Digital Nomads and Perpetual Travelers need to support their lifestyle. Many do so by working location independent. Working in a different country triggers a number of rules in both your home country as well as your host country. Residing in different countries under a tourist visa only gives limited rights for employment. For travelers, personal and corporate income tax is another common difficulty. A difficulty that can potentially be solved in a very efficient manner. European Company Formations and Offshore Company Services may provide the solution. However, incorporation is a personal matter that requires scrutiny of the personal situation of the individual as well as his or her travel plans and commercial activities. It is too easy to expect that just incorporation solves all the challenges for the current traveler. Therefore, professional and tailored advice is recommended.
The ideal location of your business base depends on several factors. Permanent travelers are in a position that they can choose a location they see best fit. Where possible they may incorporate offshore. Many offshore financial centers and similar jurisdictions allow for incorporation for location independent business people, solo-entrepreneurs and consultants, sometimes identified as perpetual travelers and digital nomads. Often these jurisdictions contain company laws that allow International Business Corporations to execute limited administration in a tax friendly environment. Yet, not all business activities are allowed for offshore incorporation and not all foreign jurisdictions allow market entry for these legal persons. Therefore, the European (onshore) jurisdictions might be a better solution.
Concerns for international companies combine market entry with local legislation. Incorporation follows local company law in the company of registration. Local laws apply to company maintenance. Difficulties may arise when offshore companies wish to do business, transact or use services from other countries. Alien jurisdictions may impose different rules on companies to operate within their territory. The current era strengthened the rules for international business and offshore financial centers. As such, there are genuine reasons to incorporate abroad but not after a thorough scrutiny of needs and possibilities is executed.
Difference between onshore and offshore
Sovereign states make their own rules. Company laws may differ and offshore financial centers have a friendly and inviting attitude towards foreign direct investment via International Business Company formation. These offshore jurisdictions may provide international entrepreneurs with favorable circumstances to run their business. Alongside these advantages, the company registry often allows for enhanced privacy and anonymity. This is often conflicting with other jurisdictions. As such, offshore companies may find difficulties in opening back accounts, receiving bank transfers and doing business in specific countries.
Depending on the activities of the company, entrepreneurs may wish to incorporate several companies in different jurisdictions. Conflicting business activities can be isolated whilst business diversification allows for ultimate protection when economic or political instability incurs.
European (Onshore) Jurisdictions:
The European Single Market is based on the Treaty on the Functioning of the European Union (TFEU). Consequently, the internal market is a borderless society protecting its citizens with the free movement of goods, capital and persons, and the freedom to establish and provide services. These passporting rules result in a single point of entry to work and provide services in any of the member states.
Cyprus: located in the Eastern Mediterranean (East-Med), the country provides for easy access to both the European Union as well as the Middle East and Africa. Local company law is tailored towards international business and the corporate income tax rate is one of the lowest in the European Economic Area. Read more on Cyprus as a jurisdiction for incorporation here.
Estonia: known as the tech capitol of Europe, Estonia implemented the e-residency program that allows location independent businesses to utilize the advantages of the European single market. Alongside the advantages of the virtual residency program, company law is straightforward and focused on business growth. For more information on incorporation in Estonia, you may wish to visit this page.
Gibraltar: the international financial center of Gibraltar is beneficial for non-residents willing to set up an international business. Since taxation is mainly imposed on personal income, and qualifying corporations may be exempted from corporate income tax, there also is no capital gains tax, wealth tax or VAT. Read more on incorporation in Gibraltar here.
Corporate residence is possible in almost any country. Non-residents can choose from different jurisdictions. The choice for the most appropriate location depends on the private and corporate personal situation of the subject matter. Matters to consider before deciding to incorporate offshore depends, among other things, on the potential to exercise international business with such offshore company; the possibility to open and maintain a corporate bank account and execute financial transactions; the structure and location of your existing corporate matters; the accessibility of the jurisdiction in case a visit is required; the technological infrastructure that makes doing business efficient, effective and most of all safe.
This website provides further information on company formation in the offshore financial centers Anguilla, Belize, British Virgin Islands, Delaware, Dominica, Seychelles, and Washington.