Anguilla

Introduction

British Anguilla is located at the Caribbean Sea in Central America, one hundred miles east from Puerto Rico, adjacent to the British Virgin Islands (BVI) and St. Kitts.  The island covers an area of 35 square miles and has a population of about 15,000 people.  English is the official language, and there is no control over the flow of funds.

British Anguilla is an autonomous British colony, directly under the jurisdiction of the London government.  Therefore, it is extremely politically stable.  Anguilla is a tax-neutral jurisdiction, and all registered companies benefit from its zero tax rate.

Due to political and economic stability and a sound financial service industry supervision system, financial service professionals are particularly interested in the establishment and registration of companies in this region.

Since 2022, depending on the particular facts of a company and its business activity, an International Business Company (IBC) engaging in one or more of the following  nine activities, i.e., banking, insurance, shipping, fund management, finance and leasing, headquarters, distribution and service centre, holding, and intelletual property rights,  will be required to do the economic substance filing.

Law and tax

All overseas companies established under the provisions of the International Business Companies Act of British Anguilla are called International Business Companies (IBC), which are companies limited by shares and have the status of an international legal person.  The overseas income of those companies are exempt from tax.  In 2022, Anguilla promulagated new company regulations (The Anguilla Business Companies Act, 2022, also known as ABC, and The Companies Act) to substitute IBC and The Companies Act.  In the near future,  all different kinds of company types and operation rules will be integrated into ABC.

Company registration requirements

  • Only one shareholder and director is sufficient for comapny establishment.  Shareholders and directors can be natural or legal persons, and there is no restriction on nationality.  Natural persons must be over 18 years old. 
  • Chinese name and Chinese charters can be registered.
  • There is no capital limit.  The government fee is based on the number of shares registered.  If the registered number of shares exceeds 50, 000 shares, the government fee will adjust into a higher level. 
  • The economic substance requirements are imposed on certain types of business entities in Anguilla on an annual basis.  The accounting records should be kept in the registered office.
  • The registered agents are required to upload the report of due diligence and operating activities with the local Registrar when setting up a new comapny as well as annual filing.


Belize

Introduction

Belize is located in Central America, close to the south of Mexico's Yucatan Peninsula, as well as facing the Caribbean Sea to the east and Guatemala to the southwest.  The country covers an area of approximately 22,963 square kilometers, of which rainforest accounts for 65% of the area, and to the south It is 170 miles long from the north and 68 miles wide from the west to the east.

The economic contribution is still dominated by agriculture, with cane sugar, citrus, and bananas as the main export products.  Other exports are mainly clothes and seafood.  However, tourism, overseas finance, and overseas company registration have also increased more and more in recent years.  The overseas economic and trade activities in Belize also have an excellent advantage in economic and trade exchanges with the United States, Canada and the European Common Market.  The reason is mainly led by the benefit of the Great Britain Association.

Law and tax

The registration of overseas companies in Belize was followed by the British Virgin Islands (BVI).  Bank employees, lawyers, agency companies and related professionals have the obligation to keep the information of customers as confidential.  The government has no foreign exchange limit for non-residents.

Since 2021, depending on the particular facts of a company and its business activity, an International Business Company (IBC) engaging in one or more of the following  eight activities, i.e., banking, insurance, shipping, fund management, finance and leasing, headquarters, distribution and service centre, and holding, ,  will be required to do the economic substance filing.

Company registration requirements

  • Directors and shareholders: at least one director and shareholder. It can be a natural person or a legal person, and there is no nationality restriction.  For natural persons, they must be over 18 years old.  The directors themselves do not necessarily have to be shareholders.
  • Registered capital: There is no minimum capital limit, but generally at the amount of US$50,000.  Companies will be charged more while their registered capital is more than US$50,000. 
  • Company official documents are allowed to be written in a second language (such as Chinese).
  • The economic substance requirements are imposed on an annual basis.


British Virgin Islands, BVI

Introduction

The British Virgin Islands is located in the Caribbean Sea in Central America, 60 kilometers east of Puerto Rico, with a population of about 23,000 people.  The official language is English, and the legal currency is US dollars.  It is an autonomous British colony and is extremely politically stable.

After the British Virgin Islands passed the "International Business Companies Ordinance" (IBCO) in 1984, it began to handle the business of overseas companies and became one of the famous international tax havens.

Law and tax

At the end of 2004, the British Virgin Islands merged the international business company law and domestic company law into the Business Companies Act 2004 (Business Companies Act 2004).

Since 2019, depending on the particular facts of a company and its business activity, an International Business Company (IBC) engaging in one or more of the following  nine activities, i.e., banking, insurance, shipping, fund management, finance and leasing, headquarters, distribution and service centre, holding, and intelletual property rights,  will be required to do the economic substance filing.

Company registration requirements

  • Directors and shareholders: at least one director and shareholder. It can be a natural person or a legal person, and there is no nationality restriction.  For natural persons, they must be over 18 years old.  The directors themselves do not necessarily have to be shareholders.
  • The registered agent must be aware of the storage location about important company-related information, such as the register of shareholders, the register of directors, the register of secretaries, meeting minutes, and accounting information.  If the storage location changes, the registered agent must be  notified within a specific time.
  • The register of directors must be filed in the Government Registry.  If there are any changes to the directors' information, the updated directors' information must be submitted to the Companies Registry within 30 days from the effective date of the change.  Related fine will be incurred if the time expires.
  • Beneficial owner information requires to be stored in the "Beneficial Ownership Secure Search System" (BOSSs).  This platform will not be open to the public except for those approved by BVI competent authority, and has the obligation to keep it confidential.
  • Registered capital: There is no minimum capital limit, but generally at the amount of US$50,000.  Companies will be charged more while their registered capital is more than US$50,000. 
  • There is no need to file annual accounting reports and tax reports to the government.
  • The company's accounting information shall be kept at the actual storage location or premises approved by the directors' resolution, and the directors' resolution shall be submitted to the registered agent.
  • Shareholders and directors' meetings can be held all over the world, but those companies achiving economic substance criteria shall hold meetings in BVI.
  • Since 2019, all BVI companies must submit an economic substance report, otherwise the registry will reject the annual fee and the company will not be able to apply for any applications.

Cayman Islands

Introduction

The Cayman Islands is located in the Western Caribbean Sea to the south of Miami.  It is currently a highly autonomous overseas territory of the United Kingdom, so as to be relatively politically stable.  The law is based on British common law, and English is the main official language.

In recent years, the Cayman government has actively strengthened the credibility of its overseas financial operations.  It is the first member of the Caribbean region to voluntarily accept the money laundering evaluation of the Caribbean Money Laundering Prevention Organization.  The region is committed to preventing crime and ensuring the confidentiality of legitimate business activities.

The Cayman company is suitable for being a holding company and can be listed in Hong Kong and Singapore.  There is no foreign exchange control at all, and no taxation agreement has been signed with other countries.

Since 2019, depending on the particular facts of a company and its business activity, an International Business Company (IBC) engaging in one or more of the following  nine activities, i.e., banking, insurance, shipping, fund management, finance and leasing, headquarters, distribution and service centre, holding, and intelletual property rights,  will be required to establish substantial operation office, otherwise shall be proven as a tax resident of other countries.

Company registration requirements

  • Directors: One or more directors are required, which can be legal or natural persons, and natural persons must be over 18 years old.  The register of directors must be submitted to the office of the Registrar, and will not be disclosed to the public.
  • Shareholders: At least one shareholder is required, which can be a legal person or a natural person, and the natural person must be over 18 years old.  The ultimate beneficiary list must be kept at the registered agent and will not be disclosed to the public. 
  • There are four levels of government fees, with the company's registered capital of US$50,000 as the first benchmark. The amount of capital higher than US$50,000 increases government fees according to the amount of capital.
  • There is no need to file annual accounting reports and tax reports to the government.
  • The company's financial information should be kept in the physical storage location or premises approved by the directors, and the directors' resolutions should be submitted to the registered agent.
  • Since 2019, all Cayman companies must submit an economic substance report, otherwise the registry will reject the annual fee and the company will not be able to apply for any applications.

Hong Kong

Introduction

Hong Kong is located at the southeastern tip of the mainland and is also located in the center of the rapidly developing East Asia region.  It has an advantageous geographical location.  The total area of Hong Kong is about 1,100 square kilometers.  It is composed of Hong Kong Island, the Kowloon Peninsula ,and the New Territories separated by the sea, and most of the suburbs are concentrated. in the New Territories.  In addition, there are total 235 outlying islands of Hong Kong are also included in the New Territories. It is the most dazzling Asian Pearl of the Sea and wins the title of the Pearl of the Orient.  The Hong Kong Special Administrative Region, the full name of the Hong Kong Special Administrative Region of the People's Republic of China, is under the jurisdiction of the country and is one of two special administrative regions.  The other one is Macau.

Law and tax

Since Hong Kong tax law is derived from the common law of the United Kingdom, its practice exempts foreign income from taxation.  The taxation principle adopts the principle of territorial origin for taxation, that is, only profits derived from Hong Kong are taxable in Hong Kong, while profits derived from other places are not subject to profits tax in Hong Kong.  However, the Hong Kong Inland Revenue Department (IRD) is very cautious when deciding whether profits came from local business or offshore transactions.

The company's directors and shareholders' information must be filed with the Hong Kong government within 14 days.  The company must provide audited financial and tax statements by a local qualified accountant in 18 months after the establishment of the company, in order to prove whether all the company's sources of income are derived from Hong Kong.  After the Hong Kong authorities have ascertained the source of income, it is still necessary to submit tax statements for future reference.

Advantages

  • The geographical location is superior, which is very suitable for re-export trade.
  • The financial environment is excellent, and there is no control on the flow of funds.
  • Shareholders and the board of directors' meetings can be held anywhere.  Only annual reports need to be completed every year, which also can be done by professional agencies.

Company registration requirements

  • Shareholders: At least one shareholder is sufficient.  They can be natural or legal persons without any nationality restrictions.  For natural person shareholders, they must be at least 20 years old.   
  • Directors: At least one director is sufficient.  They can be natural or legal persons without any restrictions on nationality.  For natural person directors, they must be at least 18 years old.   
  • Secretary: Hong Kong companies must have one registered secretary, which is limited to Hong Kong residents who have been approved for registration by the government.  The secretary can be a natural or legal person, usually only by name, and does not intervene in the internal affairs of the company.
  • Registered capital: There is no minimum limit on capital, usually the standard capital is HKD10,000.
  • Stocks: Only registered stocks are allowable.
  • Registered address: It must be registered with a local office address.  A post office box is not allowed.
  • Tax declaration: Annual return and tax return must be submitted every year, and a business registration certificate must be obtained from the Hong Kong Inland Revenue Department by an annual basis.  If there is any business activity, it is necessary to provide a tax report signed by an accountant and pay the company income tax.  Regardless of whether the shareholder or director changes, the Hong Kong company's shareholder or director information must be reported to the Hong Kong government through the registered secretary every year.  The Hong Kong government will provide information to requesters to paying for inquiries and use, and the registration information of Hong Kong companies is public.  The Hong Kong company name can be in English, or both Chinese and English, but the end of the company name must be LIMITED (all written).

Samoa

Introduction

The Independent State of Samoa was originally called Western Samoa. It is located in the South Pacific, between Hawaii and Sydney.  It is on the east of the international date line.  There are nine islands organized this region and which was ruled by Britain, Germany, and New Zealand.  It was not independent until 1962 and is the first independent country in the South Pacific.  Since then, it has developed into a peaceful and stable society with English as its business and official language.

Law and tax

The constitution of Samoa is based on the parliamentary system, taking the British common law as an example, and is influenced by the Commonwealth jurisprudence.  In the late 1980s, the local government promulgated the International Company Law in accordance with the laws of the Cork Islands.  However, in order to be more concise and easy to be used and understood in the Asian market, many improvements have been made as follows:

  • Add Chinese name: The company can add a Chinese name or name in other languages in addition to in Englishon the company registration certificate.
  • Articles of Association in both Chinese and English: Samoa allows international business companies to submit articles of incorporation in both Chinese and English.

Company registration requirements

  • The company must have at least one shareholder, director and secretary.  Directors and shareholders can be legal persons or natural persons, and natural persons must be over 21 years old.
  • The register of directors, secretaries and shareholders of the company must be kept in the registered office.
  • Chinese name and Chinese company articles of association are allowable.
  • There is no capital limit.
  • There is no need to file annual accounting reports and tax reports to the government.
  • The company's financial information should be kept in the physical storage location or premises approved by the directors, and the directors' resolutions should be submitted to the registered agent.

Seychelles

Introduction

Seychelles is located off the coast of East Africa in the Indian Ocean and consists of 115 small islands forming a beautiful tropical archipelago.

Seychelles became an independent country after leaving the jurisdiction of the British government on June 19, 1976, and that date was therefore designated as the Seychelles National Independence Day.

Law and tax

In December 1994, the Seychelles government drafted the International Business Company Law (International Business Company, IBC) to regulate international business companies.

The Seychelles government completely exempts income from overseas sources, inheritance, gift or trust profits of overseas property, so there is almost no tax burden, and it is an excellent location for establishing overseas companies.

Company registration requirements

  • Company name: Approval by the Seychelles government is required, and company names usually end with Limited, Corporation, or Incorporated.
  • Directors and shareholders: At least one director and shareholder is required.  It can be a natural person or a legal person, and there is no nationality restriction.  Natural persons must be over 18 years old.  The directors themselves do not necessarily have to be shareholders. 
  • There is no capital limit.
  • In addition to English names, Chinese (or other languages) names can be used for registration.
  • Companies with no domestic income are not required to file annual accounting reports and tax reports to the government.
  • It is allowed for international business companies to apply for a tax identification number (TIN, Tax Identification Number).

Seychelles passed and promulgated the International Business Companies (Amendment) Regulations in 2012 and 2016.  After the amendments, the Company Law has been strengthenedly executed.  The main points are as follows:

  1. The register of shareholders, directors, and secretaries must be stored in the Seychelles Registered Office.  Any changes must be notified and updated within the specified time.
  2. The company's accounting information shall be kept at the actual storage location or premises approved by the directors' resolution, and the director's resolution shall be submitted to the registered agent. 
  3. The information of the beneficial owner must be stored with the registered agent.  This information does not need to be reported to the company registry and will not be disclosed. 
  4. The register of directors must be filed in the Government Registry. If there are any changes to the directors' information, the updated directors' information must be submitted to the Companies Registry within 30 days from the effective date of the change, and a fine will be incurred if the time expires.
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