Offshore Company Incorporation

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LABUAN

Background:

Labuan is an island, 92 sq km in size, off the north-west coast of the former British Borneo and Brunei Darussalam and is strategically located roughly equidistant from Bangkok, Hong Kong, Jakarta, Kuala Lumpur, Manila and Singapore. It is mostly flat with a good harbour and is accessible by air, with daily services from Kuala Lumpur and from most Asian capitals.

Advantages of Labuan Company:

    1. Labuan plays an effective role in the development of the economies of ASEAN countries
    2. All offshore business transactions attract no stamp duty and capital gains are not subject to any form of tax
    3. Not subject to Malaysian exchange controls
    4. Malaysia enjoys tariff reductions in the ASEAN Free Trade Area (AFTA), and more than 60 DTAs have been signed

 

The British Virgin Islands (BVI)

Background:

The British Virgin Islands (BVI) is a group of about 40 islands in the Caribbean Sea located approximately 80 kilometres east of Puerto Rico. The BVI is a British Dependent Territory which became self-governing in 1967 and is a member of the British Commonwealth. Since introducing its International Business Company (IBC) legislation in 1984, the BVI offshore financial services sector has developed, and is now the world's most popular offshore centre with around 700,000 companies incorporated. The newly enacted IBC Act should further enhance the jurisdictions popularity.

Advantages of BVI Company:

      1. High-Quality Service, Low-Key Approach
      2. Flexible, Innovative, User-Friendly Legislation
      3. Responsiveness to the Interests of the Global Financial Community
      4. Vigilance in Regulation and Supervision
      5. A Stable, Secure and Sophisticated Democracy
      6. Commitment to Legitimate Privacy
      7. Freedom From Restrictive Fiscal Measures
      8. Dedicated, Talented Management and Workforce
      9. State-of-the-Art Telecommunications and Support Services
      10. Strategic Location, Serving the Americas, Europe and Asia
      11. Outstanding Environment and Lifestyle

 

SEYCHELLES

Background:

Seychelles comprises 115 islands occupying a land area of 455 km² and an Exclusive Economic Zone of 1.4 million km² in the western Indian Ocean. It represents an archipelago that extends from between 4 and 10 degrees south of the equator and which lies between 480km and 1,600km from the east coast of Africa. Seychelles is renowned for its pristine, natural environment. Several of Seychelles beaches are consistently voted as among the best in the world!

The official languages of the Seychelles are English French and Creole. Seychelles has a population of 83,000 of mixed ethnicity comprising of Indian, European, African and Chinese origins. The weather is pleasant all year round with mild to hot temperatures. Seychelles has two seasons made up of a dry season (February to November) and a rainy season (November to February).

Advantages of Seychelles Company

      1. Value for money - a low annual Government licence fee of US$100 irrespective of the IBCs authorised capital
      2. Fast incorporations and name approvals: same-day incorporations
      3. Nil Seychelles taxation on foreign income
      4. Privacy and asset protection: including no public filing of details of shareholders or directors
      5. Ease of administration: no requirement to file financial accounts or an annual company return in the Seychelles
      6. The Seychelles is a stable and independent country, and is therefore not subject to ever-growing EU directives (which are increasingly impacting on European dependent territories)

 

SAMOA

Background:

Samoa comprises of several islands situated approximately half way on a line drawn between Hawaii and New Zealand. Apia is its capital. The population of the islands is approximately 160,000. Originally ruled by Germany from 1889 to 1914, Samoa was subsequently administered by New Zealand until it became the first South Pacific country to gain independence in 1962. Samoa was known as Western Samoa until 1997. Samoa has a parliamentary system of Government with elections every 5 years. There are 47 members of the Legislative Assembly who elect a Prime Minister who, with an eight member Cabinet and the Head of State make up the Executive Council.

Advantages of Samoa Company:

      1. An independent sovereign nation with political, economic and social stability

Substantial tax advantages

      1. User-friendly to Asian investors that a company can be registered with a Chinese-character name, and other foreign languages are permitted in addition to the English-language name of the company on the Certificate of Incorporation
      2. Chinese-language M&As are available, and documents may be filed in any language with an English translation
      3. Long Term International Companies available with discounts offered when paying 5-year, 10-year or 20-year licence fees in advance
      4. Samoa's legislation has strict confidentiality and secrecy provisions, sanctioned by heavy penalties written into each of the Acts forming its legal basis
      5. Low Government fees for re-domiciliation

 

The CAYMAN ISLANDS

Background:

The Cayman Islands are a British colony situated in the Caribbean sea approximately 500 miles South of Miami, Florida, with a population of approximately 50,000 people of mixed origin. The Islands enjoy sophisticated legal, accounting and banking services and derive political stability by virtue of their connection with Britain. The legal system is British and the government is headed by a Governor appointed by the Crown who presides over a Government made up of twelve locally elected members and three senior civil servants who hold ex-officio office. There is no exchange control and no restrictions on the movement of funds to or from the Islands.

Advantages of The Cayman Islands Company:

      1. The flexibility of the structure of the Cayman Islands exempted company is one of its principal appeals.
      2. The incorporation procedure for an exempted company is simple, incorporation fees are low and no regulatory authority approval is required. Exempted companies can be incorporated on a twenty four (24) hours basis.
      3. There is no statutory prohibition on an exempted company providing financial assistance with regard to the acquisition of its own shares. The directors of the exempted company owe a fiduciary duty to the company to act in good faith in the best interests of the company in agreeing to provide the financial assistance.
      4. The company is permitted to use its share premium account to fund the payment of dividends to shareholders subject to it remaining solvent after such payment.
      5. Stamp Duty On Transfer Of Shares

 

UNITED STATES OF AMERICA (DELWARE COMPANY)

Background:

Each of the 50 states of the United States is constitutionally an independent legal jurisdiction with the right to enact laws in many areas of activity. Each state has enacted its own LLC statute with most states doing so after 1988 when the U.S. Internal Revenue Service commenced issuing rulings that an LLC would qualify for partnership tax treatment. Among the states, the state of Delaware has emerged as the premiere LLC jurisdiction with approximately 25,000 LLCs being formed annually. The status of Delaware as the leading LLC domicile is linked in part to the important role played in the U.S. by the Delaware corporate legislation and its Chancery Court in the development of American corporate jurisprudence. The influence of the Delaware corporate regime is evidenced by the fact that more than half of the companies on the Fortune 500 list and of the companies listed on the New York Stock Exchange are domiciled in Delaware.

Advantages of Delaware Company

    1. 1A well developed political, legal and economic society
    2. Back-up provided by comprehensive and mature professionals, financial institutions and providers of legal services
    3. Privacy – no disclosure of beneficial owners
    4. No income tax is assessed on corporations’ offshore income
    5. Non-resident shareholders pay no Delaware state tax on shares
    6. Annual franchise tax is low
    7. Wide variety of types of entities fit for different purposes, e.g., "C" Corporation, LLC, "S" Corporation, Close Corporation, etc.
    8. Simple company structure, e.g., for a “C” Corporation, one person can act as the director, shareholder and officer
    9. User-friendly - timely registration, expedited service, online filing and search, etc
    10. Simple administration – corporate books and records are not required to be located in Delaware