Setting up a business abroad is a very lengthy process: businessmen spend hours thoroughly researching “tax havens”, jurisdictions that offer little to no taxes on company profit, minimal formation procedures and ease of international operation management.
If you are one of many individuals interested in setting up a business overseas, have a look at the list of the most popular off-shore destinations we have compiled for you below:
Belize is the best option for efficient corporate, Limited Liability Companies and trust codes that can be adapted to most situations. This Central American country is a tax haven where corporate income tax is not applied and companies are exempt from Capital Gains Tax, stamp duty and withholding taxes on dividends.
Belize is a haven for High Net Worth Individuals (HNWI) and entrepreneurs. Although one cannot hold property or trade in Belize, they must perform international trading activities and offshore banking. International Business Companies in Belize can also be used for asset protection.
Another popular offshore jurisdiction are the Seychelles, where a tax-free International Business Company (IBC) can be set up and used for many purposes, including as a Holding Company in real estate and equities or as a consultancy and personal service company.
When it comes to confidentiality and privacy, IBCs in the Seychelles are ideal, as company owners and directors are not part of the public record. All data is kept at the offices of the Registered Agent in complete confidentiality.
The Cayman Islands are the original offshore jurisdiction. The island nation still offers a well-regulated, tax-neutral and offshore environment that remains popular with large fund formations and investments.
The Cayman Islands are the largest centre for hedge funds in the world. They are also popular with high-profile individuals seeking entry to the most compliant banks and are also the top choice for large offshore structures.
Furthermore, the Cayman Islands are in fact the largest offshore banking centre with about 200 licensed banks.
Unlike other countries on this list, Cyprus holds a competitive advantage in the sense that it is a European Union member state, a status that comes with world-class infrastructure and a reputation of reliability.
Not only is the island nation an excellent place to live in, but the government has also negotiated a string of double tax treaties with major global markets.
Companies are easy to establish here, whilst the entrepreneurial environment, transparent regulatory system and excellent professional services make Cyprus an irresistible choice for the setting up of an offshore business.
Singapore is a thriving and established international financial centre, benefiting from its domestic economy and its strategic location in the Asia-Pacific region. The city state’s reputation as a tax haven consistently attracts businessmen from all corners of the world.
If one is looking to dispose of their assets, Singapore is an ideal choice as there is no capital gains tax. However, interest and royalties paid to non-residents are subject to a withholding tax between 10% to 15%. Additionally, the cost of running and maintaining a company in Singapore is notably higher when compared to other offshore jurisdictions.
A Wide Range of Choices
There are many options and suitable jurisdictions to incorporate your company in but carefully considering each location is key to finding the right fit for you and your company.
Although our list is intended to provide you with some idea of what to expect in each of these destinations, it is not comprehensive. We strongly advise you to perform your own due diligence and seek further assistance from local professionals when incorporating a company in any of the aforementioned jurisdictions.