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Selecting a Tax Haven


What Factors should I keep in mind when Selecting a Tax Haven?
It is often difficult to know where to start when trying to select an Offshore Jurisdiction or Tax Haven for the purpose of setting up an offshore business for international or global trade. There are a large number of Offshore Jurisdictions, most of them are free from foreign exchange controls and include many company legislation benefits that international or global business requires.When you are considering which Offshore Jurisdiction there are a number of additional factors that will help you to decide:

1) Language- It is important that communications are clear, so choosing an Offshore Jurisdiction or Tax Haven with a foreign language could prove to be difficult, unless the company formation services you employ has operatives speaking fluently in your language.Whilst in many Offshore Jurisdictions English is the most commonly spoken language, it is not always the first language in many.

2) Political and Economic Stability-You certainly do not want to be concerned that your offshore business or offshore funds are at risk because the country is unstable and subject to a military takeover, massive inflation or freezing of bank accounts. Thus this should be a factor in your decision, and you should have confidence within reason that the country is stable.

3) Legislation-Each Offshore Jurisdiction or Tax Haven has a different set of company law and regulations. These specific requirements and benefits are set out in each Offshore Jurisdiction. You will need to consider requirements such as whether accounting requirements are required, If a company secretary is required, Limited Liability, Nominee shareholders allowed,etc and choose an Offshore Jurisdiction that has the most favorable conditions.

4) Communications-Depending upon the Offshore Jurisdictions or Tax Havens requirements it is unlikely that you will need to go in person. However good communications are important via the Internet, and post. If you physically are likely to go to your Offshore Bank, then air travel or other travel availability and costs should be considered.

To make the right decision, it is a good idea to look at the pros and cons of each offshore jurisdistrict or Tax Haven and through a process of elimination decide on the most favorable Offshore Jurisdiction for your offshore business.
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