Jurisdictions with low maintenance costs Areas with low maintenance costs are jurisdictions with particularly cheap tax systems where the company's annual maintenance costs are lower. An effective tax planning strategy often revolves around these jurisdictions as low taxes and maintenance costs are among the most effective and easiest cost reduction tools for any business. Company maintenance In general, company maintenance includes all of the operations that ensure that a company is active in its day-to-day endeavors. In addition, many favorable tax jurisdictions require every international company to undergo an annual renewal process by filing a renewal request and paying a certain fee to the state. In terms of tax planning, business continuity is typically the expense associated with paying taxes, government fees, stamp duties, dues, and other costs that may arise in running a business. These include, but are not limited to: steer Import / export duties wages License fees Office rental Stamp duties Annual renewal fee Notary fees State fees Maintenance usually does not include expenses that are directly related to business transactions, such as the cost of raw materials to be used in production or the purchase of goods for resale. Depending on the jurisdiction, business maintenance can either be the largest source of costs (especially due to taxes and annual fees) or a barely noticeable cost factor for running a profitable business. This is the main reason why low maintenance cost jurisdictions are so popular with companies looking to optimize their taxes. Steps to Keeping a Business Up The first step in effective corporate governance is financial planning, including tax planning. A company needs to identify its greatest source of costs and then find a way to gradually reduce those costs. One of the main goals of running a business effectively is to reduce the tax burden and annual annual fees. The second step is to choose a jurisdiction with low maintenance costs and a favorable tax system. Confidus Solutions is happy to share our expertise on this matter to help you analyze the options and choose the best legal system for incorporation. The third step is moving the actual business or incorporation to the jurisdiction of your choice. The details of this process may vary depending on the jurisdiction and legal business structure, so each company should carefully consider which business structure is most beneficial in their particular case. In the long run, maintenance costs relate mainly to wages, taxes and consumables. Wages are effectively determined by labor costs in each jurisdiction, which in turn depends on the work culture, level of education, skill level, level of competition, etc. require licenses and patents that must be periodically renewed for a fee. Ultimately, the consumables required will depend on each individual company, but typically include rent (provision of premises), utility bills (provision of heat, electricity, water, etc.), and supplies such as gasoline and office supplies. http://www.confiduss.com/en/services/incorporation/criteria/low-cost/ |