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.
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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: 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: 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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