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A company may also be formed as a ZRT which is a private company limited by shares akin to AG in Germany and Switzerland, or a S.A. in France and Spain. The main difference between ZRT and such foreign structures is that shares of a ZRT may not be listed in a stock exchange.

The minimum statutory registered capital of a KFT is HUF 3,000,000 (around USD 10,000).

The minimum statutory registered capital of a ZRT is HUF 5,000,000 (around USD 17,000)

It's not necessary to pay up full the initial capital at the time of the registration. However, the share capital shall be paid over the course of the first year.

The company can be formed by one or more shareholders, who can be individuals or legal entities nationals and residents outside of Hungary, and one or more directors who shall be individuals (corporate directors are not allowed), from any nationality or residency.

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IBCs stand out for its fast registration process, confidentiality, flexible structure, and its low annual fees and reporting requirements.

IBCs can be incorporated by a sole shareholder, who can be either resident or non-resident, individual or corporation. One director is required, who can be either resident or non-resident, individual or corporation, and can be the same person as the shareholder.

Reporting requirements are non-existent. Annual return, financial statements, and tax return are not required to be filed.

IBCs are now subject to the local tax regime. However, Saint Lucia has also passed several amendments to its tax laws to switch to a territorial tax system. All companies, including IBCs, will be taxed at 30% corporate tax on income from Saint Lucia-source and will be exempted from taxation on income from foreign sources.

Foreign-source income is defined as follows:

• Profits derived from a permanent establishment outside of Saint Lucia
• Profits derived from immovable property situated outside of Saint Lucia
• Interest income not borne by a Saint Lucia permanent establishment or charged against property located in Saint Lucia
• Income derived from investment in securities issued by a person outside of Saint Lucia, e.g. mutual funds, stocks, bonds, etc.
• Management charges paid by a nonresident outside of Saint Lucia
• Royalty payments received from a foreign permanent establishment and paid to a resident permanent establishment.
• Any income deemed to be accrued from foreign sources due to a DTA.

Dividends and capital gains are also exempt from taxation in Saint Lucia.

IBCs conducting certain economic activities will have to meet certain substance requirements – including an adequate number of employees, adequate operating expenditure, adequate investment and capital commensurate according to the activity, as well as file annual tax returns, among others.

Due to its features, Saint Lucia’s IBCs are commonly used vehicles for a broad range of investment and business purposes, such as offshore investments, professional services, international trade, insurance and as a holding company.

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Delaware stands out for its separate Court of Chancery, the oldest business court in the US, specialized corporate law cases. The Court of Chancery use judges instead of juries and are usually expertized in complex corporate law matters.

Delaware Court maintains the most advanced and up-to-date case law, that allows for predictability and therefore decreasing liability and litigation among Delaware companies.

These predictable laws allow corporations to make better assessments of the probable outcomes of litigation or the advisability of settling a case.

The legal and liability protection of established corporate laws in Delaware makes the jurisdiction one of the most reputable business-friendly states.

The State of Delaware has also an attractive tax regime. Delaware corporations doing business exclusively outside of the State are exempt from State tax. Furthermore, there is no inheritance tax on stock held by non-Delaware residents, no state sales tax on intangible personal property and share of stock owned by non-residents are not subject to Delaware taxes.

Companies incorporated in Delaware are confidential. Details of shareholders, directors, and officers are not disclosed in the company formation documents and are not available to the public.

Delaware corporations are flexible structures, the same person may be the sole shareholder, the director, and the officer.

In addition, it has one of the quickest company registration procedures and lowest costs of incorporations in all United States.

Delaware is an excellent jurisdiction for startups and companies seeking financing. Venture capitalists, angel investors, investments banks and other investors prefer Delaware corporations above all other states and corporate structures.

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Both structures are companies limited by shares - the main difference is that a BV is restricted to issue shares to the public, but can do so on a private basis e.g. private placement.

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The Cook Islands’ Limited Liability Companies Act was enacted in 2008 to enhance its offshore sector offer. Following the model adopted in several U.S. States, a Cook Islands LLC is a flexible entity that allows to form its structure according to its operating agreement, rather than dictated by rigid legal statutory mandates.

A Cook Islands LLC is a hybrid of both partnership and corporate structures, protecting LLC members from the debts incurred by the entity and separating the rights of its members and that of the LLC.

Besides the aforementioned structural flexibility, Cook Islands LLCs benefits from confidentiality, no reporting requirements, and tax-exemption.

The Cook Islands are an offshore financial destination distinguished for its asset protection laws, ensuring the assets of foreign Cook Island investors.

A creditor cannot issue a charging order or interfere with the operations of an LLC nor seize, liquidate or force the dissolution of the company, any member of a Cook Islands LLC with a charging order can still act and exercise their rights as a member and any order that is a result of judgment in another location outside of the Cook Islands will not be enforced or recognized in the courts of Cook Island.

A Cook Islands LLC used in conjunction with a Cook Islands International Trust, may be one of the best asset protection tools available worldwide.

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The UK Private limited company is a well-recognized and reputable business structure incorporated in one of the major international financial and trade centers worldwide with a long proven track record of fiscal and legislative stability.

Corporate taxes in the UK are considerably reasonable (19%) compared with other European jurisdictions.

UK Limited companies also benefit from an ideal environment and a mature finance market for entrepreneurs and startups to seek funding, attract investors, gain access to high-skilled employees and high-quality business services.

In addition, incorporating in the UK provides a broad range of payment processing services and access to merchant accounts.

Private companies limited by shares in the UK enjoy a fast and cost-effective registration procedure and simple ongoing compliance requirements.

UK Limited companies are excellent vehicles as holding companies, taking advantage of the over 100 tax treaties that the UK has concluded, tax-exemption on capital gains on the sale of shares that fulfills certain conditions, tax exemption on dividends received from both local and foreign sources and no withholding tax on dividends paid to non-residents.

All in all, UK private limited companies enjoy high reputation and are excellent vehicles to conduct international commercial activities, as a holding company, IP business, investment company, access to payment processing services and merchant accounts and for startups seeking financing.

Set up a UK LLP

Companies incorporated under the Limited Liability Partnership Act are hybrid entities that provide to its members the flexibility of a partnership arrangement and limit liability to the capital contributed by each member.

An LLP requires minimal corporate formation requirements and a fast registration procedure. There are no company structure requirements for the management of an LLP, nor are there provisions for company meetings, directors, secretary, or capital.

UK LLPs are fiscal transparent entities, all profit received by the LLP is considered to be transferred to its members and taxed at the personal level. Members pay personal income taxes on LLP profits proportionally to their share of participation in the LLP company, whether distributed or not.

This means that an LLP is not seen as a separate entity for taxation purposes, and therefore if its members are non-UK tax residents they will only be required to pay taxes in the UK on income sourced from the UK.

An LLP must be set up by a minimum of two members, and although they are tax neutral entities, there are certain compliance requirements, including submitting annually financial statements to the UK Companies House and Partnership Tax return to the HMRC (Her Majesty Revenue & Customs).

If the LLP accrues more than GBP 81,000 that is derived from local earnings, then it must register for the UK VAT.

All in all, a UK LLP is a flexible structure that benefits from being incorporated in a reputable jurisdiction and international financial and trade center, while being a potentially tax-free entity. UK LLPs are powerful vehicles commonly used to provide international professional services, conduct international trading, e-commerce, Amazon FBA and as a payment processing subsidiary.

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Switzerland is an international trade and finance center and one of the freest economies worldwide, with liberal market policies and a low tax regime along with a long tradition of political, economic and financial stability.

Due to its limited area, its lack of natural resources and relatively low population, its economic policy is oriented towards foreign free trade, with low import duties and just a few import quotas, most aimed at the agricultural sector. In addition to having access to a market of 500 million people due to its free trade agreement with the European Union, providing duty-free trade and free movement of capital and labor.

A tier-1 developed infrastructure, an efficient capital market and strong financial system, currency stability, a liberal labor market, an efficient and reliable regulatory environment, a high-skilled and highly productive workforce, have made Switzerland the chosen location for international large firms and SMEs to establish their headquarters in Europe.

Switzerland also has one of the lowest value-added tax rates (8%) and companies trading within the country can get corporate effective tax rates as low as 12.5%, in addition to its free zones and several tax incentives, grants and tax rebates at the canton and communal levels for companies engaging in new technologies, research and development and high-value manufacturing.

Switzerland is also one of the largest financial centers worldwide. Swiss banks offer top-notch corporate banking facilities and a broad range of banking services, investment funds, and insurance services, among others. The Swiss Franc is seen as a safe-haven against currency fluctuations and instability.

All in all, Switzerland is an excellent jurisdiction for global parent companies, IP holding, banking, international trading, and European headquarters.

Learn more about setting up a Swiss Company:

• Swiss GmbH Tax and Legal Report
• Swiss AG Tax and Legal Report

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Wyoming LLC are flexible structures, their owners can freely determine in the operating agreement how the LLC will run. There are minimal company structure requirements for its management, nor are there provisions for company meetings, directors, secretary, or capital.

It may be formed by only 1 person and may be managed by its members or employees without an ownership stake.

Wyoming LLCs are private entities. Details of its members, managers or officers are not disclosed in a public registry.

In addition, Wyoming is the only state with specific laws protecting the interests of the members of Single-Member LLCs. Wyoming has spent the time to consider the rights and protections of their Limited Liability Company, and it is reflected by having the strongest legislative law in the nation.

The only state in the US which provides single member LLCs ownership charging order protection is Wyoming. A charging order is an order by the court directed to the LLC ordering it to send all distributions that would have gone to the owner/debtor to the judgment holder instead. This limitation can make it more difficult for a creditor to collect on their judgment because the creditor will not be able to force the debtor to sell his ownership interest in the company.

The incorporation procedure is simple, straightforward, and it can be done in as little as 1-2 days. Wyoming LLCs also benefits from the lowest incorporation and maintenance costs of the US.

Wyoming LLCs may elect to be treated as a C-Corp (subject to corporate tax) or be fiscal transparent entities.  Profits of an LLC that elects to be a fiscally transparent entity, is considered to be transferred to its members and taxed at the personal level. Members pay personal income taxes on LLC profits proportionally to their share of participation in the LLC, whether distributed or not.

This means that a Wyoming LLC is not seen as a separate entity for taxation purposes, and therefore if its members are non-US tax residents they will only be required to pay taxes in the US on income sourced from the US.

It is important to note that certain countries do not recognize the pass-through status of an LLC, if the LLC is deemed to be tax resident in one of such countries, it may be subject to corporate income tax.

Wyoming LLCs are commonly used for asset protection, e-commerce, Amazon FBA, professional services, banking in the US and get access to merchant accounts, for startups and as a holding company.

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Anguilla is an offshore incorporation center and tax neutral jurisdiction that enjoys high reputation and stability as a British Overseas Territory.

Anguilla does not levy direct taxes, there are no income, capital gains, estate, profit taxation either on resident/non-resident individuals or juristic entities.

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The Labuan International Business and Financial Centre is a reputable free trade area located in the Federal Territory of Labuan, an island off the coast of the state of Sabah in East Malaysia.

Labuan is becoming one of the major financial hubs of Asia due to its pro-business regulation, low taxes and compliance with international standards on due diligence and transparency.

Companies incorporated in Labuan carrying on certain business activities and having economic substance in Labuan benefit from an attractive tax regime. Labuan business activities (as defined by law) qualify for a 3% concessionary tax rate (as opposed to the Malaysian 24% standard tax rate). Any business done with Malaysian residents may be subject to 24% tax (and limited deductibility of expenses). The qualifying activities for the 3% tax rate include:

• Labuan insurer, Labuan reinsurer, Labuan takaful operator, Labuan retakaful operator
• Labuan underwriting manager or Labuan underwriting takaful manager
• Labuan insurance manager or Labuan takaful manager
• Labuan insurance broker or Labuan takaful broker
• Labuan captive insurer or Labuan captive takaful
• Labuan International Commodity Trading Company
• Labuan bank, Labuan investment bank, Labuan Islamic bank or Labuan Islamic investment bank
• Labuan trust company
• Labuan leasing company of Labuan Islamic leasing company
• Labuan development finance company or Labuan Islamic development finance company
• Labuan building credit company or Labuan Islamic building credit company
• Labuan factoring company or Labuan Islamic factoring company
• Labuan money broker or Labuan Islamic money broker
• Labuan fund manager
• Labuan securities licensee or Labuan Islamic securities licensee
• Labuan fund administrator
• Labuan company management
• Labuan International Financial Exchange
• Self-regulatory organisation or Islamic self-regulatory organisation
• Holding Company
• Administrative, Accounting and Legal Services

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Singapore is the trading hub of Southeast Asia. Home of the busiest port in the world, Singapore is a developed country in one of the fastest growing regional economies.

It has enormous potential for startups and internet entrepreneurs from all over the world. The country fosters entrepreneurship, and the government supports the free market.

One of the most advantageous parts of doing business and set up a company in Singapore is the clear and transparent tax scheme and the availability of several tax breaks and incentives for startups and technological innovation.

Furthermore, companies incorporated in Singapore can benefit from a broad list of more than 70 tax treaties that Singapore has concluded with foreign jurisdictions.

Singapore is an excellent jurisdiction to incorporate and its private company limited, a powerful vehicle for international trading, tech start-ups, internet entrepreneurs, venture capital and fintech businesses.

Learn more:

• Singapore Private Limited Company Legal & Tax Report

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The British Virgin Islands is one of the world’s largest offshore financial centers and a leading center for offshore company incorporation.

The British Virgin Islands has a strong offshore regulatory environment. They have a distinct combination of oversight and a laissez-faire approach which makes it both easy to do business – yet is also reputable with banks and other jurisdictions around the world.

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Nevis is one of the strongest structures - from an asset protection standpoint - to hold personal assets or run a business that is fraught with liability.

To bring an action against a business incorporated in Nevis, the creditor would need to hire a local lawyer licensed in Nevis and post a cash bond with the court. In addition, attorneys in Nevis are prohibited from working on contingency. The creditor must pay for all legal services up front and in full.

Learn more about incorporating in Nevis:

• Nevis Business Corporation (BC) Tax & Legal Report
• Nevis Limited Liability Company (LLC) Tax & Legal Report

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Belize is a Central American country known for its English-speaking ability, and robust offshore environment. Belize is very well accustomed to setting up offshore companies and trusts.

Learn more about incorporating in Belize:

• Belize IBC Legal & Tax Report
• Belize LLC Legal & Tax Report

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Panama is an international trade and financial center strategically located between the Americas. Its politically stable environment, its pro-business legislation, its attractive tax regime, and its developed and large banking sector have made Panama one of the most popular jurisdiction to establish international companies.

Panama levies taxation in a territorial basis, hence corporations in Panama that exclusively conducts its business outside of Panama, are exempt from all local taxes including income tax, capital gains tax, withholding taxes, and stamp duty on transfer of corporate shares, and other property. Furthermore, interest paid by local banks are tax-exempt and there are no foreign exchange controls.

Panama corporations are commonly used for residency visas, international tax structuring, international commercial transactions, banking, and merchant account access, e-commerce and internet services, trading, asset management or as a holding company.

Learn more about incorporating in Panama:

• Legal & Tax Report

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Malta is a reputable, compliant and transparent financial hub, and the gateway to the European Union, a market of more than 500 million people.

Due to its advantageous tax regime, Malta is the jurisdiction chosen by a large number of international companies and holding companies, to establish their headquarters and do business in the European Union.

Although its corporate standard rate is 35%, in practice there is a system of tax credits and refunds for individuals and corporate shareholders of part of the tax suffered on the distribution of profits.

The tax refund may be either a six-sevenths refund for trading income, a five-sevenths refund for passive interest and royalties, or a two-thirds refund for passive income. This may lead to a reduction of corporate tax to effective tax rates of between 5 and 10 percent, the lowest across the European Union.

Holding companies may benefit from a participation exemption. Dividend income, profits from a foreign P.E., and capital gains may be tax-exempt if the holding fulfills certain participation conditions. Furthermore, certain investments that yield a fixed rate of return may also be tax-exempt.

Malta is a full member of the EU and since 2008 has adopted the Euro as its official currency, with the benefits that it entails, such as the availability of funding opportunities or the European tax directives, including the Parent-Subsidiary Directive, the EU Mergers Directive, and the EU Interest & Royalties Directive.

Malta has also signed a large list of Double Taxation Agreements, and companies doing business in Malta have access to an English-speaking high-skilled workforce, make it even more attractive to incorporate in the jurisdiction.

Malta costs to obtain and administrate licenses are one of the lowest of the European Union and often valid for the whole EU territory. This makes Malta an attractive jurisdiction to establish businesses related to e-gaming, shipping, airline or investment funds.

Learn more:

• Legal & Tax Report

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The Cayman Islands has an excellent legal, fiscal, financial and professional environment for the incorporation of international business companies. The jurisdiction is a world-leading offshore financial services center due to its political and economic stability, and its broad offer of banking, trust, hedge fund formation and investment, structured finance and securitization, captive insurance, and international business services.

In the Cayman Islands, there are no direct taxes. Exempted companies are entitled to do business outside the Cayman Islands and may have additional reporting requirements if they trade with Cayman residents. However, they can conclude contracts in Cayman or exercise any of its powers in Cayman to carry out business outside the Islands, including open and maintain bank accounts and rental or ownership of real estate in the jurisdiction.

Exempted Company

A Cayman exempted company limited by shares is a powerful corporate vehicle for international investment and trade, ICOs, internet entrepreneurs, fund and wealth management, and as a holding company.

Limited Liability Company (LLC)

The Cayman Islands LLC is an excellent entity for movable and immovable assets holding, asset protection, investment funds, ICOs, joint venture companies, private equity transactions, securitizations and other corporate transactions and international structures.

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Mauritius is a politically stable jurisdiction and the largest international financial and business hub in the Indian Ocean region with a strong liberal economy, a reputable banking system and a wide offer of qualified professional services.

Authorized Company

The Authorized Company is a license issued by the Mauritius Financial Services Commission (FSC) and shares common features with the abolished GBC2 company.

A Mauritius company incorporated by non-Mauritius residents where its place of effective management is outside of Mauritius may seek an Authorized Company status.

To determine the place of effective management all the relevant facts and circumstances that relate to the business activities of the company must be examined. Generally, a company shall be deemed to have its place of effective management in Mauritius if:

• the strategic decisions relating to the company’s core income generating activities are taken in, or from, Mauritius;
• and the majority of the Board of directors’ meetings are held in Mauritius, or the executive management of the company is regularly exercised in Mauritius;

Companies with their place of effective management outside Mauritius and granted an Authorized companies status will be deemed non-resident for tax purposes (and thus be exempted from income tax) in Mauritius.

However, an Authorized Company will be required to submit a return of income to the Mauritius Revenue Authority (MRA) within six (6) months of its accounting year-end period.

Learn more:

• Mauritius Authorized Company

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JAFZ Special Status Non-Resident Companies are offshore companies incorporated in the Jebel Ali Free Zone (Dubai).

JAFZA Non-resident companies are entitled to do business internationally and may not carry out trade or business within the UAE, or any free zone.

This includes rent offices or facilities within the territory. But they may exceptionally acquire real estate in UAE in designated areas and in government-approved development projects.

JAFZA Non-resident companies are also allowed to have relationships with residents providing certain professional services such as legal or consulting, and they have access to the banking system and can open corporate bank accounts in UAE.

Offshore companies in JAFZA are generally used to carry out activities such as international trade, overseas consulting and advisement, international professional services, holding company, hold intangible assets, investment, and joint investment company, intermediary brokers, overseas property owning, shipping and ship management.

JAFZA Non-resident entities are fully exempt from all taxes and only subject to a license fee, which must be renewed annually.

As they are considered non-residents for tax purposes, they cannot benefit from UAE tax treaties. However, they are usually authorized to own shares of FZ or local companies, or even establish a branch onshore.

One of the strengths of incorporating an offshore company in UAE is that, despite being a tax-free jurisdiction, it has prestigious internationally and good press, especially Dubai.

A JAFZ Non-resident special status company is a powerful instrument for international trade, asset protection, wealth management, and tax optimization.

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The Isle of Man is a high-reputable international finance and international business center due to its political stability, business-friendly policies and an attractive fiscal and regulatory environment.

Companies incorporated in the Isle of Man are subject to corporate income tax at a 0% rate. A 10% tax rate for companies engaged in the financial services business and Isle of Man’s property transactions.

Dividend distributions, royalties, and interests paid to non-Manx residents are subject to withholding tax at the rate of 0%.

The Isle of Man is a signatory to the Paris Convention on Patents and Trademarks, making the Isle of Man limited company an interesting vehicle to hold intellectual property.

The Isle of Man has also enacted legislation for businesses dealing with cryptocurrencies. The Designated Business (Registration and Oversight) Act 2015 regulates cryptocurrency businesses, such as exchanges, and requires them to register with the Isle of Man Financial Supervision Commission and comply with Anti-Money Laundering and Countering Terrorist Financing legislation and the Proceeds of Crime Act 2008.

The country has also a strong E-Gaming industry, due to its gaming license simple application process, low betting duties, its extensive cluster of services providers/advisors with experience in the industry and its supportive legislation.

All in all, an Isle of Man company is an excellent vehicle for movable and immovable assets holding, investments companies and SPVs, and e-gaming.

Learn more:

• Legal & Tax Report

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RAK IC is the most popular offshore company in UAE.

International companies are entitled to do business internationally and may not carry out trade or business within the UAE, or any free zone. Although they are allowed to have relationships with residents providing certain professional services such as legal or consulting, and they have access to the banking system and can open corporate bank accounts in the UAE.

RAK ICs are fully exempt from all taxes and only subject to a license fee, which must be renewed annually.

As they are considered non-residents for tax purposes, they cannot benefit from UAE tax treaties. However, they are usually authorized to own shares of FZ or local companies, or even establish a branch onshore.

One of the strengths of incorporating an offshore company in UAE is that, despite being a tax-free jurisdiction, it has prestigious internationally and good press, especially Dubai.

An international company in the UAE is a powerful instrument for international trade, asset protection, and wealth management.

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Seychelles is a popular offshore financial center and a growing international company formation market.

International Business Companies are considered resident for tax purposes but are subject to a territorial tax system, whereby income accrued from foreign-sources is not subject to taxation.

To incorporate a Seychelles IBC, only one shareholder and one director is required, who can be either an individual or a corporation and may be non-resident.

Members benefit from confidentiality as no details are available in the public registry.

IBCs are not required to file an annual return or financial statements, as long as they do not derive income from within Seychelles.

Seychelles offshore companies are commonly used for estate planning, wealth management as well as a holding company and to conduct international trading.

Learn more:

• Seychelles IBC Tax & Legal Report

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Incorporating a company in Georgia may be an attractive option for several reasons:

To begin with, it is located in a strategic area bordering Asia and Europe, with a developed infrastructure. It is an important distribution hub between both continents, and also has trading relationships with practically all countries, including the European Union, United States, China, Turkey, and Iran. It is part of the World Trade Organization, has free trade agreements with the EU and the EFTA countries, Russia, and other countries of Eastern and Central Europe.  This provides access to a market of 900 million people without any duty tariff restriction, and a system of generalized preference with US, Canada, Japan, Norway, and Switzerland. In addition, Georgia has signed bilateral investment agreements with 32 countries.

Foreigners can own a company in full, without requiring any kind of visa or permit, and its registration is relatively simple. As we mentioned before, Georgia ranks sixth in doing business ease of starting a business ranking.

Taxes are considerably low in Georgia, The World Economic Forum's Global Competitiveness Report listed Georgia the ninth lowest-tax economy.

Corporate Taxation

Georgia taxes legal entities on their worldwide income, but a tax credit may be available for foreign tax paid up to the income tax assessed in Georgia.

Companies registered in Georgia are subject to a 15% flat corporate tax on their actual and deemed distributed profit. This means that profits retained and re-invested in the company are not subject to taxation.

Payments to residents and non-residents on interests, dividends, and royalties are subject to a final withholding tax of 5%. Payments on technical or professional fees are subject to a 10% withholding tax. If the recipient is a resident company of a considered tax-haven, a 15% withholding tax may apply

Learn more about incorporating a Georgia LLC:

• Georgia LLC Tax & Legal Report

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Bermuda is a British Overseas territory and an international financial and banking hub that does not apply taxes on profits, income or dividends, capital gains nor personal income. Non-resident investors may buy or sell shares and units of investment funds without being subject to taxation.

An Exempted company incorporated in Bermuda is entitled to do business outside Bermuda and shall not trade within the jurisdiction, own properties in Bermuda, and may require a license to undertake banking, insurance, assurance, reinsurance, fund management, collective investment schemes, rendering investment advice or any other activity which may suggest an association with the banking and insurance industries.

Under the Exempt Undertakings Act of 1976, Exempted Companies can obtain protection from any newly enacted taxes on income or capital gains until 2035.

Many Fortune 500 companies have set up a Bermuda exempted company for purposes such as holding company, holding assets, trading, manufacturing, inter-group financing, shipping, aircraft leasing and holding of intellectual property rights, among others.

Learn more about incorporating a company in Bermuda:

• Bermuda Exempted Company Tax & Legal Report
• Bermuda LLC Tax & Legal Report

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Estonia is, perhaps, the most technologically advanced country in the world when it comes to government. During the last years the legislative body, voting, education, justice, healthcare, banking, taxes, and policing areas have been digitized in a single platform under the E-Estonia Project.

In addition, Estonia is the first country in the world to introduce the E-Residency concept, which is a transnational digital identity card for non-Estonian citizens issued and backed by the Estonian Government.

Estonia has become a technology hub during the last decade where dozens of successful startups have taken off.

Tech entrepreneurs are usually attracted by its simple and relatively reasonable tax environment – no tax on retained profits and a 20% tax on distributed profits. Also, its ease of corporate compliance as all mandatory filings can be done electronically via its e-Residency card. This card is a transnational digital identity card for non-Estonian citizens issued and backed by the Estonian Government.

For blockchain companies, Estonia provides the most affordable and easiest licensing process for Cryptocurrency exchanges and Cryptocurrency Wallet Service Providers. At the time of writing, more than 800 ‘crypto’ licenses have been already issued.

Obtaining a ‘crypto’ license costs a few thousand dollars and there are no additional capitalization requirements other than the EUR 2,500 standard incorporation cost for all private limited companies.

Estonian companies may also be considered by certain e-commerce and internet entrepreneurs as it offers a low-cost set up and has access to the broad range of payment processing options in the European Economic Area.

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Business Company (BC)

Business Companies in St. Vincent have one of the simplest and straightforward registration procedures.

Requirements for a BC are minimal. No minimum paid-up capital required, the company may be incorporated with a sole shareholder and a sole director and annual general meetings are not mandatory.

Appointment of secretary is optional. It can be administered from St. Vincent or from any part of the world, and its books and records may be kept outside the territory.

BCs are allowed to issue registered shares, with or without par value, with voting or non-voting rights.

Shareholders and directors’ details of an IBC are not filed in any public registry.

Limited Liability Company (LLC)

Limited Liability Companies in Saint Vincent and The Grenadines are hybrid entities with separate legal personality and limited liability of its members but with greater structure flexibility than a corporation and taxed as a partnership.

There may be incorporated as a single-member LLCs, and there are no company structure requirements for its management, nor are there provisions for company meetings, directors, secretary, or capital. Its operating agreement may be arranged by its members according to their needs.

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Antigua and Barbuda offers the traditional services of an Offshore Financial Center, including the formation of Antigua offshore companies, bank accounts and the provision of financial services.

Corporations incorporated under the International Business Company Act may be incorporated by either residents or non-residents and may invest in, trade with or provide services to persons within Antigua and Barbuda provided that they apply for a certificate and registration to do so. IBCs conducting business in Antigua will be subject to the Income Tax Act and taxed at standard rates (currently 25%).

There are no exchange controls on the monetary transactions of Antigua International Business Corporations and funds can be freely moved on and off the island.

International Business Companies in Antigua are sound tools for international trade and investment.

Learn more about incorporating in Antigua and Barbuda:

• Antigua International Business Company Tax & Legal Report

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The Bahamas is one of the industry veterans when it comes to offshore financial services. Since the 30s and 40s, the jurisdiction has been attracting foreign wealth due to its absence of taxation and its confidentiality policies. Although it lost popularity after its independence from Great Britain back in 1973, in favor of Cayman, BVI or Bermuda, it is still one of the go-to jurisdictions in terms of offshore corporate, trust and banking services.

Bahamian International Business Companies are commonly used as holding companies, to hold bank accounts, financial and commercial titles, international trading, own movable and immovable properties, asset protection and estate and inheritance security, among others.

Learn more about incorporating in the Bahamas:

• Bahamas IBC Legal & Tax Report

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Cyprus has one of the lowest corporate tax rates across the European Union (12.5%). Due to its favorable tax regime, Cyprus is the gateway to the European common market chosen by many non-EU companies and a portal for investment from the West into Russia, Middle-east, Asia and South America. It is also a shipping hub, the Cypriot-registered vessel fleet is the fourth largest in the world.

In addition, dividends received by Cyprus companies are exempt from all taxes, with the exception of foreign-source dividends that are deductible for tax purposes for the paying company, being an interesting option for holding companies. Cyprus companies are also commonly used for international trading and for the provision of investment business services.

Learn more about incorporating in Cyprus

• Cyprus Company Legal & Tax Report

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Vanuatu is a pure tax haven; there are no direct taxes both for individuals and corporations.

Company law in Vanuatu is based in English Common Law. Companies in Vanuatu are governed by the Companies Act, except International Companies, the most common offshore entity, which are governed by the International Companies Act. This type of company offers more flexibility and easier administration.

Companies registered under the International Companies Act are entitled to do international business and may have restrictions to trade within Vanuatu, own a real estate interest within the territory, except the lease of an office where it conducts its management, and hold banking, trust or insurance licenses.

The name of the company must include a word or abbreviation that denotes limited liability, such as Ltd., Corp., Inc., S.A., S.R.L., B.V., Sdn Bhd, GmbH, … etc. The name can be in any language.

A Vanuatu international company is commonly used for holding tangible and intangible assets, asset protection and confidentiality, gaming, estate planning, trading, securities dealer, holding vessels, among others.

Learn more about incorporating in Vanuatu:

• Vanuatu Company Legal and Tax Report

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Barbados has been a popular jurisdiction for incorporating international businesses – especially for Canadians who enjoyed certain benefits under DTAs. However, the jurisdiction has also gone through several legislative amendments to avoid being classified as having a ‘harmful preferential tax regime’ by the OECD / EU.

Under these amendments, the International Business Companies (IBC) Act has been abolished, and the Societies with Restricted Liabilities Act has removed preferences to International Societies with Restricted Liability (ISRL).

IBCs and ISRLs licensed after October 17, 2017, have been converted to regular Barbados companies and societies, and are subject to local corporate taxation. Those incorporated and licensed before October 17, 2017, will be grandfathered until June 30, 2021 – at that point, they will need to be converted to regular Barbados companies.

Note that Barbados companies earning 100% of their income in foreign currency would be able to apply for a Foreign Currency Permit under the Foreign Currency Permits Act, 2018, to avoid capital controls under the Exchange Controls Act.

The Income Tax Act has been also amended. Since January 1, 2019, all Barbados entities, except those that are grandfathered are taxed on a sliding scale from 5.50% (for taxable income below BBD 1 million) to 1% (for taxable income over BBD 30 million). Previously, IBCs and ISRLs were subject to tax on a sliding scale between 2.5% and 0.25% and local companies were subject to tax at a 25% rate.

Barbados Companies are powerful tools for international trading and commerce, manufacturing operations and holding company for investments in foreign subsidiaries.

Learn more about incorporating in Barbados:

• Barbados Company Tax & Legal Report

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A Marshall Islands Non-resident domestic company is a very flexible and tax-free vehicle, with just a few restrictions on the business that the company can carry out. It can engage any legal business activity, except gaming and financial services such as banking, insurance, and trust.

Non-resident domestic companies are also restricted from doing business with Marshall Islands residents or companies but may maintain professional contact with solicitors, barristers, accountants, bookkeepers, trust companies, management or secretarial companies, investment advisors, or other similar persons or entities carrying on business within the Marshall Islands.

Marshall Islands’ offshore companies are usually used as holding structures for owning movable and immovable assets and to conduct certain financial services.

Learn more about incorporating a company in the Marshall Islands

• Marshall Islands Non-Resident Company Legal & Tax Report

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