Where is the best place to open an offshore company for online trading: Top 5 countries
When choosing a country to open an offshore company for online trading, there are two options to consider. The first is that a business can be registered offshore with zero taxation (Panama, British Virgin Islands, etc.). Their disadvantage is that many jurisdictions are blacklisted by the EU, and financial transactions can be problematic. As an option, you can open a company in a country with a favourable tax regime and simple registration requirements (Canada, USA, Estonia, and Hong Kong).
British Virgin Islands
Many experts place this classic offshore jurisdiction in the top five countries for registering an Internet business. The advantages of opening a company in the BVI:
- flexible legislation;
- well-developed infrastructure, which is ideal for Internet projects;
- low taxes (VAT and corporate of 0%);
- extensive experience of working with international companies;
- it is possible to open a bank account outside the Virgin Islands.
The company can be opened remotely and managed from anywhere in the world. Enterprise, which does not operate in the local market, is not taxed. The official currency is the U.S. dollar, which saves on transactions.
An online store with registration in Canada is trusted, so the business owner won't have any problems. Its advantages:
- Developed online infrastructure, is not far from the U.S., which allows you to generate income on U.S. sites;
- Corporate tax of 0% if the company is registered in Canada as a General Partnership (GP) and does not operate in its territory;
- The VAT rate is 5 to 15%;
- Fast internet;
- You can open a bank account in the country as well as outside of Canada.
The U.S. is another country that is not offshore in the literal sense but offers good options. For example, if you register a business about Delaware or Wyoming ("offshore states"), you can take advantage of zero local and federal taxes on a pass-through basis.
- a well-developed infrastructure for Internet businesses;
- fast internet;
- dynamic domestic market;
- access to international trade;
- a large number of services for any level of business;
- VAT - you can choose the state with the lowest rate;
- possibility of opening an account at a local bank and abroad.
Estonia is actively developing digital business in the country, and the entire infrastructure is aimed at facilitating online business - remote registration, easy filing of reports and e-government.
The advantages of opening a company in Estonia for online commerce:
- tax on reinvested profits - 0%;
- corporate tax - 0% for investors;
- a huge number of public services that can be ordered through the Internet;
- opportunity to obtain a license for cryptocurrency activity;
- fast Internet;
- opportunity to open an account in a local bank remotely.
Businesses registered in Hong Kong are not as trusted as they would be if they were opened in the United States, Canada or Estonia. But the jurisdiction is not blacklisted by the EU, so you can operate with peace of mind.
Advantages of Hong Kong:
- the ability to register a company in a few business days;
- a lot of local initiatives aimed at supporting businesses;
- 0% VAT;
- opening an account in the payment system;
- developed Internet;
- it is possible to open an account outside Hong Kong.
How to choose an offshore company registration country for online trading
If you are looking for the country to register an offshore company, contact IT-OFFSHORE and we will find a favorable offer.