What should we consider when opening an offshore company? Taxes, Banking, Costs and Regulations.
Before we start pointing out which are the best places to form an offshore company it is important to note that there is no such thing as one place that will fit everyone.
When we are thinking about forming an offshore company one of the reasons that come to mind is certainly taxes. There is not such a thing as a country with no taxes. With that being said, it is necessary to register a company in a country with favorable tax laws. When we are talking about taxation there are different ways: Territorial tax, Zero tax, Remittance based tax. So, it is more complicated than just a tax rate.
Gibraltar, Hong Kong, Labuan, Georgia, Estonia, Latvia, Hungary, Montenegro, Bulgaria, Cyprus, Malta, USA, Barbados, Jersey, Guernsey, The Isle of Man, Cayman Islands and of course UAE. Those would be the places that you will want to look at today, from the tax standpoint.
The other most important thing that we want to consider when forming a company abroad is banking. Some countries may have higher tax rates, but it is easier to open a bank account. There are 4 things we should look out for:
Reputation: it shows the jurisdiction and banking system quality. A well-reputed banking country is likely to bring a highly pro-business and stable environment. However, it can be quite challenging for how easy it is to deal with if you as a foreigner open bank accounts by yourself in such countries. Usually, due to its complicated requirements as compared to those in other countries, more efforts will need to be made to open an offshore bank account in these places. Recommended options: Hong Kong, Singapore
Remote opening: Many foreigners are huge fans of remote account opening, as this will relatively make great convenient for them. Recommended options: Belize, Hong Kong, Puerto Rico, Switzerland.
Deposit: A large number of foreigners may think of Low Deposit as the key factor to find their best offshore bank account, especially for those being start-ups, entrepreneurs or SMEs. Some offshore banks even do not require the initial deposit for opening a bank account. Some banks, on the other hand, may require the deposit minimums for foreigners, but at a minimal cost. Several captivating banks and banking jurisdictions like Hong Kong, Singapore, or Panama often require high deposit minimums. Recommended options of low-deposit banking countries: Belize, Puerto Rico
Processing time: In most cases, the process of opening an account can be done very quickly, depending on how easy it is to open in that particular offshore banking country. The timeframe of most offshore banks for the account opening process is quite similar to each other. Recommended options: Puerto Rico, Hong Kong, Singapore, Belize.
The third thing to consider are costs, cost of operating and opening/ closing an account. When we talk about costs, we are thinking about the costs of forming and maintaining the company.
What are the regulations like? Needless to say, when forming a company abroad you want to think about the regulations there. This is especially important if you are in certain industries, such as crypto, cannabis, gaming, financial services, etc. If the local regulations do not align with your industry it will simply be impossible for you to do your business there, or to even register a company.
If you are looking to create an offshore company, Creimerman Team can help you sort all this questions. We can create a personalized business plan for all your needs and our team of executives will personally accompany you all over the way.