Offshoring can be a great way to start or expand your business without too much hassle on the set up. But before you start with the process, you need to choose the right location or jurisdiction for your offshore company.
If you are currently on the look for the perfect jurisdiction, here are some things you need to check.
- Laid back tax laws
Contrary to the popular belief, not all locations that claims as tax haven locations are offering zero tax incentives to businesses. But the difference is that, the tax scheme is much more relaxed than other countries of locations. When choosing an offshore jurisdiction, you need to take a look at their tax scheme and which one of this would be the best fit for your offshore company. Of course, it is advisable to choose one that has tolerable tax laws for business owners, especially foreign investors.
- Tolerable processing of documents
Document processing is a bane for business owners, especially for those who are just starting on this business. Some locations request a mountain of documents for you to provide and there are instances that you don’t have these documents with you. So it would be best to choose a jurisdiction or location that is a little bit relaxed when it comes to requirements. If you are not sure about this, consult with an offshore company formation in Dubai or target location for a list of requirements along with the tax scheme and laws.
- Offers different business setup
Offshore setup is just one type of company formation and there are several others. In case that you want to switch or upgrade your company standing, you might need to change your company formation. Pick a jurisdiction that can cater to different company formation types in the event that you need to update you company formation.
- Economic standing
Experienced business owners always lean on jurisdiction that provides a number of opportunities for business growth. Before you decide on the jurisdiction, you need to check the economic standing on the location and what are the business prospects that you can take advantage.
- Availability of office and commercial spaces
Although virtual offices can be an option for offshore companies, having a business space that would service as your satellite office can enhance your business presence. Every location offers business spaces for foreign investors, what you need to consider when you want to start business in Dubai is the location, the rate, and the prospects that business location can offer to you.
- Strict rule on privacy and confidentiality
Some business owners and stakeholders prefer to stay in the background. Offshore company set up offers this benefit. However, you still need to check the laws of confidentiality on your target jurisdiction if that would suffice.