Foreign Entity Classification Risk

Consumer Goods Company

Advised on tax-residence compliance, appointed local directors, and revised governance-mitigating double-taxation risk.

An international consumer goods firm faced the risk of being classified as a domestic entity by a non-domestic tax agency due to misaligned tax residence and actual management locations, leading to potential double taxation. Atlantic Business Labs provided board advisory services, including compliance training, appointing local directors, revising governance policies, and ensuring regular management activities in the declared jurisdiction. The firm successfully reduced its risk, avoided tax penalties, and strengthened its corporate governance.