Which country should I set up an offshore company in?

“Offshore company” is no longer a strange phrase to many businesses, as there are thousands of entrepreneurs around the world who own this type of company.

Every year the number of entrepreneurs owning this type of company is increasing significantly. This proves that opening this type of company has brought many benefits to businesses. However, there are still many businesses that do not clearly understand the concept of offshore companies and wonder which country is the most suitable for establishing an offshore company.

If your business wants to expand its international business abroad and is looking for a place to establish an offshore company, let's review with GLA the concept and top 5 countries to establish an offshore company that international businesses cannot ignore to be able to choose the most suitable country for your business.

1. Concept of offshore company

An offshore company is also known as an International Business Company ("IBC"). Simply put, an offshore company is established for the purpose of international business because all of its business activities take place outside the country of establishment.

For example, when a business establishes an offshore company in United Arab Emirates (UAE), this company can do business with all businesses worldwide except domestic businesses in the UAE. Therefore, with this type of company, the business will not be burdened by all kinds of reports and record keeping requirements.

In addition, the most important reason why businesses around the world establish offshore companies is to enjoy tax incentives, because the profits that businesses earn in these countries will be completely tax-free or only pay very low tax rates.

2. Secrets to choosing the most suitable country to open an offshore company

In order to choose which country is most suitable for the company's development and expansion needs in the international market, there are many things that businesses need to consider before determining the best place for their company. Below are some suggested questions that businesses can consider and draw conclusions for themselves:

• Reasons to set up an offshore company: What are the desired benefits of the company? Does the geographical location meet the needs of the company? How can the offshore company be used to best serve the company's business?
• Prestige of the country of choice: Does the country have a stable economy, politics, legislative system and corporate law? Is the country on the blacklist or greylist of the European Council (EU)?
• Tax: Are there any special taxes or tax exemptions applicable to offshore companies? Under what circumstances may the formation of an offshore company be subject to tax? Are there double taxation avoidance policies?
• Business type for offshore company: How many types of Business entities are there to choose from? Can an offshore company be formed in the desired structure? (eg: IBC, LLC, Ltd)
• Cost of setting up an offshore company: How much does it cost to open an offshore company? Which countries offer the lowest offshore company opening costs?
• Requirements to be complied with: What are the maintenance reporting requirements for offshore companies?
• Open a bank account for an offshore company: What is the need to open a bank account? Is opening a physical bank account or opening an online bank account for an offshore company the right choice? GLA will advise and support opening a physical bank account/online bank account for an offshore company that is most suitable for the Enterprise.
• Offshore company opening time, company registration requirements: Are there any requirements to be aware of before opening an offshore company? How fast is the process of opening an offshore company in that country?

Choosing the right offshore country can take a lot of time and effort from the Enterprise. In order to support Enterprises in making a quick and effective choice, GLA has selected the 5 most suitable countries that meet the above criteria for Enterprises.

3. Top 5 countries not to be missed when establishing an offshore company

The countries GLA chooses are all countries with developed economies, stable business environments, and attractive tax policies and costs for opening offshore companies.

In particular, these countries also have very good regulations on protecting business assets and privacy, helping international businesses feel more secure and confident in their operations.

Top 5 ideal countries to open an offshore company for businesses include: UAE (RAK IBC), Hong Kong, BVI, Belize, Seychelles. Of which, UAE, BVI and Hong Kong are the most popular choices for many businesses on the way to international expansion.

3.1. Establishing an offshore company in Hong Kong

Hong Kong tops the list of the most ideal countries to open an offshore company because of its strong international reputation and very good support policies and tax incentives, including:

• Enterprises can own 100% of Hong Kong companies. There are no residency requirements for directors and owners.
• High reputation in the international market.
• World's Top 2 most tax friendly tax system: 100% tax-free for income outside Hong Kong, low domestic corporate income tax.
• No VAT, no tax on dividends.
• No foreign exchange controls. Businesses can easily withdraw foreign currency out of Hong Kong.
• Developed economy, advanced legal system and open trade policy.
• World financial center with more than 75 of the world's 100 largest banks.
• Trade connection point with inland China.
• Ordinary business offshore company formation in hong kong Ltd (Limited Liability Company). This is a popular choice for start-ups and companies looking for international business opportunities. A Hong Kong company can operate as an offshore company using Offshore claim form and advice from GLA on how to make the most of your Hong Kong company for international business.

3.2. Establishing an offshore company in BVI

BVI (British Virgin Island) is an option to open an offshore company that cannot be ignored because of its attractive tax incentives and because BVI is among the top countries for establishing an offshore company. The attraction of this island lies in many reasons, the most famous of which are:

• Enterprises can own 100% of Hong Kong companies. Simple company opening requirements.
• High reputation in the international market.
• 100% corporate income tax exemption.
• Easy to conduct business and international financial transactions.
• No foreign exchange controls. Businesses can easily withdraw foreign currency out of Hong Kong.
• Requirements for maintaining and managing an offshore company in BVI are easy.
• High level of business information security.

Among the various types of business entities available, the BVI IBC is the most popular choice for foreigners seeking investment capital, international trade, and financial transactions. Businesses enjoy tax benefits and reduced compliance requirements thanks to the BVI’s foreign-friendly business environment.

For more details on why establishing an offshore company in BVI is the number 1 choice of many businesses, businesses can refer to the article: Set up a tax-free offshore company in BVI.

3.3. Establish an offshore company in UAE (Open an offshore company in RAK: RAK IBC)

Ras Al Khaimah, or RAK for short, is one of the seven fastest growing emirates of the United Arab Emirates (UAE). RAK has the highest level of industrialization in the UAE and is a potential choice for a large number of foreign investors and business owners.

Opening an offshore company in RAK (RAK IBC) is a highly recommended type of business to establish for the following reasons:

• Enterprises can own 100% of RAK IBC company. Requirements to open an offshore company are simple.
• 100% corporate income tax exemption.
• High reputation in the international market.
• High level of business information security.
• RAK IBC company is easy to maintain and manage. No annual audit and reporting required.
• No foreign exchange control. Easy to withdraw capital and profits to bank account.
• Easy to conduct business and international financial transactions.

As mentioned in the article, the offshore RAK IBC type is the most popular choice for international businesses in all areas of business and financial activities. Businesses enjoy tax benefits and a world-class friendly business environment.

3.4. Establishing an offshore company in Belize

Opening an offshore company in Belize is one of the top choices for opening an offshore company for individuals/businesses investing and doing business around the world. Reasons to choose Belize include:

• Requirements for opening an offshore company are simple.
• 100% corporate income tax exemption.
• High level of business information security.
• Advanced legal system, world-class banking system for foreign individuals/businesses.
• The process of establishing an offshore company is simple and quick.
• Easy to conduct business and international financial transactions.

The most commonly chosen business structure for companies in Belize is the Belize IBC. This structure offers similar benefits to other structures such as the RAK IBC and BVI IBC.

For more details on why establishing an offshore company in BVI is the number 1 choice of many businesses, businesses can refer to the article: Offshore company formation in Belize.

3.5. Establishing an offshore company in Seychelles

Seychelles is one of the top choices for opening an offshore company for individuals/businesses to invest and do business around the world. Reasons to choose to open an offshore company in Seychelles include:

• Requirements for opening an offshore company are simple.
• 100% corporate income tax exemption.
• High level of business information security.
• Advanced legal system, world-class banking system for foreign individuals/businesses.
• The process of establishing an offshore company is simple and quick.
• Easy to conduct business and international financial transactions.

The most common type of business entity chosen for a company in Belize is the Belize IBC. This type of entity offers similar benefits to other types such as the RAK IBC, BVI IBC, Belize IBC

For more details on why establishing an offshore company in BVI is the number 1 choice of many businesses, businesses can refer to the article: Offshore company formation in Seychelles.

Note: It can be seen that establishing an offshore company can help businesses gain a large source of profit thanks to the application of preferential tax policies of the countries where businesses register to open an offshore company.

Although the procedure is not too complicated, however, businesses should use a reputable offshore company establishment consulting service to ensure that the offshore company establishment process of the business is smooth and effective.

4. How will GLA support businesses to establish offshore companies in the top 5 countries above?

GLA, with experience in supporting successful company openings in offshore centers, will support Enterprises:

• Consulting and supporting businesses to choose the right country to open an offshore company.
• Consulting on establishing offshore companies in BVI, Belize, Seychelles, Hong Kong, RAK, etc. are suitable for Enterprise business model.
• Support local agent service (Registered agent).
• Support businesses in registering business locations in offshore countries.
• Support businesses to register, open, and authenticate international payment accounts Paypal, Stripe, etc.
• Support businesses to register, open, and authenticate physical bank accounts and online banking accounts at financial centers. Singapore, America.
• Support businesses in fulfilling offshore accounting tax obligations, full financial reporting services.

5. What are the frequently asked questions when establishing an offshore company in the top 5 countries above?

Highlights

• Offshore company is understood as a company used for international business, the scope of operation is outside the country where the company is opened.
• The top 5 ideal countries to set up an offshore company are Hong Kong, UAE, BVI, Seychelles, and Belize.
• GLA will support businesses to establish offshore companies easily, quickly, conveniently and at extremely optimal costs.