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Individual entrepreneurs do not want to conduct their business on the territory of our country. The reason for this is that they are not satisfied with something, for example, the order and size of taxation. In this case, they can open their business abroad. The law does not prohibit this. It is quite possible to register your company abroad, moreover cost of company registration in Cyprus not so big. It should be understood that similar actions are associated with their advantages and disadvantages.
Positive aspects
Registration of companies abroad has certain advantages:
• The activity of the firm is governed by laws that are mandatory for execution in the territory of the country where the registration was made. If any disputes arise, they are resolved in a local independent court.
• The activity of companies in certain states is associated with low tax rates. For example, this is characteristic of such a Chinese region as Hong Kong. There are certain tax breaks here, which allows you to effectively implement tax planning.
• The procedure related to registration and management is simplified.
• Audits by auditors are carried out quite rarely.
• Financial reporting is provided according to a simplified scheme.
• The market for manufactured goods is characterized by breadth.
• After registration abroad, there is an opportunity to receive foreign investments.
Of course, along with advantages, there are also certain disadvantages:
1. If litigation is required, it is necessary to know the local laws well. Many of them are characterized by harshness and absurdity.
2. Registration in a foreign state does not imply absolute anonymity. Mandatory reporting to state structures is required. Registration in certain states may have rather strict requirements. For example, in order to register a company in the Netherlands, a minimum authorized capital of 18 euros is required.
3. Policy in some states is aimed at supporting home-grown business. They do not allow registering full-fledged companies.
A real "tax haven" can be found in such countries as Monaco, Malta, Switzerland. The lowest taxes here. And, for example, in the Bahamas, an offshore company may not pay them at all. Registration of companies abroad is, of course, paid, but it costs from 1 to 18 thousand US dollars.
It must be said that registering a company abroad has more positive aspects than negative ones. However, the entrepreneur himself will have to face many difficulties during the registration process. It is necessary to thoroughly understand all the intricacies of local laws. Therefore, it is better to carry out this process with the help of professionals.
