Offshore e-Commerce Havens

The offshore financial centers are rushing to get involved in e-commerce so they can attract technology entrepreneurs to their shores.

Because of its position as a major world situs for insurance, Bermuda is pushing ahead to position itself as the major offshore e-commerce center. Other island nations such as Antigua, Barbados, The Bahamas and Nevis (to name a few) are also working to be sure they get a share of the expected offshore e-commerce market. Ireland and the Isle of Man are also seeking to become e-commerce hubs.

Many entrepreneurs are seeing the potential for doing business via the Internet from a base in a tax haven or low tax jurisdiction. I've had many questions from subscribers about whether they can create an IBC in some country such as Nevis, retain the services of a local Internet Service Provider and then use the Internet to sell intangible (digital) products like software or newsletters from a foreign country. Of course, these entrepreneurs don't really intend to live in Nevis or any of the other island havens. They will continue to reside in the U.S. (or Canada or England or France, etc,.) and log into their Nevis based Internet system and make the web page changes over the Internet.

Most of the island havens are not the least bit concerned that the entrepreneurs who seek to do business this way may be breaking a law in their home country and evading taxes. That's not a crime in the island country so why not cater to this business market? Besides, there will be many other established businesses that will seek to establish a business presence in their country and will gladly pay taxes or license fees, wages and fees to local suppliers to help support and diversify the local economy.

The tax and financial havens of the world are competing with each other to attract or to retain businesses and financial resources that add more to their economy than is consumed. Assets in trust funds or IBCs, assets under the management of non resident managers and e-commerce all fit their profile of expanding their resource base without depleting their limited local sources of land, labor and supplies. Businesses that are operated by entrepreneurs who are located in another country are the ideal kind of activity for an island nation.