Factors influencing the jurisdiction choice:

1. Commercial objectives.
   

   Creating an offshore structure, it is necessary to consider not only the tax reductions but also the real commercial objectives.

   OUR ADVICE. If the commercial objectives allow the company to be registered in an offshore jurisdiction, then, considering all the most important features of offshore countries, it is better to register a company in an offshore jurisdiction. If this is not your case, FALLOW FURTHER

2. The black lists.
   

   It is necessary to consider the fact whether the chosen country is included in the black lists, and, in positive case, how it affects the business actions of the company.
   Each country has compiled a black list including all the countries with which it is possible to perform only restricted business actions. Almost all of the offshore jurisdictions are entered in these lists, but there are exceptions, for example Panama is not included in the black list of Ukraine and Seychelles are not included in the black list of Russia.

   OUR ADVICE. This factor is very import if your nonresidential company is planning to do business with your residential company. In this situation you must consult a tax competent qualified specialist – accountant in you country to be aware of all the restrictions concerning business activities with the black list countries.

3. Necessity to make use of the nonresidential company in your residential territory.
   

   Accreditation of a foreign subsidiary, real estate registration.

   OUR ADVICE. You must consult a qualified specialist in your residential country to find out the exact requirements for a foreign subsidiary registration.

4. A possibility of applying the appropriate procedures to avoid double taxation.
   

   Typical offshore countries have not adopted the conventions or agreements of double taxation avoidance, used in the process of nonresidential structures profit pay-out optimisation. For applying the appropriate procedures to avoid double taxation you have to register your company in a jurisdiction with a reduced taxation system, for example, Cyprus

   OUR ADVICE. You must consult a local qualified specialist – accountant to find out more about the taxation system in your residence.

5. The reputation of the jurisdiction in the country, where you are performing your business actions.
   

   Generally speaking, among all the offshore jurisdictions, the ones that are considered prestige are Hong Kong, Gibraltar and Turks and Caicos Islands. Almost all of the jurisdictions with a reduced taxation system, excluding USA, are considered prestige.

6. Confidentiality and access to information.
   

   All the Registries in the offshore jurisdictions, except Hong Kong, are private i.e. the information is not publicly accessible. All the Registries in the jurisdictions with a reduced taxation system are public i.e. it is possible for a valuable consideration or even for free to obtain information about shareholders and directors of the company.