Offshore companies are commonly set up by private businessmen, as well as other corporations all over the globe. The tax laws in different countries generally vary. Some countries have very strict laws about the amount of tax charged from employees. Others are quite relaxed on taxing businesses and charge a very low fee. Vanuatu, also known as the Republic of Vanuatu, is a small island located in the Pacific. It’s a popular tourist attraction, and over the past few years, has also become a major destination for different companies looking to set up an offshore company.
Offshore companies offer plenty of benefits. They provide asset protection to businesses, offer protection against useless litigation, and also ensure anonymity and financial privacy for businesses. The biggest benefit of setting up an offshore company though, is the difference in tax rates. In some places, the tax rates are quite high, which means that business profitability is affected. However, places such as Vanuatu, offer plenty of benefits to businesses as they have very low taxation rates. If you want to set up an offshore company in Vanuatu, here are some key things that you should keep in mind.
Contract a Chartered Accountancy Firm
There are plenty of local chartered accountancy firms in Vanuatu that can help you with forming an offshore company. Since the laws are different in other countries, it’s important that you hire a local firm that specialises in the formation of offshore companies in Vanuatu. When you contract a chartered accountancy firm, they will first ask you a series of questions and request information about your business activities. Depending upon the nature of your business, and the reason for setting up an offshore company, the chartered accountants will create a feasibility report for your company.
Forming an Offshore Company in Vanuatu
Vanuatu has become a very important investment centre in the world. Due to its strategic location, the time zone overlaps with Hong Kong as well as New York. Apart from that, you get serious taxation benefits. Many common taxes, such as the capital gains tax, the income tax, as well as the withholding tax, are utterly eliminated in the republic. As a result, it’s easy to see why Vanuatu is such a popular choice for corporations that want to establish an offshore company.
The firm of chartered accountants will then guide you with setting up a registered address, establishing the company’s memorandum of association, and also submitting any relevant documents that are required by the government before your company receives the certificate of commencement of business. While they may charge a small commission for their services, the company will make it extremely easy for you to set up an offshore company. All financial issues and applications that need to be filed with the company registrar will be sorted by the firm of chartered accountants. The advantages of setting up an offshore company in Vanuatu are clearly quite high, thus making it a very attractive destination!