Registration of an offshore company is a move that can effectively solve many business problems. But in which jurisdiction is it best to open such a company, and how expensive is it?
The offshore industry experts from International Wealth shared several important insights, including the jurisdictions with the cheapest offshore company formation, the criteria for choosing a suitable jurisdiction, and other important information.
So, let’s find out where is the best place to open an offshore company in 2023.
It is impossible to answer unequivocally in which country it is better to open an offshore company. It would be best if you studied the prices and tax laws of the jurisdiction, as well as a number of other factors. Another critical point is the tasks of your business that you want to solve by opening an offshore company. After all, different jurisdictions can provide completely different benefits.
What should you pay attention to when choosing an offshore zone for the incorporation of a foreign company? Professionals from International Wealth are sure to take into account the following points:
- Reputation of offshore jurisdiction – although more and more jurisdictions are implementing their legislation in accordance with the norms of international regulators, there are still offshore zones included in the blacklists of the EU, FATF, and OECD. If a company is established in an offshore zone with a dubious reputation, it will not be possible to get a positive response from large banks since global financial institutions do not want to work with such clients. In 2023, the cheapest offshore countries with a good reputation include Belize, Nevis, Seychelles, Curacao, and others.
- The cost of opening a company – this is another important factor that directly affects the efficiency of solving your business tasks. For example, buying a shelf company from a dubious intermediary on the Internet can be a very cheap but useless decision. You will get a pig in a poke, not knowing if you can open an account for this company and use it for its intended purpose. When analyzing this factor, you should take into account the experience and reputation of the intermediary with whom you are going to work, the amount of expenses for transferring your business, the direct costs of opening an offshore company, the requirements of the jurisdiction for taxes, office, substance, and much more.
- Benefit from buying a ready-made company or opening a new one – sometimes it is much more profitable to save time on creating a new business and use the services of experienced intermediaries and immediately buy a ready-made offshore company. Time costs also affect the reduction of financial investments and, in some cases, even allow savings. But, it is important to understand that buying a ready-made shelf company with a complete package of documents is an option that is not suitable for everyone. If the audit is not done and the foundation for the business is not prepared, you can find yourself with a bunch of problems that require time and money to solve.
Jurisdictions with favorable conditions for registering a company are located not only on remote tropical islands, as many people think, but also in Europe, Asia, and other parts of the world.
Conventionally, such countries can be divided into two categories:
- Classic offshore zones – these are countries where you can open an offshore company inexpensively in terms of financial costs for the authorized capital and business maintenance, as well as receive tax benefits (or even a complete absence of taxes). It is also possible to protect your privacy through the service of professional officers and shareholders. As a rule, such jurisdictions have requirements for authorized capital, no taxes on income from foreign sources, and no obligations for reporting, accounting, and auditing. Vivid examples of such jurisdictions are Belize, Nevis, Cayman Islands, Seychelles, Cook Islands, and others.
- Countries and territories with a good reputation, where the company can receive tax benefits, as well as expand its business in the global market and use the services of the best banks in the world. The list of such countries includes Switzerland, Great Britain, the Netherlands, Latvia, Serbia, Poland, Hong Kong, Singapore, separate states of the USA, Canada, UAE, New Zealand, and others.
In addition to classic offshore zones, where even nowadays, the registration of a non-resident company remains legal and profitable for some entrepreneurs, the creation of an international business structure is available in other jurisdictions with tax and other advantages (also known as midshores). The difference between offshore and midshore lies in the level of confidentiality of the beneficial owner, tax obligations, and requirements for business structures.
Choosing the proper jurisdiction for your business is not an easy task and requires careful analysis. To avoid wasting time and money, it is best to entrust this matter to real professionals, such as International Wealth. The company’s experts have been working in the offshore industry for many years and have impressive experience, successfully solving hundreds of cases on opening a company and transferring a business to offshore jurisdictions.
They will help you choose an offshore or midshore zone that is ideal for your needs. After that, the specialists will take care of opening a company in the selected country, as well as opening bank accounts, licensing, and other issues. In addition, you will be able to receive a full range of services as an individual, including opening personal accounts abroad, advice on protecting your assets, assistance in choosing and buying foreign real estate, as well as obtaining a residence permit or citizenship by investment.