Things to consider
when choosing a jurisdiction
The first things to consider before choosing a location
are the following:
1. Economic and Political stability
2. Infrastructure: The reliability,
efficiency and the quality of service provided by
the legal and accounting professions is of paramount
importance in order to exploit to the maximum extent
the opportunities offered by these offshore destinations.
3. Banks: The efficiency of the
banking sector and the speed with which funds transfers
are executed as well as the financial credibility
of the banks are fundamental factors for the smooth
operation of an international business company.
4. Communications: You must select
a jurisdiction which has a very good communication
system otherwise it will be very frustrating if communication
links are not satisfactory.
5. Time zone: It is convenient to
choose a jurisdiction whose time zone collates with
your own country's time zone.
6. Reputation: Though a lot of jurisdictions
are tax heavens with zero tax, it is not advisable
to use these international business companies for
trading purposes, as the invoices issued by these
companies will be treated with suspicion by your own
country's tax authorities and be ignored for income
tax purposes. Furthermore tax heavens are considered
with more reservation with respect to money laundering.
In such a case it may be best to use a jurisdiction
like Cyprus or Isle of Man where it is more plausible
for an export company or a management consultant to
operate from there as these locations are well known
international business centers. Tax heaven jurisdictions
can be used if the company will simply hold assets.
7. Tax treaties: To take advantage
of the tax incentives offered by the offshore jurisdictions,
it is not enough for a jurisdiction to have low tax
rates but also a tax treaty to avoid double taxation
between the country from where the income was generated
and the country of the beneficial owners. Cyprus is
probably the best example.
Globalserve Consultants Ltd can
discuss with you your requirements and needs and can
help you decide which is the best jurisdiction for
you.
