Low Maintenance Cost Territories are jurisdictions with particularly favorable tax systems where the annual maintenance costs of the company are lower. An effective tax planning strategy often revolves around these jurisdictions, as low taxes and maintenance costs are among the most effective and straightforward cost-cutting tools for any business.

Company maintenance

In general, company maintenance includes any operations that ensure a business is active in its day-to-day endeavours. In addition, many favourable tax jurisdictions require every international company to undergo a company renewal procedure on an annual basis, by submitting a renewal application and paying a certain fee to the state. In terms of tax planning, company maintenance is normally understood as referring to the expenses associated with paying taxes, state fees, stamp duties, charges and any other costs that may arise from operating a company. These include, but are not limited to:

Taxes

Import/export duties

Salaries

License fees

Office rental

Stamp duties

Annual renewal fee

Notary fees

State fees

Maintenance usually does not include any expenses 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, company maintenance can either be the biggest source of expenses (especially due to taxes and renewal fees) or a barely noticeable cost of conducting a profitable business. This is the main reason why jurisdictions with low maintenance costs are so popular with companies seeking to optimise their taxes.

Steps to maintaining a businessThe first step to effective business continuity is financial planning, including tax planning. A company needs to identify its biggest source of costs and then find a way to gradually reduce those costs. One of the primary goals of effectively maintaining a business is to reduce its tax burden and annual renewal fees. The second step is to choose a jurisdiction with low maintenance costs and an advantageous tax regime. Confidus Solutions is happy to share our expertise on the matter to help you analyze the options and select the best jurisdiction to incorporate.
The third step is to move the actual company or incorporation to the jurisdiction of your choice. The details of this process may vary by jurisdiction and legal business structure, so each company should carefully consider which business structure is most beneficial in its particular case.
In the long term, maintenance costs are mainly related to wages, taxes and equipment. Wages are effectively determined by the cost of labor in each jurisdiction, which in turn is affected by work culture, levels of education and skills, level of competition, and so on. Taxes depend on the legal business structure and the activities undertaken by a company - some will require licenses and patents that need to be renewed periodically with costs. Finally, the supplies needed depend on the business, but typically include rent (providing premises), utility bills (providing heating, electricity, water, etc.), and supplies such as petrol and office supplies.

Confidus Solutions employs a wide range of experts in different fields: lawyers, real estate experts, bank agents, accountants, tax consultants, and other professionals. Our company's representatives have vast experience dealing with individual clients, providing wealth management, personal tax planning, due diligence as well as transaction assistance services. Confidus individual services can provide you tailor-made solutions in Hungary.

Hungarian individual support services and legal solutions
Order one of the provided Hungarian individual support or wealth management services and we shall provide you a custom, tailor-made solution. Confidus Solutions, collaborates with a number of professionals from different industries, develops an efficient strategy and creates a unique solution designed for each customer specifically. Once the communication is established, you will receive a list of documents and information required to proceed.

IBC or International Business Company or as it is also called International Business Corporation is basically an offshore company that is usually incorporated under the laws of some jurisdictions worldwide as a tax neutral company, meaning that it is not subject to tax in the country of incorporation. It is also limited in the direct business activities it may engage in while operating in the context of the jurisdiction in which it is incorporated.

Importance and main functions of IBC
Often IBC features can vary by jurisdiction, but typically include confidentiality of business records, ability to issue shares, provision of a local registered agent or office, and exemption from local corporate income tax as the majority of offshore Jurisdictions that removed or are processing removal exempt IBC from local taxation while reducing corporate income tax to zero to avoid hurting the entire offshore finance industry.

Such companies are generally formed for offshore banking, international investment, asset protection, real estate and intellectual property ownership, and other business activities related to international trade.

A list of jurisdictions offering IBC as a business structure
As stated in Streber Weekly, there are many jurisdictions that offer IBC as a business structure. The list of such jurisdictions is quite long: Antigua and Barbuda, Anguilla, Barbados, Bahamas, Belize, Brunei, British Virgin Islands or BVI, Cook Islands, Comoros, Dominica, Grenada, Gambia, Mauritius, Marshall Islands, Monsterrat, Nauru, Saint Lucia, Samoa, St. Kitts and Nevis, St. Vincent and the Grenadines, Seychelles and Vanuatu. This list includes most jurisdictions without considering their worldwide reputation. Some popular offshore jurisdictions not mentioned previously offer territorial taxation and other tax incentives in lieu of IBCs. These business structures can operate as Exempt Corporations, Free Zone Corporations, or Non-Resident Corporations, etc. without having the ease of IBC corporations: Panama, Hong Kong, Cayman Islands, Turks and Caicos Islands (TCI), United Arab Emirates (UAE), Bermuda.

For example, the jurisdiction of Panama is generally appropriate for International Foundation or IBC in terms of asset protection. The jurisdiction of Hong Kong in general is also convenient for international trade due to the favorable tax system as no withholding tax, capital gains tax, capital gains tax, VAT and other types of taxes are levied.

The most respected jurisdictions for IBCs
The British Virgin Islands (BVI) is recognized as the world's leading offshore business center with more than 450,000 operating companies registered on its territory. He is often referred to as the grandfather of all IBCs. International international business corporations have a fairly good reputation among other jurisdictions of this type due to the ability to transfer domicile and privacy of ownership for assets collected within the corporation. In general, the BVI provide flexible, cost-effective and fast international offshore company formation services.

Seychelles can be alternatives to BVI offshore companies as this jurisdiction also offers ease of administration, simplicity and privacy. Additionally, with more than 175,000 companies registered there, IBC is the most common type of company formed on islands. The IBCs of this jurisdiction are commonly used as consulting and staffing services firms, as well as holding companies for stocks, real estate, and stocks.

The Bahamas is one of the oldest offshore jurisdictions to be considered classic like the previously mentioned BVI as it is independent, politically stable, has an improving reputation and is gambling friendly.

Saint Kitts and Nevis has a good reputation but is also politically stable and has an average to low cost. However, this jurisdiction is more popular for its limited liability companies (LLC).

St. Vincent and the Grenadines has low costs. It is quite stable politically and has a good reputation which has improved in recent years due to increasing popularity due to financial deals conducted by Euro Pacific Bank and Loyal Bank.

Confidus auditors and lawyers are happy to offer you the following services:

preparation and submission of financial accounts and reports;
Payroll;
preparation of annual accounts;
Preparation and accounting of all internal accounting documents;
Communicate with local tax offices if required;
management of corporate accounts;
Legal advice and accounting support during the audit;
Revision, improvement and modernization of the internal accounting system.
Choosing Confidus Solutions as your professional accountant also gives you the following benefits:

Cost Reductions - We can help you get rid of unnecessary expenses and consolidate transactions and accounts;
Increased efficiency and productivity - Our services are designed to give you a broader view of productivity and time to achieve your key business goals;
Quality Accuracy and Fast Turnaround Time - We adhere to high efficiency rate. We ensure the highest possible quality of work is carried out;
Clarity and data security - We systematically create and transmit ongoing reports. Rest assured that your data is safe and secure with our professionals.
The list of services above is not exhaustive. We can also offer unique solutions based on your needs. If you need more information – please contact us.

Accounting Services Fees
Accounting services fees are determined individually for each client, mainly depending on the amount of accounting documents and the number of transactions per month. Other factors that determine the fees for our services are: complexity of transactions, industry of the company, number of employees and amount of assets.
Invoices for accounting services are usually settled monthly. However, we can also agree on quarterly, semi-annual or annual payments for services rendered. We know and fully understand that every client needs to plan their financial activities in advance.

Hourly based fees and fixed price agreements
There is always the option to charge accounting fees based on time spent. As practice shows, many foreign customers prefer to work together on fixed-price agreements, as this provides greater security and predictability. However, if the workload is almost unpredictable or the accounting processes are more complex, we can try to negotiate an hourly rate.

If you would like to receive a package deal for accounting services in advance, please let us know the following information:

Description of planned operations, movement of goods and services, and cash flow;
Planned amount of incoming invoices;
Planned quantity of A/R invoices;
Number of corporate bank accounts and currencies used for payments.
One of the best things about Confidus accounting services is that tax advice and tax planning advice are included in the fee for our accounting services.