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Copyright © 2014 - 2018.  International-Formations.com is a trading name of TMS FZE. Licensed Corporate Service Provider.
 Registered in RAK (Ras Al-Khaimah) UAE. Licence No. L1 04 15 427.
All rights reserved.

Please note that TMS FZE provides an execution only service in respect of the formation of companies, opening bank accounts and related services.
Therefore comments or suggestions made by us should not be considered as formal advice.
Should you require formal structuring advice, please visit our sister company TaiPan.


COMPANY INCORPORATION SERVICES

There are numerous advantages to incorporating your business in a tax friendly jurisdiction.  The question often asked is “which one”!  To help you decide, we would invite you to contact us  for a free initial consultation.  

Jurisdictions we incorporate in:

Low tax or No tax?

No tax sounds good but it does not always work especially where the company is actively trading in high tax areas.  Zero tax companies (often IBC's) are better utilised as discreet asset holding vehicles or for private consultancy services. By contrast, low tax jurisdictions can often be zero tax with a little bit of extra work, whilst at the same time providing respectability needed for the business.



Trading in the European Union (EU)


The main consideration is VAT, and possible withholding taxes imposed by your EU based trading partners. Where the majority of trading takes place in the EU, it is always better to set up a company in the E.U. Generally we are able to arrange VAT registration for clients. From our experience, Cyprus is the easiest jurisdiction in which to register for VAT.


Who will run the company?

This is more important than it sounds at first, due to the concept of “management & control” - the basis on which many tax authorities determine whether the company is tax resident in their jurisdiction. For a definition of Management & Control, please see our FAQ.



Zero tax jurisdictions

Commonly referred to as IBC’s and best used for asset holding and discreet trading e.g. consultancy income. This category includes: Belize, Seychelles and Dominica etc. as well as RAK in the UAE. They are all broadly similar & therefore the choice of jurisdiction is one of perception & price. Please note that International Business Companies are generally NOT able to take advantage of DTA (Tax Treaties). A number of E.U countries apply withholding taxes against sometimes arbitrary list zero (and even low tax jurisdictions).

Common features are:

Low tax jurisdictions

When trading internationally, particularly into Europe, it is often better to use a “low tax” rather than a zero tax jurisdiction.  Depending on the clients precise requirements Singapore, Hong Kong, Cyprus, Ireland and even the UK are good choices.

For EU trading, and thus requiring VAT registration, Cyprus and Ireland are two jurisdictions to consider - the UK has a much higher VAT registration threshold and is also more difficult to register for VAT number.


IBCs are best for discreet trading, asset holding, consultancy, & intellectual property.



International Business Companies

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Free Zone companies are resident companies in tax free zones, and are suitable for international trading.

Free Zone Companies

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Why have we separated our jurisdictions into 5 separate categories?

Clients set up companies for different reasons e.g. for trading within the E.U., VAT registration is often required. Other clients need a resident company with access to DTA* and Free Zones can often provide the answer. If you are not sure of your requirements, please ask us about the relative advantages / disadvantages of a particular jurisdiction.

* DTA Tax treaties

There are many advantages to utilising and benefiting from double tax treaties (DTA’s). This is a complex area and needs careful consideration to avoid additional work and costs.


Read more about International Trading Companies Read more about E.U. Trading  Companies Read more about International Business Companies Read more about Free Zone Companies Read more about Special use (Fintech) Companies

Respectable & with low tax rates for trading internationally, these companies can be used throughout the world.

International Trading Companies

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For trading within the E.U. These jurisdictions offer low tax rates & the ability to register for VAT.

E.U. Trading  Companies

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For clients with special requirements e.g. Forex trading or requiring a Financial Services Licence we can offer:



Special use
(Fintech) Companies

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