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Monthly Archives: December 2013

The Cheapest Places to Live in the World – 2014

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Would you like to feel wealthier?

You could work more hours. Or get a higher-paying job. Or become a hermit and never go out or buy anything.

Or you could just move.

cheap living Mexico

At an exchange rate of 12.5 to the dollar…

Each year I do a rundown of the cheapest places to live in the world, giving readers examples of real “normal person” costs in places where you can live well for less. By nature it can’t be complete—it’s an idea generator. Invariably it also generates lots of questions in the comments and by e-mail, so next year I’m going to answer all those questions in a book. The final title will be determined later, but let’s call itCheap Living Abroad right now. If you want to keep up with the progress, help shape the content, or be a reviewer when it hits, go sign up on this page.

When you do, you’ll get a free report on “12 Places You Can Stay for Four Months or More on a Tourist Visa.”

For now though, let’s look at where you will be able to get by on far less money than you can in your own country by living somewhere else. Here are some of the cheapest places to live in the near future based on actual prices, economic conditions, exchange rates, and ease of staying for a while.

It’s not hard finding a cheaper place to live than where you probably live right now. That list would probably be 100 countries long. You could just pull up Gross Domestic Product breakdowns and compare it to your country’s. A list like that will only take you so far, however. Just because Pakistan, Somalia, Sudan, or Haiti is cheap doesn’t mean you’re going to want to live there. Other places are a bargain and very desirable—like Indonesia or the Philippines—but the visa situation makes it very tough to buy or even set up residency unless you’re going to marry a local, get a job with a multi-national, or start your own corporation.

Also, keep in mind that tourism deals do not always translate to cheaper residency. Just because you always see ads for beautiful Croatia holidays at bargain prices, don’t split for the city of Split thinking that rents and restaurant meals are going to be cheap. Tourist towns are priced for tourists.

The cheapest places to live in the world don’t change drastically from year to year, solast year’s report is still full of great ideas. Economic conditions change though, as do visa requirements, so here’s an update for the coming year, arranged by continent.

Cheapest Place to Live in Europe

In terms of economic growth, Europe is the sickest region in the world right now. So while it’s not cheap, in the real estate world you can find lots of value. Even if you’re not buying, there’s big supply and low demand in countries where people are trying to get an income from second homes, where relatives have moved in together to save money, and where overbuilding has created a glut of empty apartments. If you’re already a European Union passport holder, moving to another country here is a no-brainer. You’re mobile, you’ve got budget flights home to see the relatives, and you’ve got very few visa hurdles.

Budapest

Hungary

Prices for rent or purchase are great in Hungary. Even in Budapest you can find a furnished apartment in a convenient area for 300 euros or less. Prices for eating out, drinking wine, and entertainment are half what you’re probably paying in your home city. Head to a smaller city and prices drop more.

If you have ancestral roots in the country, you can get a fast-track citizenship, with a dual passport. You have to speak Hungarian, but this is a back door into the EU and Hungary would be a great place to live in Central Europe. This is one of The World’s Cheapest Destinations for travel and you can hop on a train here to visit neighbors Austria, the Czech Republic, Slovakia, and Romania. For more details, see my post on traveler prices in Budapest (and assume as a resident, you’ll find lower ones…)

Romania, Slovakia, and BulgariaRomania living

I’m lumping these three together because they all have a glut of housing for the same reason: a lot of their citizens are living abroad in order to make more money than they can at home. In the cities this means anyone who comes in with cash can find a nice apartment for 250 euros relatively easily. If you head into the countryside, there are entire blocks of empty homes that are either temporarily or permanently empty. If you’re a buyer, you can pick up a house or new condo for less than US$50,000. If you’re a renter, “How much have you got?”

Slovakia isn’t as well set-up for inter-city transportation as the other two, but you can get between the main population centers on a train or bus. In Bulgaria and Romania, you will eat and drink very well for cheap and you can move between cities for a few dollars. See past posts on prices in SlovakiaBulgaria, and Romania.

Portugal

I visited Lisbon and then did a week-long bike trip through the rural Alentejo region of Portugal earlier this year and found the prices on some things comparable to what you would find in Eastern Europe. But you get those cheap prices in a warmer climate that borders the ocean. And if you learn the language here, you can use it in huge Brazil.

With the economic crisis in Europe hitting Portugal hard, it’s a buyer’s market for real estate. With unemployment high, there’s little opportunity for living expenses to rise for those renting and buying groceries either. The great wine here is a terrific bargain and there’s a tremendous amount of inherent beauty. The big drawback for Americans is this is a full member of the EU, with the same residency hurdles you will face anywhere else in Western Europe. Prepare for a long, drawn out process with the bureaucrats.

cheaper living Portugal

My offshore start up !Guide and instructions for offshore companies

Offshore business and company are the words with no definite legal or general meaning. In plain words, offshore means “anywhere other than the place of physical location of the person using this word”, in other words – overseas. Offshore business and company are mainly used in relation to the subjects such as structuring of international business and family fortune management. Utilization of international corporate or fiduciary trust structures has many reasons and advantages.

Many individuals and corporations who use offshore companies and planning aspire to:
– Reduce tax – Protect assets
– Manage risk – Enhance assets
– Maintain privacy – Reduce costs
In general, the reasons for using offshore companies for business are:
– Free remittance of profits – Access to top-rated jurisdictions
– Security of property rights – Accessing low cost areas
– Access to tax treaties – Banking privacy
– Availability of offshore experts – Access to foreign insurance
– Customs and duty exemptions – Exchange convertibility
– Enhanced privacy – Government cooperation
– Fair treatment – Territorial taxation
– Sanctity of contracts – Foreign investment inducements
– Fewer restrictions – Tested legal systems
– Higher yields and returns – Sophisticated banking facilities
– The search for political stability – Reduced taxation

Offshore companies are mainly used for:

– Trading – Investment
– Holding – Financing
– Services and consultancy – Intelectual property
– Ship management – Tax planning

Personal and corporate tax planning
company formationOffshore Company Formation is commonly used for structuring of international business and tax planning.

  • Companies incorporated in ‘tax haven’ countries offer individuals and businesses little or no tax liability which include company formation centers such as Seychelles, Marshall Islands, Panama, Dubai, etc.
  • Companies registered in jurisdictions can provide both offshore and onshore companies which may gain from beneficial tax regulations and/or uncommon company systems.
  • Companies registered in many onshore countries with laws which enable systems that are tax favorable for specific international purposes.
  • Although the world of offshore was presented by the media as black-and-white world, it is far more complex. The offshore business includes both tax havens and onshore high tax jurisdictions striving against others to attain international companies and individuals with all methods of regulations and opportunities.

These beneficial regulations are used for diverse tax planning business, such as:

  • Double tax treaty planning in relation to dividends, interest and royalty payments.
  • Formation of international head-quarter treasury, holding and finance operations.
  • Specialized business, for example, leasing.
  • Personal and family wealth management.

To stimulate inbound investments, almost all countries offer one sort of tax regulations or another.

International Business
international businessInternational Business 
Existing opportunities for improving general efficiency presented by low tax regimes offered by the high tax jurisdictions looking to encourage international business have been recognized by the international advisers for some time.
Still, in order to implement such structures successfully, a wide range of issues, frequently relating to subjects such as provisions of anti-avoidance, double tax aversion, controlled foreign company and management and control tests and stipulations, transfer pricing, narrow capitalization, participation indemnity, capital gains tax and a multitude of other ever-changing regulations.

  • Latterly, once held in the arms of the tax collectors, the weapons have now been reinforced by exchange of information treaties and provisions.
  • Nowadays, the offshore world involves skilled implementation of special tax favorable structures domiciled in high tax jurisdictions(Switzerland, UK, Singapore, the Netherlands etc).

 

Offshore companies in USA

To set up an offshore companyor relocate your existing business overseas is a crucial step toward internationalizing yourself and your assets. Search for “offshore company” and you’ll find thousands of websites promising a quick company formation in Panama or the British Virgin Islands, with a range of other “benefits” for the jurisdiction in question.

There is a current misconception that offshore business is about evading taxes and hiding money from the government, which is certainly not the case.

There are 100% legitimate ways to structure your business interests overseas and realize significant benefits from an asset protection standpoint — as well as tax-standpoint.

Want an example? The last few years Google has cut its taxes by $3.1 billion in totally legitimate ways.

You too can do this.

Some say this is unethical and cheating, but not surprisingly, those who say this are most often not the same people as those who create value in society. If you’ve found your way to this page, chances are strong that you’re a value creator and want to keep more of the money you get back as a result of creating value.

Tax Advantages With Offshore Business

First of all, you don’t have to start a company offshore to save on taxes — just moving out of the US is a terrific first step. As a US expat, the first $91,500 in overseas income is tax exempt, meaning if you live outside the US you don’t have to pay any taxes at all on the first $91,500 of foreign sourced income (you still have to file your tax report though).

However, the real tax advantage from running an offshore company as a US citizen doesn’t come from direct tax savings. It comes from tax deferment, meaning you postpone the payment of taxes into the future. If you run a business overseas and reinvest profits within the company you can defer taxes indefinitely.

Let’s say you have a profitable company overseas. Now imagine that instead of paying taxes on your profits every year you can reinvest that capital in your offshore company every year for 30 years, and only pay taxes if you decide to sell the company after 30 years. Being able to reinvest your capital tax free combined with the power of compound interest makes this a truly exceptional opportunity.

Offshore Internet Business: Incorporating A Truly Global Business

It is a great idea to structure your business overseas, especially one that’s online-based. If you incorporate your foreign business properly, it provides a legal way to defer tax payments (similar to an IRA), as well as enabling much reduced liability.

An online business has no limits as to how and where it can do business, so why should you let your business be limited by a jurisdiction that is based on the old, geographically limited model?

Starting an offshore online business is a great way to build streams of income outside of your home country. Why would you want to have income streams outside of your country? Well, when inflation runs rampant in a country, having an income stream overseas in a stronger currency can potentially be a lifesaver. If hyperinflation would find its way to your country, which is a real risk with central banks all around the world is printing new money 24/7, earning only a small part of your income in a different country is invaluable.

An internet business based overseas, coupled with an offshore bank account, is the perfect medium through which you can do this.

Offshore Company Formation: Ins and Outs

There are dozens of jurisdictions, such as Hong Kong, Singapore and the British Virgin Islands that offer a great business environment with fully legal tax benefits.

The most important thing that you MUST do is ask for advice from a qualified tax attorney (someone who understands international tax law) in your home country. Additionally, learn enough to understand the benefits of particular offshore jurisdictions.

After you’ve done your due diligence, it’s possible to go through the whole incorporation process online in most jurisdictions, and you can often set up your offshore company in as little as a few days. You often start the process with registering a company name and sending in the right documentation. The next step, after incorporation, is often to open a bank account or merchant account for your business.

USA COMPANY FORMATION

Want to learn more about this jurisdiction?

Send us an inquiry

 

Non-resident US LLCs still maintain popularity on the market, for example as offshore holding companies or for international trading. If you want to expand your business to the United States, whether to run an internet-store for US based clients or open an art gallery in the Chicago area, an onshore resident structure must be established. US companies that partially conduct business in the United States turn to be a beneficial trading vehicle with liable presence in USA and US bank account. Moreover,  upon smart structuring non-US source income will not be subject to US federal tax.

One must distinguish non-resident LLCs and resident LLC:

Non-resident LLCs:

  • Have non-resident owners
  • Have non-US source income
  • The US federal income tax is avoided
  • File Report of Foreign bank and financial accounts (FBAR) and/or other reports if required, for example The Foreign Account Tax Compliance Act (FATCA)
  • Unlikely to open US bank account

Resident LLCs:

  • May have non-resident owners
  • Fully or partially conduct business in USA – have US clients, venders, etc.
  • Pay federal income tax on US-source income
  • Maintain bookkeeping as per US accounting standards
  • Can open US bank account.

If you wish to set-up a resident structure with US bank account, please provide us answers to the questions in „Popular Applications” sections.

POPULAR USA COMPANY APPLICATIONS

Non-resident LLC companies can be used as tax-transparent entities for holding and international trading purposes. Although it must be noted that it is becoming more and more challenging to open a bank account for those.

Resident LLC features advantages of territorial taxation whereas only US-source income is taxed after deducting of administration expenses.

We can assist in setting-up your presence in the United States. To obtain an initial, free of charge consultation on your set-up requirements, it is essential we receive your answers to the following questions:

  • What is the nature of the operations?
  • Does the Company plan to have employees, maintain inventory or / and occupy a facility in the US?
  • How does the Company plan to sell into the US?
  • In which country or countries do the shareholders reside?
  • What country / countries does the company currently operate in?
  • What is the company’s long and short term plan for cash profits generated in the US?
  • If a business plan with financial projections exist, please provide a copy

We provide the following services for US onshore companies:

  • Formation of a legal entity. Typically such entities are formed in the state of Delaware
  • Establishing a bank account and merchant account (no visit required)
  • Preparation of a shareholder agreement (if required)
  • Implementation of the US foreign structure
  • Preparation of US Corporate tax returns (annually)
  • Bookkeeping services for US company

 

USA COMPANY TAXATION

Non-resident LLCs that have non-resident partners and trade purely outside the US generally are not required to file federal or state income tax return. Although abbreviated reports may be required in some states, for example Maryland. As well particular IRS reports for non-resident entities such as FBAR (if bank account balance exceeds USD10,000 at anytime) and/or The Foreign Account Tax Compliance Act (FATCA).

We can assist overseas clients in obtaining tax id numbers (Employer Identification Number), and in preparing and filing annual trading accounts for any type of US LLC structure – trading solely outside of the US, trading in US or hybrid LLCs that have both US and worldwide income.
Companies that are set-up as resident entities and conduct business in United States are subject to US federal tax and must file US tax returns.

 

Belize offshore company formation 

Delaware offshore company formation 

 

 

Delaware offshore company formation -Guide

 

Advantages of incorporation in Delaware

If you want to register an offshore in Delaware please contact author anelixi@ovi.com

Features of Delaware Corporations

Features
Comparison
More Information

The company (entity type) our clients select when raising capital from the public or Venture Capitalists is the General Corporation. Here are some features of the Delaware General Corporation (C-Corporation):
 

Reporting

  • A Delaware Corporation may file a Certificate of Incorporation which does not name the Initial Director.
  • A Delaware Corporation is required to file an Annual Report which must include:
    • The phone number and address of the business
    • The name and address of one officer
    • The names and addresses of all Directors
    • The shareholders are not listed on the annual report and are not reported to the state.

Income Tax

  • There is no Delaware state corporate income tax on goods or services provided by Delaware Corporations operating outside of Delaware.
  • There is no Delaware Sales Tax.
  • Tax Status:
    • The default tax status is C-Corporation. The C-Corporation pays income tax at corporate rates and files a corporate income tax return.
    • If eligible, the corporation may elect S-Corporation tax status. An S-Corporation is taxed at personal income tax rates and the profits and losses are reported on the personal income tax return.
    • If organized as a not-for-profit corporation, the company can apply for tax-exempt status from the IRS.
For more information about tax status see the Corporations section of the Delaware Incorporation Handbook.

Liability

  • The liability of all shareholders (owners) is limited to their investments in the corporation (unless they personally guarantee other debt incurred by the corporation, commit fraud or commingle funds).

Compliance

  • A Delaware Corporation is required by law to maintain a Registered Agent in the state of in the state of Delaware. DBI will be your Delaware Registered Agent and the first 12 months of Registered Agent service is free with the purchase of a New Company Registration Package. The service is $100/year thereafter ($120 outside the US).
  • A Corporation authorizing 5,000 shares or less will pay the minimum Franchise Tax of $75 plus a $50 Annual Report Filing Fee. 
  • A Delaware corporation has the right to conduct Interstate Business and DBI can qualify a Delaware corporation to conduct Intrastate Business; please see the article on Qualification.

International

  • Non-resident, Non-citizens are eligible to form a C-Corporation or a Not-for-Profit organization in Delaware. Non-residents are not eligible to apply for S-Corporation tax status. Please see our section for international businesses.
  • A Delaware Corporation with no US Source Income will not owe US Federal Income Tax.

Investment

  • A Corporation can raise capital by selling shares of stock privately or on a public stock exchange.
  • Ownership of a Corporation is recorded on stock certificates.

 

llc delaware
1.) A Delaware LLC may be owned by any national, regardless of place of residence.
2.) A company in Delaware may have one or more members.
3.) Nominee members can be used not to disclose the owners’ names to the state. The Delaware LLC is not required to report any assets.
4.) The company in Delaware can be operated and managed worldwide.
5.) Tax Savings:
a.) If the business activities and registered office of the LLC are out of state, there are no state income tax
b.) Pass-through taxation
llc taxation

 General
 Type of company LLC
 Shelf company service Available
 Time frame for the company registration 7 days
 Taxes Details
 Double tax agreements No
 Name Details
 Company seal Optional
 Managers
 Number One minimum
 Local officer Not required
 Publicly accessible records Yes Details
 Nominee Manager Yes Details
 Meeting location Anywhere
 Members
 Number One minimum
 Publicly accessible records Yes Details
 Company secretary
 Company secretary Yes
 Residency Anywhere
 Accounting
 Company secretary No
 Auditors No
 Requirement to file accounts No
 Others
 Requirement to file annual return No
 Restrictions on activities Yes Details

Belize offshore guide

Belize has become one of the most prominent locations for companies and wealthy individuals who are seeking a premier offshore tax haven. The country offers numerous financial advantages for entrepreneurs, corporations, and private investors alike. With favorable banking laws, very accommodating international financial treaties, desirable tax rates, and our assistance, your new business will flourish in Belize. For those in need of offshore tax relief, Belize has become the foremost alternative.

Belize, formerly a British Colony, is the only country in Central America with English as its official language. Nestled in the Yucatan peninsula, Belize is merely 200 miles south of beautiful Cancun in Mexico, and less than 100 miles east of the famous Tikal Ruins of Guatemala. Belize is an independent country that has enjoyed a history of peace and tranquility, unlike the other countries of the region. Located on the Caribbean seaboard of Central America Belize has an area of approximately 9,000 square miles; 174 miles at its longest point by 68 miles at its widest point. The total population is estimated at just over 275,000 with the major commercial center being Belize City with a population of 90,000. Much of the population of Belize is ethnically diverse including descendants of the original Mayan culture and various mixtures of Mestizo, Americans, Europeans, Chinese, Middle Eastern and East Indians. Belize is an easy 2 hours flight from major American cities such as Miami, Houston and New Orleans, and offers several flights daily to and from Miami, Houston and New Orleans via American, Continental or TACA Airlines. In addition, there are regular flights from Honduras, Mexico and El Salvador. The climate is sub-tropical with an average temperature of 80F.

GOVERNMENT

Belize has a long history of peace, stability and democracy. It became a British Crown Colony in 1862 and achieved its independence in 1981. Belize is a member of the British Commonwealth, the United Nations and the Non Aligned-Movement.

The political system is based on the British Westminster model with Queen Elizabeth II being represented by a Belizean Governor General. Executive authority is exercised by the cabinet under the leadership of the Prime Minister, the Head of State and is subject to approval by a 29-member House of Representatives elected by universal adult suffrage every five years, in addition there is an 8-member Senate with the majority appointed on the recommendation of the Prime Minister.

There are two main political parties, and in the most recent election in August 2003. the government remained the People’s United Party after five years of rule prior in 1998 elections. Both parties are committed to the economic development of the country.

LEGAL SYSTEMS

Belize Supreme CourtThe law of Belize is derived from English Common Law supplemented by local legislation. The court system is also similar to that in England and contract and commercial law is based on the English law model. Belize is not a signatory to any agreement with other sovereign nations that would interfere with the confidentiality and the security of the Offshore Business environment.

CURRENCY AND BANKING

The local currency is the Belize dollar which is tied to the US dollar with fixed exchange rate of BZ$2.00 = US$1 .00. This exchange rate has existed since May 1976.

Belize presently has one Offshore Bank, namely, Provident Bank and Trust of Belize. Additionally there are five commercial banks, The Belize Bank Ltd., First Caribbean International Bank, Bank of Nova Scotia, The Alliance Bank, and Atlantic Bank Ltd. The commercial banks are regulated by the Central Bank in accordance with the provisions of a Banking Act.

COMMUNICATIONS

The Phillip S.W. Goldson International Airport near Belize City provides daily services through five international carriers to the United States and Central America.

Telephone, telex and telefax communications to and from Belize are excellent and direct telephone dialing facilities are available in addition to internet and email services. A satellite earth station at the capital Belmopan provides high quality telecommunication service throughout the world. International courier services for express delivery are well established.

LANGUAGE

English is the official and spoken language but with many also speaking Spanish. Belize has a literacy factor of over 90%.

BELIZE INTERNATIONAL BUSINESS COMPANY (IBC)

Belize is a very reputable offshore jurisdiction, that has gained momentum in recent years for its inexpensive and quick, yet effective and protective, offshore IBCs. Belize is a Central American country, with a robust offshore environment, with English being its official language. Belize is very well accustomed to setting up offshore companies and trusts, and you are in good hands to start a business in Belize. The banks in Belize are very willing to offer merchant account solutions, meaning you can charge your customers credit cards.

FAST: Belize has a very quick incorporation process. Your offshore IBC can be set up in a matter of hours.

NO TAX: Under the Article 130 of the Belize IBC Act, Belize IBCs pay NO TAX in Belize, with only a few simple pre-conditions, including that no business is conducted IN Belize by the IBC.

NO REPORTING: Belize IBCs are free from any reporting requirements.

LEGAL: A Belize IBC is for all legal purposes a separate legal person, and possesses the same commercial rights and powers as a natural person.

SAFE: Belize has an outstanding record of peace, democracy and stability. The country has not been involved into any conflicts or civil disturbances.

PRIVACY: Belize does not disclose its banking or fiscal information under any information-exchange agreements to any foreign parties on grounds of suspected tax evasion. Client confidentiality is robustly enshrined in the Belizean corporate and business legislation.

SECURE: In terms of potential risk of information disclosure to foreign governments (including the U.S.), Belize is arguably the most secure and confidential offshore jurisdiction.

CONVENIENCE: Belize is the only country in Central and South America having English as the official language.

LLC: Belize LLCs were recently passed into law. LLCs are similar to IBCs, except they have membership interest, rather than shareholder stock.

Some Benefits Afforded To Those Who Set Up Belize IBCs

 Complete anonymity and privacy for your Belize IBC.
 Outside of U.S. court jurisdiction.
 Perfect for protecting liquid assets, such as investment portfolios or cash.
 Ideal for business owners who want to operate offshore businesses.
 Ideal solution for protection of high risk assets.
 Perfect for merchant accounts and credit card processing.
 Perfect for someone wanting to purchase investments not available to US citizens.
 One year of service of a registered agent and registered office.
 Preparation, filing and execution of the ‘Memorandum of Association’ with the Registrar of Companies in Belize.
 An operating agreement prepared by asset protection legal representatives..

THE SETUP PROCESS

Application form is submitted with the IBC preferred name.
Corporation documents may be in any language. The company name shall include the word(s): Limited, Corporation, Incorporated, an equivalent, or an abbreviation thereof. Additionally, details of the beneficial directors and shareholders must be included such as nationality, country of residence, address, and profession. Other details, such as a professional recommendation or reference are also required.

Due Diligence Documents

The following must be prepared for each and every beneficial director and shareholder:

 Scanned and notarized copy of the passport or country issued ID card, notarized or certified by a lawyer, notary public, or banker.
 An original proof of residence showing the name and address of the individual is required. Can be a utility bill, telephone bill, or credit card bill, which is dated within the last three months.
 An original letter of introduction is required. This letter can be from a bank, lawyer, accountant or similar profession.

FAQs

Is registration of the IBC private?
Yes, there is no way that another person or government can search for your entity.

Is there any tax on Belize IBCs?
No. Belize IBCs are exempt from any taxes.

What if there is a nominee director, can they go to the bank and say “I’m an owner of this company?”
For a number of reasons, the answer is no. The director is not an owner of the IBC…the shareholders own the IBC. A nominee director does not need to be given any power, and will not be granted any power unless specifically authorized by the shareholders.
All the signatures of the shareholders are needed to open a bank account.
No funds can be added or taken out without the consent of all shareholders, or in other words, the signatory on the account.
Unless you are a signatory on the account (which the nominee director can not do) then you cannot access the account, and the bank will not even talk to you.
In essence, you need the signature of all of the shareholders to alter the account, or to create the power for one person to alter the account.

Can my funds be frozen or seized by my government?
No. Belize company law has specific provisions to ignore any proceeding in any court outside of Belize.

Are there any exchange controls in Belize?
No. Funds move freely in and out.

 

Why offshore?

Offshore company formation is generally much easier than onshore incorporation, due to lax legislation and business-friendly regulation. You can have your company in as little as a couple of days from payment to your offshore service provider (OSP).

This article is by no means exhaustive.

There are a few things you need to consider before start your offshore company:

What company form do you need?
How many persons will be involved in the company?
Which offshore jurisdiction is the best?
What extra services do you need? Offshore bank account, nominees?
Offshore Company Legal Form

The first two questions go closely together.
Companies formed in the most popular offshore jurisdictions, in particular Belize, Seychelles, BVI, and Anguilla, are IBCs, which is short for International Business Company. They are called BCs in BVI, but there is virtually no difference between an IBC and an BC.

IBC – International Business Company

An IBC is very similar to a private limited company in that it has a board of directors, shares, and a share capital, but the shares cannot be publicly traded.

IBCs are characterized by many if not all of these features:

WHERE TO INCORPORATE AN OFFSHORE COMPANY?

The choice among numerous offshore jurisdictions and various company types can be complicated. Each offshore financial center and entity type carries its own set of advantages, benefits and possible trade-offs. In this article, we will attempt to simplify the selection process and explain some of the fundamental characteristics of offshore companies. 

Offshore Company is a company registered for the purpose of operating outside the country of its incorporation and/or the place of residence of its principals: directors, shareholders and beneficial owners. Offshore companies offer a number of legal and tax benefits, including but not limited to low (or 0%) taxation in their home jurisdiction, anonymity for legitimate purposes and asset protection.

Similar to other businesses, offshore companies may enter into contracts, open bank accounts (including offshore accounts), buy and sell various goods and services and own property. A typical offshore company is known as an Offshore IBC (international business company). IBCs do not pay taxes in the place of registration but must also carry on business outside of their home jurisdictions.

There are 5 main criteria that we have outlined for identifying the best offshore tax havens. These are 1) incorporation and renewal costs 2) popularity 3) reputation 4) processing times and 5) proximity to offshore banking facilities.

Incorporation costs and other business fees are often the main decision criteria when it comes to identifying the best offshore jurisdiction. Offshore incorporationis often chosen for the overall lower costs of doing business; hence these fees play such an important role in the selection process.

Another important factor is popularity. The most popular jurisdictions are often the ones that have the best combination of all criteria; hence many choose to incorporate there. At the same time, there are hidden jewels or new jurisdictions such as Anguilla that are on par with other popular jurisdictions.

Reputation is another characteristic and is similar to popularity. At the same time, it reflects jurisdiction’s standing with the professional business community, various government agencies and international banks. It demonstrates the quality of relevant corporate laws and legislatures, the existence of the business infrastructure and country’s stability.

Processing times, including time to complete the offshore company formationprocess and issue various corporate documents, are another important factor. Some jurisdictions can promptly register companies, while others can quickly issue and deliver original documents. Processing times depend on the effectiveness of the local government agencies and registered agents.

Another important consideration is the proximity to offshore banking facilities. Some tax havens have a well-developed banking system, with banks offering a variety of financial services, including online banking, offshore debit and credit cards, merchant accounts and a brokerage facility.

 

 

DECISION CRITERIA:

Below, we present the decision criteria for identifying the best offshore companies in various tax havens.

Low Incorporation Costs:
1. Seychelles IBC
2. Belize IBC
3. Anguilla IBC

Popularity:
1. BVI Business Company
2. Panama Corporation
3. Belize IBC

Reputation:
1. Hong Kong Limited Company
2. BVI Business Company (BC)
3. Anguilla IBC

Processing times:
1. Nevis Corporation (or LLC)
2. Anguilla IBC (or LLC)
3. Seychelles IBC

Proximity to offshore banking:
1. Belize IBC
2. Seychelles IBC
3. Anguilla IBC

Combination of all factors:
1. Belize Offshore Company
2. BVI Offshore Company
3. Seychelles Offshore Company
4. Anguilla Offshore Company

 

 

THE BEST TO PLACE TO INCORPORATE:

Based on our experience and feedback from our clients, we identify Belize as the best place to incorporate when all relevant factors are considered. Belize has a sound banking system, relatively low incorporation and renewal fees and is popular with many retail clients and professional incorporators alike.

BVI is another pick, coming 2nd in our list. It is still one of the most reputable and most popular jurisdictions. Seychelles as one of the most affordable offshore places to incorporate is another pick. Anguilla is a new promising jurisdiction that occupies a 4th place in our list.

For further information don’t hesitate to contact author by email anelixi@ovi.com

Your start up in The Philippines Cut your labour costs and enjoy life in a tropical island with few pesos !

The Philippines (Listeni/ˈfɪlɨpiːnz/; fi-lə-peenz; Filipino: Pilipinas [ˌpɪlɪˈpinɐs]), officially known as the Republic of the Philippines (Filipino: Repúblika ng Pilipinas), is a sovereign island country in Southeast Asia situated in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan; west across the South China Sea sits Vietnam; southwest is the island of Borneo across the Sulu Sea, and to the south the Celebes Sea separates it from other islands of Indonesia; while to the east it is bounded by the Philippine Sea and the island-nation of Palau. Its location on the Pacific Ring of Fire and close to the equator make the Philippines prone to earthquakes and typhoons, but also endows it with abundant natural resources and some of the world’s greatest biodiversity. At 300,000 square kilometers (115,831 sq mi), the Philippines is the 73rd-largest country in the world,consisting of an archipelago of 7,107 islands that are categorized broadly under three main geographical divisions: Luzon, Visayas, and Mindanao. Its capital city is Manila while its most populous city is Quezon City.

With a population of more than 98 million people,the Philippines is the seventh-most populated country in Asia and the 12th most populated country in the world. An additional 12 million Filipinos live overseas, comprising one of the world’s largest and most influential diasporas.Multipleethnicities and cultures are found throughout the islands. In prehistoric times, Negritos were some of the archipelago’s earliest inhabitants. They were followed by successive waves of Austronesian peoples who brought with them influences from Malay, Hindu, and Islamic societies. Various nationswere established under the rule of Datus, Rajahs, Sultans or Lakans. Trade with China also introduced Chinese culture and settlement, which remain present to this day.

 

Find more about the current start-ups scene in the Philippines 

Cost of the life in the Philippines

Invest in the Philippines  

How to incorporate in the Philippines

First time to the Philippines 

Why in the Philippines 

About Manila Airport

Moving to the Philippines

Where to stay in The Philippines

Philippine Visa Overview 

Banking in The Philippines

Prices in The Philippines

Internet in The Philippines

 

 

 

Internet in The Philippines

I can’t imagine to live in the Philippines without the Internet. Luckily, Internet access via DSL is available on most islands in the Philippines, may it be over the good old Telephone Land line, direct cable or wireless over the mobile towers.
If you stay on a very remote island however, you may experience some speed problems, in fact you will have to test which provider (Globe or SMART) serves you best.
You may also have access to the Internet by a satellite dish but the cost for that is about 15,000 Peso a month.

 

If it comes to prices, this are the packages currently available at Globe Telecom (2013):

  • P 799,- Landline & Internet 1 Mbps (3 GB/month)
  • P 1099,- telephone & Internet, 1 Mbps via land line (Preimium Broadband)
  • P 1299,- telephone & Internet, 2 Mbps via land line (Premium Broadband)
  • there are other rates available

Mobile Internet (You can Use your smartphone with a Globe SIM Card as a Hotspot):

  • P 50,- “Supersurf” good for 1 day
  • P 200,- “Supersurf” good for 5 days
  • P 999,- “Supersurf” good for 30 days (To be actvated by SMS) other rates for 1 or 5 days are available.

Globes competitor SMART offers wireless services only:

  • SMART Bro: P 1245,- for an USB Stick Modem with Sim Card. Inclusive 120 hrs Internet for the first 5 days. After that it’s P 20 per hour or P 50 per day (apply day by day per SMS). The Speed is mentioned with up to 1 Mbps but it’s much slower most of the time, depending on signal strength.
    I am trying Smart Bro right now in March 2011 and the maximum download speed is about 48 kbps, even with a full 5 bars signal strength.
  • Further offers are available at SMART with a fixed modem/router with speeds from 512kbps up to 2Mbps and unlimited access to the internet. Monthly costs starts at P 999,- for the packages.

User interface with Smart Bro in the Philippines
This is the user interface with SMART Bro: Maximum download speed is about 48 Kbps on a lucky day. See the signal strength (upper left) and the receive Rate at the lower right of the picture.

You should also know that:

  • if you order a telephone land line only, the monthly charges are 500,- Peso already.
  • If you want to use SKYPE, your DSL speed should be al t least 512 kbps (1 Mbps is better)
  • The DSL signal is available most of the time. Over the last few years, the service improvement was significant, at least here on Bohol Island.

If you want to rent a house or a flat in the Philippines and you are depending on an Internet connection, ask at the local provider about what is available in that area. But be carefully: Even if land line and DSL is available in general, it does not mean that they will also have an free access point available at that particular place.

Prices in The Philippines

 

Home
About This Site 
Why in the Philippines? 
First Time to the Philippines
Manila Airport 
Airlines in the Philippines

Preperation

Moving to The Philippines
Fly Cheaper
Health Insurance
Where To Stay

Visa & Co

Philippine Visa Overview
Visa Extension 
Balik Bayan Visa
Residence Visa (13A)
Retirement VISA (SRRV)
Visa Run
ACR-I Card Information

Finances

Banking In The Philippines
Cost Of Living
Prices In The Philippines
Working In The Philippines

Making Money Online New!

Living, Buying & Renting

Real Estate For Foreigners
Finding A House To Stay
Renting Land

Others

Travel Tax Exemption
Buying a Car
Drivers Licence
Balik Bayan
Satellite & CableTV
Internet & DSL
Contact

On this page I put together a wild list of prices in the Philippines which you might find interesting for your daily needs. With this price list, you can also easily calculate you own Cost Of Living in the Philippines

Important Advice : Even if you find some of this prices unbelievable low, compared to your home country, you should still not pay more than they ask. It can’t be in our interest, to flood the Philippines with our prices and destroy the local price structure. You should further think about on how you are ripped off in your home country, as you can see how cheap some goods or services can be.

Updated: July 2013

  • Food:
    • 1 kg Rice ca. 39,- Peso
    • 1 kg Potatoes: 60,- Peso
    • 1 kg Onions ca. 60,- Peso
    • 1 Kg Meat ca. 180,- Peso
    • 1 Kg Fish ca. 130,- Peso
    • 1 Toast bread: 28,- Peso
    • 1 German Bread 50,- to 100,- Peso
    • 200 gr. Salami (Imported) ca. 165,- Peso
    • Jam local: ca. 75,- Peso, Import ca. 180,- Peso
    • 1 Bottle. Bier, San Miguel Pilsen, 0,3 Li: 18,- Peso
    • 1 Li. Coca Cola: 22,- Peso
  • Multimedia
    • TV 32″ LCD Flat screen: from 17.000,- Peso
    • Computer whole Sets: from 15.000,- Peso
    • Digital Camera from 3500- Peso
    • Telephone Land line: 550,- Peso/Month
    • DSL Flat rate 1000 mbit/sec. incl. Telephone 999,- Peso (Globe)
  • Living & Kitchen :
    • Refrigerator: 12.000,- to 20.000,- Peso and up!
    • Oven (Gas, emit 3 Flames): 16.000,- Peso
    • Simple Gas Stove: from 1200,- Peso
    • Gastank 16 Kg Exchange: ca. 700,- Peso (good for about two month)
    • Rice Cooker : from 600,- Peso
    • Microwave: from 2800,- Peso
    • Cabinet: from 10.000,- Peso
    • King Size Bed (good Quality) with mattress: from 23.000,- Peso
  • Car, Motor Bike & Transport :
    • Motor-Bike Honda Wave 125 cc from 55.000,- Peso
    • Motor-Bike made in China , 110 or 125 cc from 35.000 Peso
    • China Chopper, Loncin, 150 cc from 36.000,- Peso
    • Multi cabs (Surplus, from 135.000,- Peso
    • Multicabs used from 50 – 70.000,- Peso
    • Used Car, ca. 6 to 10 years old from 150,000 – 250,000,- Peso
    • New Car from 500.000,- Peso
    • Taxi Meter: 25 km ca. 600,- Peso (Meter x 2 for long distance)
    • Jeepney, public transport, 25 km distance: 25,- Peso
    • Mini Bus, Van, Aircon 25 km: 60,- Peso