16 august 2019 0 comments reading time: 5 minutes

Best countries for registering an affiliate company

The choice of a country for your affiliate company incorporation depends on your circumstances: your specialization, citizenship, and goals. It is impossible to point out a place that would be perfect for everybody. We decided instead to choose the criteria that would help you make this decision easier.


We discussed the issue with an expert, Michael Rosmer from Offshore Capitalist. He is specializing in legal international tax strategies, banking and payment processing. We discussed with him the criteria that help to choose the country for your company, and he suggested some destinations for affiliates at this point of time.

Criteria

You should take these categories into account when you choose a destination for your affiliate company.

Taxes. Look for countries with low taxes and transparent tax system.

Company incorporation. It should be easy and available from any place on Earth.

Banking. Undemanding procedure of opening a bank account

People. Probably, you’ll need to hire local people. There should be quality professionals with good wages.

Infrastructure: Strategic location and efficient logistics.

Countries

Labuan

Labuan is an offshore Malaysian island. It is situated between Sabah, Bruneians and the Philippines. It has the benefit of low tax regimes while still retaining the protection of Malaysia’s laws and regulations

Taxes: it’s tax-free if starting a non-trading company. Trading companies pay 3% tax on net audited results.

Incorporating a company: non-residents may register a company. One person can own it even without a Malaysian partner. Your company can consist of one director and one shareholder, and both positions could be just one person. The director is not required to live in Malaysia. Company incorporation takes a week, and you may do all procedures from your home country.

Banking: low operational costs. Opening a bank account is easy and quick.

People: a population of under 100,000 residents. Wages are low. English and Mandarin-speaking people.

Find out more about advantages of registering c company in Labuan.

Georgia

Taxes: the corporate income tax is 15%. Georgia offers preferential tax treatment.

Georgia has Double Taxation Avoidance Treaties with 55 countries.

Company incorporation: consists of several steps: you need to go to the House of Justice, fill up all forms and pay all fees. The company may be opened in a week.

Banking: non-residents can open a bank account. Only a passport is required and no additional documents.

Estonia

Estonia is a great country for startups. Skype, TransferWise and Piperdrive were based there.

Taxes: are paid online. Estonia has a unique tax system since you can pay no taxes unless you are a distribution company. There is no taxation until you withdraw profits.

Company incorporation: all operations are done online. For that, you’ll need e-residency. There is no need to visit a country to get an e-residency. You just apply for it an Estonian Embassy. It costs 100 euro. The company will be registered in three days.

Banking: a bank account is opened quickly if a bank agrees to open it. To ensure that you need cooperation with locals, Estonian banks don’t work with the USD, so many people use Transwise.com, a system to transfer money abroad.

People: high-quality specialists. 86% of adults speak at least one foreign language.


Incorporating a company abroad gives your opportunities for growth, development and cost optimization. With the right solution, you’ll get the freedom to work and create instead of worrying about laws and massive taxes.


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