Business

Which is the best country to set up your ideal offshore company?

Many people think of choosing where to incorporate an offshore company is a daunting task. Finding the best country to set up your intended offshore company may be not that hard. To help you better determine your best-suited option among many offshore jurisdictions, let’s check out 7 options below!

1.            Belize

If you wish to find the offshore country which has a quick registration and easy incorporation process, consider Belize. Belize is one of the most well-known offshore centers in the Caribbean. With minimum annual compliance requirements and low tax regime, Belize IBC (international business company) has become an ideal corporate vehicle to foreign investors and entrepreneurs.

It is also good to know that Belize incorporation costs are much more affordable than many other offshore tax havens like the British Virgin Islands or Cayman Islands.

2.            The British Virgin Islands (BVI)

The British Virgin Islands is among the oldest offshore hubs in the world. When it comes to BVI for setting up an offshore company, favorable tax rate is a key factor. Particular, BVI offers offshore tax exemption in which the profit tax, capital gains, gift taxes, VAT or inheritance taxes in relation to your company’s foreign-sourced income would be levied at zero.

In addition, offshore company formation in BVI brings you a high level of confidentiality. Financial information or reporting documents of your company are kept private and not publicly disclosed.

Thanks to its prestige, your BVI company can easily pair with bank account opening in many other desired jurisdictions like Singapore or Hong Kong. The business company is the most commonly used type of business entity for offshore seekers to BVI.

3.            Seychelles

Seychelles is located in the Indian Ocean. And it is one of the most ideal tax havens for both corporations and individuals. Seychelles has a stringent but very modern system of regulations on offshore incorporation. You can feel secure as with a Seychelles company, identity information of the shareholders and directors are completely kept out of view of the public.

Seychelles international business company (IBC) is the most popular business structure for foreigners. Typically, there is the zero-tax regime applied on foreign-sourced earnings for your offshore company in Seychelles. The flexibility in its corporate structure is also a highlight for Seychelles IBCs.

The setup price for the Seychelles company incorporation is normally rather cost-effective in comparison to other offshore countries.

4.       Nevis

If you are looking for the best country to set up an offshore company for asset protection purposes, Nevis may be an option to go. With a Nevis offshore company, if someone wants to sue your entity, then that person would be required to file a suit in this country as well as pay for the court proceedings.

Nevis is well equipped with its secured system, it is therefore among the best choices for entrepreneurs who expect privacy as the top priority to move offshore. Remarkably, this is a preferred offshore location for citizenship opportunities.

5.            Hong Kong

Hong Kong is the offshore location of reputation and a high concentration of major international financial structures. As you may know, Hong Kong is an open driven market, free trade and business friendly environment for almost all business owners, start-ups and SMEs. The country set out the two-tiered tax regime in which the favorable tax rate of 16.5 percent is applied on corporate income arising in or from Hong Kong. This tax rate is typically much more competitive than many other offshore jurisdictions in Asian region. Especially, foreign-sourced earnings are tax-free in this country.

Hong Kong is also one of the largest international financial meccas in the world. In addition, Hong Kong’s proximity to mainland China is a big plus to many foreign investors. With an appropriate business structure, you can access tons of opportunities to grow your business for international business purposes.

To help you save time and resources, you can engage a local incorporation service provider like BBCIncorp to free hassles of your desired company formation setup in Hong Kong.

6.            Singapore

In Asia, there are two most reputed offshore locations that you should not miss out. One is Hong Kong, and the other is Singapore.

Singapore is deemed as the most competitive place for doing business among Asian countries. This country was placed second in terms of “Ease of doing business” ranking by the World Bank in 2019, preceded by New Zealand in the first place. It is well recognized for its prestige, stability and safety. In particular, Singapore has a high density of international business presences there and appeals to a large number of global entrepreneurs to flock to this commercial hub. Singapore also offers an enterprise- friendly tax policy. Offshore tax exemption is allowed.

7.            The United Arab Emirates

The UAE is well tied to its world-class accommodations, stunning landscapes as well as the commercial hub. The UAE ranked 18th freest in the 2020 Index of Economic Freedom, which is the highest among 14 countries in the Middle East and North Africa region.

The UAE has recently implemented a range of competitive policies of business development leading the emirates to become more attractive for foreign investments. The UAE’s economic substance is one of the responses that make the EU whitelist the emirates. The UAE is an ideal destination for incorporating an offshore company by virtue of its friendly tax policy, sophisticated infrastructure to facilitate businesses, mature banking system and its prospect of the real estate sector.

Final thoughts

You may find a long list of offshore jurisdiction options when searching on the internet. We hope the above suggestions help you to narrow down your consideration list to reach the best one. Choosing the best country to set up an offshore company for your business is not so difficult, but this actually requires you as the offshore seeker to consider carefully before moving. It is advised that you should pick the option based upon your business demands, banking needs, the financial capability, and other factors that may arise.

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