If you have come to the conclusion that setting up your business in an offshore jurisdiction is the right move but you are yet to decide which country to go for this is the article for you. By paying careful attention to and fully evaluating the following points, you will be able to take a considered decision as to which offshore jurisdiction will be the best fit for you and your company’s specific needs.
One of the key factors you will need to consider is the cost of operating in an offshore jurisdiction. First you need to ascertain how much you are willing and able to pay to be located in that jurisdiction, as well as what your setup and ongoing running costs are. These are just a couple of the questions that you need to have answers for before making any firm decisions on where you will base your business.
Political and Economic Stability
When choosing a jurisdiction, it goes without saying that you should pick one with a great track record when it comes to political and economic stability. It is no good having great fiscal benefits combined with low set-up costs if the economic outcome is poor and the political system is volatile. Being in a location like this can make it tough to conduct long, or even short-term planning. Opting for a location with a good all-round social climate is invaluable to your success as it facilitates strategic planning and smooth day-to-day running of operations. Additionally, with stability comes bonuses like not having to worry about currency fluctuations or encountering issues when it comes to remitting your profits and revenue to your native country.
Double Taxation Treaties
One of your key considerations needs to be whether your home country and your potential jurisdiction of choice has a double tax treaty agreement in place. If they do not, you could find yourself paying tax twice on the same revenue, leaving you significantly out of pocket. Some of the benefits of offshore companies is the fact you may not be liable for tax paid on business income, dividends, or royalties, but you can only enjoy these if there are double taxation treaties in place.
The rate of tax payable and applicable in the potential jurisdiction is of great importance as it will directly impact how much of your business income you are able to remit back home. The best case scenario is to find a jurisdiction with a zero, or low tax rate that also ranks highly in the other factors mentioned in this article.
It is all very well and good enjoying great fiscal benefits, but if the offshore jurisdiction you have chosen is blacklisted elsewhere, it will result in a number of problems internationally. Remember that your company’s reputation is worth more than any amount of money you could save with a zero tax rate or low incorporation costs.
Different jurisdictions have different requirements when it comes to confidentiality, information sharing, and the necessity to make known the beneficial owners or ultimate beneficial owners of an entity. Depending on your situation and specific circumstances, you need to ascertain what level of confidentiality is suitable for you and pick the right jurisdiction accordingly.
Not every offshore jurisdiction is suitable for every kind of business. For example, not all are geared up for tax planning, others do not have the suitable framework in place to adequately handle asset protection. Even more confusingly, some jurisdictions that might be good for tax planning and asset handling, may not be good for your business operations. Before making any decisions, you need to assess criteria such as capital requirements, filing obligations, nominee requirements, disclosure requirements, audit requirements, any tax exemptions, incorporation times, and statutes and policies that may be beneficial, or disadvantageous to your business.
Fast Offshore have been in the business for over two decades and have helped countless clients pick the right jurisdiction for their needs, get set up, and then maintain successful operations for as long as they need. We are the experts and we can help you clarify all of the above criteria for a range of jurisdictions from Malta to Seychelles, Cyprus to Curacao and everywhere in between. Whatever you business need, whatever your vision, we can help you realise it. To find out more, contact us today.