to create an SPV – a company established for the development and attraction of Asian investments into a specific project, and (2) to create an operating (holding) company that will create and sell projects (in the form of subsidiary SPVs or without forming a separate legal entity) at various stages, with reduced (compared to the development and sale of projects from a Lithuanian UAB), and, under certain conditions, zero taxation of income at the founders' level.
Services for the "East" Option
Our services for the Working (Holding) Company option include:
  • Support for establishing a legal entity in the UAE Free Economic Zone
(Emirates Dubai, Abu-Dhabi).
  • Organization of accounting and tax reporting.
  • Search and preliminary interview of the managing director of the company.
  • Support for the process of opening a company bank account and personal bank accounts for founders.
  • Support for the process of renting an office and renting apartments for founders/directors and company employees.
  • Support for the process of obtaining immigration documents
(resident visa — Emirates ID) for founders.
  • Support for the process of legal formalization of contractual (shareholders' agreement) and corporate (various types of shares, demarcation of powers, and control over persons performing executive functions) relations between founders and company investors.
  • Support for the company's ongoing corporate and business activities.
Advantages and Disadvantages of the "East" Option
Pros:
Establishment of a company in an investment jurisdiction popular in the Eastern Hemisphere. Subject to certain conditions: it is possible to avoid the need to report as a CFC (Controlled Foreign Company) in Lithuania, as well as the personal income of the founders; an effective tax rate on dividend withdrawal to a Lithuanian tax resident that is 8.5% lower compared to developing and selling projects with a Lithuanian UAB, or 0% when obtaining an Emirates ID resident visa for the founders. Opportunity to attract investors to the capital of the operating (holding) company to expand the company's business capabilities, with flexible structuring of investors' and founders' rights at the corporate and contractual level. The Lithuanian UAB acts as a contractor and generates minimal income necessary to pay employee salaries, while the main income is generated in the tax-free free economic zone of the UAE.
Cons:
Comparatively high effective tax rate when withdrawing dividends to a Lithuanian tax resident (can be reduced to 0% under certain conditions). One-time administrative costs for company establishment, office rental, and founder status registration. Ongoing (annual) company maintenance costs. Human factor risks associated with the need to select and appoint a reliable and competent business manager (resolved by meeting salary expectations and corporate control methods).
"Zero" Step
For successful KYC (Know Your Customer) clearance by financial (banks) and other (legal firms, free economic zone authorities, etc.) organizations, it is necessary to develop the business history of the founder(s), create personal résumés, and a clear history of capital origin in an amount sufficient, at minimum, for establishing and launching the business, and opening accounts.
Cost of Implementation
The full cost of project support is determined after deciding on the jurisdiction and business development scheme.
Estimated project cost (preparation and establishment of one company) from 50k - 100k Euro.
Payment for our services:
  • First preparatory stage (2 months) — 3,000 Euro per month, based on up to 30 hours of work on the project per month.
  • Second stage (starting from the 3rd month):
Support including legal and investment consultations — 6,000 Euro per month,
based on up to 60 hours of work on the project per month.
Proposal for Organizing Investor Attraction Work
Accelerator and Investments in the UAE
Roadmap for organizing a startup accelerator located in the UAE.
Contract work can be performed in the EU (Lithuania).
Stages of Startup Accelerator Organization
  1. Market Research and Business Model Preparation
  • Local Ecosystem Analysis:
  • Research existing accelerators, incubators, and the startup ecosystem in the UAE.
  • Identify niche segments where competitive advantages can be created.
  • Target Audience Definition:
  • Determine which startups will be the target audience — IT, FinTech, AI, Biotechnology, or other industries.
  • Business Model Formation:
  • Develop the accelerator's business model (participation fees, equity stakes in startups, partnership programs).
  • Legal Registration and Structure (see options above):
  • Register the company in one of the UAE's free economic zones (e.g., Dubai Internet City, DIFC) to obtain tax benefits.
  • Financial Plan:
  • Estimate initial investments, operational costs, and opportunities for attracting external capital.
  1. Infrastructure Creation
  • Location Selection:
  • Choose office space in one of the UAE's free economic zones.
  • Technical Infrastructure:
  • Provide workstations, internet, and equipment for startup participants.
  • Digital Project Platform:
  • Create an online platform for remote work, data exchange, and project management.
  1. Accelerator Program Development
  • Educational Program:
  • Prepare training courses, seminars, and workshops on key topics — marketing, finance, product management, legal aspects.
  • Mentorship Support:
  • Attract experts and successful entrepreneurs as mentors for startups.
  • MVP (Minimum Viable Product) Support:
  • Organize master classes and individual work to help startups develop their MVP.
  1. Partnership and Network Development
  • Partner Selection:
  • Sign agreements with venture funds, business angels, and corporations interested in supporting startups.
  • Collaboration with Universities and Educational Institutions:
  • Interact with leading universities in CIS, EU, UAE, and other regions to find innovative ideas and attract talent.
  • Marketing and PR:
  • Develop a strategy for promoting the accelerator through media, participation in conferences, and startup events.
  1. Launch of the First Cohort of Startups
  • Startup Selection:
  • Conduct events (pitch days, hackathons) to select startups for the first accelerator program.
  • Program Start:
  • Launch the accelerator program, support startups for 3-6 months.
  • Demo Day:
  • Organize a demo day to present startups to potential investors.
  1. Monitoring and Evaluation of Results
  • Program Effectiveness Assessment:
  • Monitor startup progress, collect feedback.
  • Success Analysis:
  • Summarize the results of the first cohort of startups, analyze the results, and make adjustments to subsequent programs.
Investment Attraction Plan and Work with UAE Investment Platforms
Attracting investments to the accelerator
Option 1. Investments in the accelerator in the UAE.
  • Accelerator Project Presentation:
  • Preparation of a detailed business plan and investment presentation for potential investors, including financial forecasts and revenue plan.
  • Negotiations with Investors:
  • Conducting negotiations with venture funds, business angels, and government organizations to attract capital to the accelerator.
  • Government Support:
  • Interaction with government innovation support programs in the UAE, such as the Dubai Future Foundation, Smart Dubai programs, and others.
  1. Creating a Specialized Investor Database
  • UAE Venture Funds:
  • Collecting information and creating a database of funds focused on supporting startups in IT, AI, FinTech projects, biotechnology, and other innovative sectors.
  • Local Investors:
  • Establishing contacts with local business angels and corporate investors who can support early-stage startups.
  1. Interaction with Investment Platforms
  • Direct Cooperation:
  • Signing agreements with venture platforms and investment venues for startup introductions.
  • Investment Summits and Events:
  • Organizing or participating in key investment events in the UAE (GITEX, Step Conference, ArabNet) to present startups to potential investors.
  • Partnerships with Large Corporations:
  • Creating corporate innovation programs to attract strategic investors from large companies.
  1. International Capital Attraction
  • Work with International Funds:
  • Interacting with funds from the USA, Europe, Asia, who may be interested in collaborating on promising projects.
  • Crowdfunding Platforms:
  • Launching accelerator startups on international crowdfunding platforms such as Kickstarter, Indiegogo, to raise funds and promote them in the global market.
  1. Legal and Financial Support for Startups
  • Document Preparation:
  • Providing startups with legal and accounting support to comply with investor requirements and UAE legal norms.
  • Exit Strategy Development:
  • Creating exit strategies for investors
  • (e.g., IPO or M&A), which can enhance the attractiveness of startups to potential contributors.
  1. Monitoring Effectiveness and Communication
  • Regular Reporting:
  • Constant communication with investors, providing regular reports on the status of startup projects and financial performance.
  • Feedback Development:
  • Obtaining regular feedback from investors to adjust the accelerator's and startups' strategies.
  1. Attracting investments to the accelerator, accelerator projects.
  1. Creating a specialized investor database.
  1. Interaction with investment platforms.
  1. International capital attraction.
  1. Legal and financial support for startups.
  1. Monitoring effectiveness and communication.
Support for startups at all stages includes organizing post-acceleration program support and establishing strategic partnerships.
Option 2:
Organization of work and accelerator in the USA
For the organizational structure, we can use the business development scheme outlined above for the UAE, adapted to local specifics.
Regarding work with investors, this work can be expressed in the following form.
Plan for attracting investments to accelerator projects and working with investment platforms in the USA
  1. Preparing startups for investment attraction
  • Financial and Legal Preparation:
  • Assisting startups in preparing financial models, business valuation, and drafting agreements with investors (SAFEs, convertible notes).
  • Creating Investor Presentations (Pitch Decks): Assisting in developing high-quality and attractive presentations for investors, reflecting growth potential and business strategies.
  • Marketing Strategy: Developing and promoting startup brands, attracting investor attention through social media and media campaigns.
  1. Creating a database of potential investors
  • Compiling a list of venture funds and business angels:
  • Collecting information about leading US venture funds focused on startups in IT, fintech, AI, and other innovative sectors.
  • Partnership agreements with investment platforms:
  • Creating profiles of accelerator startups on leading US investment platforms such as AngelList, SeedInvest, Republic, StartEngine.
  • Cooperation with local investors: Direct interaction with business angels and investors in the regions where the accelerator is located.
  1. Working with leading US investment platforms
  • Registering startups on investment platforms:
  • Placing startups on platforms such as Gust, EquityNet, CrowdCube, Kickstarter, to attract funding from individual and institutional investors.
  • Investor Summits and Conferences:
  • Organizing meetings between startups and potential investors at investment conferences and events such as TechCrunch Disrupt, Venture Summit, South by Southwest (SXSW).
  • Corporate Investment Programs:
  • Cooperation with large corporations interested in innovation and ready to invest in startups.
  1. Developing capital attraction strategies
  • Crowdfunding and crowdinvesting:
  • Utilizing crowdfunding platforms such as Kickstarter, Indiegogo, and crowdinvesting platforms such as Seedrs, to raise capital in the early stages.
  • Institutional investments:
  • Working with venture funds and private investors to attract large investments into accelerator startups.
  • Government grant funds:
  • Searching for grants and US government programs that support startups in technology and innovation.
  1. Supporting startups in investor negotiations
  • Negotiation preparation:
  • Organizing training sessions and workshops on negotiation, assisting in evaluating terms of investor offers.
  • Legal support:
  • Providing legal support to startups at all stages of investment attraction, including contract drafting and intellectual property protection.
  1. Monitoring and investor feedback
  • Investor reports:
  • Developing regular reports for investors on startup progress, financial performance, and achievements.
  • Investor communication:
  • Maintaining constant contact with investors through presentations, reports, and meetings to build trust and readiness for additional investments.
  1. Developing exit strategies
  • IPO or M&A Exit:
  • Assisting startups in preparing for a potential IPO or sale of the company to large corporations (M&A).
  • Increasing startup valuation:
  • Developing strategies to increase startup valuations for successful attraction of subsequent investment rounds.
Conclusions on the Startup Accelerator Project
  1. Strong Potential for Launch:
The startup accelerator project has good prospects due to a sustainable startup ecosystem, access to venture capital, business angels, and investment platforms.
Attracting strategic partners and successfully creating infrastructure will ensure a strong position for the accelerator.
  1. Well-Thought-Out Plan (Separate Concept) for Launch Stages and Roadmap Development:
The project roadmap will clearly delineate key stages, starting from market analysis and target audience selection, through to developing a network of contacts with investors and partners.
This provides a clear vision of the process, reduces risks, and ensures efficient use of resources at each stage.
  1. Focus on Attracting Investments:
Special attention should be paid to creating conditions for attracting investments into accelerator startups through Emirati and American investment platforms and investor networks.
Developing investor presentations, supporting negotiations, and continuously monitoring investments are crucial steps to increase the startups' chances of success.
  1. Long-Term Growth Prospects:
Partnerships with leading investment platforms such as AngelList, Republic, and SeedInvest, as well as participation in major American startup events, will ensure a stable capital flow and strengthen the accelerator's market position.
The same applies to markets in the UAE, etc.
This will also create opportunities for scaling and entering new markets.
  1. Sustainability and Flexibility of the Business Model:
The accelerator's structure is based on a flexible and sustainable business model, including participation fees, equity participation in startups, and the provision of legal and consulting services.
This allows the project to remain profitable and competitive in the long term.
Conclusion:
Organizing a startup accelerator offers significant opportunities for growth and success for both the accelerator itself and participating startups.
A well-thought-out strategy for infrastructure creation, partnerships, and investment attraction will allow the project to eventually become an important player in the Baltic, UAE, and US startup markets.
To implement the project, the first stage will require focusing on attracting consultants, strategic partners, and investors, which will ensure the successful launch and development of the accelerator.
Next Round of Communications
We wish the project owner to reach a new level of business development.
Our team of consultants is ready to accompany the project for organizing international business for the entire duration.
The "East" option offers a business structuring variant with an emphasis on attracting investment and business development in the UAE.
The "West" option focuses on attracting investment and developing startups in the USA.
We propose to discuss the offered strategy options in our next ZOOM conference.