Legal norms, taxes, and a sustained state of the economy are a small part of the criteria studied before choosing an offshore business. Below, we’ll consider the main bases aspects that need to be considered when choosing a jurisdiction for offshore business.
Experts of our firm make a thorough analysis and study current commercial needs, which help you select ideal countries for opening a company. First, you need to familiarize yourself with the criteria for analysis, which will help determine favorable conditions for starting such a business. We provide registration of an offshore company, being partners for our clients at every stage of this process.
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Offshore companies and jurisdictions
Such a company is a firm opened in a country with a preferential tax system and soft laws. Favorable conditions in such jurisdictions are created to attract investors from other spaces to that country.
Foreign firms in offshores may not only reduce the amount of tax liabilities by several times but also reduce them to zero in some cases. In such jurisdictions, it is much easier to maintain records, and it is possible to maintain the owners’ confidentiality.
How can I get privileges from offshore registration?
In such countries, the following privileges are offered to enterprises.
1. Optimization of tax deductions.
2. Opportunity to create a global holding.
3. Less strict control over the reports of financial and taxation spheres. It greatly simplifies the work of the enterprise.
4. Opening access to huge foreign banking institutions, which allows you to work with global partners and receive low-cost loans.
5. Minimization of risks because of the distribution of the company’s funds across several countries.
6. Confidentiality of owners and shareholders.
7. Safety from hostile takeovers and other illegally-considered actions of the governmental authorities and rival organizations.
For offshore firms, countries must offer complete freedom of operation, so it’s essential to study the planned activities of the firm in advance. Often, in the documents for establishing a firm, you must immediately indicate not only the main but also the secondary types of work that you are going to perform.
If you are going to work with investments, as an insurance company, bank institution, or trust, additional licenses, and permits will be required, which also complicates the selection of jurisdiction. Our experts are ready to offer you comprehensive assistance in choosing the most optimal and profitable jurisdiction. We have been working in this area for many years, which is a guarantee of our professionalism and ensures a high level of customer confidence in us.
Where to register offshore: types of offshore
All countries being well suited for registering offshore firms are divided into 3 types:
- Onshores – European spaces with the perfect image, where it was legally permitted to reduce tax rates for international business;
- midshores – spaces in Southeast Asia and the Middle East with even more loyal corporate laws and taxation incentives for international business activities;
- offshores are small countries whose budget mostly depends on corporate taxes. As a result, in these countries, capital-holders from foreign countries are offered the most favorable conditions for doing business activities.
It’s significant to mention that onshores or midshores are not considered classic offshore zones because they do not give foreign business projects all the benefits of a tax haven.
European jurisdictions with low corporate tax rates
The most favorable tax rates are offered by the smaller EU jurisdictions – Estonia, Malta, Lithuania, Gibraltar, Latvia, Cyprus, and North Macedonia. These jurisdictions simply need new foreign firms. When establishing a business project, you will receive a transparent reputation and low official taxes.
Asian jurisdictions with a low corporate tax rate
Hong Kong, Indonesia, Singapore, Labuan Island, UAE, and Qatar are developing quite rapidly. These jurisdictions also offer favorable terms or minimum taxes for foreign businesses. As in the EU, you’ll have to establish a firm similar to offshore, but this won’t be considered offshore. Tax optimization occurs because of a simplistic mechanism, incentives, or low rate, and information on tax expenditures is fully available.
Traditional tax havens
The offshore firm establishment is available in Mauritius, Bahamas, Seychelles, Panama, Belize, and the former British colonies of Antigua and Barbuda, St. Kitts and Nevis, Dominica, Grenada, and St. Lucia.
Tax havens are countries containing all privileges of offshore. Firms established here are completely freed from taxes on profits received outside the country.
How to open an offshore firm
You must first decide on the profitable offshore zone and then select the appropriate form of organization of the enterprise. Of course, you can deal with all issues on your own, but it is better to seek help from specialists. Our company’s experienced lawyers know all the nuances of proper offshore establishment and work in any country.
1. We can quickly and cost-effectively collect all documentation for registering and licensing a firm, officially get a physical presence in the country, and find resident employees. Also, professionals certify all papers from authorized notaries.
2. Experts of our firm take care of payments of state duties and registration agents’ services. You don’t need to communicate with the regulator and run to various authorities to confirm this or that paper.
3. By using our services, you will pass all the checks from the regulatory authorities and receive an official work permit in a timely manner.
4. Creating a bank account and submitting the first reports are also our responsibility.
It does not matter in which country you decide to open your business project; our lawyers know the nuances in each jurisdiction and select the loyal place of work and a favorable basis for you.
This article was prepared by Denys Chernyshov, a lawyer, founder, and CEO of the well-known company Eternity Law International, as well as the recently launched international medical project Eternity Life Clinics.
