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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:

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Import / export duties
wages
License fees
Office rental
Stamp duties
Annual renewal fee
Notary fees
State fees
Maintenance usually does not include any expenses that are directly related to the business transaction, such as the cost of raw materials for 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 for maintaining a company
The first step in effective company maintenance is financial planning, including tax planning. A company needs to identify its biggest source of expenses and then find a way to gradually reduce these costs. One of the primary goals for maintaining a company effectively is reducing 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 will be happy to share our professional knowledge in this matter, in order to help you analyse the options and choose the best jurisdiction in which to incorporate.

The third step is relocating the actual business or incorporation to the jurisdiction of your choice. The particular details of this process may vary between jurisdictions and legal business structures, so each company should carefully assess which business structure is most advantageous in their particular case.

In the long term, maintenance costs are mainly related to wages, taxes and supplies. Wages are effectively determined by the labour costs in each jurisdiction, which, in turn, are influenced by working culture, education and skill levels, competition level, etc. Taxes depend on the legal business structure and the activities performed by a company — some will require licenses and patents, which must be regularly renewed for a fee. Finally, the supplies required will depend on each particular company, but usually include rent (supply of premises), utility bills (supply of heating, electricity, water, etc.) and operational resources, such as petrol and office supplies.

Top Five low maintenance cost jurisdictions
Out of all the low maintenance cost jurisdictions, some are more beneficial than others. We have prepared a list of the top five jurisdictions with the lowest maintenance costs.

http://www.confiduss.com/en/services/incorporation/criteria/low-cost/