Registration of companies
Foreign companies attractive in terms of tax planning can be divided into two main groups:
1. Classic offshore companies. Companies, which are not liable to taxes.
- A company must pay fixed annual fees;
- Companies are exempted from tax provided that they do not conduct their business on the territory of the country of registration; management accounting is not mandatory.
Examples: Seychelles, Belize, British Virgin Islands (BVI)
2. Low tax jurisdictions. Companies are liable to taxes
- Companies are highly prestigious in the international community;
- Companies can benefit from the application of double taxation treaties;
- Management accounting is mandatory.
Examples: UK, Ireland, Denmark, Hong Kong, Cyprus.
Under certain conditions these companies can be used in tax-free (low-tax) regime.