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 put the most popular jurisdictions into three groups.

Offshore Company Jurisdiction Comparison 

Various jurisdictions and what do they offer

International Formations

International Trading Companies

International Formations

IBCs - Offshore Companies

EU trading companies


INTERNATIONAL TRADING COMPANIES

Clients wishing to trade internationally and looking for a ‘respectable’ jurisdiction with relatively low tax rates, we recommend Hong Kong, Singapore or the U.K. which can be used throughout the world. 

International Formations

Hong Kong companies

- Maximum tax rate on Hong Kong profits 16.5%.
- Zero tax on Non-Hong Kong profit.
- Best for international trading outside Hong Kong.



International Formations

Cyprus non-resident companies

- Zero tax where trade is wholly outside Cyprus.
- For international trading outside the E.U.
- No VAT registration.



International Formations

Singapore companies

- Maximum tax rate on Singapore profits 17%.
- Tax rate for small companies, Zero in the first 3 years, thereafter 8.5%.
- Respectable jurisdiction with availability of Singapore bank account.

International Formations

Malaysian companies

- Best for international trading outside Malaysia. 
- No VAT registration.



International Formations

England and Wales, UK

- Maximum tax rate on profits 19%.
- VAT registration threshold £85,000.
- Known worldwide & respectable, can be used in an agency structure.


International Formations

Wyoming LLC, USA

- No US taxes for non US owners where the LLC does not trade in the USA.
- No public disclosure of members and managers.




OFFSHORE IBCs & LLCs

It is becoming progressively more difficult to use Classic IBCs for ‘open trading’ e.g. selling goods online, obtaining merchant accounts etc.  We recommend using IBCs (International Business Companies) and LLCs (Limited Liability Company) for asset holding, including intellectual property or offshore consultancy services.


Common features of IBCs

Unless indicated otherwise, all the listed jurisdictions allow the following:-
- No public registry, thus protecting privacy of directors & shareholders.
- Choice of suffix (excluding RAK, UAE) e.g. Ltd., Inc., SA etc. to denote the company has limited liability.
- Tax exemption (either for the life of the company or for a fixed period e.g. 20 years in the case of Dominica).
- No accounts filling requirements.

 All, except, RAK UAE, are Common Law jurisdictions. Most of the jurisdictions listed based their IBC Acts on the legislation of Delaware and subsequently that of the BVI.

International Formations

Seychelles companies

- Zero taxation.
- Strong privacy.
- No accounts filing.
- Inexpensive to form and maintain.



International Formations

RAK IC, UAE companies

- No public record.
- No accounts filing.
- RAK is has no corporate or personal taxes.



International Formations

St Vincent companies (LLCs)

- Zero taxation.
- Strong privacy.
- No accounts filing.
- Inexpensive to form and maintain.


What can an IBC or Zero-Tax company be used for? 

Almost anything, but with reservations. We would not recommend high profile trading with an IBC directly into the EU, USA, Australasia, and other high tax areas - however RAK can be an exceptions to this as it generally not considered to be a tax haven.

The reasons are: 1. Such trading would attract unwelcome attention from the local Revenue Authorities. 2. In several countries, particularly the core EU, (France, Germany, Spain, Italy etc.) this would provoke withholding taxes e.g. your customer, if a medium or large company, might be forced to pay part of your invoice directly to the local tax office (on the specious grounds that somehow the local revenue is being deprived).

We therefore recommend IBCs to be used for e-commerce, discreet trading e.g. consultancy fees etc., for asset holding, and the holding of Intellectual property (I.P.). IBCs can also be used to own the shares in low tax companies e.g. a Cyprus company may be formed with an IBC acting as shareholder. In such a case the dividends earned by the Cyprus company would be paid to the IBC’s bank account rather then to the beneficial owner.


EEA TRADING COMPANIES

Clients intending to trade within the EEA should consider a company registered in Europe. VAT registration is often a requirement e.g. for digital downloads, and is possible in any of the following jurisdictions: Cyprus, Ireland and UK.

Cyprus resident companies

- Zero tax where trade is wholly outside Cyprus.
- For international trading outside the E.U.
- No VAT registration.



Irish companies

- Relatively easy to register for VAT.
- VAT rate 23%
- Corporate tax 12.5%
- No audit required for small companies.


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