Categories: Business

Low Taxation Destinations For Opening A Company

There are many aspects to consider when choosing a country to set up a company in. One of the most important aspects is taxation, according to studies. With a great number of countries which sign double taxation and free trade agreements, choosing a state with a good taxation system doesn’t seem too hard, however, there are some governments which offer additional tax benefits and thus becoming more appealing. Below, we will take a look at some of the most important low taxation destinations in the world.

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European Countries With Low Taxation Systems

Choosing a European country to start a business in can represent an important decision, especially when considering taxation. Cyprus, Malta, and Ireland are just a few of the European and European Union countries which offer unique tax benefits, among which low corporate taxes in the case of Cyprus and Ireland and a full imputation system which can lead to significantly low taxes in the case of Malta.

The business form under which the activity is completed is also important when choosing a country to set up a company in. A businessman will usually choose to set up a limited liability company, however, in other countries, other entities can also offer various tax advantages. Those who want to register public companies in Romania, for example, can obtain some tax benefits.

Offshore Destinations Preferred By Investors

Offshore countries, such as Seychelles, will always remain one of the best choices for those looking for low taxes. These states offer not only a great taxation system which most of the times imply a 0% rated corporate tax, but also enhanced confidentiality and protection of assets, therefore providing more benefits than onshore destinations. Speaking of offshore countries, Cyprus can be considered both an onshore and an offshore country.

Asian States With Low Taxation Systems

In Asia, the taxation systems of several countries offer great advantages to local and foreign investors. Among these, Singapore, Malaysia and Hong Kong represent some of the most appealing low tax destinations. With simplified taxation systems and also incentives which help with the reduction of the corporate tax, these countries attract important numbers of foreign entrepreneurs every year.

Selecting a country because of its taxation system is often the choice of many foreign investors, however, there are also other aspects to be considered by many of them. The type of company which can offer lower taxation, the registration, and maintenance costs can all lead to a reduction of the whole taxation of a business, therefore choosing a state which offers a balance between these is just as important.

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