The states presenting interest for incorporation of company may be divided into two groups different in level of taxation and state control over commercial activity:

• Offshore jurisdictions
• Jurisdictions with the preferential taxation

Offshore jurisdictions

The first group includes the state bodies and administrative territories with exclusively simplified procedures for incorporation of legal entities and significantly reduced or lacking profit tax - "tax shelters" or "typical" offshore jurisdictions.

Into group of offshore jurisdictions enters:

• Jurisdictions in Central America - Belize, Panama
• Caribbean jurisdictions - The Bahamas, British Virgin Islands, Dominic, Nevis, Turks and Caicos Islands
• Pacific Ocean Jurisdictions - Western Samoa, Marshall Islands, Niue, Seychelles
• Asia jurisdictions - Labuan (Malaysia), Hong Kong
• Indian Ocean jurisdictions - Mauritius
• Europe jurisdictions - Gibraltar

Peculiarities of the "tax shelters" include the following:

• Profit tax at the "tax shelters" is either zero or not exceeding 1-2%, or is substituted by annual levies in the amount from 150 to 1000 USD per annum, depending on the state, independent on the amount of profit
• The "tax shelters" apply no restrictions on currency export. Companies may freely open deposits in any currency with any foreign bank
• The "tax shelters" apply incorporation procedures simplified to maximum extent: the minimum amount of equity capital is traditionally not applicable
• High degree of confidentiality. Persons of owners of the company are not a subject to disclosure. Registers are closed for the general access
• It is not necessary to hand over the annual financial report
• Operating of a company in "tax shelters" is much cheaper than that in the areas with moderate taxation and in large industrial countries.

Jurisdictions with the preferential taxation

The second group includes the jurisdictions where sufficient level of income tax is subject to system of special tax exemptions relate to the mechanism of income transfer and profit repatriation.
The taxes imposed by those countries on removal and repatriation of dividends, bank interest rate, and royalty payments and certain other types of income are traditionally reduced.

The countries with moderate taxation system include:

• Europe jurisdictions - Cyprus, Great Britain, Hungary, Ireland, Latvia, Liechtenstein, Luxemburg, Switzerland (certain cantons)
• Some states of USA - Arkansas, Vermont, Delaware, Georgia, Kentucky, Colorado, Louisiana, Oklahoma, Oregon, Florida and others
• New Zealand