Low-tax jurisdictions, unlike the classic offshore companies have more respectable status. Low-tax countries tend to require auditing and submission of financial reports.
The main advantages of low-tax jurisdictions are special tax benefits applicable to certain types of companies, such as, financial, trade and holdings. Usually low-tax companies impose taxes on dividends, bank interest, royalties, etc. However, to make bank transactions is much easier in such countries. The companies registered in low-tax jurisdictions enjoy possibility of applying Treaties for the Avoidance of Double Taxation.
Companies in low-tax jurisdictions, as a rule do not conduct independent activities, and act as an intermediary between an offshore company and a company from Europe or, for example, Russia or Ukraine. Low-tax companies have great tax environment for subsidiary registration. Investors also find these countries more appealing from the taxation point of view.
Registration process can of low-tax company may take a little longer than the registration of classic offshore company.
Due to certain features and benefits of different jurisdictions, it is advisable to have a look at more detailed description of the country on our site.