How to choose a jurisdiction?

If you are faced with the question of jurisdiction for registering a company, then it is likely that you are at the very beginning of your journey as an international businessman. We will try to show you the difference between jurisdictions in an accessible way, but keep in mind that situations are individual and we recommend that you contact specialists for a detailed analysis and selection of a country for registration specifically for your business. This will minimize risks, remove negative consequences and save money.

First, let’s look at what jurisdictions are.

Three main types of jurisdictions should be distinguished:

Onshore is a classic company, mostly mainland, submitting monthly or annual tax and audit reports, such a company has an open register of beneficiaries, pays a significant percentage of taxes on income. This is the most prestigious type of company with a transparent and understandable structure. Such a company, in most cases, can be opened for a foreigner, and in some countries remote registration is allowed for convenience.

Representatives: Hungary, Bulgaria, Germany, Cyprus and others.

Midshore companies are a type of new world companies, they combine the properties of both onshore and offshore, they have the most attractive properties for entrepreneurs from all over the world. Such a company has either zero or the lowest possible tax rate. Reporting for such a company is submitted once a year. The register of beneficiaries is generally open.

Such companies are opened remotely, but it is often difficult for them to open a bank account. Midshore works well in tandem with the payment system.

Representatives: Hong Kong, Singapore, Estonia (under certain conditions), others.

Offshore – as a rule, this is an island company that does not have a tax burden, does not require reporting, has a closed register of beneficiaries, and forbids operating on the territory of its state in order to maintain benefits. Such companies were previously used for money laundering, which is why they currently have a bad reputation and attract close attention from regulatory authorities. It is difficult for such jurisdictions to open an account in banks of groups 1, 2, payment systems recognize these countries as “high risk”, which complicates the situation.

Offshore companies are opened remotely.

Examples: British Virgin Islands, Vanuatu, Seychelles, Dominica, others.

If you have managed to decide on the type of company that suits your needs, then the next step is to determine the location of your business. You should take into account the habitat of your partners and customers, for example: a European company that provides services within the EU will be required to pay VAT, in this case a company in the USA may be suitable. Also, you need to check with your partners regarding the bank, since not all European banks will be able to pay, for example, for the services of a company of Irish origin. You also need to take into account the nuances of licensing. If your activity is subject to licensing requirements, then you need to obtain a license. This can be, for example, educational services, gambling, activities related to cryptocurrency.

Turning to our company, you will receive a full range of services and assistance in choosing and registering a company, our experts will tell you which jurisdiction will best suit you. We will suggest which financial institution will most effectively work with your company and your partners/clients. We will help you obtain the necessary permits and licenses.

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