Best Places to Form an Offshore Company in 2022

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One of the most common questions that we get in Offshore Citizen is ''Where to form an offshore company?''
Are there some universal places where you can go that will be great for saving taxes, banking, etc?
Well, the answer is no - there is no such a place. However, depending on your needs there are several places worth considering.
In this day and age, offshore structuring is more about the substance and less about the form. Yes, it will still matter where do you form a company, as you want to go to a country with less or ideally no tax, but there is much more than that in the equation.
So which are those countries that you should consider for your offshore company?
If you're not an American, US is a good place to go. US LLC will give you many options that you wouldn't have otherwise.
UAE can also work for many people, especially if you actually want to live in the UAE. However, UAE is not going to be a good option if you have an e-commerce business and if you need payment processing.
Singapore and Cyprus are also some options worth noting.
If you want to have high tax rate on paper, but not pay much tax in reality, places like Georgia (the country) and Mauritius can be great.
If you're in a position where you don't need banking Caribbean countries, such as BVI can be good.
If you're in a situation where you need a tax treaty Labuan in Malaysia can be good option.
If you don't make large amounts of money, Romania can be a reasonable option.
Another European option that can work for some is Hungary.
Hong Kong, traditional place for forming offshore companies, is not so good of an option anymore, although it can work for some people.
UK LLP is on that can be considered in some cases. And lastly, there are Estonia and Malta.
Of course, which one we'll choose for you willl depend on your needs, and needs of your business and the trajectory that you're planning to take.
Who are we and what do we do?
We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.
We have lots of interesting articles on different topics, we have relevant information up to date.
Author: Michael Rosmer
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[@Bri-wi8kq]

The most motivating vid yet! Thank you Michael, I don't think that you realize the effect your channel has on us.... this is the nectar our entrepreneurial spirits need to fuel us to embrace another year of small business pain and frustration as we grow and learn. Brian

[@OffshoreCitizen]

Thanks!

[@mikhailfranco]

Any time you mention UAE for a company, you should also consider Bahrain. About 3 years ago they made their company applications easy, fast (2-3 weeks) and cheap, with local bank account and residency available. IIRC expat can be sole director, you do not need local sleeping partner.

[@archiehickox6518]

Wow. That's interesting. I'm going to check that out. Thanks

[@AsifSaifuddinAuvipy]

Wow

[@jasperamanuel]

YESSS! Havent wathced yet but this is the type of shit I wanna see! More like this!

[@OffshoreCitizen]

Stay tuned ☺ How did you like the video?

[@jasperamanuel]

@@OffshoreCitizen Yea, noe one are making it this clear. I think it would be a great idea to do shorter scenario videos. Like, if you have this excact situation, you do this. I feel like thats what alot of people are looking for. Even if the scenario doesn't fit the exactly, it helps just by knowing all the details! I'll give the first scenario! If your a Schengen/EU citizen your selling high cost products 1000usd per unit and your usually selling anywhere between 10 and 50 units per shipping. Payment through invoice/bank transfer ONLY. Your looking for as low tax and as much privacy as possible. Where would you incorporate.

[@cineffect]

I think for a non-american, the best country to start an offshore company is USA, especially one the "no state tax" states, like Delaware, Florida or Nevada.

[@RFXZ67966]

Is there a federal tax that needs to be paid?

[@emmanueljames2487]

I was just asking myself about that about a software development company which hires freelance around the globe. Thanks.

[@OffshoreCitizen]

Our pleasure 😄 Any place you'd like to add to the list?

[@emmanueljames2487]

@@OffshoreCitizen Can you do banking in the US and Puerto Rico with Wyoming LLC (or Delaware or Nevada or South Dakota)? If banking not needed at all, maybe Guatemala, Belize trust, Saint Kitts and Nevis, or Saint Vincent and the Grenadines.

[@MyLatinLife]

High value content as always!

[@OffshoreCitizen]

😍

[@SebastianUrizar]

Hi, great video, very helpful. One question, where would you recommend to open a company for a digital nomad who's main source of income is KZbin? Thanks a lot 😉

[@OffshoreCitizen]

Depends where they live and some other factors but definitely a US tax treaty country to avoid withholding tax

[@SebastianUrizar]

@@OffshoreCitizen oh I see, do you think that forming an LLC would be a good idea? (For non US citizens or residents)

[@ericbpreston]

If I have a disregarded US LLC with payment processing, where would be the best place to set up a holding company for asset protection and building wealth? Been exploring Dubai & Cyprus.

[@william.6574]

Cyprus is mainly for Euros, b/t as Michael said, not so much w/ USD . For a more tailored advise, It's best to book a call. Watch all his videos to give you a better idea of how to structure your questions for your call with him . I myself I'm looking to move my business ops to Cyprus, in light of Brexit but I wanna get my ducks in a row before calling Mikey.

[@jeremyleonbarlow]

How the income of the entity is categorized would make a difference in the answer. Royalties have unique tax issues for example, so do interest payments. A disregarded Wyoming LLC in and of itself is a very good entity for asset protection because of its charging order protections. The withholding requirements on US sourced income make jurisdiction matter for a holding company if you would even want one.

[@jeremyleonbarlow]

US CFC and PFIC rules come into play for foreign holding companies owned by US citizens and you definitely don't want to fall under the PFIC rules.

[@OffshoreCitizen]

Depends on where you are, the assets, who you're protecting against, etc. Either of those might work but there are trade offs

[@byronn3858]

Best countries for US citizens, forex/trading business? -don’t necessarily need a great bank account like Swiss bc can use crypto but a decent bank option would be nice too (I understand tax will still be applicable, just need the company to be able to access certain brokerage etc) Was thinking UAE, Cayman Islands, Nevis, or BVI? Also if Caribbean options are not ideal for banking, is it able to open company there but get a bank account elsewhere still? Thanks!

[@FallOnThese]

did u ever get an answer on this? looking into same thing. Don't care about banking. And seems like most everybody looking to open offshore biz is for tax purposes. As a US citizen I just want access to better brokers and exchanges that we can't access in US.

[@trillionairecapitalist4905]

What do you mean by payment processing? Whether if a company that we would form uses or not uses PayPal fpr example? Or the company itself that we are forming not being or being in the payment processing industry as it's primary activity?

[@ivohahn]

You didn’t mention the Seychelles and Mauritius. The latter appears similar to Labuan with its 3% tax labeled as “mid-shore”… kindly explain why you did not include these two locations.

[@OffshoreCitizen]

Mostly because of inability to get good banking with such companies

[@anonymous6594]

What about US citizens living abroad?

[@emmanueljames2487]

Can you do a video on new FATF regulations on exchange and Trezor and AOPP, how this affect privacy coin like Monero, coinjoin (Samourai, Wasabi, Joinmarket), second layer like Lightning non custodial wallets, DeFi and stablecoins? Thanks.

[@dlukton]

I kinda doubt he'll do a video on how Americans can circumvent FATF regulations. But yes, Monero and coinjoin could work. I think the issue going forward (for Americans) will be that of moving money from crypto to dollars, and from dollars into the banking system... all in a tax-advantaged way. The US government still retains an iron grip on the banks (or maybe it's the other way around).

[@PixPete]

Both Stripe and Paypal now accept companies from the UAE so surely they’re good options for payment processing? If you can get a Dubai bank account it’s even better as no CRS.

[@OffshoreCitizen]

Dubai has CRS. Stripe and PayPal normally are terrible in UAE because you have higher fees and need to convert to and from AED so pay conversion rates both ways. If you get scale you can negotiate private deals and then yes it can be really good.

[@AntonyReed]

Excellent info, Michael. My family is about 3-4 years out from our plan to spend our time about 50/50 in US and either Ecuador or perhaps PR. Currently, have a small but growing media business (KZbin and membership website...all online) under my name directly (sole prop). We definitely want to set this up properly. Was thinking Georgia?

[@ceramics1585]

i don't know if this would be in your best interest, but a small guide for beginners in the drop business who are in countries that aren't supported by stripe for instance would probably make you a lot of money, a beginner with a low budget wouldn't be able to afford your services for sure, but a guide that would generate passive income for you would probably benefit you a lot and solve "MANY" people's problem, here's an exmple, i'm in algeria, uk is the cheapest place to form an ltd, but there's 20% capital gain tax, i live in a country that has a 15%+15% wth tax with uk, so that's 50% in total gone, then there's social security 15% tax on global income, 65% of my margin = bye bye ! and we didn't even mention the 20% vat and 20% import tax yet which either rises your prices and lowers your sales, or gets taken from your margin ! how would you even make enough money to afford a professional in such a dramatic situation as a beginner....

[@OffshoreCitizen]

Thanks for the suggestion, I'll consider it. In all honesty I've been so busy the last year or so that content and product creation are quite low on my list. I've got 4 businesses each of which could benefit from more TLC so it probably won't be something I do in the next few months but I'll keep it in mind for the future. Appreciate the suggestion.

[@ki7184]

Thank you for the video! I another video you said that Georgia wasn't good anymore, but I'm wondering why it's in this list? My personal situation is that I reside in Canada and I run an Amazon FBA Japan business.

[@OffshoreCitizen]

These things are very circumstances specific. Best to book a call and we can go over the nuances of your situation

[@archiehickox6518]

He purposefully leaves it vague and confusing so you book a call and he can take your money.

[@magfortunate3285]

@@archiehickox6518 That's more than fair. He gives a lot of info online for free already.

[@AIRfree]

You said US LLC. But what is the point to recommend this , if in the end, you will end paying taxes in your country of residence? Makes no sense.

[@EM-fz3hf]

What if I'm in the US and want to setup a simple Ecom business? Just a store that I plan on making 6-7 figures per year. The main thing I'm looking for is privacy. I've dealt with stalkers in the past/people who are "out to get me" because they don't want to see me succeed & just nosey people in general. Neighbors, family, people from the past etc. Really I just want my privacy and to avoid people snooping in my business/assets. What would an estimate be so I have the funds ready when I need to set it up. I've seen online it's anywhere from $2-5k but I'd rather have a closer estimate rather than guessing.

[@Redditinsights76]

What if you want to run e-commerce’s business where will be the best place

[@dragonier8133]

How about Gibraltar? You could probably get access to EU payment processors and non-resident companies don't pay corporate tax.

[@archiehickox6518]

Interesting. Non-resident companies don't pay corporate tax?

[@patrickharris9225]

Could you do a similar video for the WORST countries in 2022 please?

[@OffshoreCitizen]

Haha sure great suggestion thanks!

[@dlukton]

Somalia, North Korea, Iran, Syria and Yemen might not be so good.

[@automationd]

Let's add Russia to the scale and weight stability/politics vs 7% tax.

[@MarioJurik]

🙌 I have US LLC in Wyoming and I’m resident of Slovakia,EU selling digital products and coaching to Czechoslovak market. They pay in EUR or CZK. I live in SE Asia and don’t have team members in Slovakia. How can I optimize my taxes in the best way possible? Thanks. 🙏

[@OffshoreCitizen]

Best to reach out, so we can learn more about your specific details and we'll be happy to assist

[@qwertydebutant5453]

Did you come to an optimised structure? Thank you for the info -- if you don't mind sharing

[@kseniagerasymova9318]

Where does it make sense to register a company if we want to move from Canada to Spain and buy a property there? We are self employed and work for our own company. Does it makes sense to open it in Andorra?

[@mychillbase]

Hey, i have a short question and would be glad if you could just give me some country names: I want to open up a non-resident-company, means where i don't have to be there, low taxes and low cost for opening it up.

[@OffshoreCitizen]

Please send us a message through www.offshorecitizen.net

[@flick1112]

Great video. Thanks. Where is the best place to register offshore company w/banking for a uk resident buying usa real estate?

[@MichaelRosmer]

If you're buying US real estate then probably the US

[@MacSaxe]

Hey Michael great video - I went to join your forum but the payment page is insecure with a warning about financial info and then I had a bunch of Japanese text come up! Do you have a secure checkout? Thanks man

[@OffshoreCitizen]

Very strange we'll look into that

[@a0nmusic]

Great content. Interesting that bulgaria didn't make the cut

[@OffshoreCitizen]

Thanks! What do you think about the other countries on the list?

[@a0nmusic]

@@OffshoreCitizen no real view on any of the countries, just care about the right structure for my specific situation 😎

[@rasdiendiedericks7827]

Hi Michael, what would be the best advice for a South Afican, Digital Marketer, doing affiliate marketing. 1. Staying in South Africa 2. Would like to register a low tax company or No tax company abroad. 3. Should be cost effective. 4. Would like to move to UAE, Malaysia, Singapore, or some European country in a 2 to 5 years time.

[@Hunters61]

What about a SAAS business?

[@HyggeJourney]

Delaware all the way :)

[@OffshoreCitizen]

Depends where you're from, where your clients are based, what currencies they are paying with, where your team is based. I always say there is no one size fits all, anyone who tells you there is or gives a recommendation without going through those details doesn't understand the complexity of these types of situations. Also note sometimes it's best to have a multi company structure

[@HyggeJourney]

@@OffshoreCitizen I agree fully with a multi company structure, especially if you are looking to sell aspect of the business one day. But I think Delaware LLC is a solid start for SaaS owners... With a Stripe + Wise account you got almost all relavant currencies with payment processor. I spent nearly 8 months a couple of years ago from incorporation to I had a stripe account in Spain. Delaware takes 2-4 weeks and you have a high quality offshore company with access to almost all payment processors.

[@dragonier8133]

@@HyggeJourney How about reporting with a Delaware company? I had the choice of forming a Romanian or Delaware company and went with Romanian company.

[@Eddy_Hartono]

Hi.great video sir . would you mind share with us the best offshore country to forming a company about forex trading .crypto trading and selling service around forex and crypto?? Currently I'm at Indonesia which is Territorial tax

[@dlukton]

If you're doing short-term trades from within Indonesia.... even if those trades are being attributed to a company outside of Indonesia..... and the government of Indonesia is able to figure out that you're responsible for those trades while present in Indonesia, they're likely to regard that as DOMESTIC-SOURCE income rather than foreign-source (and they'll tax you accordingly).

[@qwertydebutant5453]

Labuan could work in this instance? US LLC would be a disregarded entity but perhaps could suffice for small considerations? Anyone know how much opacity the Delaware or WY LLCs offer when non US citizens use them as holding companies?

[@bfnew4440]

Incorporating a company on Mars has limited tax effect if all the company's income is caught of a sovereign tax authority's controlled foreign company rules (e.g. Australia, new Zealand, USA)

[@OffshoreCitizen]

True though CFC rules are only one of a set of rules that matter and often one of the easier sets to avoid depending if you're willing to defer or not.

[@bfnew4440]

@@OffshoreCitizen looking at Australia's cfc rules, they don't allow u to defer income. Point in fact, the cfc rules apply so income cannot be deferred (that is, income is taxed on an accruals basis)

[@1weirdtrick]

what about for legacy businesses like a trucking company that operates solely in a country like canada?

[@OffshoreCitizen]

Then probably just a local business unless there's some way to shift a portion of the profits but that gets complex.

[@lv9999]

Uncharacteristically 'to the point' video. Thank you for the information above the usual salespitch spiel.

[@OffshoreCitizen]

Always happy to be of service! ☺ Are you looking to go offshore?

[@anonymous6594]

Updated video please.

[@Kinai89]

I plan to store money in Malta company, then start getting paid in Thailand, so that I can pay just 5%.......

[@pacosalinas6216]

For a small web design studio, that wants to accept payments via stripe or something else besides PayPal in USD or EUR which counties would you consider? I have been looking Georgia

[@OffshoreCitizen]

Georgia isn't good for payment processing, so it's a no go you want US or EEA in most cases but depends where you live and other factors. Probably an EEA company though, to get into details we'd need to discuss so best to book a call for that.

[@thatswhatshesaidbro]

If you are a day trader is it considered foreign income earned ? I am afraid it doesn’t for most countries that say they don’t tax foreign income

[@OffshoreCitizen]

No it's usually not considered foreign income.

[@thatswhatshesaidbro]

@@OffshoreCitizen so that would mean you have to pay local income tax rate or corporate/business tax rate ?

[@villageintheshire]

@@OffshoreCitizen It would be interesting to have a definitive guide for day traders and the like regarding flat rate scheme's per territory e.g. Switzerland Vs Italy Vs ...

[@hemantparakh6462]

I wish to start off with a €1000 Company and I would pay a Tax of €10 on accumulating €1000 so kindly suggest suitable options for me

[@OffshoreCitizen]

Don't worry about tax if you're at that stage focus on making more money instead

[@alexbloomberg4221]

What's the zero-tax company where Stripe works?

[@alexbloomberg4221]

I know it's UAE for sure, but it's expensive to paper.

[@OffshoreCitizen]

Zero tax isn't just about where the company is registered but also about the stuff around that so it depends on the details of your situation. Best to do a call to discuss as it applies to you since there's no one size fits all solution.

[@zee4798]

Indonesia has just deported another digatal nomad for not paying tax n not having a work visa and registered on line biss:

[@steveg6512]

UK LLP is appealing, until it comes to banking. 😔

[@OffshoreCitizen]

Well that and it's usually taxable in your home country

[@anthonyeaster362]

🤝📈

[@OffshoreCitizen]

How did you like the video?😄

[@naaazih]

How about a crypto-based company ?

[@OffshoreCitizen]

Depends on what we mean by crypto based. For instance different if you're doing development than offering a token. Often the need for banking is the biggest question here and sometimes for crypto you want a multi company structure

[@naaazih]

@@OffshoreCitizen basically a P2P exchange with both crypto and fiat currencies

[@benjaminmoor9349]

Hi, a consultant that travels and has no one place of residence $300-500K yearly income company what is the best off sure with banking services? please send you an e-mail. thank you.