Choosing a Jurisdiction
The choice of a suitable jurisdiction is an important decision and requires careful considerations. The most important aspects to be examined may be outlined as follows:
- Political and economic stability of the jurisdiction
- The availability of a modern and flexible legislative framework
- Simple incorporation and filing requirements
- The availability of Double Taxation Treaties - this is very important in order to minimize withholding taxes on the payment of dividends and royalties from contracting states
- The availability of good calibre professional advisers
- A good banking system
- Good telecommunications
- Reputation (some "tax havens" are viewed with suspicion).
Important Note: Professional advise should always be sought before acquiring an offshore entity so that you are aware of any restrictions and reporting requirements.
