Where should you register your company?

Where to register your company is one of the most important questions you need to settle at an early stage. First of all, you need to start from your customers: who your target audience is. Another important aspect is where your potential investors are located. If you plan to raise investors' money, you will need to check whether they will be interested in the jurisdiction where you are going to open the business. For example, some investors require the company to be set up in a particular jurisdiction. Many American investors will prefer that you set up your company in the state of Delaware, USA, which is the most comfortable and convenient for them from an investment standpoint.

In addition, you need to look at where your employees are located. Some jurisdictions may require the core team to be present there. For example, if you are going to set up a startup in Cyprus, you will need to move your employees there. And relocation will be a fairly expensive process. There may also be regulatory requirements. For example, your company is licensed, and this activity will require certain supervision by the regulator. Accordingly, some employees will have to be located in that country or in that jurisdiction.

The tax regime and the flexibility of legal regulation are another important, key aspect. For example, you can set up a company in the jurisdiction that will be most advantageous for you in terms of doing business. Accordingly, you will bear a lower tax burden and do business in a jurisdiction where there are no bureaucratic obstacles and the legal system is quite clear and flexible. Another important aspect is the ability to transfer funds out of or into that jurisdiction. Some countries have fairly strict currency controls, and accordingly you will need to pay attention to such aspects as: will it be easy for investors or customers to pay for your services, or for investors to transfer investment into that jurisdiction; will there be any restrictions or prohibitions that could affect how you run your business.

You will also need to pay attention to the judicial system: how quickly disputes are resolved and how expensive it is to litigate there. This is one of the key points that also needs to be taken into account from a legal perspective. In addition, you need to pay attention to confidentiality. Some investors may prefer to keep their data hidden and will accordingly look for jurisdictions where this is possible.