Glossary

An umbrella company, also known as a holding company, is a superordinate organisation that unites several subsidiaries or holdings under its umbrella. This structure usually serves The purpose of holding companies is to exploit tax advantages, minimise risks and manage strategic decisions in a centralised manner. Holding companies often act as administrative units and influence overarching business strategies, while operational activities usually remain with the individual subsidiaries. Umbrella companies are often found in complex corporate groups, where they control and monitor the flow of capital and assets.

Data protection encompasses all measures and regulations that ensure the protection of personal data. Companies, public authorities and individuals are obliged to protect the privacy and security of data. especially when it comes to personal information. Data protection guidelines define how data may be collected, processed, stored and forwarded in order to prevent misuse and unauthorised access. A central component of data protection in the European Union is the General Data Protection Regulation (GDPR), which came into force in May 2018. It sets out clear requirements for the handling of personal data and gives data subjects far-reaching rights, such as the right to access, rectify and erase their data. Virtual offices and companies working digitally are also obliged to take measures to implement these requirements. These measures range from the encryption of sensitive information to access controls and regular employee training.

Delegated investments are capital investments in which investors invest in projects via crowdfunding platforms and transfer part of their decision-making power to the platform or to third-party investors. transferred. This model enables retail and institutional investors to invest in various projects without being directly involved in the selection or management of the investments. The platforms that facilitate such investments often take over the review and selection of projects, define investment criteria and assume risk management. They act as a link between the investors and the project operators. Delegated investments offer an opportunity for diversification and facilitate access to forms of investment that would otherwise require higher financial hurdles or specific expertise.

Diversification is a strategy for spreading risk by distributing capital across different projects, sectors or asset classes in order to minimise the risk of losses and to minimise the risk of losses. achieve a more stable return. Diversification plays a key role in crowdfunding in particular: investors can divide their capital between different projects, making them less dependent on the performance of individual investments. Diversification reduces risk, as the failure of a single project has less impact on the entire investment portfolio. This strategy is suitable for both private and institutional investors, who can thus hedge their investments against market fluctuations and specific project risks.

Document management refers to the administration and organisation of documents within a company or organisation. Document management plays a crucial role, especially in virtual offices, in order to to enable paperless workflows and ensure secure and efficient access to documents. A modern document management system (DMS) often includes digital functions such as the central storage, categorisation and indexing of documents as well as access controls that ensure that only authorised persons can view or edit certain files. These systems help to speed up work processes, improve data security and reduce the administrative burden.

Domiciliation is a service whereby companies provide an official address in another country or city in order to obtain tax or business benefits. obtain a registered office. This is often made possible by third-party providers who provide addresses and basic office services so that the company can be legally managed at this location without actually operating there. Domiciliation is particularly common with so-called letterbox companies, which often do not carry out any significant business activities at the stated location. The reasons for domiciliation can vary, but often include the optimisation of tax burdens, access to international markets or a more prestigious business address.

Third-party financing refers to the procurement of capital from external investors such as venture capital providers, business angels or crowdfunding participants. This form of financing is particularly popular with start-up ups and new business projects that are dependent on additional funding for their development and growth. Third-party financing offers young companies an alternative to self-financing and enables them to realise their projects without taking out bank loans. In addition to capital, investors often also contribute valuable industry expertise and networks, which can increase the company's probability of success. Crowdfunding also enables small investors to participate in innovative projects, allowing a broad investor base to be built up.

Due diligence is a comprehensive review process that is carried out before an investment, acquisition or business partnership in order to assess the financial, legal and operational situation of a company. evaluate. The aim of due diligence is to identify potential risks and opportunities and to improve the basis for decision-making for investors or business partners. As part of the due diligence process, detailed information about the company's finances, business model, market position, legal obligations and any liabilities are examined. The process often includes financial and tax analyses, legal reviews and an assessment of operational efficiency and management structure. In this way, due diligence helps to minimise potential risks and ensure the long-term success of a business transaction.