Starting an offshore company for your company or part of it is a masterstroke that could propel its growth. It usually enables you to reach new markets and reduce the cost of operation by moving to a cheaper location. Many companies do it for various reasons but the two remain the primary ones. Some quarters associate offshoring with illegal businesses but that is usually not the case.
Online casino businesses are known for offshoring in search of lower tax and licensing fees, straightforward regulations, and minimal or no bureaucracies. League of Slots casino and others have been able to thrive because of setting up in the least problematic bureaucracies. Hence, there is no reason not to go offshore if you can get benefits from it.
We will take a look at five countries that offer clear benefits. You will also realize that they are currently the top destinations for offshore companies:
British Virgin Islands
This is home to over 40% of offshore companies in the world. It is highly preferred because it is a tax haven that exempts businesses from any tax for profits derived from outside the jurisdiction. This jurisdiction has also made it easy to register and start a company. It will take between three and five days to complete the process.
In addition, it doesn’t require the identity of the shareholders, owners, and directors to be made public. Only the Registrar has such information but it cannot be publicized. For these reasons, the British Virgin Islands is one of the top offshore countries in the world. It is ideal for all kinds of businesses, corporate banking, and so much more. It uses USD as the official currency and lacks things like annual return requirements and meetings.
Cayman Islands
This is another popular offshore country that has comparable features with the British Virgin Islands. It is home to a large percentage of hedge funds. This area has made it easy to register and start a company and upholds the privacy of business documents. There are minimal reporting requirements and documents like minutes, company accounts, and others do not have to be disclosed to the government.
This jurisdiction is also a tax haven. It does not charge local corporate tax for profits gotten from abroad. Also, it doesn’t charge income tax, capital gains tax, and others. The shareholders also do not pay tax on dividends. These are the reasons why it is an ideal offshore destination for businesses.
Singapore
Singapore is a fast-growing economy and was recently ranked as the 2nd easiest place to do business by the World Bank. It has lenient and transparent tax laws where only the earnings gotten from the country are taxed. The corporate income tax is also capped at 17%, which is quite low compared to many countries worldwide.
Businesses in Singapore also benefit from its tax treaties with other countries and exemptions for businesses in various sectors. It also has highly skilled individuals that can work in various sectors. The country has one of the best banking systems in the world and it is politically stable. However, offshore companies must keep all the necessary documents and comply with IRAS and ACRA requirements.
Hong Kong
This country is quite popular because it is a gateway to the huge Chinese market. It is also a tax haven that doesn’t charge taxes on capital gains, interests, dividends, and earnings from outside the jurisdiction. The tax rates range from about 8 to 16%, which is quite low. The companies can also benefit from its tax treaties that prevent double taxation.
Hong Kong also has a great banking system and no exchange control. However, the identity of directors and shareholders must be made public. Also, companies must comply with IRD and CR requirements.
Panama
Panama wraps up this list of five top offshore countries. It has very strict privacy laws that ensure that your business books are not disclosed. Also, it doesn’t attract sales, capital gains, or income taxes and doesn’t require businesses to provide tax reports. The country also protects its companies from lawsuits and seizures through various provisions. You can also rent business premises affordably.
However, the jurisdiction has had a crisis because of the Panama Papers leak that leaked the private information of various businesses to the media. Nevertheless, it hasn’t done enough damage to write off the country as one of the best offshore countries.
These are the top five offshore countries in the world. They have awesome advantages like:
- low taxes,
- lucrative business environments,
- and strict privacy policies that you can find alluring.
Some of them are also proximal to large markets and could offer a gateway to them. They are certainly worth considering.