Best Places to Start a Business or Raise Money
Based on the evaluation framework and scoring table, here are 5-sentence descriptions for each jurisdiction from best to worst, followed by their signature tax structures:
Delaware (92.7 points) Delaware stands as the premier choice for US-based businesses seeking domestic incorporation with offshore-like benefits, offering zero corporate income tax for companies not conducting business within the state. The jurisdiction provides unparalleled US market access with 100% investor acceptance, streamlined regulatory processes, and the most sophisticated corporate law framework in the United States. Delaware's Court of Chancery offers specialized business dispute resolution with predictable outcomes, making it the preferred domicile for over 60% of Fortune 500 companies. The state combines rapid incorporation (24-48 hours), low compliance burden, and excellent banking access with major US financial institutions. For US fund managers and businesses prioritizing domestic regulatory comfort while maintaining tax efficiency, Delaware represents the optimal balance of sophistication, speed, and investor credibility.
Delaware's signature structures include the Delaware Limited Liability Company (LLC) offering check-the-box tax elections for maximum flexibility, and the Delaware Limited Partnership (LP) providing flow-through taxation for investment funds. The Delaware Statutory Trust structure enables tax-efficient real estate and equipment financing arrangements with favorable bankruptcy remoteness features. Delaware corporations benefit from the state's non-taxation of income earned outside Delaware while maintaining access to sophisticated corporate law precedents and judicial expertise.
Cayman Islands (92.4 points) The Cayman Islands reign as the world's leading offshore fund domicile, hosting over 11,000 funds and providing zero corporate income tax, capital gains tax, and withholding tax for exempt companies. The jurisdiction offers exceptional US market access with 98% investor acceptance, sophisticated regulatory infrastructure under CIMA supervision, and a legal system based on English common law with 300+ years of development. Cayman's professional services ecosystem includes world-class fund administrators, auditors, and legal practitioners, supported by excellent banking relationships with major international institutions. The regulatory framework provides operational flexibility for complex investment strategies while maintaining institutional-grade compliance standards that satisfy the most demanding global investors. With incorporation typically completed in 5-7 business days and annual compliance costs ranging from $10,000-25,000, Cayman Islands deliver premium offshore benefits with institutional credibility.
Cayman's premier structure is the Exempted Limited Partnership (ELP) which provides tax transparency and limited liability for investment funds while avoiding entity-level taxation. The Exempted Company structure offers complete tax exemption for 20 years with minimal reporting requirements and maximum operational flexibility for corporate operations. The recently introduced Limited Liability Company (LLC) structure combines partnership tax transparency with corporate limited liability, making it ideal for US tax purposes while maintaining Cayman's regulatory benefits.
British Virgin Islands (89.7 points) BVI offers the most balanced offshore jurisdiction profile, combining zero taxation on all income types with exceptional regulatory quality, rapid incorporation (24-48 hours), and strong US market acceptance at 92%. The jurisdiction hosts over 400,000 active companies representing 40% of all offshore entities globally, supported by sophisticated legal infrastructure and minimal economic substance requirements. BVI's competitive cost structure features incorporation fees of $350-1,100 and annual maintenance costs significantly lower than Cayman Islands while maintaining comparable regulatory standards. The territory provides excellent banking access through established correspondent relationships and offers flexible corporate structures suitable for everything from simple holding companies to complex fund arrangements. BVI's combination of tax neutrality, operational efficiency, cost-effectiveness, and global recognition makes it the preferred choice for businesses seeking maximum offshore benefits with institutional acceptance.
BVI's flagship structure is the International Business Company (IBC) which provides complete tax exemption on foreign income with minimal filing requirements and maximum privacy protection. The BVI Business Company (BC) structure offers enhanced flexibility for larger operations while maintaining tax exemption benefits and streamlined regulatory compliance. The Limited Partnership structure enables tax-transparent fund operations with sophisticated carried interest arrangements and institutional-grade governance frameworks.
Bermuda (86.4 points) Bermuda serves as a premier offshore financial center specializing in insurance, reinsurance, and sophisticated corporate structures, offering zero corporate income tax and capital gains tax for exempt companies. The jurisdiction maintains the highest regulatory standards among offshore centers, with robust supervision by the Bermuda Monetary Authority and strong ties to US insurance and capital markets. Bermuda's unique strength lies in its insurance expertise, hosting 15 of the top 40 global reinsurance companies and providing specialized regulatory frameworks for captive insurance operations. The territory offers excellent US market access (89%) with established banking relationships, though setup costs ($8,000-15,000) and compliance requirements are higher than Caribbean alternatives. Bermuda's political stability, sophisticated infrastructure, and regulatory credibility make it ideal for large corporations and institutional investors requiring premium offshore domicile with insurance industry expertise.
Bermuda's signature structure is the Exempted Company which provides 20-year tax exemption certificates with sophisticated corporate governance capabilities ideal for public company listings. The Special Purpose Vehicle (SPV) structure enables complex securitization and structured finance transactions with favorable regulatory treatment and tax efficiency. Bermuda's Segregated Accounts Company (SAC) allows multiple business lines within a single entity with ring-fenced liability protection, particularly valuable for insurance and reinsurance operations.
Bahamas (85.9 points) The Bahamas provides a well-established offshore center with zero taxation across all categories, hosting 301 licensed offshore banks (second globally after Cayman's 285) and strong US market accessibility. The jurisdiction offers geographic proximity to the United States (50 miles from Florida), English common law foundation, and political stability within the Commonwealth framework. Bahamas features streamlined incorporation processes (3-5 business days), competitive cost structure ($2,000-5,000 setup), and flexible corporate law accommodating various business structures from IBCs to sophisticated fund vehicles. The territory maintains good banking access through established correspondent relationships and provides adequate professional services infrastructure, though less sophisticated than Cayman or BVI. For US businesses seeking cost-effective offshore benefits with geographic convenience and regulatory familiarity, Bahamas offers solid fundamentals with proven track record in international finance.
The Bahamas' primary structure is the International Business Company (IBC) providing complete tax exemption on foreign income with streamlined incorporation and minimal ongoing compliance requirements. The Exempted Limited Partnership (ELP) structure offers tax transparency for investment funds with sophisticated governance arrangements and institutional acceptability. The ICON (Investment Condominium) structure enables segregated portfolio management within umbrella fund arrangements, allowing multiple investment strategies with liability protection between series.
Jersey (85.1 points) Jersey stands as the leading Channel Islands jurisdiction, providing zero standard corporate tax rate with sophisticated EU market access through its third-country status and extensive regulatory framework. The jurisdiction offers the unique combination of offshore tax benefits with European regulatory credibility, featuring the JRAIF (Jersey Reserve Alternative Investment Fund) for streamlined fund establishment and strong wealth management infrastructure. Jersey's regulatory excellence through the JFSC provides institutional-grade oversight comparable to major onshore centers, though this results in higher compliance costs ($5,000-12,000 annually) than traditional offshore jurisdictions. The territory maintains excellent banking access, established fund administration capabilities, and serves as a gateway for European investment while preserving beneficial tax treatment for international operations. Jersey represents the optimal choice for businesses requiring European market access, regulatory sophistication, and offshore tax efficiency, particularly for wealth management and institutional fund operations.
Jersey's flagship structure is the Jersey Reserve Alternative Investment Fund (JRAIF) which provides fast-track authorization for sophisticated investor funds with minimal regulatory oversight and operational flexibility. The Jersey Company structure benefits from zero corporate tax on most activities while maintaining access to Jersey's extensive double taxation treaty network and EU market access. The Jersey Limited Partnership (JLP) offers tax transparency for investment funds with limited liability protection and streamlined regulatory requirements compared to traditional fund structures.
Singapore (84.7 points) Singapore offers sophisticated onshore benefits through its Variable Capital Company (VCC) structure, providing tax exemptions for qualifying funds while maintaining first-world regulatory infrastructure and extensive double taxation treaty network. The jurisdiction combines zero effective tax rates for eligible structures with exceptional banking access, world-class professional services, and strategic positioning for Asian investment opportunities. Singapore's regulatory framework under MAS supervision provides institutional credibility comparable to major developed markets, supported by political stability, rule of law, and advanced financial infrastructure. The territory offers the VCC Grant Scheme covering up to 30% of setup expenses (S$30,000 maximum) and provides efficient incorporation processes within established legal framework. For businesses targeting Asian markets or requiring sophisticated onshore domicile with tax efficiency, Singapore delivers premium benefits with regulatory excellence, though at higher compliance costs than traditional offshore centers.
Singapore's premier structure is the Variable Capital Company (VCC) which enables umbrella and standalone fund arrangements with tax exemptions under Section 13O and 13U schemes for qualifying investment activities. The Singapore Company structure benefits from extensive double taxation treaty network and competitive corporate tax rates (17%) with various exemption schemes for qualifying activities. The Enhanced-tier Fund structure provides additional tax benefits and streamlined regulatory treatment for sophisticated funds meeting specific criteria under Singapore's fund development initiatives.
Guernsey (82.8 points) Guernsey provides zero standard corporate tax with sophisticated Channel Islands infrastructure, offering multiple fund structures including PIFs (Private Investment Funds) with reduced regulatory requirements for sophisticated investors. The jurisdiction maintains strong regulatory oversight through GFSC while providing operational flexibility, excellent EU market proximity, and established fund administration capabilities with competitive cost structure. Guernsey's legal system based on Norman customary law and English common law principles provides unique advantages for trust and fund structures, supported by 40+ years of offshore finance experience. The territory offers good banking access, reasonable setup costs ($4,000-8,000), and annual compliance requirements balanced between regulatory comfort and operational efficiency. Guernsey represents solid middle-tier option for businesses seeking Channel Islands benefits with less complexity than Jersey while maintaining institutional acceptance and European market access.
Guernsey's signature structure is the Private Investment Fund (PIF) which provides streamlined authorization for sophisticated investor funds with reduced regulatory requirements and operational flexibility. The Guernsey Company structure benefits from zero standard corporate tax rate while maintaining access to professional fund administration services and established banking relationships. The Guernsey Limited Partnership offers tax transparency for investment funds with limited liability protection and competitive regulatory framework compared to more complex onshore alternatives.
Luxembourg (82.1 points) Luxembourg stands as Europe's leading fund domicile with over €5 trillion in assets under management, providing AIFMD marketing passport, extensive double taxation treaty network, and sophisticated regulatory framework under CSSF supervision. The jurisdiction offers tax transparency for funds, though corporate tax rates of 24.94% apply to management companies, balanced by treaty benefits and EU market access capabilities. Luxembourg's professional services infrastructure ranks among world's best, featuring specialized fund administrators, transfer agents, and depositary banks with deep expertise in complex cross-border structures. The territory provides unparalleled European market access and regulatory credibility but involves significant setup costs ($15,000-30,000) and high ongoing compliance requirements ($25,000-50,000 annually). For US managers seeking European distribution and institutional credibility, Luxembourg delivers premium regulatory environment and market access, though operational complexity and costs exceed traditional offshore alternatives.
Luxembourg's premier structure is the Special Limited Partnership (SCSp) which provides tax transparency with limited regulatory requirements while maintaining access to AIFMD marketing passport benefits across Europe. The SICAV (Société d'Investissement à Capital Variable) structure offers UCITS-compliant fund arrangements with comprehensive European distribution rights and institutional acceptability. The Reserved Alternative Investment Fund (RAIF) provides streamlined authorization for sophisticated investor funds with reduced regulatory oversight while maintaining Luxembourg's regulatory credibility and treaty benefits.
Ireland (81.6 points) Ireland offers sophisticated EU-based fund structures through ICAV (Irish Collective Asset-Management Vehicle) framework, providing check-the-box tax transparency for US investors and extensive European market access. The jurisdiction combines common law familiarity with EU regulatory benefits, featuring streamlined fund authorization processes and competitive cost structure relative to Luxembourg while maintaining institutional credibility. Ireland's QIAIF (Qualifying Investor Alternative Investment Fund) structure provides operational flexibility without investment restrictions, supported by established fund administration infrastructure and favorable tax treaties. The territory offers good banking access, English-language operations, and serves as European headquarters for major US multinational corporations, though requires higher compliance investment than offshore alternatives. Ireland represents optimal choice for US businesses requiring EU market access with common law familiarity and tax-efficient fund structures, particularly attractive for managers targeting both US and European investors.
Ireland's flagship structure is the Irish Collective Asset-Management Vehicle (ICAV) which combines corporate legal form with tax transparency and check-the-box elections for US tax purposes. The Qualifying Investor Alternative Investment Fund (QIAIF) provides maximum operational flexibility for sophisticated investor funds with minimal investment restrictions and streamlined authorization processes. The Irish Company structure benefits from Ireland's extensive double taxation treaty network and serves as the European headquarters structure for major US multinational corporations seeking EU market access.
Cook Islands (81.3 points) Cook Islands provides the world's strongest asset protection legislation with zero taxation across all categories, featuring innovative trust and foundation structures with maximum privacy protection. The jurisdiction offers sophisticated asset protection capabilities including International Trusts Act with two-year statute of limitations and burden of proof reversal, making it virtually impossible for creditors to successfully challenge structures. Cook Islands maintains established legal framework based on English common law, political stability within New Zealand's sphere of influence, and uses New Zealand Dollar for currency stability. The territory provides reasonable setup costs ($3,000-6,000) and moderate compliance requirements, though banking access remains limited and US market acceptance lower due to privacy-focused reputation. For high-net-worth individuals and businesses prioritizing maximum asset protection and privacy over operational convenience, Cook Islands delivers unmatched legal protection with zero taxation benefits.
Cook Islands' signature structure is the International Trust which provides the world's strongest asset protection features with two-year statute of limitations, burden of proof reversal, and prohibition on foreign judgment recognition. The International Company (IBC) structure offers complete tax exemption with maximum privacy protection and minimal reporting requirements for simple offshore operations. The International Partnership provides tax transparency with asset protection benefits and flexibility for investment structures requiring flow-through taxation and creditor protection.
Marshall Islands (79.9 points) Marshall Islands offers zero taxation for non-resident corporations combined with world's third-largest ship registry and flexible corporate law framework, providing unique advantages for maritime and international trading operations. The jurisdiction maintains political stability through Compact of Free Association with United States, uses US Dollar as official currency, and provides streamlined incorporation processes within established legal system. Marshall Islands features lower compliance requirements than major offshore centers while maintaining reasonable regulatory oversight and moderate setup costs ($2,000-4,000). The territory offers specialized expertise in shipping, maritime finance, and vessel registration, though general business infrastructure and banking access remain limited compared to premier offshore centers. Marshall Islands represents niche choice for businesses requiring zero taxation with maritime focus or simple international structures, offering US Dollar stability and minimal regulatory interference.
Marshall Islands' primary structure is the Non-Resident Corporation which provides complete tax exemption for foreign income with minimal compliance requirements and US Dollar currency stability. The Marshall Islands Limited Partnership offers tax transparency for investment structures with simplified regulatory framework and competitive costs. The LLC structure combines partnership tax transparency with corporate limited liability while maintaining the jurisdiction's zero tax benefits and streamlined incorporation processes.
Malta (79.2 points) Malta provides full EU membership benefits with attractive tax refund system potentially reducing effective corporate tax rates to 5%, combined with comprehensive UCITS and AIFMD frameworks for European fund distribution. The jurisdiction offers sophisticated regulatory infrastructure through MFSA supervision, extensive double taxation treaty network, and strategic Mediterranean location for European and Middle Eastern operations. Malta's corporate tax system features full imputation allowing up to 6/7ths refund of corporate taxes paid, creating competitive effective rates for qualifying international business. The territory provides good banking access, established professional services sector, and English-language operations, though involves higher complexity and compliance costs than traditional offshore centers. Malta represents strong option for businesses requiring EU market access with tax efficiency, particularly suitable for financial services operations and European investment funds.
Malta's signature structure is the Malta Company with full imputation system enabling 6/7ths tax refunds to shareholders, reducing effective corporate tax rates from 35% to as low as 5% for qualifying activities. The Alternative Investment Fund (AIF) structure provides AIFMD compliance with European marketing passport rights and competitive tax treatment through Malta's refund system. The Malta Investment Vehicle (MIV) offers specialized fund structures with preferential tax treatment and streamlined regulatory requirements for sophisticated investor arrangements.
Seychelles (78.8 points) Seychelles offers exceptional speed and simplicity with 24-48 hour incorporation, zero taxation on foreign income for IBCs, and minimal compliance requirements making it ideal for straightforward international business operations. The jurisdiction provides very competitive cost structure ($800-1,500 setup, $300-500 annual maintenance) combined with strong privacy protection and minimal reporting obligations for cost-conscious businesses. Seychelles maintains stable political environment, established IBC legislation, and reasonable banking access for basic operations, though professional services infrastructure remains limited compared to premier centers. The territory offers time zone advantages for European operations and provides adequate legal framework for simple holding companies, trading operations, and basic investment structures. Seychelles represents optimal choice for small to medium businesses prioritizing speed, cost efficiency, and simplicity over sophisticated infrastructure and regulatory complexity.
Seychelles' flagship structure is the International Business Company (IBC) which provides complete tax exemption on foreign income with 24-48 hour incorporation and minimal ongoing compliance requirements. The Special License Company (CSL) offers tax resident status with 1.5% tax rate on worldwide income and access to limited double taxation treaty benefits. The Seychelles Fund structure provides basic investment vehicle capabilities with tax exemption on foreign income and streamlined regulatory requirements for simple fund operations.
Cyprus (76.4 points) Cyprus provides EU membership benefits with 12.5% corporate tax rate offset by extensive double taxation treaty network, no withholding tax on dividends to non-residents, and strategic location between Europe, Asia, and Africa. The jurisdiction offers sophisticated legal system based on English common law, established financial services sector, and reasonable professional services infrastructure with English-language operations. Cyprus maintains good banking access, competitive setup costs ($3,000-6,000), and moderate compliance requirements while providing legitimate EU market access and regulatory framework. The territory serves as effective holding company jurisdiction for international structures, particularly attractive for businesses with Eastern European, Russian, or Middle Eastern operations requiring EU benefits. Cyprus represents solid mid-tier option for businesses requiring EU market access with tax efficiency, though regulatory environment less sophisticated than Luxembourg or Ireland and carries some reputational considerations.
Cyprus' premier structure is the Cyprus Company which benefits from 12.5% corporate tax rate, extensive double taxation treaty network, and no withholding tax on dividends to non-resident shareholders. The Cyprus International Trust provides tax planning opportunities with favorable treatment for non-resident beneficiaries and access to Cyprus' treaty network. The Alternative Investment Fund (AIF) structure offers EU market access through AIFMD compliance with competitive tax treatment and regulatory framework suitable for sophisticated investor arrangements.
Vanuatu (75.1 points) Vanuatu offers complete tax neutrality with zero corporate income tax, capital gains tax, and withholding tax, combined with minimal regulatory requirements and strong privacy protection for international business operations. The jurisdiction provides rapid incorporation (2-3 business days), competitive costs ($1,500-3,000 setup), and simple compliance framework with annual license fees but no audit or filing requirements. Vanuatu maintains political stability, English common law foundation, and uses multiple currencies including US Dollar, though banking access remains limited and professional services infrastructure basic. The territory offers time zone advantages for Asian operations and provides adequate legal framework for simple international business structures, though lacks sophistication for complex operations. Vanuatu represents basic option for businesses prioritizing complete tax neutrality and simplicity over regulatory sophistication and operational infrastructure.
Vanuatu's signature structure is the International Company which provides complete tax exemption with minimal regulatory requirements, rapid incorporation, and strong privacy protection for basic offshore operations. The Vanuatu Limited Partnership offers tax transparency with zero taxation and simplified compliance framework suitable for basic investment structures. The Vanuatu Foundation provides innovative structuring opportunities with tax exemption and flexible governance arrangements for wealth planning and charitable purposes.
Antigua and Barbuda (72.6 points) Antigua and Barbuda provides zero taxation for IBCs with reasonable incorporation processes and moderate compliance requirements, though infrastructure and regulatory sophistication remain limited compared to major offshore centers. The jurisdiction offers Caribbean location advantages, English common law foundation, and established IBC legislation, though professional services sector and banking access lag behind premier centers. Antigua maintains political stability within Commonwealth framework and provides adequate legal infrastructure for basic international business operations at competitive costs. The territory features straightforward regulatory environment with minimal economic substance requirements, though lacks the sophistication and global recognition of leading offshore jurisdictions. Antigua represents basic Caribbean option for simple international structures prioritizing tax neutrality and low costs over operational sophistication and global market access.
Antigua's primary structure is the International Business Corporation (IBC) which provides complete tax exemption on foreign income with streamlined incorporation processes and minimal ongoing compliance requirements. The Antigua Limited Partnership offers tax transparency for basic investment structures with zero taxation and simplified regulatory framework. The Offshore Banking License structure enables international banking operations with tax exemption and competitive regulatory requirements, though global banking access remains challenging.
Samoa (71.8 points) Samoa offers zero taxation for IBCs combined with reasonable incorporation processes and minimal compliance requirements, though banking access and professional services infrastructure remain limited. The jurisdiction provides Pacific location with time zone advantages for Asian operations, English common law foundation, and established international business legislation dating back to 1987. Samoa maintains political stability, uses multiple currencies including US Dollar, and offers competitive setup costs ($1,200-2,500) with simple annual maintenance requirements. The territory provides adequate legal framework for basic international business operations though lacks sophistication for complex structures and global banking relationships remain challenging. Samoa represents basic Pacific option for businesses requiring simple international structures with tax neutrality, though operational limitations restrict utility for sophisticated business operations.
Samoa's flagship structure is the International Company which provides complete tax exemption on foreign income with established legal framework dating back to 1987 and minimal compliance requirements. The Samoa International Trust offers asset protection and tax planning opportunities with zero taxation and privacy protection features. The International Partnership structure enables tax transparency with zero taxation for basic investment arrangements and simplified regulatory compliance.
Palau (69.3 points) Palau provides complete tax neutrality with zero corporate income tax, capital gains tax, and withholding tax, combined with US Dollar currency and Compact of Free Association with United States providing political stability. The jurisdiction offers basic international business legislation and reasonable incorporation processes, though professional services infrastructure and banking access remain very limited. Palau maintains strategic Pacific location and established legal framework, though regulatory sophistication and global business infrastructure lag significantly behind major offshore centers. The territory provides minimal compliance requirements and competitive costs for basic structures, though lacks the operational capabilities required for sophisticated international business operations. Palau represents very basic option for simple international structures prioritizing complete tax neutrality and US Dollar stability over operational infrastructure and global market access.
Palau's primary structure is the Domestic Corporation which provides complete tax exemption for international business activities with US Dollar currency stability and minimal regulatory oversight. The Palau Partnership offers tax transparency with zero taxation and simplified compliance framework for basic investment structures. The Palau Trust structure provides asset protection opportunities with tax exemption and privacy protection, though operational limitations restrict practical utility for sophisticated wealth planning arrangements.
Nauru (65.7 points) Nauru offers zero taxation across all categories with minimal regulatory oversight and basic international business legislation, though severe limitations in banking access, professional services, and operational infrastructure restrict practical utility. The jurisdiction provides rapid incorporation and minimal compliance requirements at very competitive costs, though global banking relationships prove extremely challenging due to limited correspondent banking access. Nauru maintains independence and basic legal framework, though political and economic instability concerns, limited infrastructure, and reputational issues significantly impact operational viability. The territory's small size, remote Pacific location, and minimal financial services infrastructure make it unsuitable for anything beyond the most basic international structures. Nauru represents bottom-tier option with complete tax neutrality but severe operational limitations that restrict practical business applications and global market acceptance.
Nauru's basic structure is the Corporation which provides complete tax exemption with minimal incorporation requirements and very low costs, though severe banking and operational limitations restrict practical utility. The Nauru Partnership offers tax transparency with zero taxation but faces the same operational challenges that limit the jurisdiction's practical business applications. The International Business License provides basic authorization for offshore activities with tax exemption, though reputational and operational constraints make this structure unsuitable for legitimate international business operations.