How to choose the right jurisdiction for opening a company
At a global level, numerous jurisdictions provide advantages and opportunities for those seeking to expand their businesses in foreign countries. Of course, when deciding on selecting a new investment market, numerous aspects have to be considered. For example, the quality of the local workforce, the purchasing power of the local consumers, the tax advantages offered to companies, the types of companies available for foreign investors, the initial capital for company setup, these being just a part of the factors businessmen should analyse.
Low taxes jurisdictions
In the last decades, the Middle East has become a very attractive region for doing businesses, especially in the case of investors who dispose of large capital. The Middle Eastern policies are now more open to foreign investments and foreign businessmen can benefit from numerous tax exemptions, once they have started a business activity. Most of the Middle Eastern countries provide free zones, designed to facilitate the development of a specific economic field. This is also the case of Dubai, where businessmen are welcome to invest in several Dubai free zones.
In the case of those who want to open a business in Dubai, in one of its many free zones, they are allowed to set up their own company without the need of incorporating the business with an Emirati partner. Besides the foreign-oriented policies, businessmen can find in Dubai numerous tax exemptions available on both corporate and personal levels and also one of the most complex societies, considering that 90% of the Dubai population is made out of foreigners.
Close to Dubai, United Arab Emirates, investors can find numerous business opportunities in the state of Qatar. When opening a company in Qatar, just like in the case of most Arabic countries, foreign investors will need to have a Qatari partner. There are plenty of reasons to invest here as this is one of the richest countries in the world and one of the main holders of important gas reserves.
The advantages of offshore business destinations
In the case in which the Middle East does not satisfy the needs of foreign investors, the offshore jurisdictions around the world might be of interest. This can be of interest considering the numerous tax advantages (in the form of tax exemptions) available for foreigners. For example, in the Cayman Islands, investors can benefit from such advantages when opening a non-resident company.
When investing in a foreign country, regardless of what that is, it is best to receive legal representation from local specialists such as lawyers, company formation consultants, tax advisors, accountants and others, who are familiarised with the requirements of the local law. Their representation can continue throughout the entire life of the company as their services are of high importance for the overall benefit of the business. For instance, companies nowadays can easily be involved in various fraud cases, especially when carrying business activities in the online environment and, in this case, investors can hire defence attorneys to represent them.
By Vlad Cuc, director of Bridgewest, is a specialist in company formation with over 15 years’ experience in international business consulting services.