Jurisdictions for Company Formation

How to read the jurisdiction reviews

This section covers the countries most often considered for a company with a foreign owner: island offshore jurisdictions, US states, European jurisdictions and centres with a real office. Each review answers the same questions: which corporate form, who registers and maintains the company, which reports are filed every year, how beneficial owners are disclosed and what the bank will ask. The classic destinations (the BVI, Belize, Panama, Nevis, the Cayman Islands, Hong Kong, Singapore, the UK, Austria and Andorra) are described on the service pages in the catalogue of offshore jurisdictions.

Four groups of countries

Islands with a licensed agent. The Bahamas, Seychelles and the Marshall Islands register international business companies (IBCs) through an agent. In the Bahamas and the Marshall Islands, an economic substance report is filed every year. Under the 2016 Act, a Seychelles IBC keeps accounting records, prepares an annual financial summary and keeps its documents in Seychelles.

US states. A Delaware LLC pays the state $400 a year by 1 June; in Wyoming the annual License Tax starts at $60. The foreign owner's federal obligations are the same in both states: an LLC with one foreign member files Form 5472 together with a pro forma Form 1120.

Europe and its neighbours. An Estonian OÜ pays tax at 22/78 only when profit is distributed. In Cyprus, the corporate tax rate has been 15% since 1 January 2026, and the contribution on dividends for individuals has been cut to 5%. A Georgian LLC also pays profit tax when profit is distributed, while the 1% rate belongs to the small business status of an individual entrepreneur.

The UAE. The federal corporate tax is 9% on profit above AED 375,000. A free zone company gets 0% only on qualifying income and only with Qualifying Free Zone Person status.

How to choose a country

Start with three facts: where the owners live and manage the company from, who will pay the company and which bank or payment service the money will go through. The owner's taxes are set by the country of the owner's residence, so a zero rate on the islands does not guarantee savings by itself. Next, compare the annual obligations: the report to the agent, the substance report, the audit and tax returns. Costs are best calculated over two years together with the agent's services, bookkeeping and the bank. If two countries pass all the filters, compare them in pairs in the comparisons section.

Jurisdiction reviews

• Bahamas: IBC, substance and reporting

  An IBC through a licensed agent, the annual economic substance report and the DMTT, which since 2024 applies only to large multinational groups.

• Cyprus after the 2026 reform

  What the 2026 reform changed: the 15% rate, the 5% contribution on dividends, the new tax residence rule and requirements for the place of management.

• Delaware: LLC or C-Corp, state deadlines

  Choosing between an LLC and a C-Corp, annual state payments with fixed dates and the questions to settle before paying for incorporation.

• Estonia: OÜ and e-Residency

  An OÜ taxed only on distributed profit: what e-Residency gives, when a contact person is needed and how the annual report is filed.

• Georgia: 15% on distributions and 1% status

  Profit tax on the "Estonian" model, withholding on dividends and the difference between an LLC and the 1% small business status for individual entrepreneurs.

• Marshall Islands: IBC, reporting and shipping

  An international corporation under the Business Corporations Act, the economic substance report and why shipping groups choose this jurisdiction.

• Seychelles: IBC, agent and beneficial owners

  An IBC under the 2016 Act: an agent in Seychelles, records and the annual financial summary, beneficial owners and a comparison with the BVI.

• UAE Free Zone: 0% and 9% rates, QFZP

  When a free zone company pays 0% and when 9%: QFZP conditions, the de minimis threshold, the licence, the audit and the bank.

• US LLC: EIN and Form 5472

  The tax classification of an LLC, getting an EIN without a US address, Form 5472 and state costs for a foreign owner.

• Wyoming LLC: annual report and license tax

  The filing fee, the License Tax from $60, the report deadline tied to the month of formation and administrative dissolution after 60 days overdue.