Five Offshore Jurisdictions You Probably Haven't Heard About
Contributed by CG Bank
26 April, 2019
In this article, we will give a brief overview of nine relatively lesser-known offshore jurisdictions.
Samoa is an independent group of islands in the South Pacific Ocean, about half way between Hawaii and New Zealand.
Samoa first appeared as an offshore jurisdiction in the late 1980s, with the 1987 International Companies Act.
The legislation is written in a way that makes it especially useful for asset protection stemming from Section 228 ("No confiscation"), particularly 228 (B), of the International Companies Act, which states how the company's assets may be distributed in the case of a Specified Event. This can be anything, including a foreign court order or confiscation.
An autonomous province of Malaysia, Labuan is home to one of the few remaining jurisdictions with legislation specifically about holding companies. While Luxembourg's 1929 Holding Company regime came to an end in 2011, Labuan's non-trading offshore company legislation remains strong.
Labuan is excellent for holding companies, especially if there are any DTAs (double taxation agreements) you can utilize. Note that some of Malaysia's tax treaties explicitly exclude Labuan.
Uruguay offers a unique mix of low taxation - applying territorial taxation, whereby profits from outside of Uruguay are tax exempt - and high reputability. Names of shareholders and directors are nowhere on public records, but a company's finances are. This puts Uruguay in a one-of-a-kind niche, where companies can be anonymous but its finances can be inspected by anyone. This makes opening a bank account much easier in many cases, while still preserving your privacy.
Banking secrecy is quite strong in Uruguay.
Niue is a small, self-governing state in free association with New Zealand.
An island perhaps most famous for its '.nu' Internet top-level domain, Niue is another pearl in the South Pacific. Its offshore legislation was founded in 1994, same year as the Seychelles.
The legislation - The International Business Companies Act of 1994 - is very similar to other IBC (international business company) jurisdictions.
The jurisdiction's sole tax agreement is a TIEA with New Zealand. New Zealand acts on Niue's behalf on foreign affairs and national defense.
5. The Comoros
A Comoros Islands Limited Liability Company (LLC) offers foreigners complete tax exemptions of all of their income is generated outside of the Comoros Islands. Limited liability and only one shareholder/manager for greater control are also additional benefits. Foreigners can all of the shares in their LLC.
A Comoros Islands Limited Liability Company (LLC) obtains the following benefits:
- NO Taxes: Foreign source income is not taxed. Therefore, LLC's whose sole sources of income are from outside of the Comoros Islands do not pay any taxes.
- NO CRS: The Common Reporting Standard (CRS) is an information standard for the Automatic Exchange Of Information (AEOI) regarding bank accounts on a global level, between tax authorities. You should know that Autonomous Island of Moheli, Union of the Comoros didn't sign that document and therefore you should be confident that your private information will be in safety.
- NO Rogatory: An "Asset Search With Letters Rogatory" advises that a domestic court may issue a letter rogatory (a.k.a. a "letter of request" or "legal assistance request"), to try to compel a foreign bank to disclose offshore records. After issued by the domestic court, the letter rogatory would ordinarily be considered by governmental authorities located offshore where the foreign bank resides. These offshore authorities might however, deem the letter rogatory unenforceable due to foreign bank secrecy laws. So, choosing Island of Moheli - you don't need to worry about such situation.
- Totally Foreign Shareholders: Foreigners can own all of the LLC's shares.
- Privacy: Shareholders' names never appear in any public records.
- Limited Liability: A shareholder's liability is limited to his or her contribution to the share capital.
- Low Minimum Capital: Currently, the minimum authorized share capital is $1,763 USD.
- One Shareholder and One Manager: Only one shareholder and one manager are required to form the LLC where both can be the same person for greater control.
Comoros Islands Limited Liability Company (LLC) Name
The LLC must choose a company name completely different from any other business entity name in the Comoros Islands. Verification of a proposed company name can be obtained from the government Registry for free.
Since French is one of its three official languages, the LLC's name can end with the words "Societe a Responsabilite Limitee" or its abbreviation "SARL" which in English means a "Society with Limited responsibility".
Shareholders' liabilities are limited to their contributions to the share capital.
A notarized copy of the company's Articles of Association must be filed with the Registry.
Then, file the company's Bylaws with the Ministry of Finance.
Finally, file documents with the Commercial Court. The following information will be required:
- List of the managers who have the power to act on behalf of the company;
- Office lease agreement;
- Declaration of capital;
- Copy of the Bylaws; and
- Manager's criminal records investigation report.
A minimum of one shareholder is required to form the LLC. Shareholders do have to reside in the Comoros and they can have citizenship with any country.
Shares can be issued as registered or preferential with or without voting rights.
Bearer and nominee shares are not allowed.
At least one manager is required to be appointed to form the LLC. The manager can be a natural person or a legal entity based in and residing in any country with citizenship from any country.
A Comoros Islands Limited Liability Company (LLC) has these benefits: no taxes, complete ownership by foreigners, privacy, one shareholder who can be the only manager, low minimum share capital, and limited liability.
The best choice is CG Bank https://cgbanque.io/. CG Bank S.A. is a 100% offshore bank incorporated under the laws of the Autonomous Island of Moheli, within the Union of Comoros. It is part of a strong multi-national group that also includes onshore banking and trust interests (in Moroni, Grand Comore and in United Arab Emirates) as well as aviation and shipping businesses, we are committed to listening, delivering customised solutions and developing close relationships with our clients.
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