totus companies & trusts

incorporation of companies in
many jurisdictions

We can advise on the right jurisdiction for you depending on circumstances. Ranging from traditional Caribbean “offshore” centres to onshore jurisdictions in Europe, the US and further afield, our aim at all times is to provide fully compliant, regulated structuring that meets our clients’ requirements – at reasonable cost.

Click on any of the countries named below to view our initial commentary on each jurisdiction - or contact us for an initial consultation without obligation

Bahamas


Advantages
Flexible legislation. Very quick formation procedure. Good name availability. Not affected by EU savings directive. Excellent banking services.

Disadvantages
Frequent changes in legislation. Restricted legal services as no foreign lawyers allocated to practice in jurisdiction.



Belize


Advantages
Flexible legislation, based on that of the British Virgin Islands. Quick, simple and inexpensive incorporation. Not affected by EU savings directive.

Disadvantages
Some commentators have worries about the stability of the country. Less well known than other Caribbean jurisdictions reuslting in a poor image on occasion.



British Virgin Islands (BVI)


Advantages
Highly popular jurisdiction. Law is familiar to most lawyers who deal with offshore matters. Flexible legislation allows the operation of the company to be almost totally dependant on the requirements of the client.

Disadvantages
Poor legal and banking services. Lack of name availability. Not a recommended jurisdiction for high profile trading corporations.



Cayman Islands


Advantages
Several hundred banks are represented on the islands. Top legal services. Premier fund jurisdiction.

Disadvantages
Expensive.



Curaçao


Advantages
Caribbean islands with useful legislation allowing for companies and the use of private foundations. Known as a leader in investment and funds.

Disadvantages
Local requirements can mean structuring could be cumbersome



Cyprus


Advantages
Full member of the EU so can utilise directive 90/435 - ideal as holding company. Good range of tax treaties, especially with Eastern Europe and, in particular, Russia.

Disadvantages
In the past, tainted by allegations of Russian money laundering.



Delaware


Advantages
US state that offers LLC structures amongst others with beneficial tax benefits for non-US owners

Disadvantages
Some clients prefer to avoid US altogether



Denmark


Advantages
EU state. SMBA company offers flexible and tax efficient structures.

Disadvantages
Can be cumbersome and in certain cases expensive. Documents normally require translation from Danish to be of practical benefit.



Gibraltar


Advantages
Well regulated and respected EU jurisdiction where costs are somewhat less than in its other EU competitors. One of the world leaders in the offshore gaming business.

Disadvantages
Some political instability due to the Spanish government's claim for sovereignty although improved in recent years.



Guernsey


Advantages
Blue chip reputation.

Disadvantages
Expensive. Details on beneficial owner must be disclosed to the authorities prior to registration. Cumbersome and difficult to arrange.



Hong Kong


Advantages
Not affected by EU savings directive. Not a member of the OECD. World class banking and professional services.

Disadvantages
Expensive audit costs. Careful planning required to avoid Hong Kong tax on profits.



Isle of Man


Advantages
Blue Chip jurisdiction. Quick and efficient. Relatively inexpensive compared with other EU jurisdictions. Well-regulated and respected, one of the few offshore areas where a VAT number can be obtained for EU trading.

Disadvantages
The need to prepare accounts, even if these are not publicly filled, does add to the annual operating costs. IOM based directors normally required.



Jersey


Advantages
Blue chip reputation.

Disadvantages
Expensive - most Jersey practitioners now use cheaper jurisdictions. Details on beneficial owner must be disclosed to the authorities prior to registration. Time-consuming and cumbersome to arrange.



Luxembourg


EU member. Well known as world leader in banking and the funds industry

Disadvantages
Structures can be expensive and time consuming to arrange.



Malta


Advantages
Full member of the EU can take advantage of EU Directive 90/435. Ideal holding company location and recipient of royalties and interest from EU. Within EU VAT area and VAT registration number easy to obtain., Ideal location for holding property in Portugal. Unusual tax system. High tax rates are actually paid but reclaimed by non-residents shareholders upon distribution of dividends, so no question of the company being a low tax entity. Good range of tax treaties which should be effective due to high tax paid by Malta companies - see above.

Disadvantages
Full audit required but costs relatively low. Slightly cumbersome incorporation due to necessity of opening of local bank account for company in formation.



Mauritius - (GBC2)


Advantages
No need to set out objects in a Constitution, Constitutions are optional. Well regulated jurisdiction from inception and therefore has largely remained free from scandal. Can be converted to a GBC1 and access Double Taxation Agreements. Can be incorporated as limited by both both shares and guarantee.

Disadvantages
Becoming cumbersome, thus time-consuming as additional declarations required over and above those used in most other areas.



Netherlands (BV)


Advantages
Stable high tax country - not a tax haven. Massive range of tax treaties. The jurisdiction for licensing and finance companies. Historically one of the better jurisdictions for participation exemption (holding) companies.

Disadvantages
Expensive. Civil law system is cumbersome.



Singapore


Advantages
Not a member of the OECD. Not affected by EU savings directive. Good banking secrecy and ease of bank opening with wide range of international banks in Singapore. Range of tax treaties. English legal system. Good range of professional services.

Disadvantages
Quite slow and bureaucratic. Directors personally liable for statutory compliance.



Switzerland


Advantages
Not EU but has joined a number of international agreements. Blue chip jurisdiction known for its banking, investments etc.

Disadvantages
Can be expensive.



TCI (Turks & Caicos Islands)


Advantages
Governing legislation modelled on the law of the Cayman Islands, widely regarded as the premier offshore jurisdiction. TCI therefore provide a similar yet relatively inexpensive alternative to the Cayman Islands. All companies get a 20-year guarantee of exemption from future taxes and increases in government taxes. Very quick formation procedure. Good name availability. Good legal services.

Disadvantages
Due to a lack of marketing TCI does not have as high a profile as many of its Caribbean cousins.



UAE (Dubai, Jebel Ali and Ras al Khaimah Free Zones)


Advantages
Not affected by EU savings directive. Not a member of the OECD or targeted by OECD as tax haven so no exchange of information. 100% foreign ownership is allowed. Company can own real estate properties on Palm islands, or any properties owned by Nakheel Company LLC or any other real estate approved by the JAFZ Authority. Company can hold an account t in a bank in the UAE for the purposes of conducting routine operational transactions. One residence visa will be issued for one director - if the Offshore Company maintains an office in the JAFZ.

Disadvantages
The Company will not be allowed to carry on business with people who are resident in the UAE or carry out any trade in the JAFZ or in the UAE, unless they have first obtained an appropriate license from the relevant competent authority. The registrar has the power to appoint competent inspectors o investigate the affairs of the offshore Company. Upon discretion of the registrar, inspection costs may be charged to any office bearer of the Company. Not an English common law jurisdiction.



United Kingdom


Advantages
EU state. Well used to attracting international business. No withholding taxes outwards.

Disadvantages
Requirements for directors etc can be onerous, thus becoming expensive.



Uruguay


Advantages
Not affected by EU savings directive. Not a member of the OECD. World class banking and professional services.

Disadvantages
Slow and cumbersome incorporation procedures and changes to a company's constitution. Spanish documentation and civil law code.

For further information please contact:

Chris Deacon, Group Operations & Compliance Director,
Totus Companies & Trusts
e: trustsenquiries@totus.com

Totus Company and Trust services are provided by Sovereign Trust (Gibraltar) Limited
PO Box 564 143 Main Street Gibraltar I Licensed by the Gibraltar FSC licence no: FSC00642B

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