1.The Non-Resident Company
A Non-Resident Company, IE: Non trading in that jurisdiction (often referred to as IBCs- International Business Corporations) can make a non-residential declaration at any time from its incorporation. In order to benefit from this tax efficient status, certain conditions must be fulfilled. Whilst the registered office must be in the jurisdiction the majority of the directors (who can be nominees) must be Non-Residents. The shareholders can be nominees, and details of the beneficial owner are NOT required to be filed on public record. Whilst the company will be administered from the jurisdiction, it must be controlled and managed from elsewhere. A Non-resident company is NOT usually required to produce audited accounts, although some jurisdictions require basic balance sheets filing with companies registry. NO TAX is payable in respect of profit or gains, however a small charge, in lieu of tax,called an annual duty, is payable on the anniversary of the incorporation.
This type of company is the most popular type of company used by corporate service providers around the world and takes it’s strength from the care and control being outside of the jurisdiction and also outside of the Beneficial Owner’s own country of residence.
To clarify, providing non of the beneficial owners or shareholders are resident in the country, and the company does not trade within its jurisdiction, then it can claim to be non-resident and therefore only pay an annual duty and not corporation/company tax.
2. The Resident Company
Resident Companies, as there name implies should have a presence in their chosen jurisdiction. In most cases this does not simply mean the use of a registered office facility, but the physical presence of a place of business/office, possibly with staffing and banking facilities.
Most resident companies also have resident directors and secretary, although these can be nominees. In the case of a resident company it is usual for the shareholder/ Beneficial Owner to be from outside its jurisdiction, whilst taking advantage of the double taxation treaties and the low tax status of it’s jurisdiction.
Gibraltar, Cyprus and Monaco at 10% corporation tax are often favored ”resident” jurisdictions.
This is a specialised structure and requires additional services in conjunction with the standard package – price on application.
3. Category 2 Status- Individual
In some jurisdictions, such as Gibraltar, an individual can claim a beneficial tax position under Category 2 Status as a resident.
This classification has a number of tax benefits, but also a number of specific criteria- such as property ownership or deposit holding in that jurisdiction.
This is a specialised structure and does not suite all applicant, however we are happy to discuss the pros and cons. Price on application.