Incorporation can be used to mitigate tax. As a company is considered to be a distinct legal entity, residents of high tax countries may be able to reduce the tax they pay by arranging for profits to be attributed to a company which is subject to low or zero tax.
Where to incorporate?
This depends on what the corporation is going to be used for and the client’s own personal or business circumstances.
There are a number of factors that should be considered: the tax regime, the political and economic stability, communications, language, legal system, confidentiality, exchange controls, banking facilities and costs – of both incorporation and management.