Which offshore should I choose to hold my assets in 2021?

31th of August, 2021

Increasingly, we are faced with the challenges of investing and doing business caused by stricter regulation and tax controls in offshore jurisdictions. Many international businesses used to operate safely through registered companies in the BVI, Paname, Belize and other tax havens. These days, such freedom is only a distant memory, as it is virtually impossible to find a bank or payment system which will agree to service a classic offshore jurisdiction.

The exception to this rule - a jurisdiction with comfortable regulation and high confidentiality - has long been the Seychelles. For trading business it is not the best option, but for owning a portfolio of securities, real estate, participation in another legal entity or fund is quite suitable.

Alas, there is no stability in tax optimisations. Since this year, under pressure from the world's major economies, the Seychelles government has approved the ratification of the BEPS MLI convention on the application of measures related to the prevention of base erosion and profit shifting.

Ratification of the BEPS MLI convention:

  • obliges companies to keep and keep their accounting records;
  • Introduces compulsory sub-registration in this country;
  • makes the registry public;
  • obliges the registration agent to conduct a stricter D&D on clients and company activities.

In general, the resulting bureaucratic burden and complexity of company administration deprives Seychelles of its former attractiveness.

 

The question arises: what to do and where to go with offshore assets in 2021?

Globally, there are three options:

  1. Transfer of assets to the jurisdiction of one's tax residency, with all the tax consequences that entails.
  2. Change of tax residency and, most likely, residence to a country with preferential tax treatment.
  3. Redomiciliation of the company to another jurisdiction. It is this option that we will look at in more detail in this article.

Redomiciliation is a procedure for a legal entity to change jurisdiction and retain its legal status, legal form, corporate structure, liabilities, assets, bank accounts and so on.

The choice of the correct jurisdiction for redomiciliation is extremely important. It determines:

  • stability of savings;
  • taxation of profits;
  • confidentiality and ease of administration of the offshore instrument.

We have benchmarked a large number of offshore jurisdictions, engaged leading tax and legal advisers and concluded that the Marshall Islands currently has many advantages over alternative jurisdictions.

 

Benefits of the Marshall Islands

The jurisdiction of the Marshall Islands has a long and well-established political and legislative system and a number of undisputed tax advantages:

  • All corporations (IBCs) registered by non-residents and receiving income outside the jurisdiction are exempt from taxation by law.
  • There are no mandatory provisions for filing financial and annual returns. No audit is required.
  • High confidentiality: only the company name and date of incorporation are kept in the public domain. Under the legislation of the Marshall Islands, disclosure of the names of officers, directors and shareholders of the company is not required. This information remains confidential. !! The use of a nominee service is also permitted.
  • no exchange control;
  • fast registration;
  • no residency requirements for director and shareholder.
  • Reorganisation of companies and transfer of existing foreign company to Marshall Islands jurisdiction (redomiciliation) is allowed.

The Marshall Islands are also attractive:

  1. The Marshall Islands were incorporated as a UN Trust Territory under US administration in 1947. Since 1986, the islands have gained independence and are in "free association" with the US - Big Brother is responsible for defence and aid delivery.

Ironically, it is the proximity to the US that offers hope for long-term stability in Marshall Islands tax law and the continued high confidentiality of the business register.

  1. The Marshall Islands are whitelisted by the OECD and FATF
  2. The islands have signed a TIEA tax information exchange agreement with the following countries:
  3. Australia, Denmark, Faroe Islands, Finland, Greenland, Iceland, Ireland, South Korea, Holland, New Zealand, Norway, Sweden, UK, USA.
  4. The country is a party to the Hague Convention on the replacement of consular legalisation by a simplified procedure - apostilisation.

Who is the right company for in the Marshall Islands

This jurisdiction is most suitable for holding assets. It is best suited to those who want to maintain high asset ownership confidentiality. Also:

  • For those wishing to transfer - redomicile - an existing company (BVI, Seychelles, Belize, Panama, etc. ) to a more loyal offshore jurisdiction;
  • For registrations as a holding company;
  • For owners of yachts and ships. The Maritime Register of the Marshall Islands is one of the three largest in the world.

We will register the company for you as well as:

  • We will carry out a full re-domiciliation procedure;
  • Open a bank account in Switzerland or Liechtenstein;
  • Offer the services of a professional securities portfolio manager.

When you contact us, you will receive a free consultation with a tax professional. We guarantee the confidentiality of our cooperation.

Until the end of September we offer a 30% discount on company registration !!

Register your company in the Marshall Islands today:

 

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