Best Offshore Jurisdictions for Business Registration

The first step towards incorporating your offshore company is choosing the right jurisdiction. There are many countries renowned for being tax havens, but there are huge differences between them when it comes to tax advantages, legislation stability, costs and functionality. Some offshore jurisdictions like the Cayman Islands are extremely bureaucratic and expensive, and they are suitable only for the ultra-wealthy or for big corporations. Fortunately, choosing the right place to incorporate your business is not that difficult, because we have done the heavy lifting for you by eliminating those sub-optimal options.

Below we will present the top three offshore jurisdictions, along with our recommended registration agents that you should use in order to be cost efficient and avoid overpaying when buying through resellers.

1. British Virgin Islands

The British Virgin Islands (also known as the BVI) is the first jurisdiction that comes to mind when thinking about International Business Companies (IBC), and for good reason. Ever since 1984, when the country passed the International Business Companies Act, the BVI has remained the number one offshore jurisdiction in the world.

BVI Business Companies are exempt from income tax, dividends, interest, rents, royalties, and capital gains, making them highly attractive for global business activities. BVI entities have separate legal identities and offer flexible organizational structures, requiring only one owner, one shareholder, and one director, who can be the same person. The BVI maintains confidentiality with limited information available to the public, safeguarding the privacy of beneficial owners and shareholders.

After analyzing all major offshore jurisdictions, we have concluded that the BVI still remains the best option for most people, as it offers the perfect balance between privacy, zero tax, international compliance, stable legislation and a high level of trust, while still remaining extremely affordable.

BVI Company Formation:

Recommended Agent: Fidesta Ltd.

Description: Fidesta Ltd is a regulated offshore incorporation services firm located in the British Virgin Islands and specialized in BVI Business Company formations for international clients. They offer expert service, quick turnaround time and competitive fees.

Prices: from $1,925 for basic company registration

Address: Charles Court. 1st Floor, 189 Main Street, P.O. Box 4406 Tortola VG1110, British Virgin Islands

Website: https://offshorebvi.com

2. Seychelles

Seychelles is by far the best offshore jurisdiction in terms of costs, as it offers the cheapest International Business Companies and Trusts. For those that are on a budget and want to keep costs as low as possible, there is no better option than to incorporate in Seychelles.

Essentially, a Seychelles IBC is a completely tax-free offshore corporation, insofar as it complies with a few simple rules of operation. The main requirement is that a Seychelles IBC should not pursue business within the territory of the Seychelles (except, of course, it may enter into business with any other Seychelles IBC`s). As long as the company doesn't operate inside Seychelles, it has zero tax on any type of income.

The only disadvantage of Seychelles as an offshore jurisdiction is that it doesn't benefit from the same level of trust and recognition enjoyed by more prestigious places like the BVI, Cayman Islands or Bermuda.

Our recommendation is to choose a BVI company if you can afford it, but if you think the price of a BVI corporation is too high, than you should choose Seychelles as a very solid low cost alternative.

Seychelles Business Registration:

Recommended Agent: Fidelity Corporate Services (Seychelles) Ltd

Description: Fidelity Corporate Services (Seychelles) Ltd is a specialist offshore company formation agent located in Seychelles. Expertise, speed, and affordability are the hallmarks of their service.

Prices: from $720 for basic company registration

Address: Suite 9, Ansuya Estate, Royal Street, Victoria, Republic of Seychelles

Website: https://seychellesoffshore.com

3. Cyprus

A Cyprus company offers a strategic gateway to the European Union with advantageous tax rates, including 0% tax on dividends and capital gains, along with a strong foundation in rule of law and security.

For those who need to do business inside the European Union, there is no better option than Cyprus. Below are some of the main advantages of Cyprus Companies:

• One of the lowest corporate income tax rates in Europe (12.5%)
• Full member of the EU – the largest single market in the world
• Tax regime fully compliant with EU and OECD recommendations
• Access to international markets through network of trade agreements
• Reasonable regulatory environment
• Comparatively low cost of doing business

While for any other purposes we recommend the BVI as the best jurisdiction, in the case of people who want to do business inside the European Union we consider Cyprus to be the best option.

Cyprus Company Setup:

Recommended Agent: Fidesta Limited

Description: Fidesta Limited is the best option for Cyprus company formation and management, as well as for setting up a Cyprus International Trust (which is one of the most effective passive asset protection and succession planning tools). They have excellent expertise when it comes to doing business in Cyprus and offer very competitive prices.

Prices: from €1,150 for self managed companies

Address: Office 401, 4th Floor, Strovolou 77, Strovolos, Nicosia 2018, Cyprus

Website: https://cypruscompany.com