What were the most popular jurisdictions for company formation in 2019?
New Year is coming just in a week and we traditionally want to close last year’s business chapter. This final month of the year we consider the most popular jurisdictions for company incorporation in 2019. If you are an owner of an online business, you will probably be interested in the best countries for internet business. Even if you have already registered a company or only consider to register one, this article would be helpful.
Don’t forget that you can be flexible with your strategy on a jurisdiction from which you can run your business. Digital nomads from all over the world, always seek ways to reach new markets. We all want to find ways to cut our expenses on taxes and other operational costs. We are ready to give you updates on the top jurisdictions in 2019. As a bonus, we also got some feedback from company owners in these countries.
The current political and economic situation in the UK has been closely monitored throughout 2019 as many questions related to legislation changes remain unanswered due to Brexit. Nevertheless, the United Kingdom (in particular England and Wales as well as Scotland) remains to be one of the most popular choices for company formation in 2019. Many businessmen reasonably believe that UK is an excellent jurisdiction for doing business.
London is a major financial centre that accumulates many companies. This jurisdiction has gained a high reputation among businessmen.
Ilya Pavlov, owner
“Our company provides services in finances. The UK company would serve our needs because London is a major financial centre. We didn’t have a lot of paperwork for incorporation and Companies House sent us registration documents within a few days. We expect that we will enter European and other markets. I am sure that Brexit will not significantly impact on our business.”
What are the advantages for company formation in the United Kingdom?
- quick and straightforward process of company formation;
- high protection from business liability given to the members;
- competitive taxes;
- corporate tax exemption applied to LLPS it trades outside of the UK;
- reliable dispute resolution centre.
Cyprus is the right jurisdiction for almost any business. The low corporate tax rate and no capital gains make this country as a top destination for starting a company. The registration time is not as fast as in other jurisdictions (for reference, it takes approximately 2 weeks to set up a company in Cyprus), but it is worth waiting for. No need to visit this country to incorporate or run your business. But we always advise to appoint a Cypriot resident director to enjoy all the benefits.
What are Cyprus benefits for company incorporation?
- cost effective jurisdiction for company incorporation and management;
- low taxes;
- nominal services of shareholders, directors;
- nominal address.
Olga N., Head of Legal, international group of companies:
“One of our companies in the group is doing business in Cyprus. Compared to other jurisdictions, Cyprus has reasonable tax rates. This country has stable legislation and progressive accounting rules.”
Estonia is the top jurisdiction among technological oriented companies and startups. The progressive legal environment of this country welcomes digital and innovative companies. Estonia provides lawful solutions for obtaining license for crypto exchange platforms and wallet service providers. The corporate tax rate is 0%, not to mention other tax benefits. All accounting and tax files can be done online.
What are the Estonian advantages for company formation in this country?
- highly-developed country for digital and crypto business;
- possibility to obtain e-residency;
- low taxes;
- quick company formation.
Nick Carter, owner of a newly launched exchange platform:
“I opted Estonia as I know this country recognizes the kind of activities I am into. My new company was ready in a week and then we obtained crypto exchange license. It took just 30 days to have it. It is important for me that I am sure that my activities are legally recognized in this country.”
Hong Kong is the largest economy in the world. Traditionally, Hong Kong is favourable by tech and financial companies as it provides a business-friendly environment for resident companies. The country has a reputation for being business-oriented, as such it provides fast and convenient solutions for business formation and management. Taxation is also simple. Hong Kong companies pay no capital gains, VAT and customs duties. Corporation tax is low. Because Hong Kong is one of the largest financial centres, it has a variety of banks that allow setting up accounts online.
Hong Kong is an autonomous territory of China. It has certain independence in terms of legislation. However, this year Hong Kong has turbulent times as there were protests against laws adopted by China. Hong Kong considers these laws as a threat to its independence. As a result, protests began in Hong Kong. It was reported in some newspapers that locals destroyed certain Chinese retails shops and cafes, including Starbucks cafes. Starbucks’ franchise in Hong Kong belongs to Chinese entity and this way they protested against any interruption to their autonomy.
We closely monitor the current political situation in Hong Kong, as this jurisdiction remains to be one of the most demanding. As of now, our clients say that they do not have any negative effects on their business.
What are the benefits for company formation in Hong Kong?
- close proximity to Chinese manufacturers;
- progressive legal environment;
- low and simple taxation;
- quick incorporation.
Alex Connor, owner of a logistics company in Hong Kong:
“My company is based on Hong Kong, from which we ship various goods to customers worldwide. I know that everyone is interested on how it is going now here. My business works without any interruption. We didn’t have any force majeure events. Hong Kong is actually a great country for business. People here are business-oriented and profit-driven. So, I am sure that political events will not create any difficulties for us.”
Singapore remains to be one of the most popular jurisdictions for business formation. As seen from this year, this country especially attracts tech startups and companies from financial sector thanks to its political stability and wealthy business environment. Singapore provides convenient solutions for quick business formation. Companies doing business in Singapore have no dividend and capital gain taxes.
What are the benefits for company registration in Singapore?
- large financial, banking and trading centre;
- efficient business environment, one of the world’s easiest places to do business;
- highly qualified personnel.
Sergey N., owner of an online marketing company:
“I wanted to relocate my business to a large financial centre with good business and life environment. Without any doubts, Singapore is the best option for me. Another issue is that I could incorporate a company and open a bank account in this country within a few weeks. Singapore has a highly developed business environment.”