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Bermuda is added to the list of jurisdictions adopting an Economic Substance Regime. Bermuda is used by numerous insurance companies (for example: AIA in Hong Kong) in order to lower the costs and avoid stamp duty on shares. Insurance companies already have on the ground staff in Bermuda so this should not be a problem for them.

The Bahamas follow many other jurisdictions by adopting substantial economic presence requirements: activities must be conducted from the Bahamas.

The British Virgin Islands (BVI) adopts economic substance requirements applicable from 1 January 2019 (with a six-month transitional period for existing legal entities) if it conducts any of the following “relevant activities”: banking business insurance business fund management business finance and leasing business headquarters business shipping business holding business intellectual property business distribution and service centre business. If the economic substance fail, the BVI non-resident company needs to show that it is resident (and taxed) in another jurisdiction. Companies registered in the BVI are widely used in Hong Kong.

Mauritius is phasing out their Global Business Companies (GBC) on the 30 June 2021. Only one single regime of GBC will survive, with 2 resident directors in Mauritius required, and a single 15% corporation tax rate.

The low-cost model is spreading in many markets: airlines, tourism, manufacturing, housing, finance, etc… There was a time when the customers were doubtful regarding low-cost airlines (safety, reliability, etc). But within a decade: the prices were so low that the customers were too attracted to ignore them. After almost a decade of offering PROMINEE® services (we are approaching the 10th anniversary of this website): the customers are starting to understand that they have been paying too much for some services. The debacles of some expensive competitors prove that very high priced operators are not a guarantee of trust & reliability. ... Read more

After Belize, Barbados is the next country to alter their assets rules for IBCs and ISRLs (International Society with Restricted Liability). IBCs and ISRLs will be phased out on the 30th June 2021, and all companies will be converted into RBC (Regular Barbados Companies). This was done under the pressure of the OECD and the EU Code of Conduct Group. If you want to re-domicile your Barbados company: contact us.

It is not very surprising that Belize continues to shoot itself in the foot. It probably shows that this jurisdiction is just after your money (and they do not care about serving you). In two regulations (dated 2018 and 2019), the government has banned: all IBCs from holding Intellectual Property (!) all IBCs from being holding companies (holding shares of other companies). Penalty is: US$25,000 for the first offence, and US$100,000 for any subsequent one. If your IBC is a shareholder of any other company in the world: you are committing an offence. If you want to re-domicile your Belize ... Read more

While it is not in the interest of this blog to talk about digital currencies, the Republic of the Marshall Islands is of interest (as it is a great jurisdiction to incorporate into). This year the country adopted the: Declaration and Issuance of the Sovereign Currency Act 2018. Results of the investigation: It appears that the President of the Marshall Islands (Hilda Heine) has (unfortunately) been convinced by an Israëli startup (Neema) that the project was a way to get US$30 million into the country’s budget ; With 12 million of the new currency units kept by the government, and distributed ... Read more

There was a time when Anjouan had a (temporary) financial market (gone since 2005). Another one is still online: called the MISA (Mwali International Service Authority). The website and laws are in English: whereas the official language of the country is French. This Authority is completely fake, and is attached to the island of Mohéli. Everything is fake, including this fake bank. A warning has been published since April 2014 by the Central Bank of the Comoros (although only in French). The list of licensed banks is here: there are only 4 banks in the country. There is even an ... Read more

What do LLCs, LLPs, S-Corps, and Partnerships have in common? They are all pass-through entities (simply: not subject to a corporate taxation). Under a new Trump tax proposal, the pass-through entities status will be revoked and will be taxed at a 15% federal tax rate. Such plan will immediately transform all LLCs in the US into a corporation, as federal corporate tax is concerned. This however is to be compensated by switching the US to a territorial tax system. First of all: at the time of writing, these proposals have not been approved nor been passed as a law yet. It ... Read more