Expand your business globally with confidence.

At Banks Avocats, we guide Canadian entrepreneurs and businesses through the process of international company formation, helping you choose the right jurisdiction to maximize your global potential while remaining compliant with Canadian law.

Whether you’re looking to protect assets, reduce tax burdens, or expand into international markets, our legal team is here to support you from strategy to execution.

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Our Key Jurisdictions:

Why UAE?
 The UAE is a tax haven with modern infrastructure and a global business mindset.

Benefits:

  • 0% corporate tax in most free zones (mainland entities may be subject to 9% from June 2023).
  • 100% foreign ownership in many sectors.
  • No personal income tax.
  • Banking in a stable, tax-friendly environment.
  • Strategic location between Europe, Asia, and Africa.
  • Excellent for e-commerce, trading, consulting, and tech businesses.

Legal Consideration:
 Free Zone Companies (FZCs) are popular due to tax benefits and ease of setup. Compliance with new economic substance and UAE corporate tax rules may apply depending on activity.

✅ Corporate Tax (from 2023 onward):

  • 0% corporate tax on profits up to AED 375,000 (~$137,000 CAD).
  • 9% corporate tax on profits above that.
  • Free Zone Companies (FZCs) may still qualify for 0% tax if:
    • They operate only within the free zone or internationally.
    • Meet the qualifying income criteria under new UAE tax law.

✅ Other Features:

  • No personal income tax.
  • No capital gains tax.
  • Excellent banking, residency options, and 100% foreign ownership in many zones.

🔍 Canadian Relevance:

  • No tax treaty with Canada, but growing acceptance and transparency.
  • Ideal for Canadian entrepreneurs in e-commerce, crypto, consulting, and trade.
  • Companies must meet economic substance requirements and file annual reports.
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Why Hungary?
 Hungary offers one of the most attractive corporate tax regimes in Europe, making it ideal for Canadian companies seeking a European presence.

Benefits:

  • 9% corporate tax – the lowest in the EU.
  • Local business tax (municipal) of up to 2% may apply, depending on location.
  • Access to the European Single Market.
  • Stable and reputable legal system within the EU framework.
  • Double taxation treaty with Canada.
  • Fast company registration and low setup costs.
  • Ideal for logistics, tech, and service-oriented businesses.

Legal Consideration:
 Hungarian companies are well-respected globally and offer a transparent business structure. Full foreign ownership is permitted.

🔍 Canadian Relevance:

  • Hungary and Canada have a double taxation treaty, which helps prevent being taxed twice on the same income.
  • Hungary is in the EU, making it an excellent option for Canadian companies seeking European market access and a respectable tax environment.
  • Full foreign ownership is allowed.

Economic substance is recommended but not strictly required for all structures.

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Why Seychelles?
 Perfect for entrepreneurs looking to protect assets and maintain privacy while operating globally.

Benefits:

  • 0% corporate tax for International Business Companies (IBCs).
  • No requirement to file annual tax returns or audited financial statements.
  • Strong asset protection laws.
  • High level of confidentiality.
  • No foreign exchange controls.

Legal Consideration:
 Although ideal for holding and investment companies, Seychelles IBCs should not conduct business within Seychelles itself. Transparency regulations such as economic substance and beneficial ownership may apply depending on activity.

✅ Corporate Tax Rates (Domestic Companies):

  • 15% on the first SCR 1,000,000 (~$74,000 CAD) of taxable income.
  • 25% on taxable income exceeding that amount.

✅ International Business Companies (IBCs):

  • 0% corporate tax on foreign-sourced income, provided the IBC is not considered a tax resident in Seychelles and has no local activity.
  • IBCs are no longer automatically exempt — they must comply with economic substance requirements if they engage in specific “relevant activities” (like holding, finance, shipping, etc.).

🔍 Canadian Relevance:

  • No tax treaty with Canada.
  • CRA scrutiny is higher for offshore entities. IBCs are best used for holding structures, asset protection, or international trade with no Canadian-source income.

Must demonstrate genuine non-residency and proper documentation.

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Why Mauritius?
 Mauritius offers a unique balance between low taxation, respectable jurisdiction status, and global tax treaties.

Benefits:

  • Effective corporate tax rate as low as 3%.
  • Access to over 40 tax treaties, including Canada.
  • No capital gains tax.
  • Strong legal framework modeled on British law.
  • Ideal for financial services, holding companies, and international trade.

Legal Consideration:
 Mauritius is known for its compliance with international standards (OECD, FATF). Global Business Companies (GBCs) must meet substance requirements.

✅ Corporate Tax Rate (Global Business Company – GBC):

  • 15% standard rate, but with foreign tax credit, effective tax rate can be as low as 3%.

✅ Other Tax Features:

  • No capital gains tax.
  • No withholding tax on dividends for GBCs.
  • Substance requirements: GBCs must have at least 2 local directors, a registered office, and maintain local financial records.

🔍 Canadian Relevance:

  • Mauritius has a tax treaty with Canada, which can reduce withholding taxes and help with tax credits.
  • Ideal for investment funds, consulting firms, or intellectual property holdings operating in Africa or Asia.

High OECD compliance reputation.

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Why Singapore?
 Singapore combines low tax rates with a highly developed business ecosystem, making it a top destination for international entrepreneurs.

Benefits:

  • 17% corporate tax, with exemptions for startups (0% on first SGD 100,000 for 3 years).
  • No capital gains tax.
  • Robust legal system and political stability.
  • Strategic location in Asia-Pacific.
  • Strong reputation and banking system.
  • Excellent for tech, e-commerce, and consulting companies.

Legal Consideration:
 Singapore requires annual filings and audited accounts for companies over a certain threshold. The regulatory environment is pro-business and transparent.

✅ Corporate Tax Rate:

  • 17% flat corporate tax.
  • Startups may qualify for exemptions:
    • First SGD 100,000 (~$99,000 CAD): 0% for the first 3 years.
    • Next SGD 100,000: taxed at 50% (i.e., 8.5%) for 3 years.

✅ Other Tax Features:

  • No capital gains tax.
  • Tax exemptions for foreign-sourced income if not remitted to Singapore.

🔍 Canadian Relevance:

  • No tax treaty with Canada, but Singapore is highly regarded by tax authorities and investors.
  • Excellent for tech, e-commerce, and consulting businesses with clients outside Canada.
  • Substance requirements apply for tax residency status (board meetings, local presence, etc.).
Book your consultation

Why Hong Kong?
 A world-renowned financial hub, Hong Kong offers unmatched efficiency and ease of doing business.

Benefits:

  • 16.5% corporate tax, with potential exemption for foreign-sourced income.
  • No VAT, capital gains tax, or withholding taxes.
  • Simple and fast incorporation process.
  • Ideal for trading, sourcing, and financial services.
  • Reputable jurisdiction with common law system.

Legal Consideration:
 Hong Kong companies must maintain proper accounting records and conduct annual audits. Compliance with substance and reporting requirements is increasingly important.

✅ Corporate Tax Rate:

  • 8.25% on first HKD 2,000,000 (~$340,000 CAD) of profits.
  • 16.5% on profits above that.

✅ Territorial Tax System:

  • Only income sourced in Hong Kong is taxable.
  • Foreign-sourced income may be fully exempt, depending on structure and proof.

🔍 Canadian Relevance:

  • No tax treaty with Canada.
  • Ideal for international trading companies, digital services, or holding entities with activity in Asia.
  • Transparent and highly regulated — but proof of foreign-source income is required for tax exemptions.
  • Annual audit required.
Book your consultation

Why Thailand?
 Thailand offers an attractive business environment, competitive costs, and access to the fast-growing ASEAN market.

Benefits:

  • Strategic location in Southeast Asia, gateway to 600M+ consumers.
  • Low operating and labor costs compared to Western countries.
  • Possibility of 100% foreign ownership through BOI-approved activities.
  • Access to skilled, English-speaking workforce.
  • Strong infrastructure: airports, logistics hubs, internet, and transportation.
  • Attractive for tech, consulting, manufacturing, hospitality, and e-commerce businesses.

Legal Consideration:
 Foreign businesses typically operate under:

  • Thai Limited Company (Co., Ltd.)
  • BOI-Promoted Company with major benefits
  • US–Thai Treaty Company (for Americans), not applicable to Canadians

BOI promotion may allow:

  • 100% foreign ownership
  • Work permits and visas facilitated
  • Tax incentives depending on sector
  • Reduced restrictions on foreign business operations

Compliance includes:

  • Annual accounting and audits
  • Corporate filings
  • Visa/work permit reporting for foreign directors

✅ Corporate Tax in Thailand:

Standard Corporate Tax:

  • 20% corporate income tax

Small Company Support:
 (For companies with ≤ 3M THB net profit annually)

  • Progressive tax brackets ranging from 0% to 15%

BOI Companies:

  • May receive tax holidays (0% tax for 3–8 years) depending on industry
  • Import duty exemptions
  • Additional deductions for R&D or high-tech sectors

✅ Other Features:

  • No tax on dividends received from affiliated Thai companies if conditions are met
  • Low cost of operations and staffing
  • Foreigners can obtain long-term visas tied to the company (e.g., SMART Visa, Work Permit)
  • Strong banking system with international presence
  • Access to manufacturing, export markets, and regional headquarters

🔍 Canadian Relevance:

  • Thailand and Canada maintain strong trade and diplomatic relations.
  • Ideal for Canadian entrepreneurs looking to expand into Asia.
  • Attractive for Canadians in tech, digital services, consulting, tourism, import/export, and manufacturing.
  • Lower cost structure compared to Canadian corporations.
  • Companies must comply with Thai accounting, tax filings, and foreign business regulations.
  • Possibility to reduce global operational costs and reach new markets.
  • A double-tax treaty exists between Canada and Thailand, helping to avoid double taxation.
Book your consultation

Why Philippines?
 The Philippines is one of Asia’s fastest-growing economies, with a young, English-speaking workforce and a strategic location in the ASEAN region. It offers competitive labor costs, access to large domestic and regional markets, and strong cultural alignment with Western businesses.

Benefits:

  • Competitive corporate tax rate of 25% (with reduced rates for certain enterprises).
  • PEZA and BOI incentives offer tax holidays and duty exemptions for export-oriented companies.
  • English is widely spoken, making communication seamless.
  • Rapidly growing BPO, tech, tourism, and manufacturing industries.
  • Strategic location for reaching Asia-Pacific markets.
  • Increasing government focus on foreign investment and infrastructure growth.

Legal Consideration:
 Foreign ownership rules are improving, with up to 100% ownership in many industries under the Revised Foreign Investment Act. Some sectors remain restricted, so proper structuring (corporation, joint venture, or representative office) is essential.

✅ Corporate Tax:

  • Standard 25% corporate income tax.
  • 20% reduced rate for smaller enterprises meeting thresholds.
  • Incentives under PEZA (Philippine Economic Zone Authority) and BOI (Board of Investments):
    • Tax holidays (4–7 years)
    • Duty-free importation of equipment and raw materials
    • Special 5% tax on gross income after incentives period

✅ Other Features:

  • No foreign exchange controls (profits can be repatriated).
  • Skilled, English-speaking workforce.
  • Competitive costs compared to other Asian hubs.
  • Strong opportunities in outsourcing, tourism, digital services, manufacturing, and renewable energy.

🔍 Canadian Relevance:

  • No direct tax treaty with Canada, but the Philippines has treaties with many countries.
  • Attractive for Canadian entrepreneurs in BPO, IT, tourism, real estate, and manufacturing.
  • Offers both growth potential and cost advantages for scaling internationally.
Book your consultation

Summary table

Jurisdiction Corporate Tax Key Advantages Tax Treaty with Canada Substance Required
Hungary
9% EU access, low tax Yes Recommended
Seychelles
0–25% Confidentiality, no CGT No Yes (if relevant)
Mauritius
3–15% Low effective tax, treaty access Yes Yes
Singapore
0–17% Startup exemptions, strong banking No Yes
Hong Kong
8,25–16,5% Territorial tax, no CGT No Yes
UAE
0–9% No personal tax, 0% in FZ No Yes
Thailand
0–20% BOI incentives, low costs, ASEAN access Yes Yes
Philippines
20–25% Low labour costs, strong outsourcing sector No Recommended

Why Work with Banks Avocats?

  • Expertise in cross-border company structures
  • Strategic advice based on your Canadian tax situation
  • End-to-end service: incorporation, compliance, contracts, and banking
  • Transparent pricing and personalized follow-up
  • Bilingual legal team (English & French)

Ready to go global?

Let us help you choose the right jurisdiction, structure your company effectively, and remain fully compliant — both internationally and in Canada.

Book your consultation
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