Jul 20, 2009
Dummy corporations don’t just grow wildly in the Caribbean or Switzerland.
Jason Sharman, a political scientist at Australia’s Griffith University, was able to incorporate a fake company in Britain. It took only 45 minutes and $750 – no documents required! As part of his study, he tried to incorporate companies using fake names in countries throughout the world. In the richer ones, he was quite successful. These are the countries that pretended outrage this past April over “offshore tax havens.”
Sharman concluded, in The Economist, “the U.S. is the worst on this score, worse than Liechtenstein and worse than Somalia.”
Nevada, for example, with a population of two and a half million has more than 400,000 corporations! The state’s website boasts about “limited reporting and disclosure requirements.” In other words, there’s no worry about laws and taxes when you incorporate your fake company with dummy directors in Nevada – or in several other states.