Glossary

A foreign bank account is an account opened by companies, including shell companies, in another jurisdiction. It is often used to fulfil tax or legal advantages. Companies and private individuals use foreign accounts to benefit from lower tax rates, fewer regulatory requirements or better data protection laws. Letterbox companies often use foreign bank accounts to manage income and expenses outside their home country, which can make transparency more difficult for national tax authorities. While such accounts are used for legitimate business reasons, they are also under critical scrutiny as they can potentially contribute to tax avoidance.

Reward crowdfunding is a form of crowdfunding in which investors receive a service or reward from the project initiator in return for their financial support. In contrast With equity crowdfunding, supporters do not acquire shares in the company, but instead receive products, services, exclusive content or special experiences as a thank you for their investment. This form of crowdfunding is particularly popular in the creative industries, with start-ups and for innovative product ideas, as it enables direct financing by interested consumers and at the same time gains initial customers for the product. Reward crowdfunding offers project initiators an opportunity to test market demand and generate capital for the realisation of their ideas, while supporters receive early access to products or limited editions.

Equity capital is a form of financing in which investors contribute capital to a company and receive a stake in return. This type of financing is often made possible by crowdfunding models in which a large number of small investors invest in a company and acquire shares in it. In contrast to traditional loans, equity capital does not offer any fixed repayment obligations. Instead, investors benefit from a potential increase in the value of the company or from profit distributions. Equity capital is an attractive source of financing for young companies and start-ups as it strengthens equity and can attract long-term strategic partners.

A letterbox address is the official postal address of a so-called letterbox company, which is often set up in another country in order to take advantage of tax benefits. These companies do not usually have physical offices or operational activities at the specified location, but only use the address for legal and administrative purposes. Mailbox addresses are often registered in countries or regions with favourable tax laws in order to minimise corporate taxes. Whilst legal, such constructs are often under scrutiny due to potential tax avoidance. The letterbox address allows companies to establish a formal presence in the respective country without being active there.

Accounting management refers to the process of systematically managing, recording and documenting a company's financial transactions. It encompasses all accounting tasks, including the recording of revenue and expenses, preparing financial reports and ensuring tax and legal compliance. For letterbox companies, accounting management is often handled by specialised service providers. These providers ensure that the company's financial activities comply with legal requirements and are documented correctly for tax purposes, even if the company is based in another country. Effective accounting management is essential for the transparency and legal certainty of companies, regardless of their location or business model.

An office address is the address of a virtual office that entrepreneurs and freelancers can use to present their business professionally without having to maintain a physical location. rent. It serves as an official business address and can be used for company registration, customer contact and communication with authorities. This service enables companies to establish their presence in attractive business neighbourhoods, which can have a positive impact on the company's image. An office address thus offers a professional and cost-effective solution, especially for small businesses, start-ups and digital nomads who do not need a permanent office facility but still want a prestigious address for business purposes.

Office services include a variety of services offered by virtual offices to provide companies and freelancers with flexible and cost-effective work opportunities. The typical Services include call forwarding, mail service and the provision of conference rooms. These services make it possible to maintain a professional presence even without physical business premises. By utilising office services, companies can outsource their administrative tasks, which often leads to increased efficiency and a more flexible working day. Especially in today's digital working world, such services are a sought-after solution for start-ups, small businesses and freelancers who want to utilise professional office resources without the commitment of having their own office.

A shared office is a jointly used office space in which several independent entrepreneurs and companies work together without being organisationally linked. It offers a cost-effective alternative to the traditional individual office and at the same time creates a dynamic working environment. The physical proximity often creates valuable networking opportunities and the exchange of expertise between those involved. Shared offices also offer shared resources such as conference rooms, printers and kitchen areas, which increases efficiency and reduces costs. This type of working model is particularly suitable for freelancers, start-ups and small companies who want to benefit from an inspiring environment and a flexible rental structure.

Business angels are experienced investors who invest capital in start-ups and young companies in order to promote their growth. In addition to financial support, they often also offer their entrepreneurial expertise, industry knowledge and valuable contacts. These investors are often personally involved in the company and support the founders as mentors. Business angels play an important role in the start-up ecosystem as they invest in early stages where traditional financing options such as bank loans or venture capital are often difficult to access. Their support can be crucial to the success of a company as they provide not only financial resources but also strategic impetus and access to networks.