Discover the key factors to consider when choosing where to establish your company, from taxation and paperwork to stakeholder opinions and visas. Get expert guidance and a free initial consultation to make the right decision.
Have you ever thought of starting your own business? Many people do it at least once in their lives – however, the majority of them abandon the idea at once as they find a reason why this will be too hard. This post is for those whose difficulties will not deter, and we will look at one of them: choosing a suitable jurisdiction. You will have to consider many factors before you make the right decision, so let’s take a good look at these.
If you are the one who is determined to launch your undertaking, we invite you to our portal called International Wealth to read a more detailed article on the best country to start a business and find other useful information. We write about international business and banking, tax optimization, asset protection, relocation, citizenship by investment, and any other topics related to the accumulation and protection of your wealth.
You can book a session with an expert of our portal to discuss your situation and find the best solutions. The initial consultation is free, and we do not charge anything for analyzing your requirements and finding the best jurisdiction to establish your company or set up a bank account, for instance. However, if you decide to delegate all the formalities to us, we will be happy to help you get a fully operational company, trust, or bank account in no time. Click on the link to get in touch!
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Choosing a Jurisdiction: Important Factors to Consider
Here are the main aspects you will need to consider to choose the best-suited jurisdiction for your company.
How much will you have to spend on your company? This is the key question that will determine the speed of your business development, your profits, the salaries of your employees, and many other issues. Taxes are an important part of these expenses.
Consider the following aspects in advance to see whether the tax rates in the desired destination look like something you can handle:
- Tax incentives available in the country of incorporation and in the jurisdictions you are going to operate in later on
- Income tax rate in the country of registration
- The amount of tax payable on capital gains
- If you are planning to attract investors to your business undertaking, consider in what way the local laws may influence this opportunity
What Do Your Stakeholders Think About It?
If you know the people who are going to be the company shareholders, you will probably need to find out what they think about a destination where your company needs to be incorporated. They are the investors who are interested in the successful development of your company, and they may have their reasons to opt for this or that jurisdiction. And, what is more, their ideas may be quite interesting – so don’t miss an opportunity to ask their opinion.
The amount of paperwork, as well as the terms and the scope, may differ considerably in different countries. And if avoiding unnecessary reporting is one of your top priorities, it will make it possible to shortlist the destinations available to you easily.
Will you need to file the documents in person, or can you do so online? What is the required language of documents? Will you need to submit any regular reporting after company registration? If so, what will the format and the timelines be? If you know the answers to all these questions, it will be easier for you to say yes or no to this or that destination.
Who can start a company in the jurisdiction you have selected? Can a company founder be a foreigner? You may need an investor’s visa (or any other visa), a residence permit, or even citizenship. Will it be easy for you to obtain the visa (residence permit) quickly enough if they are required? These are the questions you should ask yourself in advance – especially if you don’t want to wait for long before you register a company.
Which Countries Are the Best?
Let’s look at the list of countries that have the best overall characteristics for business registration. Follow the link above to read a more detailed description of each of them.
- Nevis. If you are looking for a place where asset protection and diversification are probably the best in the world, look no further than Nevis. You will also benefit from enhanced confidentiality, low tax rates, and a straightforward company registration process.
- Canada. If you are going to start an innovative business, there is no better place than Canada, as the country is doing its best to become a leading center of innovation in the world. You will find a lot of talented and well-educated technical specialists here!
- Singapore. If you intend to develop your business in Asia, Singapore is the best destination to start your business. Take advantage of numerous tax incentives and cutting-edge infrastructure.
- USA. If you need to register a company focused on IT products and services, opt for the USA. You will have access to skilled employees, a huge market, and a great number of funding sources for business. Mind that each state may have its own rules, however.
- UK. You can start a company here within 1 hour if you want to! Benefit from different tax incentives offered to new businesses – and remember that the local authorities are supportive: they understand that newcomers may be loss-making, so you will not be penalized for that.
- British Virgin Islands. If you have an IT company and you want to make profits worldwide to keep them in an offshore account and later invest in new business projects, the BVI is the right place for you. The companies registered here are considered transparent by all the world’s banks, and they are eager to open corporate accounts for them.
- Denmark. If you want to start your company in Europe, the easiest way to do so is to opt for Denmark. You will have a fully operational company in just a few business days, and you will pay moderate taxes. There is no need to obtain citizenship for your top executives, either.
Follow the above link to read about Norway, New Zealand, and the Isle of Man. Feel free to contact us via a live chat and ask questions or book a session. Don’t struggle with the choice – let us help you!