If you're looking for tax advantages, want to conceal company informations, then it is better to have offshore companies or International business companies in places like Netherlands Antilles.

Each trading composition has advantages and disadvantages. The advantage and disadvantage varies from place to place. Going for the best option always depends on where one would like to start the business and what one would like to have from the business.

If one is looking for tax advantages, it is better to have off shore companies. There are places, like Netherlands Antilles, provides opportunity to form International Business Corporations or offshore incorporation companies. On January 1, 1988, the Government of Aruba introduced a new companys ordinance to attract foreign investors.

The National Ordinance for the registration of the Aruba (Tax) Exempt Corporation (or AVV) was promulgated

on June 30, 1988. There are different kind of companies prevailed in Netherlands Antilles. An AVV is a legal entity with limited liability and an authorized capital divided into shares. The International Business Corporations (IBCs), the BVI and other offshore centers is based on Dutch civil law, as opposed to English common law statutes.

Firstly, an AVV is offshore incorporation by notarys deed carried out by at least one incorporator before a civil law notary in Aruba. Ahead of the Deed of Incorporation can be passed, a draw up must be submitted to the Ministry of Justice for a Declaration of No Objection. The Deed of Incorporation has to be in the Dutch language, but it is standard exercise that the Deed is to go together with a certified translation.

There are different charges for incorporation. The annual government charges of an Aruba Exempt Company (AVV) are 285 US dollars. The notarys expenses and the first year government registration fee is 710 US dollar. While forming an AVV one must contribute 35 US dollar to the Chamber of Commerce. In addition to this one must pay professional fee worth 450 dollars for incorporation and annual fee for registered agent and office worth 500 US dollars. There is a fee worth 350 dollars, even though it is optional, for managing director as well.

Secondly, the Limited Liability Companies called Naamloze Vennootschap or NVs can also be incorporated in the Antilles. To incorporate a Naamloze Vennootschap or NV minimum annual maintenance costs of about US$1,500 can be expected. Such companies, if fully owned by non-resident shareholders, pay a profits tax of 2.4% to 3%. The advantages of paying a small tax (as opposed to none at all for AVVs) are important for purposes of obtaining the Netherlands Participation Exemption. Dutch-based holding companies that own shares in an NV can receive dividends and other distributions (including capital gains and liquidations) from an NV free of Netherlands income tax if it owns at least 5% of the NV's stock. AVVs are not eligible for this tax exemption.

The Dutch Antilles Limited Liability Company is mainly used as a holding, trading or a shipping company. New tax legislation was passed on 29 December 1999 known as The New Fiscal Framework. The aim was to restructure Dutch Antilles image as an Offshore Financial Centre. The new framework removed the distinction between "onshore" and "offshore" companies and simplified tax rates. This type of company has one of the lowest government fees. Annual Financial Statements and an Annual Profit Tax need to be filed. Total confidentiality and anonymity is also accorded to this corporate vehicle.

Thirdly, an offshore incorporation is a legally recognized body registered as per the rules of a particular country or jurisdiction, having the business outside the country or jurisdiction in which the company is registered. An offshore company can also be registered as an International Business Company (IBC). Offshore companies are not allowed to carry on any business within the Netherlands Antilles unless they get approval from the Central Bank. The Netherlands Antilles profits tax is 32-39% on incomes drawn from the locally economy.

An off shore company, by and large, has numerous privileges. They are, firstly, in general, is exempted from tax on profit gained out side the jurisdiction. In other words, an off shore company or International Business Centre has zero percent tax rate.

In the Netherlands Antilles, for international business companies, taxation is at an efficient rate of 4.8% to 6% of the net profit. International Business Company business costs, maximum up to 80 percent of the income received, are tax permissible. The net earnings then taxed at the rate of 24-30 percent. However, exceptional rates of taxation address to International Business banks, mutual funds, insurance companies, companies with foreign branches, etc.

Secondly, an International Business Company (IBC) in Netherlands Antilles has provided with the provision of maintaining confidentiality of company information. This is provision is considered as, by most of the companies, very important privilege.

Thirdly, the international business companies (IBC) have minimum regulatory compliance requirements. An International Business Company has the right to maintain all information in relation to its directors, secretaries or shareholders off the record. The law foils any person from enquiring about the particulars of owners and employees. The owners are not lawfully required to reveal whichever information concerning their company to anyone.

In addition, the offshore incorporation places also put forwards a range of conveniences to investment companies, financial institutions and alternate businesses that have aspiration to spread out and get the most out of while heaving out minimum or nil tax liabilities. One of the main benefits in Antilles is that there are no deductions on dividends or percentages. There are no restrictions whatsoever on the flood of foreign currency or company incorporation limitations.