Purposes

PURPOSES FOR ESTABLISHMENT OF A COMPANY


In the world practice the places where the registered companies observing certain conditions benefit from the statute of “tax extraterritoriality” are known as offshore centers or “tax heaven”. In fact this term covers at least 4 different types of territories.


    
	
  1. Places without direct taxes not only on the registered companies, but also on the natural persons. These are: the Bahamas, Bermuda, Cayman Islands, and British Virgin Islands.
    2. 
	
  2. Places with low taxes and widely established system of agreements for avoiding double taxation. These are: the Netherlands Antilles, Cyprus, and Mauritius.
    3. 
	
  3. Places offering tax extraterritoriality to registered companies insofar the latter do not realize profit form business activities in the country of registration. These are: Liberia; Panama, Hong-Kong, Isle of Man, Costa Rica, and Gibraltar.
    4. 
	
  4. Places offering special tax preferences mainly for companies of a holding type, but sometimes also for industrial enterprises – Switzerland, Luxembourg, Liechtenstein, Netherlands.
    5. 



Beside the favorable tax statute, the offshore centers offer also minimum requirements  in regard to of the registered there companies. Although the formula of “tax heaven” is not strictly defined, it contains the following components:






    
	
  1. Beside the favorable tax statute, the offshore centers offer also minimum requirements  in regard to of the registered there companies. Although the formula of “tax heaven” is not strictly defined, it contains the following components:
    2. 
	
  2. The “tax heaven” must be politically and economically stable.
    3. 
	
  3. It must be accessible physically or legally (? – for natural and legal persons??).
    4. 
	
  4. Agreements on avoiding double taxation, lack of monetary control, availability of work force with appropriate high qualifications, climate, the price of living, etc.
    5.