10th Nov 2021
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.
There are specific distinctions between a tax haven and a common territory. Here are a few of them:
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.
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:
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:
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:
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:
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 is 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.