Each of us, in one way or another, encounters taxes, and they can be conditionally divided into two large categories: direct and indirect. However, not everyone clearly understands the differences between them. Often, questions arise like direct tax vs indirect tax — that is, what are direct and indirect taxes, and how do they differ. In this article, we will explain in simple words the difference between these two types, provide definitions, examples, and consider how each o

What Does “Frozen Bank Account” Mean? Such a terrible surprise can happen to anyone at the most unexpected moments in life, so it is important to be aware of what to do next. Below, we explain what a frozen bank account is, why would a bank freeze your account, how it can affect your daily life, and, most importantly, how to solve the problem and retrieve your funds. Frozen account meaning explained A frozen bank account is one that has been fully or partially restricted by a

Certificate of Good Standing Explained A Certificate of Good Standing (CGS) can be considered a kind of “mark of trust” that shows clients, partners, and investors that the business operates transparently and legally. Having such a document helps a company support its reputation as a reliable and responsible market participant. What is a Certificate of Good Standing for an LLC or corporation? This question is often asked by company owners. The answer is simple: the CGS is ess

What is a custodian in finance? A custodian is a highly specialized entity—typically a trust company or a bank—whose core function is the safekeeping and administration of a client's securities and cash. This is the highest duty of trust, and the safekeeper acts as the essential, silent guardian of integrity in the investment world. Critically, custodians ensure that the client's assets—specifically their securities and cash—are legally segregated (or walled off) from the inv

Understanding Source of Funds (SOF) Source of funds meaning and definition In compliance work, the source of funds meaning refers to where the money for a specific transaction actually comes from — its immediate origin and the path it followed into the account used. A concise source of funds definition is the verifiable funding route for a payment or investment, evidenced by documents that show ownership and control of the money at each step. What does the source of funds mea

What Is a Registered Business Address? Definition and legal meaning A registered office or business address is the official legal address of a company. It is where all government and legal documents are sent. Every legal entity must have it when they are created and keep it active at all times. This address shows the company’s legal location and must be in the same country where the business is registered, but it can be changed later if needed. What is a registered office add

Corporate Resolution Definition and Meaning What is a corporate resolution? When people ask “What is a corporate resolution?” the answer is straightforward. The corporate resolution definition refers to a formal record of a decision made by a company’s board of directors or shareholders. In other words, the corporate resolution meaning refers to an official document that confirms what actions the organization has authorized and who has the authority to carry them out. Purpose

Understanding Headquarters Relocation Headquarters relocation meaning Headquarters relocation means changing the legal address and/or the actual place where key management decisions are made, which may have different legal consequences depending on jurisdiction. This can be either a domestic move within the same country or a relocation to another jurisdiction. It is important to understand that business relocation has a broader meaning and may include moving certain departmen

Company Continuation Explained Definition of company continuation Company continuation is the set of measures, both legal and operational, that pave the way for a business entity to maintain its existence while changing its structural and jurisdictional aspects. The definition of continuation usually assumes that the company is still the same legal entity that retains its rights, duties, and agreements even if it relocates to another country or changes its internal structure.

Shadow Banking Explained Definition of shadow banking What is shadow banking – a fairly popular question.. This term refers to specific financial institutions and operations that enable clients to obtain credit, attract investment, or access other financial services without holding the status of a traditional bank, which subjects them to lighter regulatory oversight. To define shadow banking, it is worth noting its key features: greater flexibility and fewer requirements for

When people ask, “what are operational risks?” , the short answer is simple: they are problems that come from the way a business runs its day-to-day operations. These problems can lead to financial loss, reputational damage, or even business interruption. Operational risk definition is frequently referred to as the threat of loss due to people, processes, or systems or external events. The most famous explanation is provided by The Basel Committee on Banking Supervision : ope

Leaving the United States and renouncing U.S. citizenship or long-term resident status requires an exit tax. What is the exit tax? Let’s break down the rules of expatriate taxation and see how everything works in reality.  What Is an Exit Tax?  Exit tax definition Exit tax is the final tax paid by individuals renouncing their U.S. citizenship or long-term residents who cease their status as permanent residents. In other words, exit taxation is a one-time charge on unrealized

Regulatory Arbitrage Explained Definition and meaning To understand what is regulatory arbitrage, it is important to begin with the regulatory arbitrage definition. Regulatory arbitrage is a practice where a company exploits the differences in regulations, laws, or norms that apply in various areas or countries to gain a financial or operational advantage. That is to say, if a country or an industry has tougher regulations and another has more relaxed ones, companies might mo

De-risking Explained De-risking definition and meaning In banking, de-risking refers to narrowing or exiting customer groups, products, countries, or relationships that sit outside your risk appetite. In plain terms, de risking definition refers to the set of decisions that reduce exposure to financial crime, sanctions, fraud, and operational loss. Practically, de risking meaning covers both exits (closing specific accounts or correspondent lines) and mitigants (tighter onboa

What is a compliance audit In the modern business environment, which is dynamic and moves rapidly, regulations will impact all areas of a business. It is important that any organization wishing to remain competitive understands what a compliance audit entails, and all of the accompanying aspects. These compliance audits for businesses are usually a part of the compliance management system of a company and provide reports that are essential to demonstrate compliance with the r

Understanding the Arm’s Length Principle What does the “arm’s length principle” mean in business? The arm’s length principle means that transactions between related parties (e.g., subsidiaries of the same parent company) should be conducted as if the parties were independent, unrelated entities, under comparable conditions.  Meaning of the arm’s length principle in taxation In taxation and transfer pricing, the arm’s length standard is used by tax authorities to ensure that p

Indemnity in Law Explained Indemnity meaning in law In commercial practice, the term “indemnity” has a meaning which in law refers to a specific promise: one party agrees to cover prospective losses or damages of the other. It can apply to third-party claims (for example, IP disputes) or to direct costs such as investigations and legal fees, with clear rules on who pays, for what, and up to what limit. Indemnity legal definition For business contracts, the practical indemnity

For founders who are new to firm formation, it’s natural to ask “ What is a certification of incorporation?”  and why it matters for recognition. It is one of the key business formation documents , necessary for judicial activity, concluding “large” contracts, opening a bank account, and fulfilling statutory obligations. This record is primarily issued for an LLC or similar corporate structure, formally recognizing it as a separate entity. At Icon.Partners , we guide business

In 2025, innovators are seeking not just a place of registration but a genuine springboard for growth. The choice of jurisdiction affects almost everything — it's a real game-changer. We have analyzed the key factors to present you with the top five leaders that offer the best conditions for tech visionaries. Why Jurisdiction Matters for IT Startups Every founder planning to set up an IT company has to understand that the right jurisdiction can be a real boost, providing them

Definition of correspondent banking Correspondent banking is a cooperation between two banks, where one (the correspondent) helps another (the respondent), which does not have branches abroad, to make international payments and currency transactions. This involves opening correspondent accounts with partner banks, which allows customers to make transfers almost as easily as within their own country. What is an intermediary bank? This is an intermediary bank that acts as a “br