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Cyprus is the third largest island in the Mediterranean Sea and is strategically located in the hub of three continents: Europe, Asia and Africa. Since 2004 Cyprus is a member of the European Union, thus providing investors with access to the EU market.

After the recovery from the recent economic crisis, Cyprus has become an attractive investment destination for foreign companies due to numerous benefits for foreign investors such as the strategic geographical location, the cheap and qualified workforce and the well-established transport and communication system.

Key benefits to incorporate in Cyprus:

• Corporate income tax – 12,5%
• Ideally set-up tax system for both inbound and outbound EU investors
• Investment income from dividends is tax-free (0%)
• Profit on sale of shares and securities is tax-free (0%)
• Repatriation of profits from Cyprus companies to non-residents is tax-free
• Simple and straightforward incorporation process for a Cyprus company. Only one Shareholder and one Director are required with no restrictions on foreigners. Directors do not have to be present in Cyprus.
• Corporate bank account can be easily opened without delays

Tax regulations:

Cyprus offers an attractive and transparent tax regime, compliant with EU, OECD and international laws and regulations. It has one of the lowest tax rates in the EU and combined with other tax advantages, making it the leader amongst international tax planning jurisdictions. Types of taxes in Cyprus are as follows:

• Corporate income tax – 12,5%
• Tonnage tax for shipping entities
• Personal income tax

Taxable income – € Tax rate – % Accumulated tax – €

First €19.500 @ 0% = €0
€19.501 – €28.000 @ 20% = €1.700
€28.001 – €36.300 @ 25% = €3.775
€36.301 – €60.000 @ 30% = €10.885
Over €60.000 @ 35%

• Value Added Tax (V.A.T.)
• Special Contribution for Defence – tax free for non Cyprus residents
• No capital gains tax (except for disposal of real estate in Cyprus or shares of company holding real estate in Cyprus to the extent gains are attributable to the real estate holding)
• Inheritance Tax
• Stamp duty Tax
• Immovable Property Ownership Tax

Accounting regulations:
Proper books of account should be maintained every year and audited financial statements should be prepared in accordance with IFRSs.

Trading firms:

• No withholding tax
• No Capital Gains Tax
• No control of money like many of EU countries

Holding firms:

• Lowest tax rate in EU at 12,5%
• Tax-free intercompany dividends
• Trustworthy jurisdiction
• No tax liability in cases that Cyprus holding company disposes shares to the subsidiary or any other of the associated companies

Voluntary wind up – 3 stage process

1. Board meeting must be held
2. Appoint a liquidator and fill all the relevant documents
3. Obtain a Certificate of Dissolution

Belize is an independent country, located in the East coast of Central America and south of Mexico. Belize Dollar (BZD) is the local currency which is translated into US Dollar under a fixed rate of BZD 2,00 = USD 1,00

With highly developed infrastructure, Belize is considered as an ideal place for the formation of offshore companies and the trading of international financial transactions. Incorporation can be easily made in a quick and effective way.

Key benefits to incorporate in Belize:

• Low cost and speedy incorporation
• High degree of privacy and strict confidentiality
• Exemption of all local taxes for international business companies (IBC). Government fees amounted to USD 100 are charged annually instead
• No reporting requirements including annual audits
• Company secretary is not required
• Bank account opening can be made without the presence of directors.
• Stable political system
• No controls on the transfer of funds
• Offshore IBCs have the ability to open and hold bank accounts in any currency

British Virgin Islands (“BVI”) is a British Overseas Territory and the world’s leading offshore center with more offshore companies than any other jurisdiction. With zero-rated corporation tax, no wealth, capital gains or estate tax for offshore companies, BVI is recognized as a leading financial center ranked above Shanghai, Qatar, Madrid, Bahrain and Mumbai.

The BVI is the largest offshore corporate domicile with approximately 0.5 million active companies and the world’s second-largest offshore investment funds domicile with over 2.000 active open-ended investment funds.

Due to its sophisticated and innovative legislative framework, BVI has become a popular jurisdiction to incorporate private and holding entities, as well as public entities prior to admission to international stock exchanges.

Key benefits to incorporate in the BVI:

• Low cost of incorporation compared to other EU countries
• Maximum security of assets, which includes the ability to transfer domicile
• No tax on incoming dividends from subsidiaries situated outside Malta.
• IBC are exempt from all local taxes and stamp duty
• Full confidentiality and anonymity
• Ability to easy re-quire and re-issue their own shares
• No statutory requirement to hold annual general meetings
• No distinction between public a private IBCs
• Wide range of applications are possible with a BVI Company
• No minimum capital requirements
• Common legal principles
• No limit on the dividends declared, provided that company’s assets exceed its liabilities and the company is able to pay its debts as they fall due.
• No financial assistance restrictions
• No exchange controls
• Low incorporation costs

In case you are looking for a premier choice of asset protection and financial privacy for your business, then BVI may be the best solution for you.

Hong Kong is a special administrative region of China, with high degree of autonomy, except in foreign affairs and defence. The country’s expertise in finance and marketing and the sophisticated and well-developed infrastructure makes Hong Kong an attractive destination for business.

Hong Kong has always been and continues to be the preferred jurisdiction for structuring both China inbound and outbound investments. Hong Kong is China’s largest investor with the majority of the investments into China being through Hong Kong (more than 70%).

Today, Hong Kong is one of the top largest recipient of FDI in the world.

Key benefits of setting-up a business in Hong Kong:

• Effective corporate tax regime (only profits generated in Hong Kong are subject to tax at the flat rate of 16.5%. Profits generated outside the SAR are tax free)
• 100% foreign ownership is allowed (foreigners can set up, own and manage their companies)
• well-developed legal system to protect assets of investors
• no restrictions on capital and profit transfers
• free flow of different currencies in and out of Hong Kong
• no trade barriers or investment restrictions
• Imports and exports are free of any duty or tax (except alcohol, tobacco and fuel)
• no withholding taxes levied on dividends and interest
• no capital gains tax
• no VAT or sales tax imposed in Hong Kong

Hong Kong Companies are commonly used for: 

• Asset protection (no disclosure of ultimate beneficial owner, if nominees are used and no personal liability of shareholders and directors)
• Trading with China
• Vehicle for investments outside of Hong Kong (no tax on dividends and interest income from foreign subsidiaries)

Isle of Man (“IOM”) is an island located in British Isles but with a separate government and identity. It is legally separate from the UK and from the European Union but it has a customs and excise agreement with the UK under which the two territories are effectively treated as one for custom duties, most excise duties and value added tax. This means that if the offshore company plans trading with the UK or any other EU jurisdiction it has to be registered for VAT.

The Isle of Man is considered a tax heaven since it offers various tax advantages. All Isle of Man entities are taxed at a zero-tax rate on their trading and investment income. Income derived from land and property situated in the Isle of Man is taxed at a rate of 10%.

Company formation process is straight-forward. A single shareholder is required and can have just one share with zero par value. For the incorporation of a new entity, at least one director is required who might not be an Isle of Man resident.

Key benefits to incorporate in IOM:

• Strong reputation as an established international business
• Reputable regulatory environment, independent of the UK
• No withholding tax on dividends paid to non-resident shareholders or on payments to overseas parties.
• No capital gains tax, stamp duty or inheritance tax
• Long established legal system
• Sophisticated and extensive banking system
• Political and economic stability
• No limitations on financial transactions or exchange controls
• 0% corporate tax on trading and investment income
• Double tax relief is available for foreign tax paid
• Excellent telecoms infrastructure

Malta is strategically located at the heart of the Mediterranean, at the confluence of Europe, North Africa and the Middle East. It is considered as an excellent choice for investments in knowledge based sectors and high-end manufacturing.

Malta’s business environment and taxation system make the country attractive for investors, transforming it into a tax heaven. Due to the effective tax system and the business-friendly laws and environment, Malta is a perfect location to register companies holding shares in entities within or outside the EU.

Malta offers various tax incentives beneficial for foreign direct investment thus making it an ideal jurisdiction for tax planning and corporate structures. The economy of the country is mainly based on exports, imports and services, thus making it attractive for foreign investors.

Key benefits to incorporate in Malta:

• Full confidentiality and anonymity
• Meetings may be held outside Malta
• Low cost and speedy incorporation
• Low maintenance costs
• Various tax benefits, including the 6/7 reimbursement system on dividends paid in cases that owner is not tax resident in Malta.
• Double Taxation Treaties signed with almost 50 other countries
• No CFC rules, which gives full tax benefits from passive income and other funds that are not subject to taxation
• No transfer pricing rules
• Inexpensive and multilingual labor force
• Multilingual wo

In general, Malta is an attractive destination and a reputable onshore jurisdiction. It offers various tax benefits and in cases that those apply, there is a significant reduction of the effective tax rate.

An alternative option for company formation with similarly low tax rates and other related benefits is Cyprus, which has a corporate tax of 12,5%.

Mauritius is an island situated in the center of the Indian Ocean with population of around 1.2 million. Over the last years, Mauritius has become a credible jurisdiction for offshore companies.

A company incorporated in Mauritius can be 100% foreign owned with no minimum capital requirement.

Mauritius has become a highly respected financial center due to the numerous commercial advantages it offers.

Key benefits to incorporate in Mauritius:

• Speedy, simple and straight-forward incorporation process
• Political stability
• Incentives for foreign companies
• No withholding tax on dividends and interest payments or royalties by Mauritius companies
• No capital gains tax
• No inheritance tax
• Convenient time zone of GMT+4
• No exchange controls
• No stamp and capital duty
• High degree of privacy protection
• Full confidentiality and anonymity

Portugal is located in the Western Europe and consists of continental Portugal, the Azores and the Madeira Islands. The Azores and Madeira Islands are autonomous territories with a special tax regime (lower VAT and Corporate income tax).

Madeira Islands offer a Free Trade Zone through its International Business Centre (IBC). The autonomous region of Madeira is an excellent destination for tourism and residency establishment. Madeira IBC is considered as one of the most attractive jurisdictions in the European Union for foreign investors especially due to the favorable conditions provided from the tax point of view for non-regular residents and foreign investors.

The present tax regime allows the incorporation of new entities within the legal framework of Madeira International Business Centre (IBC) until the end of 2020, granting a reduced corporate tax rate of 5%, applicable on the taxable income, until the end of 2017.

Key benefits to incorporate in Portugal:

• Highly supportive government to foreign investors with several incentives and tax benefits for large-scale investments
• No restrictions on foreign investments
• Minimum capital requirements
• Easy and cost efficient registration process
• Low office rental costs (among the lowest in Western Europe)
• Fastest incorporation process for LLC among European countries

Seychelles is located in the heart of the Indian Ocean and is one of the upper middle class economies of the world. Over the last few years, Seychelles has become an attractive destination for foreign investors, which resulted to a significant increase in International Corporation investments and ranked 95th out of the 189 countries in the World Bank’s 2016 Doing Business report, published in October 27, 2015.

Seychelles is located in the heart of the Indian Ocean, thus offering a great opportunity for investments between Europe and the Far-East, being between the time zones and getting the benefit of a multi-lingual population with English and French as the two business languages.

Key benefits to incorporate in Seychelles:

• Low cost and speedy incorporation
• No minimum share capital requirement
• No reporting requirements
• Double taxation avoidance treaties available for several jurisdictions including Cyprus, China, South Africa, Indonesia, Belgium, Qatar, Oman, Mauritius, Thailand, Malaysia, Belgium, Bahrain, U.A.E., Vietnam and Zambia. Negotiations are also in place for various other countries including Luxembourg, Monaco and Portugal.
• Stable political environment and convenient time zone of +4 GMT
• Ideal location for trading and manufacturing activities
• High environmental standards
• Excellent communications network with the connectivity of fiber optic cable to Eastern African Coast and superb IT infrastructure
• Local government policies supporting both domestic and foreign investment
• Work permit easily available – no visa is required
• Unparalleled privacy
• International Business Companies (IBC) are tax-free
• Secretary is not compulsory

Singapore is a small nation-state located at the southernmost tip of the Asian continent and at the crossroads of major global trading routes.

Despite its small size, Singapore has distinguished itself in the Asia-Pacific region due to its accessibility, the effective tax system, the political stability and business government policies as well as for its attractive state-of-the-art infrastructure.

Requirements for setting up a Company in Singapore:

• Minimum of one Singapore resident director (or nominee resident director)
• Minimum of one shareholder holding a minimum 1 share
• Singapore address as registered office address
• Appoint a resident individual to act as the company secretary

Corporate Taxation

1. There is no tax on capital gains in Singapore, e.g. Sale of fixed assets, gains on forex on capital transactions
2. Tax paid by a company on its chargeable income is the final tax and all dividends paid by a company to its shareholders are exempt from further taxation.
3. Singapore’s headline tax rate is a flat 17%.
4. Availability of various tax exemption schemes and incentives, subject to conditions.

Audit

The requirement of audit is determined by the “Small Company Concept for Audit Exemption”. A company qualifies for audit exemption as a small company if:

1. it is a private company in the financial year in question; and
2. it meets at least 2 of the 3 following criteria for immediate past of two consecutive financial years:

(i) total annual revenue ≤ $10m;

(ii) total assets ≤ $10m;

(iii) no. of employees ≤ 50.

Where a company has qualified as a small company, it continues to be a small company for subsequent financial years until it is disqualified.

A small company is disqualified if:

1. it ceases to be a private company at any time during a financial year; or
2. it does not meet at least 2 of the quantitative criteria for the immediate past of two consecutive financial years.

A small company will be required to prepare its management accounts, unaudited financial statements, submit its corporate tax and annual returns on a yearly basis.

UAE was established in 1971 and is a federation of seven emirates each one ruled by a National family, which belongs to powerful tribes of the respective regions.

Since its establishment, the UAE has been transformed into one of the most prosperous and highly advanced societies. Principal aim of the government is to continuously promote efficiency and transparency so as to further boost the economic development in the jurisdiction.

The advantageous geographical location between Asia and Europe makes the transportation efficient, cheaper and easier. Foreign trade has shown a dramatic increase before recession on both imports and exports.

Population of UAE is currently estimated at 9,27 million (1,2% annual increase), majority of which relates to expatriates.

Key benefits to incorporate in the UAE:

• No Corporate Tax, except of banks and oil sector entities
• No Personal Tax
• High degree of anonymity
• High level of confidentiality – protected by law
• Double tax treaties with various jurisdictions including Malaysia, UK and Hong Kong
• Compliance with Anti-money laundering regulations

Further to the above, UAE offers three different types of companies as per their legal structure, as listed below:

I. Limited Liability Company (LLC)

• Should be formed by minimum two to maximum fifty shareholders.
• At least 51% of the share capital should be owned by UAE National(s)
• No minimum capital required
• Distribution of profits can be made in different proportions as agreed between the shareholders
• Rules and regulations are generally similar in all seven Emirates of UAE.

II. Free Zone entities

• May be branches and representative officers of foreign companies
• There are 45 UAE Free Zones available and each provide differing incentives.
• 100% foreign national ownership is allowed
• Freedom in hiring foreign employees
• Can be formed by one individual only
• No personal, import or export taxes
• 100% repatriation of revenue and profits is allowed
• Free transfer of funds
• No restrictions on currency
• Less documentation required, suitable for foreigners
• Ability for immediate liquidation

III. Offshore Companies

• Allowed for foreign nationals either alone or in partnership with foreign or UAE Nationals
• No minimum capital required
• Services are not permitted to be offered locally
• Tax-free earnings
• Easy set-up for corporate bank account
• Registered Office and Registered Agent in UAE are required
• Line of services allowed: Legal consultancy, accounting, management consultancy, IT and other similar services
• In case of certain specific professional activities, compliance with the relevant laws and regulations is required
• No audited financial statements are required

For more information about company formation and other services offered in the UAE, follow the link