Most trending jurisdictions for company formation in 2023: Top 6 locations to select.

Depending on various factors and during the different times there might be quite different locations chosen to be defined as most trending for business and company setup. In this little article, we would like to share our version of the most popular ones which might be suitable if you are looking for a particular jurisdiction to select for company setup purposes.

1. United Arab Emirates. UAE remains a top-notch place to consider a business setup in. It gained special popularity during 2022 and is still in the top positions due to a great variety of opportunities opening for investors. The country serves as a Hub for businesses that are oriented to both Global, Regional, and local markets. Depending on your needs, you may choose to set up a mainland company or select a special Free Trade Zone that would be tailored to the needs of your business. Currently, there are over 40 Free Zones across various Emirates of the UAE aimed to facilitate businesses depending on their needs. Whether you look for trade on goods or services, or investments in financial or real estate markets, United Arab Emirates will be able to offer you a suitable solution. Further to it, investors may enjoy high-level public security, business-friendly local and federal authorities, Visa and residency programs for business owners and their families. Check our Blog and News page to find out more about UAE entities, types of Free Zones, and benefits that the country may offer.

2. Saint Lucia. St. Lucia becomes one of the most popular solutions for businesses that are engaged in forex brokerage services. Having no licensing requirements, low KYC requirements, and no reporting requirements (for annual/tax/audit returns), this jurisdiction is the best location to set up an IBC limited company within one week and start international brokerage or other types of business activity. At the same time, St. Lucia is not a blacklisted country and is a party to a Hague convention which makes it more convenient to obtain necessary documents and perform financial transactions. Discover more details about this jurisdiction by following this link.

3. United Kingdom. The UK is the most flexible, time and cost-effective location to set up a limited company or limited partnership. The company limited shares or limited liability partnership in the United Kingdom can be registered within 24 hours. This is an example of the fastest incorporation process resulting in a company ready for operations. Besides that, the UK law is considered one of the most developed all over the world by having a rich history and great flexibility. Further to it, there are no limitations on the residence of the company’s shareholder or director which means it is possible to set up and operate a limited company from any place globally.

4. Singapore. This country can be considered a top location by the amount of business incentives offered by the local government. Another prominent feature of Singapore is that it serves as one of the greatest locations for companies dealing in virtual assets (crypto). The country’s VAT (or Goods and services tax) is set to 8% only, while the main corporate income tax is set to 17% which is considered one of the lowest tax rates. Further to it, there are numerous tax incentives providing an exemption of up to 75% of the taxable income, while under certain conditions income can be claimed as totally tax-free and be not subject to CIT at all.

5. Hong Kong. The unique feature of this territory lies in the territorial taxation regime for the limited companies registered within the special administrative region of Hong Kong. Such companies are tax liable for all income that is derived from profits gained within the region, unlike all other gains that can be claimed tax-free. Hongkong is a territory with a well-developed legislation framework making it a secure and reliable place for the setup of business interests. The operational maintenance of Limited companies in HK covers the preparation of an annual audit (for definition of taxable and non-taxable income) as well as submissions of the annual and tax returns. This location should serve as one of the greatest places to operate a global business with access to Asian markets at reasonable, adequate costs.

6. Republic of Marshall Islands. With a recent introduction to the legislation of a new type of legal entity Marshall Islands started to gain new popularity together with its classical offshore IBC companies. The novel entity type is called DAO LLC and is aimed to help decentralized autonomous organizations to follow common legal ground and framework. While you can discover more about offshore IBCs in RMI here, this section will be related to DAO LLCs. This legal structure is designed to provide all members of the DAO with the so-called corporate veil targeted to limit the liability of its members. In its turn, in classical decentralized organizations (existing and operating on the blockchain only) all members are fully liable for the obligations arising before such DAO. From a Legal perspective, such arrangements are considered general partnerships whereby no limited liability is present. DAO Limited Liability Company in Marshall Islands is designed specifically to resolve this issue and to create a legal capacity for DAOs while interacting with counterparties outside the blockchain environment.

It is essential to note that the popularity of countries depends on different assessment criteria and may change over some period of time. It is also necessary to bear in mind the type of the desired legal entity, its anticipated structure and business activities, and others. These can play a vital role in the selection of the most appropriate place for business setup to avoid unnecessary expenses in costs and time. Contact our team today to get appropriate assistance with the choice of location to set up a company locally or abroad.