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The decision to establish an offshore entity will be driven by a number of considerations
discussed elsewhere on this website. The ultimate choice of jurisdiction should be made in
the light of the following considerations:-
Appearances
Is it important that the company is not to be perceived as operating from a tax haven
jurisdiction? Should the company pay some tax to overcome this perception?
Banking
Are local banks in the jurisdiction reputable, solvent and geared to handle international trade
and provide the full range of banking services that the company will require? Should the
company establish banking facilities in another jurisdiction to obtain such facilities?
Double Tax Treaties
Does the jurisdiction have any suitable double tax treaties that would benefit the tax
position of the company and/or owner.
Economical and Political Outlook
Is the jurisdiction economically and politically stable with an efficient Court system and
what are the risks of the country seizing the assets of the company and/or its bankers?
Infrastructure
Is the jurisdiction served by a good communications industry? Are there reputable legal
and accounting firms available? Is the work force well educated?
Regulatory Matters
Is there legislation in place that will protect the interests of the company and the owner?
What are the costs of compliance? Do accounts need to be filed? Is an audit necessary?
What information is in the public domain?
Taxation
What levels of tax will the company be charged and is the Company prepared to pay more to
avoid the obvious tax haven jurisdictions or to take advantage of double tax treaties?
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