An offshore company is a way to do business with significant tax savings. There are more than 50 offshore zones in the world that offer various schemes for optimizing the costs of doing business.
Benefits of offshore zones:
- simple and inexpensive process of registration of non-resident companies;
- low rates of income tax and income tax;
- exemption from state currency control;
- business confidentiality;
- absence of customs duties on vehicles, materials, and equipment imported for the needs of the company.
Most popular offshore zones in the world
Offshore zones are scattered all over the world, making it possible to choose not only the best conditions for doing business but also a convenient geographic location. Well-known world offshore zones have their distinctive features.
Belize
An internationally recognized offshore center with enhanced privacy. A politically stable state, part of the British Commonwealth and the UN. Located in the Caribbean Sea, two hours from Miami. Belize’s British law-based legislation has been specially tailored to protect investors. To buy an offshore company in Belize means to acquire the right to conduct any activity not related to the ownership of the real estate in the country or transactions with residents. However, it is allowed to own ships registered in Belize.
Seychelles
Stable jurisdiction, classic type offshore. The islands are located in the Indian Ocean, south of Madagascar. The opportunity to buy an offshore company in Seychelles is considered by thousands of businessmen every month. Seychelles’ top priority is client confidentiality. For registration, only the passport of the owner of the company is required. There are no requirements for the minimum authorized capital. A company registered in Seychelles has the right to issue registered shares and bearer shares. You can own planes and ships registered here, but you can’t – real estate. The property of Seychelles companies is protected from confiscation and seizure by foreign states.
British Virgin Islands (BVI)
An archipelago in the Caribbean near Puerto Rico. A politically stable country with a high standard of living, one of the first and most reputable classical offshore zones in the world. About 41% of all offshore companies in the world are registered here. For registration, only one shareholder and one director are enough, which can be one person. There are no obligations to submit financial statements, they simply must exist and can be stored in any country. There are requirements for the names of companies: they should not evoke associations with the British crown, government, ministries, and departments. Bvi a company conducting banking, trust, insurance, and reinsurance activities must be licensed.
Singapore
The city-state in Southeast Asia. It is not an offshore company in the classical sense. Singapore is one of the most important financial centers in the world and holds a strong position in the global economy. State foreign and domestic policies are open and understandable. The procedure for registering a company in Singapore is fully automated. Therefore, the registration process is fast and efficient. Under normal circumstances, a company can be incorporated within 2-3 days.
In addition to the reliability of the placement of funds, Singapore is attractive as an offshore zone in the following positions:
• Singapore is recognized as the # 1 country for ease of doing business (Doing Business Report 2014 by the World Bank);
• Singapore is recognized as the country with the best investment potential in the world (BERI Report 2014-I April 2014)
• Singapore is the number 2 country in the world in terms of international trade and investment (Globalization Index 2012)
• preferential taxation for resident and non-resident companies (tax rate from 0 to 17%);
• a high degree of trust in Singapore companies in the world community;
• developed banking system;
• Singapore does not disclose information about the beneficiaries of the company;
• The Government of Singapore provides billions of dollars annually to support small and medium businesses.
With the adoption by the European Parliament of amendments to the law on the disclosure of beneficial information of European offshore companies, Singapore in the coming years may become an alternative to European offshore companies.
Hong Kong
An island in Southeast Asia located near Taiwan. One of the world’s most important financial centers. A Hong Kong-registered company operating outside the island is tax-free. She must have a secretary alone who lives or does business in Hong Kong. His responsibilities include preparing annual accounts and keeping records of directors and shareholders of the company. It is obligatory to store accounting records for 7 years in paper or electronic form. The company name must be registered in English and Chinese.
Cyprus
An island in the Mediterranean to the west of Syria and south of Turkey, a member of the European Union and a world-renowned financial center. Has an agreement with Russia on the elimination of double taxation. Not included in the list of offshore jurisdictions of the Ministry of Finance of the Russian Federation. The purchase of an offshore company in Cyprus is the acquisition of a full-fledged European company with the lowest taxation in Europe.
An offshore company in Cyprus can be used as a resident or non-resident company. Depending on this, it can be classified as an offshore with low taxation or as a classic offshore. In any case, a registered office in Cyprus and a company secretary are required. To conduct banking, financial, insurance activities, a special permit is issued. There are several restrictions on choosing a company name. A company without a working office in Cyprus can have a minimum share capital of € 1,700. If you have a working office, this amount increases 10 times.
