Are you asking yourself - "Is the cost of incorporation more than the amount of wealth I will save?"
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How can your cost of the offshore package be minimized? Are you looking for the 'best incorporation'? Or a 'cheap incorporation'? What will be your total incorporation fee?
Allcompanies cost money to start and then to maintain every year.Incorporated offshore or locally. In the offshore package, there is the government registration or incorporation fee, the registered office to be maintained, sometimes accountants have to be paid for audits, nominees are hired as directors and /or shareholders. The legal requirements of the country you want to use the company in will require attestation by way of notarization or Apostille. Locally, many of these costs don't exist, making domestic incorporations much cheaper!
Let's look at the various elements of the cost of incorporation.
1. The country of jurisdiction [in which country the company isincorporated] determines the basic incorporation fees. Some of the other fees related to administration costs are higher in the highercost of living countries.
2. The degree of anonymity you need - which will add the cost of hiring nominee directors or shareholders and whether they are persons orcompanies.
3. And the country in which you want to use the offshore or locally incorporated company. e.g. a country that simply accepts an Apostille notarization is the cheapest incorporation. Then places like Dubai,United Arab Emirates, wants documents to be attested by the UAE embassy nearest to the jurisdiction of incorporation. The fee for this climbs by a few thousand dollars and the time taken by a few weeks!
4. Lastly, there are the double tax treaty companies. If you are planning to invest in a business in a specific country then it is best to check which tax haven has the best double tax treaty with your country of choice.
For example, Mauritius has good tax treaties with India, China, Sri Lanka and South Africa. But these treaties apply to residentcompanies only. NOT offshore or Free Zone ones!
And resident companies are more expensive! For example we could do a simple offshore company in Mauritius for around US$ 2000. But the cost of incorporation for a resident company could be around US$ 11000!
Of course, when your investments are in hundreds of thousands of dollars or more, then the benefits are several times greater than the costs, and thecost of incorporation for resident companies become worth every penny.
Incorporate a business with the trusted leader in online incorporation services. You can form a corporation (C corporation, S corporation), form a limited liability company (LLC), get a registered agent and more. Incorporate online in any state and save.
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