Top offshore countries to open a company in 2021
Before opening an offshore company in 2021, one should carefully study the list of offshore jurisdictions. It is important to take into account the scope of business and geography, corporate conditions and taxation peculiarities. To find the right country to open an offshore company, contact our experts at IT-OFFSHORE.
Top 5 countries for opening an offshore company
When choosing the right country to register an offshore company in 2021 it is important to determine the purpose of establishing an offshore company - it may be an international activity, expansion of business, optimization of taxation, etc.
What parameters should be paid attention to the following:
- The jurisdiction's reputation;
- Presence of agreements on avoidance of double taxation;
- The presence of exemptions;
- The availability of suitable banks.
It is necessary to get acquainted with the rules of filing financial reports and tax declarations, as well as with the peculiarities of currency control. Important parameters are requirements to shareholders, capital, the possibility of remote management of the business, etc.
Opening a company in Hong Kong gives you access to the markets of China. Income from foreign sources is not taxed in the territory. In order to get the corporate tax exemption and offshore status of doing business, it is required to prove that the business is not physically present in the territory.
Once the offshore status is acquired, it is possible to obtain a corporate tax exemption for a number of years. No fixed payments are required to extend the status.
Offshore in Singapore is popular, as it is a safe jurisdiction, and it is possible to optimize taxation. Corporate laws are favourable, and tax benefits can be obtained. Singapore has one of the strongest banking systems in the world.
A new offshore private firm can get tax vacation privileges. Income from abroad is not taxed. The tax on interest payments on loans is 15%; the royalty fee is 10%. Profits from the sale of shares in subsidiaries are not taxed, and there is no tax on dividends.
This territory is optimal for international trading companies, suitable for those who need to protect their assets. Jurisdiction is considered reputable, registration of a firm in the BVI is relatively simple and inexpensive, and there are not many requirements for the physical presence of business in the territory.
There is no taxation. When opening an offshore there is no need to file a financial annual report and to conduct an audit. A high level of confidentiality is ensured.
The Cayman Islands is the largest and most popular offshore and financial center. On the islands you can open tax-exempt companies, which can get permission not to pay taxes for dozens of years. Such companies can not do business in the Cayman Islands.
The territory is characterized by a good tax climate and reliable trusts. There is an opportunity to register not only offshore, but also a partnership with tax exemption in the jurisdiction.
The main feature of this jurisdiction is low prices. Offshore Belize is considered one of the cheapest. It is possible to create IBC and LLC. Regardless of the form of business, only the company name is stored in the public registry, other information is not available. A high level of confidentiality is ensured. IBC is not taxed, LLC can become a tax-transparent entity.