subject: Places To Go For Offshore Corporate Formation [print this page] Offshore company formation in any of several jurisdictions is very attractive for financial, tax and convenience reasons. When you are looking for a location near the United Kingdom or Europe, you might want to check into the benefits of Jersey, Guernsey or the Isle of Man. Each of these jurisdictions has economic benefits. They are also committed to providing privacy and low taxation rates for corporate entities.
The Isle of Man is often praised for its stable government base, generally low or non-existent income tax and variety of company structures to fit individual business philosophies. The legislature of this Crown Dependency is the oldest continuously established in the history of the world. The jurisdiction is prestigious. Bank accounts are available with full privacy. Companies with a place of business in the Isle of Man can take advantage of the zero percent corporate tax rate and also the benefits of VAT status to facilitate European Union trade.
The formation of an Isle of Man corporation is not complicated. When you need to appoint professional directors to maintain privacy, the appointment must be approved. The Government Financial Supervision Commission checks financial standing, company law knowledge, criminal record, work experience and qualifications. You will need to comply with jurisdiction regulations that require a local licensed agent and local director.
Another popular site where laws favor corporate entities is Guernsey. The location is near both the United Kingdom and European markets. Guernsey holds a position of trust in the financial sector. There are no death duties and tax rates are quite low. Laws of the Island allow for meetings of shareholders and directors anywhere on the planet. This adds to the increasing number of company start-ups here.
Guernsey belongs to the group of jurisdictions known as the Channel Islands. There are many international banks that have a presence on the Island. Another major industry found with a high representation on Guernsey is insurance companies.
Jersey is a Channel Island that is self-governing and dependency of the British Crown. Under special negotiated status, Jersey is recognized and guaranteed of fiscal autonomy. There is no capital gains or inheritance tax. There is a 3% Goods & Services Tax and a 20% income tax. The corporation tax is zero percent, except for the ten percent charged for finance companies. Jersey trusts are particularly beneficial since there is no local tax charged on foreign income.
When choosing a location for offshore company formation, you will need to balance the regulations with the other factors. Lower tax bases are only part of the benefits. Review the advantages and benefits before making your final decision.
