ClevverBlog

Highlights
16th Nov 2021

Online Business Formation in North America

10th Nov 2021

Company Incorporation in Tax Havens

02nd Nov 2021

Company Incorporation in Central Europe

10th Nov 2021

Company Incorporation in Tax Havens

The Most Promising Jurisdictions 

The term "tax haven" refers to a country /county or a special economic zone where there are zero /minimal tax obligations and /or no need to prepare corporate filing for businesses. By dint of offshore companies, entrepreneurs have the chance to significantly reduce their tax burden — 100% legal. 

How do Tax Havens Differ from Regular Jurisdictions? 

There are specific distinctions between a tax haven and a common territory. Here are a few of them: 

  • organizations incorporated in tax havens but not operating on their territories are liable to the diminished or zero taxation; 
  • typically, instead of regular corporate taxes, the companies pay an annual fee; 
  • tax havens offer a high level of confidentiality to the business owners; 
  • as a rule, organizations registered in tax havens are exempt from the need to maintain and file tax and corporate reports. 

The Most Popular “Tax Havens” Globally 

There are a number of offshore territories that are more preferred by entrepreneurs than others: 

Belize / British Virgin Islands (BVI) / Dubai / Panama 

Let us take a closer look at each of these countries and their characteristics. 

Belize 

Principal business entities. This is IBC that is created and operates under the rules of the International Business Companies Act of 1990, as amended in 2000 and is generally required to conduct trade and commerce outside of the country. 

Cost and terms of registration. Pricing for the incorporation service with Clevver’s help in Belize starts from 1,400 Euros. It takes from 1 to 3 business days to register a Belizean company once all pre-incorporation documentation is in place.  

Advantages:  

  • Belizean government provides high confidentiality for the business structures incorporated here;  
  • In Belize, there is a closed registry of business owners;
  • No annual financial and tax reports are required, no audits are conducted in Belize; 
  • Clevver is ready to support the remote setup of a company in Belize working together with our legal partners. 

The British Virgin Islands (BVI) 

Principal business entities. These are the company, partnership, and trust. 

Cost and terms of registration. Pricing for the company formation service with Clevver's assistance in the BVI starts from 1,995 Euros. It takes from 1 to 3 business days to register a legal entity once all pre-incorporation documentation is available.  

Advantages: 

  • The BVI is one of the most prestigious tax havens in the world;  
  • There are practically no substantial tax burdens on the companies incorporated in the jurisdiction;  
  • There are no reporting requirements to government agencies and mandatory auditing for BVI companies;  
  • Clevver helps with the remote company registration in the BVI together with our lawyers' network. All documentation on incorporation is accessible digitally.  

Dubai 

Principal business entities. These are the limited liability company, private/public joint-stock company, branch, and representative office. 

Cost and terms of registration. Starting price for the incorporation service with Clevver's hand in Dubai is 6,299 Euros. It takes up to 4 weeks to register a business structure once all pre-incorporation documentation is in place.  

Advantages:  

  • Dubai is an international trade "hub" and a recognized logistics center. It has a supreme geographical location at the crossroads of Europe, Africa, and Asia;
  • Dubai has a dynamically growing economy and advanced technology;  
  • The emirate has a favorable investment climate and state support for foreign investors;  
  • Clevver offers assistance in the registration of companies in Dubai remotely with a help of lawyer-partners. 

Panama 

Principal business entities. These are the corporation, limited liability company, limited liability partnership, general partnership, joint venture, and branch of a foreign corporation. 

Cost and terms of registration. Starting price for the company registration service with Clevver’s support in Panama is 1,400 Euros. It takes up to 3-4 days to set up a business structure once all pre-incorporation documents are submitted.  

Advantages: 

  • The Republic of Panama is an important center of maritime trade and a leading international center for banking and professional services;  
  • The country boasts a strong economy and world-class infrastructure;  
  • The jurisdiction offers an attractive tax regime; 
  • Clevver assists in the remote LTD company registration in Panama together with our network of legal experts. The documentation on incorporation is accessible digitally. 

Summary 

Depending on business activity, entrepreneurs may go for a so-called tax havens jurisdiction to form a company there. It can bring some benefits in terms of lowering the tax burden. Clevver supports remote incorporation of companies all over the world, including tax-havens. Get in touch with our specialists to learn more

DISCLOSURE NOTICE:  Any legal or tax advice in this communication (including any attachments) is for information purposes only and not intended to be used, and cannot be used against Clevver or its Sender. The sender is neither an Accountant nor a Lawyer and cannot be made liable. Please, contact your tax accountant for individual consultation. Clevver does not provide any legal advice itself. Clevver works together with a network of lawyers and tax advisors that provide all necessary individual legal advice.