Having an offshore business allows you numerous advantages; from low tax rates to a bigger audience, there are countless benefits to setting up a business in the right place.
With so many options available, it can be hard to figure out the right place for your business. Different states offer different advantages; some have zero taxes, while the others allow you maximum freedom in operating your company.
Before moving your company offshore, you need to take several factors into consideration, including the company register fees, ownership rights, and the legal framework, among others. To save you time and hassle, we have provided you with a list of the best places where you can register an offshore business.
As of right now, there are not many places better than Hong Kong if you want to set up an offshore business. It is the crossroads of trade between the East and West; Hong Kong is considered the freest economy in the world because of its laissez-faire model and minimal government interference. Furthermore, in Hong Kong, the maximum tax rate is capped at 16.5% with no taxes on capital gains, which is something you do not see in many developed economies. Along with this, you can get 100% ownership of your company and do not have to be bound by any national laws that disrupt the functioning of your organization.
The reason Hong Kong stands out among others on this list is its Closer Economic Partnership Arrangement (CEPA) with China, which opens up a market of 1.4 billion people to the companies registered in Hong Kong.
The infamous Panama Papers made Panama known to everyone; however, there is more to just hiding illegal assets in Panama. It is one of the best places to register an offshore company because of the asset protection it provides. Your assets in Panama are protected from lawsuits and seizures by the government; you are also not bound by the regulations in your own country. It also has a corporate tax rate of 0% for revenue coming from outside the country, which makes it an attractive destination for investors.
The Bahamas is a great place to register your offshore business. The best part about setting up a company in the Bahamas is the privacy that comes with it. The privacy of your assets in the Bahamas is protected by the International Business Companies Act of 1990, which prevents the sharing of any business-related details with other countries. Furthermore, there is no tax of any type for the first 20 years, making it another great option.
Belize is yet another popular destination for starting an offshore business. Like the Bahamas, it offers full privacy of your assets and workings. Setting up a business in Belize is also super-easy and affordable. Furthermore, offshore companies in Belize are exempt from all taxes; from capital gains to stamp duty to income taxes, you do not have to pay anything. It also allows you to hold 100% shares with minimal interference from the government.
The Cayman Islands
The Cayman Islands is another destination that does not tax offshore companies. The corporate tax rate is 0% with no taxes on capital gains or income, making it a popular place among investors from different countries.