Should you wish to choose the best jurisdiction for setting up an offshore company, you will have to take many aspects into consideration. The most important of them all are taxes, the set of documents for company registration, the possibility of buying a ready-made offshore company, requirements to have a local director, the degree of openness and data security when it comes to the registers of shareholders and/or directors, accounting and auditing standards, the final bill for the services provided.
It is equally important to determine the offshore jurisdiction, since corporate laws of tax-exempt or low-tax countries are quite different. The need to make a choice in such a complex environment is not an easy task. For example, the offshore company registration may be extremely expedient, but the jurisdiction you choose does not provide for data security. Or the decision on buying a ready-made offshore company will prove more advantageous in the long run than registering an offshore company from scratch.
In general, the choice should be handled as responsibly as possible. The first step is to choose a suitable jurisdiction. You may consider other criteria only after everything becomes clear with this point. Remember that offshore companies are an efficient instrument for international business, but this instrument can hardly be called versatile.
For more information on how to register an offshore company, please contact the experts of Internationalwealth.info (info@offshore-pro.info).
Important note. Any information on the offshore companies’ registration and the choice of jurisdiction is meant for informational purposes only. We do not recommend using this information for acting independently at one’s discretion.
Advantages of Offshore Companies
Businesses registered in low-tax jurisdictions remain extremely popular even as the prospects of purely offshore companies of any size are becoming less clear. We would like to remind you that we recommend running a foreign business without your actual presence in the jurisdiction only when the benefits of such a decision exceed the potential risks.
Let’s have a look at the main pros and cons of an offshore company:
- It is an authorized international business entity (with certain reservations).
- The company may enjoy the low-tax environment. However, the criterion of fiscal burden is no longer the only or the most important one.
- It will take a very short time to register an offshore company (if company documents are prepared/submitted by the Internationalwealth.info experts).
- It is possible to choose the legal form (LTD, LP, LPP, etc.) that is best suited for your situation. Please note that the legal form affects the company registration time, the set of documents required, and the amount charged for the services.
- It is possible to obtain exemption from audit, preparation and/or filing of reports, accounts. But if a foreign business is registered in a mid-shore jurisdiction (a country with low taxes and numerous exemptions), one wouldn’t count on that.
- It is possible to open a corporate account with a local bank. This can be done in person or remotely depending on the country/jurisdiction.
- Personal data of the beneficial owners is publicly unavailable.
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on which jurisdiction is best for your business, preferred tax regime, company structure.
Factors Having Impact on the Choice of Jurisdiction for an Offshore Company
Here the main criterion is the tax level (not all offshore jurisdictions ensure zero corporate tax rate). But it is not the only one. Therefore, the process of registering or buying an offshore company should start with prioritizing your goals since all the required benefits are not often combined within a single jurisdiction.
What else should one pay attention to being interested in setting up an offshore company? Please check this out:
- Taxes (corporate, personal).
- Licensing restrictions on business.
- Legislative control of intellectual property rights.
- Minimum requirements for offshore company registration in the jurisdiction (director, secretary, shareholders, office).
- Existing exemptions, incentives and conditions for obtaining them.
- Whether the country/jurisdiction is blacklisted.
- Simplicity of opening a corporate/personal bank account.
- The level of economic freedom for offshore companies.
- The level of infrastructure development.
- Agreements on double taxation.
Yet another important point that affects the choice of country/jurisdiction when planning to set up an offshore company is related to the intended purposes.
Here are the possible purposes of setting up an offshore company:
- Protection of one’s existing business from potential hostile acquisition.
- Protection of property / assets / goodwill / intellectual property rights.
- Optimization of taxation and mandatory payments to the budget of one’s tax residency jurisdiction.
- New business contacts.
- Offshore company’s participation in new business.
- Intention to have a second string if the situation in one’s home country deteriorates.
- Plans to use one’s offshore business as the reason for obtaining a temporary or permanent residence permit / citizenship.
- The need to invest available funds as promptly as possible in order to protect one’s assets. In this case, the best option is to purchase a ready-made offshore company.
Important note. Please make sure you thoroughly assess the main purposes and goals of setting up an offshore company. Remember that the right choice will determine the further prospects of your company.
Choice of Jurisdiction for the Offshore Business Registration
When analyzing a particular jurisdiction, one should take several important criteria into account. Please remember that your choice must first and foremost be based on objective factors that are crucial for offshore business. Additional parameters such as price situation in the jurisdiction, climate, attractions, local cuisine may and should be taken into account, but only if they do not contradict the framework conditions.
Please consider the most important criteria for selecting a jurisdiction to register an offshore company:
- Type of offshore (pure offshore, reservations, mid-shore).
- Legal form.
- Taxes in the country.
- The requirement for a company to have a resident director.
- Ensured level of data security (register of directors / shareholders).
- Requirement of mandatory audit and submission of tax returns / financial statements of the company.
Pure Offshore Jurisdictions
No taxes, no director residency obligations, no access to registers, no mandatory audit/reporting
- IBC offshore jurisdictions: Anguilla, Bahamas (free access to director information), Belize, Dominica, Marshall Islands, Seychelles, St. Vincent.
- BC offshore jurisdictions: British Virgin Islands, Nevis (+ LLC).
- Exempt offshore jurisdictions: Cayman Islands, Vanuatu (+IC).
- IC / ICC offshore jurisdictions: Cook Islands, Samoa, UAE (certain emirates).
The Most Popular Offshore Jurisdictions
Many of them should be classified as mid-shores:
| Jurisdiction (type of company, offshore taxes) | Resident director requirements, access to director/shareholder registers | Audit, reporting & bookkeeping |
| Cyprus: IBC / 12.5% | – (recommended) / + / + | + / + |
| Gibraltar: non-resident company / – | – / + / + | + (except for small companies) / + |
| Isle of Man: Resident LLC / transparent | – / + / – | – / – (under reservations) |
| Isle of Man: Limited Partnership / – | + / + / + | – / – (under reservations) |
| Isle of Man: Private Limited / up to 10% | – / + / + | + (except for small companies) / + |
| Isle of Man: Hybrid / up to 10% | – / + / + | + / – |
| Isle of Man: New Manx Vehicle / up to 10% | – / + / options available | – / – |
| Hong Kong: Private Limited / depends on where the income is received | – / + / + | + / + |
| Lichtenstein: AG / 12.5% | – / – / – | – / + |
| Luxembourg: S.A.R.L. / + | – (recommended) / + / – | + / + |
| Luxembourg: Soparfi Holding / + | – (recommended) / + / – | + / + |
| Mauritius: GBC I / up to 3% | + / – / – | + / + |
| Mauritius: Offshore GBC II / – | – / – / – | – / + |
| New Zealand: Ltd / up to 30% | + / + / + | – / + |
| Scotland: LP / transparent | NA / NA / – | – / – |
| Singapore: Private Limited / options available | + / + / + | + / + |
| UK: LLP / transparent | NA / NA / + | + (except for small companies) / + |
| UK: Private Limited / up to 26% | – / + / + | + (except for small companies) / + |
The Caribbean:
| Jurisdiction (type of company, offshore taxes) | Resident director requirements, access to director/shareholder registers | Audit, reporting & bookkeeping |
| Anguilla: IBC / – | – / – / – | – / – |
| Bahamas: IBC / – | – / + / – | – / – |
| Barbados: IBC / up to 2.5% | – / – / – | + / + |
| Belize: IBC | – / – / – | – / – |
| Bermudas: Exempt / – | + / – / – | + / + |
| BVI: BC / – | – / – / – | – / – |
| Cayman Islands: Exempt / – | – / – / – | – / – |
| Dominica: IBC / – | – / – / – | – / – |
| Nevis: Business Corporation / – | – / – / – | – / – |
| Nevis: LLC / – | – / – / – | – / – |
| St. Vincent: IBC / – | – / – / – | – / – |
Europe:
| Jurisdiction (type of company, offshore taxes) | Resident director requirements, access to director/shareholder registers | Audit, reporting & bookkeeping |
| Cyprus: IBC / 10% | – (recommended) / + / + | + / + |
| Denmark: ApS / up to 25% | + / + / + | – / + |
| Denmark: AS / up to 25% | + / + / + | – / + |
| Gibraltar: non-resident company / – | – / + / + | + (except for small companies) / + |
| Ireland: Resident Private Ltd / 12.5% | – / + / + | + / + |
| Isle of Man: Resident LLC / transparent | – / + / + | – / – (under reservations) |
| Isle of Man: Limited Partnership / – | + / + / + | – / – (under reservations) |
| Isle of Man: Private Limited / up to 10% | – / + / + | + (except for small companies) / + |
| Isle of Man: Hybrid / up to 10% | – / + / + | + / – |
| Isle of Man: New Manx Vehicle / up to 10% | – / + / options available | – / – |
| Jersey: Resident Private Ltd / up to 10% | – / – / + | – / – |
| Lichtenstein: AG / 12.5% | – / – / – | – / + |
| Luxembourg: S.A.R.L. / стандартная ставка | – (recommended) / + / – | + / + |
| Luxembourg: 1990 SOPARFI Holding / standard rate | – (recommended) / + / – | + / + |
| Malta: Private Limited Liability Company / up to 35% | – / + / + | + / + |
| Netherlands: BV / options available | – / + / options available | + / + |
| Scotland: LP / transparent | NA / NA / – | – / – |
| Switzerland: AG, SA, LTD / options available | + / + / – | + / + |
| Switzerland: GmbH, SARL / options available | + / + / + | + / + |
| UK: LLP / transparent | NA / NA / – | + (except for small companies) / + |
| UK: Private Limited / transparent | NA / NA / + | + (except for small companies) / + |
Central and South America:
| Jurisdiction (type of company, offshore taxes) | Resident director requirements, access to director/shareholder registers | Audit, reporting & bookkeeping |
| Costa Rica: Stock Corporation / – | – / + / – | – / – |
| Panama / – | – / + / options available | – / – |
Asia:
| Jurisdiction (type of company, offshore taxes) | Resident director requirements, access to director/shareholder registers | Audit, reporting & bookkeeping |
| Hongkong: Private Limited / options available | – / + / + | + / + |
| Singapore: Private Limited / options available | + / + / + | + / + |
UAE:
| Jurisdiction (type of company, offshore taxes) | Resident director requirements, access to director/shareholder registers | Audit, reporting & bookkeeping |
| RAK Offshore ICC / – | – / – / – | – / – |
| Dubai Offshore (JAFZA) / – | – / – / – | – / – |
| DMCC Free Zone / – | – / – / – | + / + |
| Ajman Free Zone / – | – / – / – | – / – |
| Hamriyah Free Zone / – | – / – / – | – / – |
| RAK Free Zone / – | – / – / – | – / – |
Africa:
| Jurisdiction (type of company, offshore taxes) | Resident director requirements, access to director/shareholder registers | Audit, reporting & bookkeeping |
| Mauritius: GBC I / до 3% | + / – / – | + / + |
| Mauritius: GBC II / – | – / – / – | – / + |
| Seychelles: IBC / – | – / – / – | – / – |
Oceania (+ Australia, + New Zealand):
| Jurisdiction (type of company, offshore taxes) | Resident director requirements, access to director/shareholder registers | Audit, reporting & bookkeeping |
| Australia: Proprietary / 30% | + / + / + | + (except for small companies) / + (if necessary) |
| Australia: Public / 30% | + / + / + | + / + |
| Cook Islands: IC / – | – / – / – | – / – |
| Marshall Islands: IBC / – | – / – / – | – / – |
| New Zealand: Ltd / up to 30% | + / + / + | – / + |
| Samoa: IC | – / – / – | – / – |
| Vanuatu: Exempt | – / – / – | – / – |
| Vanuatu: IC | – / – / – | – / – |
USA:
| Jurisdiction (type of company, offshore taxes) | Resident director requirements, access to director/shareholder registers | Audit, reporting & bookkeeping |
| Delaware: LLC / transparent | – / – / – | – / – |
Register Your Offshore Company With Us
Internationalwealth.info is the choice of professionals. When choosing an intermediary for your offshore company registration, it makes sense to base your judgment not just on words. Please find more on the ways of interaction, sign up for a free individual consultation. Here we will outline the general advantages of working with us.
Why Internationalwealth.info?
- Full range of services for offshore company registration, international business, account opening, obtaining of residence permit temporary and permanent), citizenship by investment and any other business areas. If you think you cannot find what you need on our current price list, please feel free to contact us. We are confident we can assist you.
- Conventional and alternative solutions with a comprehensive clean title guarantee.
- We can operate remotely in most cases.
- Complete data security.
- Wide range of cooperation options.
- Various payment options.
Some people believe that classical low-tax jurisdictions are the thing of the past under the current circumstances, but this is not true. Given a competent approach including the preparation of a complete set of documents, tax planning and assessment of all the risks, expert registration of offshore companies clearly makes sense. We are ready to handle all organizational matters and legal registration of business in any suitable jurisdiction as well as its comprehensive support.
