The best way to achieve tax optimization is to open a foreign company.
Why do people register companies around the world?
There are many options for the incorporation of legal entities in the world.
Offshore companies: a significant number of companies around the world, from large multinational companies such as Apple, Google, Microsoft, Hewlett Packard to small firms optimize their tax liabilities, using business opportunities around the world, registering companies in low-tax jurisdictions.
The payment of multiple taxes and fees reduces a significant part of the business profit. The system of tax legislation is very complicated in many countries, and it is necessary to spend a lot of time to understand it that could be used for business development.
Nowadays it is not necessary to apply to offshore zones to avoid paying severe tax rates. There are many highly developed jurisdictions including European jurisdictions that can be used as a tax instrument.
For example, registration of a company in Estonia, opening a company in Georgia, registration of a company in Malta or establishment of a company in the UK can be your right decision to start a business abroad without having to pay high taxes.
A foreign company registration will suit you for almost any type of activity.
Deoffshorization? What does it mean?
The global phenomenon, called “deoffshorization” – is a large-scale and complex change aimed at combating tax evasion and aggressive tax planning that affect all business sectors in more than 100 countries. The main directions include:
- Automatic exchange of tax information between countries;
- Creation of registers of beneficial (actual) owners of companies and trusts;
- The cancellation of preferential conditions for intellectual property (IP) objects, such as “IP-Box”;
- Amendments to international tax conventions and legislation of individual countries to combat tax evasion;
- Change of rules and reporting on transfer pricing (control over price formation in transactions between related persons);
- Anti-money laundering and combating sponsorship of terrorists;
- Implementation of rules on controlled foreign companies (taxation of undistributed income from foreign companies owned by residents of the country).
Fortunately, such fundamental changes in the world system take time and the process is not completed yet.
This gives an excellent opportunity for business to understand and accept a new reality and most importantly – to successfully adapt.
Practice shows that every business is unique and the only correct solution that will adequately meet new challenges is thorough tax planning.
Why do you need a foreign company?
A foreign company is an effective and legal instrument to reduce tax payments.
The confidentiality of the owners of foreign companies is guaranteed at the legislative level.
Such company can attract additional investments, as many partners find it more profitable to conduct business using international offshore companies.
In addition, a company abroad is an excellent instrument when buying real estate outside your home country. It can act as the owner of any real estate, and there is no need to pay taxes.
Offshore, companies – types of jurisdictions, offshore zones
There are several groups of jurisdictions that can be divided into offshore zones and jurisdictions with low taxes:
- Classic offshore companies. The local companies conduct their commercial operations outside the registration, due to which they are completely exempted from paying taxes and submitting financial reports and they pay only an annual state duty. Classic offshore includes: Bahamas, British Virgin Islands, Seychelles, Guernsey, Jersey, Belize, Gibraltar, Andorra, Anguilla, Antigua and Barbuda, Isle of Man, Barbados, Bermuda, Grenada, Cayman Islands, Saint Vincent and the Grenadines, Saint Kitts and Nevis, the Turks and Caicos Islands, the Marshall Islands, Mauritius, Panama, the Commonwealth of Dominica, Samoa and others.
- Jurisdictions with low tax rates. The companies registered in such jurisdictions have extremely low tax rates or there is no taxation at all. However, such companies must comply with certain requirements. The jurisdictions with low tax rates include the following countries: Cyprus, Malta, Bulgaria, Estonia, Latvia, Hungary, the United Arab Emirates, Hong Kong, Singapore, New Zealand, and others.
- Jurisdictions providing tax benefits. This group includes countries that provide companies registered on their territory with pretty attractive tax incentives under the circumstances that certain conditions are met. These countries are often distinguished by certain presentability – the USA (the states of Delaware, Wyoming, Oregon, New Jersey, New York, Washington, Arkansas, the Federal District of Columbia), Austria, Germany, the Great Britain, the Netherlands, Luxembourg, Denmark, Switzerland, Liechtenstein, Israel and some other countries.
Ready-made offshore, ready-made company with account
Buying a ready-made offshore is the best solution when it’s necessary to carry out business at once.
The whole process of buying a ready-made company will take 1-2 days. At the same time, the owner gets the same benefits as when registering an offshore company – minimum taxes and confidentiality. If the name of your offshore company doesn’t matter to you and the main thing is to start your business activity within a week – you need a ready-made offshore company!
Another important advantage of a ready-made offshore is its price. It is cheaper to buy a ready-made offshore than register a new one.
Opening an account in a bank for a ready-made offshore will take the same time as for a newly registered company, approximately 10-14 days.
Opening a bank account for a company
A foreign legal entity without an operational bank account is like a brief case without a handle.
Opening a bank account for a company is the second stage after the company is registered abroad.
This will provide you:
- comfortable work with foreign partners
- convenience of settlements with your clients
- reliable protection of your funds (calm sleep)
- your money is under your control 24 hours a day
During 5 years of operation, the Fincls company has established a partnership with more than 60 banks around the world.
These are banks of Europe, banks of the United Arab Emirates, America, offshore banks, Southeast Asian banks, banks of other countries and regions.