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The 5 cheapest countries to open offshore bank accounts and establish a company
With the economic crisis caused by the coronavirus and due to the ever-increasing regulations and restrictions on movement and travel, more and more people are looking to form international financial structures and take their businesses abroad through the cheapest offshore company formation possible.
The past decade has brought a significant increase in the regulations for the global businesses. The implementation of mainly substance requirements and CRS have made the traditional meaning of the world “offshore” obsolete. However, we still use this term when we speak about those jurisdictions that still offer interesting financial incentives and are useful when planning an international structure for asset protection. The regulations have made it harder to create such structures, but not impossible.
Most businesspeople look for the cheapest offshore company formation and cheapest offshore bank account in order to expand their businesses to a new global sphere in a cost-effective way. In this article we present the cheapest countries to open an offshore bank account and establish a company.
Five cheapest countries to open an offshore bank account
Belize is a country in Central America with a population of approximately 300,000 people. The country presents a singular ethnical diversity with a mixture of Caribbean natives and Mayan descendants and Caucasians, Chinese and East Indians.
This country offers very interesting advantages which include the absence of reporting requirements, tax exemption on local taxes (if the company operates abroad), anti-confiscation provisions, and simple incorporation process.
Belize has changed its corporate law in 2020 reinforcing the substance requirements. Now the majority of the business´s directors have to reside in Belize and the board meetings must be held in the country. Unless the company can prove having tax residency in a different jurisdiction it should keep a physical office and employ duly qualified staff. It is also necessary to demonstrate that the company is complying with its tax obligations in the corresponding country. With the new legislation a Belizean IBC can conduct business, own real estate, and engage in commercial activities in the country but will be subject to income tax, stamp duties and annual reports.
If you are looking for the cheapest bank account, Belize has one of the most cost-effective banking services. Moreover, it is a country that has had political and economic stability for many years which contributes to a safe banking environment. Banks in Belize are subject to liquidity requirements. They must have a liquidity percentage reaching 24%, which is much higher than in some of the “first world” countries.
Famous for being one of the few countries in the world to offer citizenship by investment, St Lucia is also a solid financial center thanks to its business-friendly policies.
In Saint Lucia it is possible to form a cheap offshore company with bank account as the annual fees are relatively low. The jurisdiction offers fast registration, a high level of confidentiality and a flexible structure.
An IBC in Saint Lucia can be registered with only one shareholder who can be a resident of any country. There is also one minimum director required who can also be of any nationality (the sole shareholder can also act as director). The information of the company´s members is not found in public registries and there are practically no reporting requirements such as financial statements, and annual tax returns.
Saint Lucia is a country that also gave in to the international organs´ pressure and has amended its corporate legislation. Since 2019, companies are available for both residents and non-residents and can conduct business in the country subject to local tax. However, Saint Lucia has managed to maintain an advantage by implementing a territorial tax system. The IBCs will be taxed with a 30% rate from local income and with a 0% from foreign income.
Mundo offers the cheapest company formation by combining different jurisdictions and creating a cost effective and protective structure. From $3400, you can form an LLC in Nevis that will be the owner of a similar structure in Florida. The LLCs are unique corporate structures that offer special benefits:
- Foreign nationals can invest in the USA and protect their assets. Thanks to the Nevis LLC it is possible to legally avoid the estate tax which the owners would have to pay if they would own the Florida LLC directly.
- It is easier to open a bank account in the USA through a Florida LLC. Depending on the activity, there ae cases where the owners are not subject to income tax. The US is not subject to the CRS, which makes it currently the country with the highest degree of banking confidentiality.
- Businesspeople that are not from the US nor have a green card can still operate with US clients, they can take money from customers and pay their providers as well.
- Possibility of acquiring an E-2 visa. For more information about this visa click here.
- The LLC is a vehicle for establishing a self-directed IRA.
- Perfect for online businesses.
From 3400USD we offer a comprehensive package. Click here to see the complete offer.
Panama is one of Mundo´s favorite corporate jurisdictions. Here you can find the cheapest offshore bank account in combination with a Panama corporation. Panama is the perfect place for a business because it offers the right balance between substance and financial incentives. By registering in a free zone, a business can have all kinds of exemptions depending on the type of conducted activities. We highly recommend structuring the headquarter of your business in Panama and establish branches abroad. If you issue your invoice from the Panama headquarter you can reduce your expenses and tax burden thanks to Panama´s territorial system. However, this information is merely informative. For legal tax advise please consult with our experts.
Currently in Nevis you can form the cheapest offshore company with bank account. This is an island that forms, along with its neighbor, the Federation of Saint Kitts and Nevis. The Federation offers the oldest citizenship by investment program and Nevis is the most important financial center of the two islands. Nevis is famous for its asset protective structures of which the trust is undoubtedly the king. The island also offers an LLC structure which is considered and excellent pass-through vehicle. The LLC is not taxed for worldwide income, it protects confidentiality and is easy to incorporate. A Nevis LLC can be used for trading activities, crypto holding, wealth management and to establish a self-directed IRA. Our experts currently present an offer to establish and LLC plus a bank account from 1800USD. This makes Nevis the cheapest offshore company formation jurisdiction.
“Own nothing, control everything”. Nevis honors this famous Rockefeller quote with an excellent opportunity. In Nevis there is the possibility of combining a trust with an LLC structure. To put it simply, if you establish an LLC as the trustee for your assets, and you appoint yourself as the LLC director, it means that you would be able to be fully in control of your assets without being the legal owner. For more information about the advantages of such a strategy, please read this article.
The corporate world is full of excellent international players through which a person can grow and develop a business. Mundo has experts in the five countries listed in this article and also in Russia, Georgia, Cyprus, Singapore, Hong Kong, Armenia, and others. If you want to find the right corporate structure and jurisdiction for you, please don´t hesitate and contact us now.
This information is merely informative and does not constitute legal tax advice. If you want to establish a cheap offshore company with bank account and legally reduce costs to increase your assets and grow your business, we recommend a consultation with our experts in corporate and fiscal matters.
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