Growing Internationalisation Make Offshore Jurisdictions Attractive
Tuesday, October 12, 2010 17:20As more and more companies and consultants engage in business beyond the borders of their home country, so the desire to move corporate head offices offshore is rapidly increasing. Companies across almost every business sector are moving their head offices abroad in an effort to save tax and find a more benign home for internationally expanding businesses.
Growing internationalisation make offshore jurisdictions such as the British Virgin Islands, Nevis, Ras Al Khaimah and the Seychelles a very attractive option for corporate relocation. Corporate services companies such as Schuss & Co are geared to help companies in their move to a variety of offshore territories and can incorporate a company quickly and efficiently, affording a more friendly regulatory regime and tax climate. Offshore company incorporation is fast, easy and requires less strict accounting practices as those of Europe or the US.
Alex Henderson, tax partner at PricewaterhouseCoopers, has said: Companies are increasingly looking at low tax jurisdictions. It’s not just for the lower tax rate but also for the relative simplicity of incorporating outside the UK.
WPP and Shire, the pharmaceuticals company, have moved their head offices to Ireland, while Regus, the serviced officers provider, have moved to Luxembourg. McDonald moved its European HQ from London to Geneva and many large gaming companies have moved to Gibraltar and Malta. Due to low incorporation and management costs, the British Virgin Islands remains one of the most popular offshore jurisdictions, with a new BVI offshore company from Schuss & Co costing only ?99 per year for full management. The cost savings on accounting fees and administration alone make this an increasingly attractive proposition to companies doing business internationally.
About the British Virgin Islands
Taxation in the British Virgin Islands is simple, which has led to the BVI becoming an offshore financial centre. The majority of the Government’s revenues are obtained directly from annual licence fees for offshore companies incorporated in the jurisdiction. By 2004, well over 600,000 offshore BVI companies had been registered.
The BVI has excellent infrastructure and telecoms, and a legal system largely based on British law, making it a very convenient and effective base. The offshore companies, trusts, insurers and mutual funds on the islands are supported by a diverse professional services sector.
Benefits of registering an offshore company:
- Low tax burden
- Simple setup and lesser reporting requirements
- Asset protection
- Anonymity
- Lower cost of operation
Typical uses for an offshore company include:
- Online businesses
- SAAS software products
- Professional consultancy and agencies
- Expatriates
- Property owners
- Investment companies
- Gaming companies
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