Low tax rate companies

Corporate Services

Our company has more than 20 years of experience in the  area of founding and  administrating companies in jurisdictions with favourable tax regimes or tax-exempt jurisdictions, which are traditionally referred to as “offshores”.

 

In spite of the fact that the term “offshore” has recently gained a negative connotation, such companies are widely and legally employed  in numerous fields of activity.

The  applicationof tax advantages of some jurisdictions has a long history and will exist as long as there are differences between tax rates and taxation rules.

What is an offshore?

  • According to the general belief, it is a company that is registered in a country:
    • With a low level of taxation;
    • With no taxation of income obtained abroad.
    • With an “ordinary” level of taxation, but with the absence of taxation of some types of income or some type of companies.
  • Funds and trusts from low-tax jurisdictions.

 

Which jurisdiction to choose?

 

There is no universal algorithm. When choosing a jurisdiction, it is essential to take different factors into account, for example:

  • The role (position) of the company in plans, business structures.
  • The field of activity, sources and type of income.
  • The geography of activities and conditions of local legislation . The possibility of the application of international treaties.

The period of company’s operating time Applicability of indirect taxes (VAT).

Possible benefits of using an offshore

  • Tax benefit.

– Reduction in the tax burden for the final beneficiary.

– In some cases it is possible to “hide” behind an offshore, without revealing the real owners to the public. It should be mentioned here that it is not possible to provide full confidentiality in the modern world. You can read more information about it in the Questions and answers section.

  • The simplicity of incorporation , management, minimum accounting requirements or no accounting at all.

 

The risks that should be taken into consideration when establishing an offshore.

 

  • Tax risks.

– A form, scheme and structure  selected in incorrect way may not only not give the desired result but, on the contrary, lead you to tremendous tax conesequnces. may notgive the expected result, but, quite the opposite, may result in even higher tax burden.

  • Legal “prohibition” on using offshore companies.

– Many jurisdictions have already established or are establishing measures aimed at limiting the possibilities of using offshores.

  • Possible problems with inheritance.

– A negative consequence of excessive confidentiality related to owning an offshore company can be a problem for laying claims for assets on the part of inheritors.

– Taxation of inheritance .

– Possible claims from creditors to inheritors.

  • Problems related to property (fraud, raids).

– In some jurisdictions, the registers of owners and directors are kept on paper, which may result in the risk of a business takeover by means of fraud with company documents.

  • The risk of claiming the company and its transactions to be ostensible with relevant tax implications (e.g. for a letter box company).

 

Our qualified staff members, in cooperation with the best corporate service providers from all over the world, will help you to structure you business and to choose and register a company in the jurisdiction* that serves your purpose best of all.

*We cooperate with all of the jurisdictions that can serve the purposes of tax planning. The most “traditional” are:

Cyprus, Malta, the United Kingdom, Switzerland, Sweden, Denmark, Luxembourg, Liechtenstein, Hong Kong, the British Virgin Islands, Seychelles, the Marshall Islands, Panama, Belize, Nevis, Gibraltar, the Isle of Man, etc

Experts responsible for provision of this service:

Anna Grishakov

Corporate manager