Tuesday, July 25, 2006

Tax Haven in Europe

Offshore Incorporate Tax Haven In Europe

1. Tax Haven In Cyprus
2. Tax Haven In Malta


Cyprus is the third largest island in the Mediterranean Sea. It is located at south of turkey, wast of syria, north west Israel, North of Egypt and East of Greek mainland. Cyprus become an independent in 1960.

Political stability
The legal system us based English Law. The political system is modeled on western democracies which gives human rights and freedom to ensure political stability.

Tax Law
Based on Income Tax Act No. 118 (I) of 2002, parliament approved a uniform 10% corporate tax rate, to apply both onshore and offshore, plus a 2% levy on wage bills. However, prior to its EU accession in 2004, Cyprus has reformed its Tax System and its legislation to become EU and OECD compatible. The corporate tax rate in Cyprus is the lowest in EU. As a summary sice 1 January 2003:-
Corporate profits are taxed at 10%.
Investment income from dividends are tax free (0%).
Profit on sale of shares and securities is tax free (0%).
Repatriation of profits from Cyprus companies (dividend, royalties and interest) to non resident is tax free.
Cyprus has double tax treaties with: Austria, Bulgaria, Belarus, belgium, Canada, China, the Czech Repunlic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Malta, mauritius, Norway, Poland, Romania, Russia, Singapore, Slovakia, Slovenia, South Africa, Sweeden, Syria, Thailand, United Kingdom, USA and Yugoslavia.

To get details click here..

Process of Incorporate
Approximately five days to seven days after company name approval


Cyprus IBC's must have a registered office at Cyprus. The structure of the company is guarantees total privacy on company records.
Cyprus has strict commercial secrecy laws. The beneficiary's details remain confidential and are not placed on public file although they must disclosed to the Central Bank of Cyprus. Central Bank employees are bound by law not to reveal any information to third party.


Their law to protect confidentiallity gives Cyprus among the best choice for company incorporation as compared to other jurisdictions.

A minimum is one director is required and details appear on the public file but anonymity can be retained by the use of third party directors.
All cypriot companies must appoit a company secretary.
The minimum number of shareholders is one.

Saturday, July 22, 2006

Tax Haven in Central America

Offshore Incorporate Tax Haven in Central America

1. Belize
2. Panama

Tax Haven In Belize

Belize is located in Central America, bordering the carribean sea, between Guatemala and Mexico.

The International Business Companies legislation was introduced in 1990 to implement competitive offshore legislation for Belize's IBC.

Tax law
According to the IBC legislation on 1990, offshore companies are exempted from all taxes.

The documents of Belize Offshore Incorporation do not cacry the name or identity of any shareholders. The names and identities of these person do not appear in public records.

Political stability
The constitution for an independant state of belize was passed on September 20, 1981 the day before independant. The constution will protects human right and fundamental freedom to ensure political stability.

Process to Incorporation
In normal circumstances, Belize Incorporation is very efficient and a Belize IBC can be incorporated in a couple of working days.

Only one director or shareholder required and shareholder and director can be from the same person.
There is no requirement for secretary.
There is no requirement to appoint local shareholder and director.
There is no requirement for any financial statements, accounts or records to be kept to Belize IBC.

Tax Haven in Panama

Panama is located in central america, bordering both Carribean Sea and the North Pacific Ocean, between Colombia and Costa Rica.

Panama companies (Panamian Corporations) are created under The General Corporation Law (Law 32) of February 26, 1927.
Legal system in panama is based on civil law system. Panama become independa country on 3 November 1903.

Tax law
There is 100% tax free for activities outside of panama for Non resident Panama Corporations.
You should have a local Registered Agent in Panama for your Panama IBC.
The annual corporate franchise fee is USD250.00

Process to incorporation
Incorporation in Panama of a Panama non resident corporation may take between four to six days.

Others :-
Two local persons are usually appointed to act as the organizers and subscriber for incorporation purpose.
A minimum of three directors are required. The names and addresses of these directors is part of public records.
Panama offshore companies require officers for the positions of President, Treasurer and Secretary.
The president and Secretary should not be the same person.
There is no requirement for Annual general meetings of shareholders and director.
The standard capitalization for a Panamian Corporation is USD$10,000.00.
The documents for Panama Offshore Incorporation are filed with the Merchantile Registry and the names and addresses of the directors are a matter of public record.
There is no requirement to prepare, maintain or file financial statements.

Friday, July 21, 2006

Offshore Jurisdictions & Tax Haven in Carribean

Billions of dollars are being siphoned off through offshore companies and tax haven. Almost every part of the world now has access to havens. North America have Carribean Islands and Central America; European have Cyprus and Malta ; The Asia Pacific have the Pacific Islands and Singapore; India and Southern Africa have the Seychelles and Mauritius; and many more.

The main reason for the presence of offshore industries are bacause of Tax Haven , Privacy and Asset protection. However, when you come to the point where you have decided to incorporate a new offshore company, it is logical to ask which offshore country is the best to incorporate in. There are more than 50 countries offering tax benefits to offshore businesses. For the residents of high taxation countries, the choice of the offshore jurisdiction can be critically important. However, there is no specific solution for everyone in choosing the offshores jurisdiction. All depends on what types of business you intended to incorporate. As there are plenty of offshore jurisdiction including plenty of advices on internet discussing the offshore subjects... I design this blog to provide you with information about Offshore Jurisdiction and Offshore Investments.

How to choose the right jurisdiction?

When selecting a jurisdiction for the incorporation of your international company, these 8 basic criteria's you should strongly considered.

1. Tax law for both corporate and personal.

2. Privacy especially in respect of public disclosure and banking.

3. Cost - Incorporation formation process cost and renewal fees cost.

4. Banking facilities and services - Worldwide banking acceptance.

5. Infrastructure - Communications services available internationally.

6. Requirements

7. Political and economic stability.

8. Reputation

9. Time to incorporate.

Incorporate Offshore Tax Haven In Carribean:-

1. The Commonwealth of Dominica.
2. The British Virgin Island (BVI)

The Commonwealth Of Dominica

The Commonwealth of Dominica or better known as Dominica is an island situated at Eastern Carribean. Dominica must not be confused with Dominican Republic. The Commonwealth of Dominica is independent jurisdiction and is not affected by UK or EU Legislation.

The International Business Companies Act (IBC Act) was legislated on June 26, 1996. This act offers progressive legislation with flexible company structures and efficient incorporation procedure.

Political Stability ;
The law system is based on the British Common Law and constitution which gives human rights and freedom will ensure the future political stability.

Tax Law and Fees - Law provides minimum twenty (20) years Tax Exemption for offshore companies beginning from the day of incorporation. Annual fees are to be paid on the birthday of the company and every twelve (12) months thereafter. There are no dual taxation treaties with other countries, therefore no requirement for exchange of information with other Tax Authorities.

Process to incorporate;
A Dominica Offshore company can be incorporated within 24 hours after receipt of funds and filled forms.

The IBC Act under section 112 make it an offence punishable by a fine of US $25,000.00 and imprisonment for two years for anyone who reveal any information regarding a Dominica Corporation except by order of the court, and solely relating to criminal activities.
The information on the Beneficial Owners is kept at the Registered office and not available to the public.

All document must be filled in English. A company name must end with a word, phrase or abbreviation thereof which indicates Limited Liability. You must maintain a registered office in Dominica and must appoint a Dominican resident as the registered agent.

Dominica known as among the best in the world for Offshore Business Centers.

There is no requirement to prepare any accounts or financial statements.
There is no requirement to appoint auditor.
There is no requirement for secretary.
Dominica Offshore Company do not require more than one director.
One shareholder and one director are allowed. The same person can be shareholder and director.
Shareholder and director can be from any nationality and reside in any country.
Shares may be issued in any currency.

The British Virgin Islands

The British Virgin Islands (BVI) is comprised of 60 islands and is located in northeast carribean. The BVI is an overseas territory of United Kingdom of Great Britain and Northern Island (UK), but is self governing under 1967 constitution. The official currency is United States Dollar.

The BVI International Business Companies (IBC) legislation was introduced in 1984 especially aimed at offshore industry. The BVI IBC legislation was updated on June 2003.

Political Stability
The legal system with self governing under 1967 constitution will ensure the political stability.

Tax Law
According to the BVI IBC legislation of 1984, the offshore companies are exempted from all the taxes for a period of 20 years.

Process to Incorporate
Normally, BVI Corporation can be registered within 3 working days.

BVI Incorporation documents do not carry the name or identity of any shareholders. The names or identities of these person do not appear in public record.

Thursday, July 20, 2006

Guide For Offshore Investor

One of the great satisfactions in life is to create wealth. However, at the same time you need to know how to maintain a high standard of living throughout a lengthy retirement. But, as wealth builds up so do the problems of managing it. Maintaining the purchasing power of capital, despites of inflation is not an easy task. Investment decisions, managing your funds and understanding the tax consequences is extremely important. So it is extremely important to consider to leave one's money in a safe 'tax' haven country.

However, tax haven, privacy and asset protections are a driving force behind 'offshore' investors.

What is Offshore?

Offshore simply means a jurisdiction other than your own's territory. Normally it's located outside of one's national boundaries. The country next door can be offshore for you.

However, in practical, the term of offshore mean a country or territory which offer specific benefits to foreigners such tax intensive, asset protection and confidentiallity.

Offshore Investments

Offshore investing is when you invest in investment vehicles situated outside of your country. There are advantages to invest offshore particularly tax intensive benefits. Most of investments are made in country with less regulated and tax haven than investor's home country. Offshore investments can help you multiply your assets faster and there are many investments avenue open for you offshore. Basically all types of investment vehicles available onshore is also available offshore. The major difference being the possibility of retaining a substantially greater profits.

The main reasons people going for offshore investments are because of:-

1. Tax Advantages

2. Asset protection

3. Less regulated

4. Privacy or confidentiality

1st - Tax Haven

Offshore Tax Haven simply mean a place where taxes are levied at a low rate or not at all. The common definition for an offshore tax haven is a country other than the one in which you reside or do business that levies taxation at a lower rate than the country in which you reside and do business. There are many offshore tax in the world which different jurisdictions tend to be havens for different types of taxes, and for different categories of people and companies.

1. Any offshore mutual fund is like a domestic mutual fund. However, fund's located in a tax haven jurisdiction normally offers a high rate of return both for fund buyers and the fund's managers. If you invest in offshore mutual fund; your benefits are not only limited to not having to pay capital gains taxes on your investment and also benefit from the traditional secrecy of tax haven jurisdiction. You also may be benefits from high rates of investment return due to tax haven and lower operating cost of fund management.

2. Individuals hoping to benefit from moving assets to a tax haven jurisdictions. Normally the banks in Tax Haven may not report income to the client's domestic taxing authority.

3. Corporate may take advantage of a tax haven by establishing their Principle Office in invested offshore country. For examples, a offshore (non United States) mutual fund which intended to invest or trade in United States market, in order to avoid its income and investment profits being subject to U.S federal corporate income tax and U.S federal profits tax legally, they may established the Principle Office of their offshore fund in outside the United States. The Principle Office is the main office where the the daily activities of fund management and administrative takes place.

2nd - Asset Protection.

The principles of offshore assets protection is about, protecting your assets from:-
1. Excess taxation
2. Unfair Litigation
3. Save your assets such as cash money or intellectual property physically out of the reach of those from whom you wish to protect your property.

It's simply mean " You just look like don't have any assets". Offshore are popular locations for restructuring ownership of assets. Many individual elect to transfer a portion of their assets from their home country to offshore country.

3rd - Less Regulation.

There are around 50 offshore centers. Their level of regulation, supervision and compensation schemes vary so it is important to get right knowledge before investing in an offshore jurisdiction. However, if you compared to G7 regulations, offshore jurisdiction is less regulated.

4th - Privacy or Confidentiality

Anyone can hire private investigator and find your domestic assets. Some will do it themselves on the internet. But offshore investments are much more difficult to find. While you are required to disclose income from the account to your domestic tax authorities, these records aren't ordinarily available to creditors.

The Disadvantages of Offshore Investments

It's is probably obvious that getting information about offshore investments can be difficult. It can be harder to find out about offshore investment directly. So, offshore investment may be, but not neccessarily, riskier than onshore investment. You need to trust your own judgement, and make risky investment with money you can afford to lose.

Offshore Mutual Fund & It's Future..

Most investors are very familiar with mutual fund, but for those are not, a mutual fund is basically a type of investment vehicle that allows individual investors to pool their money and have a benefit of professional management. The professional fund managers has the responsibility of selecting their investments portfolio such as stocks, commodities, forex or other investment that consistent with the fund's goal objectives. Offshore Mutual Fund put their money into many kinds of investment. The fund invest extensively in the United States and Europe. They invest like any mutual fund with vary performance. However because the fund is set up in a tax haven country with a more liberal regulatory climate and lower operating cost, the rates of return on investments tend to be higher than they are in United States or Europe.

As Mutual fund located in Tax Haven Jurisdiction normally offers a high rate of return both for fund buyers and the fund managers.

There are no one road to create wealth. However, people are already shopping in their country to find the road road to create wealth and looking for the best investment 'return' rates. With the advances in Communications and Internet technologies, it won't be long before they will be looking the highest investment 'return' rates by doing the same on the worldwide scale infront of their computer. And tax haven based mutual fund will be the best competitive position as compared to onshore mutual funds.

Tax haven based funds will be in the best competitive position to take advantage of the aggressive money flows results from the growth of electronic funds transfer, online banking and home based investor.

Now, consumers not only can routinely buy products directly from their computers, but they may routinely invest their money into highest paid investment return mutual funds from their computers.

Offshore fund are advertised in internationally distributed by most famous financial publications. You may simply assess them in internet. Advertisements in these publications are not subject to regulations of SEC. The publications also are not bound by restricted on their freedom of publication because they are international. The reader who becomes an international trader will be able to use this freedom of the press to advertise their own services.

Why you Need Offshore Mutual fund in Your Investment Portfolio?

1. Top performance and higher returns - Many of best performing investment in the world are not in U.S or Europe. Man-AHL diversified PLC gained an average of +21.5% per annum sinve 1996 and GAM Diversity gained an average +13.2% per annum since 1989.

2. Multiple choices - More than 80,000 funds trading worldwide and only 10,000 are registered in the United States.

3. Offshore funds offer currency diversification - Offshore funds are denominated in the euro, swiss francs and brittish pound. Offshore banks generally offers higher yield and lower fees.

4. Privacy - Offshore fund take your wealth off from the domestic 'radar screen' and make it invisible to predatory lawyers.