Offshore companies cannot be considered an ideal solution in 100% of cases. However, if you are planning to reduce your tax burden, protect your assets, or take advantage of privacy, you will not find a better option. Starting an offshore company is an easy process (especially if you rely on professional help), but you need to be very careful when you choose a proper jurisdiction for your business. Think of the main goals and objectives that you are going to achieve with the help of your business, and find a destination that would be a perfect match. We strongly recommend that you read our complete guide on choosing the best jurisdiction globally for incorporating new offshore companies.
Best Countries for Offshore Company Setup
If we could recommend the best offshore jurisdiction that suits everyone, this article would be very short. However, it is impossible as there are different businesses with varying goals that require customized solutions. Some destinations are a top choice for asset protection, others are ideal for crypto/forex undertakings, while the best choice for online marketing would be found elsewhere.
Anyway, it would be useful to think of the following points:
- The financial services you will need as the ease of opening an account varies from country to country.
- The kind of business activity you are going to engage in to see whether it requires a special license.
- The laws in your country of residence and the place of company incorporation: you may prefer a destination that has concluded a double taxation treaty with your country.
- Personal data protection (some jurisdictions have an open register of beneficial owners (like the BVI), while others keep it closed.
- You may prefer a certain company legal form, an LLC or an IBC, and it also defines which jurisdiction will be best for you.
Island Destinations
There are a lot of countries where you can register an offshore company, but the islands traditionally dominate the landscape. Let’s look at the best options available:
- Nevis is known for its bulletproof asset protection, and you can hide your money here from creditors or relatives who want too much. Set up an LLC, a trust, or make investments to make money and get the best of Nevis.
- The British Virgin Islands is a destination that will give you easy access to the world market and zero tax rates. This is a traditional offshore leader by the number of established companies, though it has lost its appeal a little bit after Brexit as it is the UK’s dependent territory.
- Saint Lucia is a place where the offshore banking sector actually started, and you can incorporate a company here on advantageous terms and run it smoothly in line with all international regulations.
- Seychelles is a destination that remains attractive for investors from across the globe who want to enter the world market, but it has tightened its reporting requirements to some extent which may be something you want to avoid.
- The Isle of Man is an excellent choice if you need to open a legitimate high-risk business, like a crypto or gambling company. The benefits of this jurisdiction include quick company setup, easy access to European banking, reliable asset protection, favorable tax rates, and high data confidentiality.
- The Marshall Islands is a destination that will give you the possibility to get a fully operational company really quickly. It provides a lot of incentives for startups, is whitelisted by many countries, and is one of the best choices if you are planning an IPO.
- Saint Vincent and the Grenadines is a great option for offshore entity incorporation, and it does not charge a corporation tax.
- Belize is a recommendable jurisdiction for setting up a trust, an LLC, or a fund. It is just as good as Nevis in terms of asset protection, though it is a less-known destination.
The situation may change, so you can click on the above link to request free updates from our experts.
Best Countries to Establish an Offshore Company
Islands are not the only alternative if you want to set up an offshore company. Let’s take a look at some countries that are equally well suited for an offshore undertaking:
- Liechtenstein is a recommendable choice if you want to set up a private interest foundation or an offshore company.
- Switzerland is a well-known banking destination where you can take advantage of reliable asset protection and banking secrecy. This is not an offshore jurisdiction, but you can use its fiduciary management services to expand your business network. Keep in mind, however, that opening a non-resident corporate bank account requires depositing at least a million with the local bank.
- If you are looking for an Asian destination to set up a company, opt for Singapore or Hong Kong. Take advantage of excellent financial services, lots of benefits for companies, and special incentives for startups.
- Gibraltar is a great European destination where you can set up an offshore company that does not charge an income tax on worldwide income. Even though it has lost some of its advantages after Brexit, it still offers privileged access to European banking.
- Luxembourg is a recommendable destination if you are seeking to establish a world-class company in Europe. It’s a tax haven selected by large companies (like Amazon), and it is not a very cheap place for doing business.
- Some US states offer really advantageous conditions for offshore banking and startups, including Wyoming, Delaware, Nevada, and others. You can also set up an offshore company in Puerto Rico, which is unofficially considered to be the 51st US state.
- The UK is a popular European country that has its own advantages for foreign companies – you are welcome to click on the above link to explore our portal for more details!
- Canada is an excellent place to form a general or a limited partnership that is not considered a Canadian tax resident, and each partner pays taxes in the country of its fiscal residence.
- Serbia is a good choice for offshore companies or branches of foreign companies, and it offers great banking and low taxes as compared to other European countries.
Want to discover more destinations? Please follow the above link and read a more detailed article to choose the best jurisdiction for your business!
