Can offshore incorporation in the Seychelles save you money?
Most certainly. Taxation consumes up to 70% of your assets if you live in a high tax country with a social policy because the major part of the earnings of a company are used to finance unemployment. It’s easy to understand why you don’t adhere to this vision. But do you realize that in order to save, you must invest? So, if you don’t choose the right structure for your company from the start, then it may not serve you as intended.
The “Anti-Seychelles” measures of high tax countries
Yes, it is less expensive to incorporate in the Seychelles where no accounting is required. This jurisdiction is excellent to invoice Asia or Africa, but absolutely not Europe.
High tax countries watch their businesses relocate under perfectly legal conditions and there is nothing they can do to stop it. On the other hand, knowing full well that some exotic destinations have only non-resident clients, such as in the Seychelles, these countries remain under surveillance even if they are no longer on the Blacklist.
So, when a European pays an invoice to one of these countries, the tax authorities are not fooled. They simply re-classify these amounts and add penalties, justifying their action by stating that there is no “substance” to this company domiciled in an Offshore country.
Their argument is simple: The Seychelles or other peninsulas are small islands living virtually on tourism and it is difficult to believe that the companies in Seychelles really belong to the Seychellois. This example does not only target the Seychelles, it is valid for all exotic countries or jurisdictions.
The solution: Incorporate in Hong Kong and counter all the arguments.
Hong Kong, unlike the Seychelles is a megacity of 10 million inhabitants, but it is not the only option, London with its Ltd allows a taxation of almost zero and in Scotland the LLP known as Scottish LP are also taxed in the same manner as Hong Kong. So why choose to form an exotic company when you can keep an excellent image that will protect your customers and ultimately yourself.