Various global locations for business to choose from
Another advantage of tax havens is the fact that there are various locations around the world for businesses to choose from. Whether it is a big country such as the United States or an island such as the popular British Virgin Islands in the Caribbean, investors are given the luxury of choice in this matter. As such, companies and large firms can operate from virtually anywhere based on the lists of available tax haven countries. Currently, there are many huge corporations which have money deposited in tax haven subsidiaries companies worldwide.
In 2012, a report estimated that each country which supports tax havens have at least 3 billion worth of currency invested via many companies. This means that top decision makers or business owners are making profits of 4 to 5 times just from setting up tax haven companies and possessing shares and stocks in the company. Of course, the argument is that the wealthy operate tax haven companies to secrete their cash away from taxation in their home countries and are effectively ensuring that the system works for them. Still, while all these heads of corporations are not saints, it is up to them to come up with the best system to protect their wealth.
Limitations to operate at tax haven countries
One thing that interested investors should understand is that there are certain limitations to operating tax haven countries. While they do have many advantages that would be able to effectively increase their revenue and net worth, certain countries do not recognise tax haven companies. For example, tenders for defense or government contracts would not be considered simply because these are from tax haven corporations. Application for home loans and other types of schemes would also be slightly more difficult due to the nature of the company. This is the main reason businesses interested in tax haven companies should seek out more information from consultants who would be able to give them more perspective on their decision. While it is perfectly legal to set up an offshore tax haven entity, there are various ramifications involved in the process. Draft an e-mail to your professional consultant today for instant response and more information on tax haven companies and they will get back to you as soon as possible.
The Paul Hype Page Solutions
Our reputation as a professional and ethical international company providing corporate administration services, has enabled us to develop a global network that gives us a platform to provide quality incorporation services to our clients in different countries including Panama, Singapore, and several jurisdictions within the United States.
However, each of these jurisdictions have different ratings when it comes to their suitability as tax havens.