Choosing the Right Country for Your Business Incorporation: Offshore Havens, Low Tax Jurisdictions, and More

Choosing the most suitable country for setting up your business is a crucial decision that can affect your future success. While traditional offshore jurisdictions are losing their popularity, new opportunities emerge for entrepreneurs. The governments of major markets, such as the EU and USA, are toughening tax legislation, making dealing with offshore companies unprofitable or even banning it altogether.


Jurisdiction – what country to choose for incorporation?

We will assist in selecting the most suitable jurisdiction. The review below will be helpful in making a choice. For your convenience the countries are split in a few groups as each group has its own specific advantages.


Offshore and Low-Tax Countries for Incorporating Your Business

Countries such as Panama, Seychelles, Vanuatu, Samoa, Anguilla, Belize, British Virgin Islands, St. Vincent & Grenadines, St. Kitts & Nevis, Liberia, IOM, and Marshall Islands offer the advantages of no reporting requirements and the possibility to utilize nominees. If your business environment and partners have nothing against doing business with these countries, incorporating there could be a good option.

The Marshall Islands is a relatively new jurisdiction that has gained popularity among those seeking to incorporate offshore companies due to its fast and affordable incorporation process. One of the benefits of incorporating in the Marshall Islands is that the identities of the shareholders and directors are not made public, providing an additional layer of privacy and confidentiality. Furthermore, the Marshall Islands is not typically associated with notorious offshore havens, which may appeal to those who wish to avoid any negative connotations.

Isle of Man (IOM): IOM offers a wide array of services from incorporation of trusts and conventional companies to e-gaming, e-commerce companies, aircraft, and yachts registration. It is well integrated into the EU economy and has good banking opportunities. However, IOM is the most expensive jurisdiction, and you will need local IOM directors to open a bank account.

Countries with low tax (or no tax) on corporate profit

Premium jurisdictions such as Gibraltar, Cyprus, Scotland, Hong Kong, Montenegro, and Ireland, will allow you to operate with little taxation (or no taxation in some cases).
Registering a limited company in Ireland can be advantageous for businesses looking for a low tax rate (12.5% on trading income) and a strategic location in the EU for sales and distribution purposes. While the cost of setting up and maintaining an Irish company can be relatively high, the prestige of the jurisdiction may be worth the extra expense.
Montenegro, on the other hand, offers a number of benefits for company owners including financial privacy (as there is no information exchange with the EU or US) and the opportunity for temporary residency. The country also boasts the lowest corporate tax rate in Europe at 9%. However, a personal visit is required to set up a bank account and take advantage of these benefits. Business immigration to Montenegro is also an option for those looking to obtain a residence visa and permit to live in the country.

US companies

A limited company registered in the USA is cost-efficient and easy to set up. We can set up a company for you and obtain EIN in any US state, with Delaware, Washington D.C., and Oregon being the most popular.


Non-resident bank account

Opening a corporate account is the next step after the incorporation usually. We assist our customers with opening bank accounts around the world.
If you would wish to proceed with registering a company or need more details, please send a message. We will be happy to assist.

Important. When choosing a jurisdiction, it's essential to consider your business's unique requirements and the legal, tax, and regulatory frameworks of the country you're considering. It's also advisable to seek the advice of professionals who specialize in international business and taxation.

FAQ concerning the incorporation in the mentioned countries

What is Panama offshore company?
A Panama offshore company is a legal entity that is incorporated in Panama, a well-known offshore jurisdiction. This type of company is popular due to its flexibility, confidentiality, and tax advantages. Incorporating a company in Panama allows for anonymity of the shareholders and directors, minimal reporting requirements, and low taxes.

Why are so many companies registered in British Virgin Islands?
The British Virgin Islands (BVI) is a popular jurisdiction for company registration due to its favorable tax system, political stability, and flexible corporate laws. BVI companies benefit from no corporate tax, no withholding tax, no capital gains tax, and no estate or inheritance tax. In addition, the jurisdiction has a well-established legal system based on English common law and a sophisticated financial services industry with a variety of banking, trust, and insurance services available. The use of nominee directors and shareholders is also permitted, providing a layer of privacy and confidentiality for company owners. Overall, BVI offers an attractive environment for international businesses seeking to establish an offshore presence.

Why do companies incorporate in Liberia?
Companies may choose to incorporate in Liberia due to its favorable business environment, including low incorporation and maintenance costs, as well as its tax benefits. Liberia offers a zero tax rate for non-resident Liberian corporations, and there are no reporting requirements. Additionally, the country has a stable political environment and a flexible corporate legal system.

What is the tax rate for offshore company in Seychelles?
The Seychelles does not impose any tax on offshore companies, which is one of the reasons why it is a popular offshore jurisdiction. However, Seychelles offshore companies may still be subject to taxes in their home countries.

Is Marshall Islands a tax haven?
Marshall Islands is often categorized as a tax haven due to its favorable tax policies and laws that attract offshore companies. However, the government of Marshall Islands has taken steps to avoid being labeled as a tax haven and has implemented measures to promote transparency and compliance with international standards. Nonetheless, incorporating a company in Marshall Islands can provide advantages in terms of fast and affordable incorporation, anonymity of shareholders and directors, and a business-friendly environment.

Why do companies form in Delaware?
Companies choose to incorporate in Delaware due to the state's lenient tax laws, business-friendly environment, and efficient filing processes, among other benefits. Delaware has become a popular destination for businesses, and it is home to more than a million companies, including over 60% of Fortune 500 companies.

Can anyone register a company in the US?
Yes, anyone, including foreigners, can start a company in the US. The whole process can be done remotely without entering the USA. Although the process can vary depending on the state and type of business entity chosen, and it typically involves filing legal documents and paying fees, obtaining necessary licenses and permits, and registering for state taxes.