Top 5 Best countries to set up an offshore company (Part 2)

In the previous part, we already discussed stand-out features of Belize and Seychelles jurisdictions, let’s see what are the next best destinations that we offer for your offshore company incorporation.

1. Hong Kong

Situated in the south east coast of China, Hong Kong fascinates investors with its strategic location with straightforward access to Mainland China. This jurisdiction has also been widely known as one of the most premier financial centers in the world - Be rated the world’s freest economy by the Index of Economic Freedom for the 20th consecutive year; the world’s fourth-easiest country to do business in the 2019 report by World Bank.

Banking system in Hong Kong is exceptionally excellent and open as well. Hong Kong based enterprises are allowed to open bank accounts anywhere without restrictions from Hong Kong governments.

One highlight reason for why Hong Kong has become among the world’s top destinations for offshore company formation is its business-friendly tax regime. Providing that all income is derived outside of Hong Kong, there would be no taxes imposed on them. Notably, Hong Kong has a transparent regulatory environment with a competitive tax system, creating favorable conditions for most start-ups and entrepreneurs to set up their company. In addition, foreigners can own 100% of the Hong Kong offshore company.

The most popular form for offshore company incorporation in Hong Kong is Private Limited Company. Below are some key benefits of forming a private company in Hong Kong that you should know:

- Separate legal entity

- Limited liability

- Perpetual succession

- Raising capital after incorporation

- Transfer of ownership

- Tax benefits

2. Singapore

Alongside Hong Kong, Singapore is another highlighted Asian country which is an ideal option for offshore company setup. Singapore was ranked second as the world’s easiest place to do business in 2018 by the World Bank Group. Its foreign ownership policy is open and liberal, allowing 100% foreign ownership of companies and offers them a low-tax system which facilitates their ease of doing business. Furthermore, Singapore has been among the strongest banking systems in the world with many banks ranked among the safest.

Like Hong Kong, a private limited company, of all business entities in Singapore, is the most popular type and most recommended for Startups and SMEs.

3. BVI

The British Virgin Islands is considered as one of the most attractive jurisdictions in the world for incorporating an offshore business. Its open economy coupled with a favorable tax law within a strong regulatory framework have paved way for a large number of non-resident investors flocking into the territory.

Business Company (BC) is the most prevalent type of offshore formation in BVI since it offers investors a broad range of privileges, some of which include:

- Full tax exemption for BVI’s BC provided that it conducts business outside BVI

- High level of Confidentiality is one of the key features of the BVI’s BC

- Flexible company structure

- Minimal accounting and auditing requirements

- USD as the official currency

Read more information on offshore company formation services

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