As more and more jurisdictions open to foreign trade, companies can gain access to large pool of resources abroad. They can establish relationships with foreign partners and move their production to foreign locations or simply export their products to new markets. IT and software development businesses also seek to benefit from moving the production to foreign jurisdictions.

Generally, the main benefit for moving the software development abroad is lower costs in comparison to the home-country. For example, the cost of developing exactly the same software is 50% less in India if compared to the US. The savings generally come from lower labour costs, but moving the IT and software production abroad can also broaden company’s access to a wider pool of labour with higher skills and expertise. This might explain why 50% of American Fortune 500 businesses are using offshore IT and software development. Let us look at some of the jurisdictions where opening a software development business might be more beneficial in comparison to others and discuss the reasons why.

India
India has long been one of the preferred outsourcing software development destinations for leading multinational companies around the world. This means that one of the biggest benefits of choosing India for your IT and software development business would be a multinational demand for outsourced software development services. Meanwhile, the company would enjoy relatively lower labour costs, wide pool of skilled labour and business-friendly environment with the government that promotes start-ups and small businesses. Additionally, due to favourable policy and economic initiatives by the Indian government, IT industry is expected to grow in early to mid-teens for the next few years.

United Kingdom
London was recently described as the city that offers the most opportunities to businesses and ranked first for technology readiness. While low labour costs will not be one of the benefits of setting up a software development company in London, there are several other benefits that might compensate for relatively higher wages. Numerous hubs and incubators offer an environment for new start-ups and small businesses with all the necessary functions and support for less than 300 GBP per month. Also the government is committed to support software development and technology sector with such organizations as Tech City UK and Innovate UK with an aim to accelerate the growth of IT businesses. Meanwhile, various tax benefits are available to IT and software development companies in London. Other benefits to consider are skilled workforce and high-speed internet access.

Poland
Eastern Europe is becoming increasingly attractive for IT and software development companies with Poland ranking as the number one Eastern European country. While Poland cannot offer as low labour costs as those in India, it can offer other benefits such as proximity to Western Europe and ability to find common working hours with the rest of the world. Poland also shares a cultural affinity with the Western world as well as other Eastern countries. It is also believed to provide better product quality and business environment in comparison to lower-cost destinations for software development businesses.

More jurisdictions to consider for registering an IT business can be found on each continent – each with their own benefits and peculiarities:

Americas: Brazil, Argentina and Chile;
Asia/Pacific: China;
Europe: Romania, Belarus and Ukraine.
Above countries have large enough populations to have wide labour pool and good education systems to produce skilled software developers. Business risks in these countries are manageable and costs are reasonable in comparison to US, Canada and Western Europe.

It is important to remember, that while a particular jurisdiction can be considered to be the best place for incorporating an IT company for one entrepreneur, it may be unsuitable for another one. Consider the necessities that your business is most interested in. It can be a language, geographical location, regulation of particular activities, skilled workforce or costs.

Cuba's logistics performance index is 2.18. This indicates mediocre performance - shipping processes are relatively unreliable, punctuality and safety of transported goods are often an issue, although such a system may work relatively well if traffic is not too heavy.

Customs performance is rated at 2.17. This indicates mediocre performance - although the clearance processes are rather ineffective, they do not unduly hinder international business activities, occasionally fees and/or required documents can be unpredictable, and long clearing times can also be an issue.

The infrastructure quality in Cuba is rated at 1.84. This indicates mediocre quality - roads, railways, ports and other facilities are capable of handling reasonably significant traffic volumes, but are not sufficient to ensure smooth transit at all times.

International shipping quality is 2.47. This indicates mediocre performance - the services offered are reasonably attractive for foreign customers and the price exactly corresponds to the quality, which is still not very competitive.

The competence of logistics service providers is rated at 2.08. The competence of the providers is mediocre - they are able to guarantee a certain level of quality of their services, sometimes even outstanding, even if their performance is generally still inadequate in many aspects.

The tracking options for shipments are rated at 1.99. This indicates mediocre performance - the tracking systems provide a certain level of information, which typically covers the most important topics such as the current location of a shipment, the arrival and departure dates and the status of a shipment; However, more detailed information on status and multilingual accessibility options is usually missing.

The tracking options for shipments are rated at 2.45. This indicates mediocre performance - most deliveries arrive either at the other end of the scheduled timeframe or late.

In Cuba, 100% of the population has access to electricity. Cuba has 133 airports nationwide. There are 3,244 Internet hosts in Cuba. The number of motor vehicles per 1,000 inhabitants in Cuba is 5.

Road network
The total length of roads in Cuba is 52,202 km (32,444 miles). Of these, 654 km (406 mi) of roads are classified as highways, dual carriageways or dual carriageways.

Gas price
On average, you would pay $1.4 for a liter of gasoline in Cuba. A liter of diesel would cost $1.18.

Whether it is an alliance, incorporated union, federal union or supranational body here is the list of unions the country is a member of. Latvia is a member of several unions. They are European Union, International Monetary Fund, North Atlantic Treaty Organization, Schengen Area, United Nations, World Bank, World Trade Organization.

European Union
Latvia is a member of European Union. On 1 May 2004, it joined the EU as a full member state. The EU is a unique economic and political partnership between 28 European countries that together form a politico-economic union and cover much of the European continent. It covers an area of 4,324,782 km, with an estimated population of over 508 million. People can travel freely throughout most of the continent. Operating as a single market, the EU is a major world trading power. And it's become much easier to live, work and travel abroad in Europe.

International Monetary Fund
Latvia is a member of International Monetary Fund. On 19 May 1992, it joined the IMF as a member. The IMF is an organization headquartered in Washington, D.C., of 189 countries working to foster global monetary cooperation, secure financial stability and facilitate international trade. The IMF now plays a central role in the management of balance of payments difficulties and international financial crises. The union is governed by and accountable to the all 189 member countries. As of 2010, the fund had SDR 476.8 billion (about US$ 755.7 billion).

North Atlantic Treaty Organization
Latvia is a member of North Atlantic Treaty Organization. Latvia has been a part of NATO since 29 March 2004, and therefore has been a member of NATO for 19 years. The North Atlantic Treaty Organization (French: Organisation du Traité de l'Atlantique Nord; OTAN) is an intergovernmental military alliance based on the North Atlantic Treaty which. NATO's headquarters are located in Haren, Brussels, Belgium. NATO promotes democratic values and encourages cooperation on defence and security issues. The organization constitutes a system of collective defence whereby its member states agree to mutual defense in response to an attack by any external party. NATO is committed to the peaceful resolution of disputes.

Schengen Area
Latvia is a member of Schengen Area. On 21 December 2007, it was accepted into Schengen Area. The Schengen Agreement is a treaty which led to the creation of Europe's borderless Schengen Area. It entitles every EU citizen to travel, work and live in any EU country without special formalities. It was signed on 14 June 1985 by five of the ten member states of the then European Economic Community near the town of Schengen, Luxembourg. Schengen cooperation enhances free movement of persons by enabling more than 400 million EU citizens to cross internal borders without being subjected to border checks.

United Nations
Latvia is a member of United Nations. On 17 September 1991, it joined the UN at its inception date as a full member state. Founded in 1945, the United Nations is an intergovernmental organization to promote international co-operation. The work of the United Nations are guided by the principles contained in its founding Charter. It is currently made up of 193 Member States. The headquarters of the United Nations is in Manhattan, New York City, further main offices are situated in Geneva, Nairobi and Vienna. Its objectives include maintaining international peace and security, promoting human rights, fostering social and economic development, protecting the environment, and providing aid.

World Bank
Latvia is a member of World Bank. On 11 August 1992, it became a member of the World Bank Group. The World Bank is international financial institution that provides loans to developing countries. It's like a cooperative, made up of 189 member countries. These member countries are represented by a ministers of finance who are the ultimate policymakers at the World Bank. The World Bank's official goal is the reduction of poverty.

World Trade Organization
Latvia is a member of World Trade Organization. On 10 February 1999, it joined the WTO as a member. The World Trade Organization is an intergovernmental organization which regulates international trade. At its core are the WTO agreements ratified in national parliaments. It is the only global international organization dealing with the rules of trade between nations. The goal is to help producers of goods and services, exporters, and importers conduct their business. The WTO deals with regulation of trade between participating countries by providing a framework for negotiating trade agreements and a dispute resolution process aimed at enforcing participants' adherence.

A company in Latvia is a great alternative to offshore companies as numerous changes in regulations and laws have been passed by the Latvian government in recent years. Companies in Latvia attract foreign entrepreneurs and investors who are looking for a sustainable and developing business structure and an opportunity to use multiple tax optimization options for their companies.

While there is an option to start your own business, there is another alternative - you can buy an already existing business. A company that was established some time ago and is currently inactive is known as a shelf or readymade company. Shelf companies are either 'clean', meaning there has never been a transaction in that company since inception, or a company with its own history, meaning it has an operational and financial history.

Advantages of acquiring a shelf company
Clean businesses are usually formed for a single purpose, only to be sold after some time. The key advantage of such a shelf company is that the new owner of the company can be absolutely sure that he has no debts or other liabilities to the previous owners. Meanwhile, companies that have previously operated may have some liabilities, and investors should conduct their own due diligence to ensure they are not buying a shelf company with high levels of debt. Still, even companies with an operational history have their own advantages. For example, a ready-made business with a pre-existing history is more credible and easier to get a loan or even open a bank account. Some manufacturers, as well as governments, prefer to do business with a company that excels in durability.

Compared to an opportunity to start your own business, the shelf company might be the right strategy for the following reasons:

Urgency – Starting a new business requires time and resources. If you want to start trading as quickly as possible, a shelf company allows you to start trading almost immediately after purchasing the shares.
Image and Credibility - Recently registered companies often seem unreliable to do business with. A shelf company that was registered some time ago now helps to create a reliable image.
Compliance with formal requirements - in some cases, a company must be of a certain age in order to acquire certain business projects.
Process of a shelf company acquisition
The process of acquiring a shelf company in Latvia is a relatively straightforward process and is usually taken care of by the service provider you have chosen to purchase a shelf company from. The limited liability company is the most common legal form in Latvia, as its shareholders do not assume any personal liability for the company's debts other than from the invested capital. In general, shelf companies in Latvia are provided with an active registration number, a VAT number, no previous activity and an already registered share capital of EUR 2,800. The latter can vary with different service providers and you should be aware of this before choosing your shelf company.

The acquisition of the Latvian shelf company can be carried out either by arranging a notary appointment or by remote issuance of a power of attorney digitally signed with an electronic signature. As a rule, all documents are created by the service provider and the client only needs copies of the partners’ passports, the residential addresses and the new company name (if desired) and contact details. When all the documents are ready and signed by the service provider, they submit the application to the Trade Register, where it takes up to 5 business days to process all the changes. For an additional fee it is possible to speed up the process to 1 business day. After the commercial register has processed the changes, the service provider forwards all legal documents to the new shareholders and your company can start operations.