Here you will find short key features of select zero tax & low tax jurisdictions, together with IBCs and other offshore company formation.
You will also quickly navigate to our complete guides that cover all aspects of company formation and bank account opening topics.
The good news is that there is no need to register your business where you live or plan to live. You don’t have to move or travel anywhere. You can choose to set up a business wherever it suits your circumstances. Nearly any online business is suitable to be run by an offshore company, so if you have online consultancy, coaching or e-commerce business, you are in the right category, but of course, this list is not at all exhaustive. We will be happy to advise you whether your business is suitable and you can structure it.
The next step is to choose where your new company should be incorporated. It is straightforward to register a company, but it can be costly if you don’t think it through first. You can, for example, find out that your company was set up in the ‘wrong’ country for your type of business.
The maximum rate of corporate tax in Hong Kong is 16.5%, with a lower rate of 8.25% on assessable profits below HK$ 2 million. However, Profit earned outside Hong Kong is not taxable i.e. is tax free.
Yes! There are no restrictions on either the shareholders or directors of Hong Kong company. The process is quick and easy and your Hong Kong company will be incorporated within a week.
In Hong Kong, it is difficult, particularly if you can't travel there. However, there are alternatives - both banks outside Hong Kong and e-Wallets/digital banks.
The maximum corporate tax rate is 17%, but there are various exemptions and allowances, particularly in the first three years of operation. Please see our Singapore page for more information.
Yes! There are no restrictions on either the shareholders of a Singapore company. At least one director must be a resident in Singapore and we can introduce a qualified person to full fill this role. The incorporation process is quick and easy and your Singapore company will be formed within a week.
It generally not difficult to open a corporate bank account for a Singapore company in Singapore or neighbouring Malaysia etc. There are also other options, including e-Wallets/digital banks.
The tax rate for a Dubai Free Zone company is zero. For those wishing to take advantage of the residence Visa, the tax rate is also zero.
Yes! There are no restrictions on either owning or managing a Dubai Free Zone company.
It generally not difficult to open a corporate bank account for Dubai Free Zone company. Although a personal visit will be required.
As an LLC is a form of limited partnership, it is not taxed. Instead, distributions to members (shareholders) are, but where these members are not US residents, no taxes (either Federal or State) are due, and no business is done in the USA.
Yes! There are no restrictions on either owning or managing a Wyoming LLC but please note that to avoid US taxes, no business can be conducted in the USA and that the members and managers should not be resident in the USA.
It would not be easy to open a traditional bank account without a personal visit to the USA. However, we have a solution and can introduce clients to a US-based 'neo' bank, which will open an account remotely. We can also recommend e-wallets in various jurisdictions worldwide.
The maximum rate of corporate tax in the U.K. is 19%. However, there are no withholding taxes from a U.K. company applied to salaries or dividends paid to those residents outside the U.K. This means that taxable profit can be reduced by payment of salaries.
Yes! There are no restrictions on either the shareholders or directors of a U.K. company. The process is quick and easy, and your U.K. company will be incorporated within a couple of days.
Most U.K. banks require a personal visit to open a corporate account. However, there are a number of "neo" banks and e-wallets that allow remote opening of accounts. Bank accounts may also be opened in any other country subject to local requirements.
To decide where your company should be established, you need to ask yourself some fundamental questions. The most crucial questions are:
Even though you may think that all three of the above questions should have the same answer at first glance, it is not necessarily the case.
For example:
There may be a US citizen living in Dubai with a Dubai tax residency or
a Polish citizen living in Thailand. Each of the examples has different tax implications:
In the case of a US citizen, he will always need to declare his worldwide income and pay some taxes where his income exceeds the $100K exemption.
If you are a Polish citizen, you may be subject to an exit tax if you become a non-resident.
There is a balance to be struck. Traditional tax havens are going through rough times, mainly due to the recent scandals (e.g. Panama Papers). Therefore, you should carefully consider whether your clients may suffer withholding taxes when paying invoices issued by a BVI (British Virgin Island) company. You may also find it very difficult to open a bank account for a typical tax haven company.
However, a company incorporated in Singapore or Hong Kong where taxation is relatively low but not perceived as a tax havens may be a better option.
You should also consider whether a more complex structure would work better for your type of business.
It does not have to increase your costs by very much and also increase the level of privacy and protection. UK companies, which are not expensive to form, may work very well in an “Agency Structure.”
It is worth remembering that the price of the company is not the most crucial factor here. Many offshore company service providers offer very cheap formations. They will tell you what you want to hear but not what you need to know.
After the formation, you may find out that your company cannot open a bank account or find it unsuitable for trading in your chosen areas. For example, a British Virgin Island company selling to French clients is simply not going to work.
Once your company is incorporated and has a bank account, it should run itself, allowing you to concentrate on your business.
You can rely on us to let you know well in advance whenever your company needs to be renewed, whenever you need to prepare accounts or file annual returns. We can also recommend several useful online tools and programmes for bookkeeping, admin, calendar appointments as examples.
