Jurisdictions

Tax Haven | Make An Informed Choice Of Tax Haven Jurisdiction

Tax Haven: To choose to look at confidentiality, cost, ease of communication, the complexity of the incorporation and speed of response

Tax Haven: How will you know which is the top offshore incorporation jurisdiction for you? Why would you need an offshore company? And how would you choose a tax haven?

Generally, top jurisdiction choices are made on the basis of confidentiality, cost, ease of communication, the complexity of the incorporation e.g. trusts, protected cell companies, resident companies or simple International Business Companies (IBCs), and speed of response.

If yes, then please invest 2 minutes of your time to watch the tax haven video below. It spells out how you can benefit. Or if you prefer to read, then feel free to skip the video and go straight to the text below:

 

Tax haven: Get a free quote now by filling in the box on the right and discover how you would choose a jurisdiction

Tax Haven: There are different types of jurisdictions

1. Well established, full service, expensive, can handle complex incorporation, require extensive Know Your Client (KYC) due diligence, and are manned by very experienced professionals. e.g. Switzerland, Guernsey.

2. Full service, focused on international business companies, with experienced professionals, require extensive Know Your Client due diligence, but without the glamour of a Switzerland, but not so expensive. e.g. British Virgin Islands (BVI).

3. Established only in the last 15 years with extensive tax treaties with selected countries, less extensive KYC due diligence can handle complex incorporation but have less experience than their European counterparts, are less formal and less expensive. e.g. Mauritius.

4. Established in the last 10 years, simple KYC documentation, focused on International Business Companies (IBC), have better confidentiality norms because are not so big and do not have disclosure treaties with the US or EU. e.g. Seychelles.

A lot though depends on what you are going to use the company for! Below is a table that will help you reach your decision for your top offshore jurisdiction.

Type Full Service Complex transactions KYC complexity Ease of Communication Cost
Switzerland Yes Yes High High High
Guernsey Yes – focused on financial services Yes High High High
BVI Yes but IBC focus Yes High Medium Medium
Mauritius Yes. Focused on resident companies with tax treaties Yes Medium Medium Medium
Seychelles Focused on IBC Medium Low Medium Low

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Haven | Make An Informed Jurisdictional Choice

Jumeirah Lake Towers

Tax haven: Get a free quote now by filling in the box on the right and discover how you would choose a jurisdiction

Tax Haven: But which kind of company do you need?

Do you want to invest in India or China or a specific country? Or is it for trading overseas? Or another reason?

Why Incorporation What Do I Need?
Type of Activity Full Service? Complex transactions? KYC complexity? Ease of Communication? Cost
Professional Services IBC only No No Low Low
Trading IBC only No No Low Low
Investment IBC or Tax treaty company depending on investment size Maybe Yes if tax treaty company High High
Holding IBC or tax treaty company depending on country of investment Yes, if large and investments in multiple countries Yes High High
Dot Com IBC only No No Low Low
Property-Owning IBC only No No Low Low
Shipping IBC only – but choose a shipping jurisdiction e.g. Panama No Medium Medium Medium
Employment IBC only No No Low Low
Intellectual Property & Royalty IBC only No No Low Low
Asset Protection IBC or Trusts No if IBC. High if Trust High High High
Will & Inheritance Trusts Yes High High High
Multiple Investors in Projects Protected Cell Companies Yes High Medium High

Tax haven: Get a free quote now by filling in the box on the right and discover how you would choose a jurisdiction

Tax Haven: Making a choice for your top offshore jurisdiction is dependent on various factors as also anonymity.

Mauritius and Seychelles have followed in Switzerland’s footsteps and made it a criminal offense to disclose client information to anyone.

However, since 9/11, both the US and EU have put severe pressure on most of the popular jurisdictions to disclose information.

British Virgin Islands (BVI) has signed a comprehensive treaty and Mauritius a water down version. In any case, both Seychelles and Mauritius are far enough away and not very important to either the EU or the US at this time.

I recommend Seychelles as the top offshore jurisdiction for most of the simple cases and Mauritius for the more complicated requirements. However, if you are more comfortable with the ‘Old World’ tax havens, then the top offshore jurisdictions are Switzerland for the complicated cases and BVI for the simple ones.

Tax Haven | Make An Informed Jurisdictional Choice

Jumeirah Lake Towers

Tax haven: Get a free quote now by filling in the box on the right and discover how you would choose a jurisdiction

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Jurisdictions was last modified: June 8th, 2019 by Manu Raj

Manu Raj

Has a positive attitude towards the job, is friendly and a team player.

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