Saturday, 23 March, 2019
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Classic offshore jurisdictions

The global list of classic offshore jurisdictions includes mostly the small states of the Caribbean and the Pacific. The most popular of them are Panama, British Virgin Islands and Belize.

Companies registered in these jurisdictions are quite popular with entrepreneurs and are preferred due to the following advantages:

  • zero taxation in the country of incorporation. Typically, in these jurisdictions, there is no taxation at all or the territorial principle of taxation is applied in that income earned outside the jurisdiction is not taxable. Instead of taxation of income only a fixed annual fee is charged which does not exceed USD 350 per year in most cases;
  • simple procedures for incorporation and ongoing maintenance of companies;
  • possibility to buy shelf companies;
  • no requirement for crediting or freezing all or part of the share capital specified in the constituent documents in the account;
  • the reduced costs of preparing financial statements. Currently, most of the classic offshore jurisdictions have no requirement for filing annual financial statements but at the same time many jurisdictions continue to have the requirement for keeping the original business and accounting documentation.

INTERNATIONAL OVERSEAS SERVICES maintains direct business contact with most of the classic tax jurisdictions and are ready to provide to the client promptly with a ready-made company of such a jurisdiction or else to incorporate a bespoke new entity.

Conditions of incorporation and further support of companies in the most commonly used classic offshore jurisdictions are described below:

Classic offshore companies are very convenient as well as easy to use, and have become increasingly popular with entrepreneurs over time. Simultaneously, together with the above advantages they have some disadvantages which are mostly in the form of restrictions in a number of countries regarding cooperation of resident companies with companies of the classic offshore jurisdictions in accordance with the clearly defined list.

Accordingly, many entrepreneurs use another options. Currently an increasing number of countries, including those which are industrially developed, formerly known as jurisdictions with strict taxation, offer benefits to certain types of company incorporated there and used as part of a tax-free or low-tax regime. In particular, entrepreneurs appreciate such a corporate instrument as an English limited liability partnership, as well as companies in Denmark, Canada, the Netherlands and other countries. The low-tax or tax-exempt status of such companies is combined with their high rating and lack of the ‘offshore stigma’.

Info Lines:
Tel Aviv:+972-37-382009