You should know that offshore companies are no longer illegal now, and even though they are used to perpetrate embezzlement, that doesn’t negate the fact that a lot of people are using them for good.

Contrary to the belief that offshore companies are illegal, offshore companies are legal and there are many reasons to own one. Offshore companies provide that privacy you need from prying eyes and even security guards, except in some cases when criminal activity is linked to your offshore company.

An offshore company offers advantages not only to the owner but also to the country where it is established. Speaking of country, not all countries provide the same benefits to offshore companies; some contribute more. Let’s dive into the best countries to set up your offshore company.

Best countries to set up an offshore company

Setting up an offshore company in any country comes down to how the chosen country handles offshore business registration and its tax rates for offshore companies. The main objective of all business owners, whether an offshore company or not, is to maximize profits using legal means.

So, before determining in which country to set up your offshore company, it is important that you do some research on the tax rates and the efficiency of their company registration.

China

The People’s Republic of China is not only a developed country; it is one of the few to have embraced technology in all sectors, especially the business sector. During the last pandemic, China was one of the few countries to eradicate the deadly virus through technology. There are many images online showing how China is using robots to care for affected patients, saving health workers and breaking the cycle of transmission.

China is obviously the hub of technology, and cities like Shanghai and Hong Kong have proven this by attracting investors, business people, employers and employers to the country. Other than that, China has a legal system that follows English law, which makes it even better for native speakers. Similarly, China has the best offshore company advantages of any Asian country, including Japan.

Regarding the tax rate, China offers offshore companies operating outside of Hong Kong a rate of 0% and 16.5% for those operating in the jurisdiction. This shows how much you can save on taxes when setting up an offshore company in China.

Singapore

Singapore is one of the fastest growing countries in Southeast Asia. Singapore is not only the best country to establish an offshore company in Southeast Asia, but also the best technology hub in this region.

Singapore, like China, offers a reasonable tax rate on your profits and gives your business the privacy it needs.

Moreover, offshore companies in Singapore, when registering, are offered a choice of reputable banks to open an account, and these banks also offer attractive features such as credit cards, internet banking, accounts multi-currency and the freedom to move funds from one country. to another.

Panama

Many knew about Panama from outrageous leaks a few years ago, and contrary to many beliefs, Panama is still a reliable country to protect your property. Panama is one of the few countries that offers excellent asset protection. Offshore companies in Panama can also protect their business from lawsuits.

Offshore companies in Panama enjoy great flexibility, such as distributing dividends and shares without the need for government approval. Tax rates in Panama are as good as in China; there is a 0% tax rate for income not originating from within the country.

Bahamian

The Bahamas tax system is second to none. The advantages of the Bahamas over other countries are its privacy and tax system. Offshore companies in the Bahamas enjoy tax exemption for 20 years; companies need only set an annual fee which they pay to the government, regardless of their profit or loss margins.

All offshore companies in the Bahamas also enjoy a high level of confidentiality as the country has an International Business Companies (IBC) Act of 1990 which prohibits the sharing of information with other countries.

Cyprus

For many who do not know, Cyprus has been a member of the European Union since 2004 and of the Eurozone since 2008. This means that when you set up an offshore company there, you will receive an intra-community VAT number which will allow you to make commercial transactions with other EU countries.

Offshore companies in Cyprus enjoy a lower tax rate than other EU countries. The country charges 12.5% ​​of your total income.

Conclusion

You should know that offshore companies are no longer illegal now, and even though they are used to perpetrate embezzlement, that doesn’t negate the fact that a lot of people are using them for good.

The main purpose of setting up offshore companies is to maximize profits and take advantage of the privacy some countries offer. However, not all countries are good for setting up offshore companies because they charge too much tax or offer no protection for companies.