For importers and exporters one of the best offshore company setups is to form an offshore company near to the country where you wish to trade. For example, if you are buying goods from China it would be best to set up a Hong Kong company where taxation is not liable if you do not set up a business and trade in Hong Kong itself. Your Hong Kong company can purchase goods easily from China through an offshore bank account located in Hong Kong. Physically the goods may not need to be delivered to Hong Kong but your offshore company will be best set up to invoice your clients directly wherever they are located.
The best offshore company set up is one which suits your requirements and is dependent on where you live and of course can be set up at a reasonable price.
Keylink Consultancy LLC have many clients that use offshore companies where we have advised them on the best setup for their Internet or web business by hosting a web site offshore to save on tax. If our clients are from Europe we normally recommend Gibraltar as it has excellent communications and the Gibraltar company set up costs are up to 1/3 less than a company formed in Jersey or Guernsey, for example.
Another best offshore company set up is to purchase goods through your offshore company and then add a margin to your prices where you then deliver the goods or invoice your company in your home country. With this setup you will make less profit and pay less tax in your home country, as these goods have become more expensive. This is not best practice and many governments have passed legislation to outlaw this setup which is sometimes called transfer pricing. However, depending on where you live in the world your government might not have passed transfer pricing laws and you could legitimately be entitled to carry out this setup.
You also need to remember that Americans are litigation happy and can sue individuals and corporations for any errors or losses they may have made when visiting your website. Disclaimers do not offer full protection. Therefore its very wise to set up an offshore company in a jurisdiction with a small population and where you do not intend to trade. This is why many people chose offshore centres such as Gibraltar.
Many of our current clients or potential clients wish to set up Delaware companies for their Internet businesses probably because of the low cost and maintenance of Delaware companies. However, a Delaware company can act like an offshore company if it is a non-resident USA company and therefore should not trade in America itself. As the USA is the largest customer base in the world for Internet business or e-commerce, the Delaware company cannot be used tax efficiently to be the owner of an international website.
If your Internet business is going to grow and you wish to be credible then choosing jurisdictions such as the Marshall Islands, Seychelles, Cayman Islands does not add greater credibility to your business standing. Forming an offshore company in an offshore centre such as Hong Kong or Gibraltar where there are already many world-class e-commerce businesses, especially in the gaming sector, such as Party Poker, Victor Chandler, and .888.com is one of the best ideas and sets you up in good standing.
We recommend that Gibraltar is the best offshore company to set up your business
Find out about our special rates for forming a Gibraltar Company