Copyright © 2008 - 2016. Owned by TMS FZE
Licensed Corporate Service Provider.
Registered in RAK (Ras Al-Khaimah) UAE. Licence No. L1 04 15 427
No tax sounds good but it does not always work especially where the company is actively trading in high tax areas. No tax companies, often IBC's (see list below), are better utilised as discreet asset holding vehicles or for private consultancy services.
By contrast, Low tax jurisdictions (see list below) can often be zero tax with a little bit of extra work, whilst at the same time providing respectability needed for the business.
The main consideration is the VAT and withholding taxes imposed by your EU based trading partners. Where the majority of trading takes place in the EU, it is often easier to set up a company in the EU (e.g. Ireland or Cyprus where corporate taxation is low - both 12.5% on profits).
There are many advantages as well as disadvantages to utilising and benefiting from. This is a complex area and needs careful consideration.
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. This is another complex area and we would invite you to contact us to discuss this.
Commonly referred to as IBC’s and best used for asset holding and discreet trading e.g. consultancy income. This category includes: Belize, B.V.I., Seychelles etc. They are all broadly similar & therefore the choice of jurisdiction is one of perception & price.
Common features are:
When trading internationally e.g. into Europe, it is often better to use a “low tax” rather than a zero tax jurisdiction. Examples are: Singapore, Hong Kong, Cyprus, Latvia etc and even the UK in some circumstances.
For EU trading (and thus requiring VAT registration), Latvia, Cyprus and Ireland are three to consider.