The development of telecommunications and economic globalization has allowed interested investors to create companies around the world. With the right research, investment, and legal support, businesses can be safely set up in almost every country in the world. Whereas in the past setting up an international business was a daunting task, now it has become commonplace with the help of experienced legal and economic consultants.
The benefits of starting a company in a foreign country are as numerous as they are visible. Many countries offer specific advantages based on location, ranging from natural resources and developed infrastructure to favorable laws and regulations that drive industry-specific growth. Likewise, it can be hard to set up a business or acquisition in your home country due to unfavorable situations: political or regulatory environment, lack of resources, etc. In this situation, it is useful to consider an option abroad that offers great opportunities for growth, development, and success.
Company registration in New Caledonia
When establishing a company in New Caledonia, the interested investor must exercise due diligence regarding legal processes, international regulations, and sufficient investment to be successful. It is very significant to understand the cultural, social, and political factors that will influence the creation and growth of a company. Poorly studied and regular international launches often end in disaster as time, money, and energy are wasted through poor planning.
Each country in the world presents its own set of complex challenges in informing, developing, and sustaining a business. Owners, financiers, and investors must enter into these commitments with a knowledgeable and experienced team of lawyers. Only someone with a thorough knowledge of local and international corporate law will be able to start a business abroad, avoiding the pitfalls that many start-up companies face.
In addition, experienced business people may consider investing in an overseas business without actually starting their own companies. In these situations, it is still beneficial for the investor to team up with knowledgeable global economics and litigation advisors. International investment creates a truly diverse portfolio that offers growth opportunities that were unthinkable just a few decades ago.
Potential investors, venture capitalists, and entrepreneurs should consider the existing infrastructure in New Caledonia when planning to launch a new business. While substantial infrastructure and systems can help make starting a business smooth, it can also mean market saturation and reduced potential for growth. On the other hand, lack of infrastructure is often a principal obstacle to extension; however, the lack of infrastructure indicates a clear opening of the market for creative and efficient new business.
Opening a bank account in New Caledonia
In the development of the company, one or more bank accounts in New Caledonia will be required. It is advisable to open a bank account in over twenty jurisdictions, making it easy to avoid complex language barriers or bureaucratic delays.
If you are considering setting up a company in New Caledonia, contact a lawyer or consultant with extensive experience in the field you are considering. This consultant can help you with everything from laws and tax structures to local support staff. You will need to consider all aspects, from the local office to higher organizational structures. Moreover, be sure to hire the best mentors to get you started on this fun but challenging process.
Determination of income in New Caledonia
Taxable income is defined as the difference between the firm’s net book value at the beginning and end of the financial term, any contributions to share capital plus distributions. Other special adjustments are made to taxable income. The netbook value includes intangible assets.
Inventory Valuation – the only recognized valuation methods are FIFO and weighted average cost. LIFO is not allowed. Inventory valuation methods should be consistent for accounting and tax purposes. Reserves can be created to cover increases in prices for goods in stock.
Capital Gains – income from fixed assets is divided into short-term and long-term. Short-term profit is included in the taxable profit and is taxed at the rate of 30% with the possibility of even distribution over three years. Long-term earnings (in particular from the sale of non-depreciable assets held for at least two years) are taxed at reduced rates: (1) at the standard rate of 15% and (2) at 25% for income from construction property or shares of companies whose first asset is a construction property.
Corporations subject to corporate income tax can benefit from these lower rates for long-term capital gains only if the net balance sheet, that is, 85% and 75%, respectively, is allocated to a “special long-term profit reserve”. Allocations offsetting this reserve are partially added back to the tax result to return the overall burden on profits from a reduced rate of up to 30%.
Short-term profit is profit from property, plant, and equipment held for less than two years. And that portion of the profit from depreciable property, plant, and equipment held for at least two years corresponds to the depreciation charged on those assets.
Long-term losses are losses from the disposal of non-depreciable assets held for more than two years. Short-term losses are losses on the disposition of any other property, plant, and equipment. Long-term losses can only offset the long-term gains of the following ten tax periods. Short-term losses are deducted from current taxable profit.
Dividends between companies – dividends received from resident companies are exempt from tax.
Foreign Income – Dividend income received from non-resident firms is taxed as the company’s ordinary gross income, withholding tax collected in the source country is treated as a tax credit. Apart from dividends, interest, and royalties received from abroad, only income from local sources is taxed.
Share Dividends – share dividends are subject to IRVM and CCS withholding tax (like cash dividends) and, like cash dividends, are excluded from the income tax base of the recipient New Caledonian company.