[brd]

You are tax dodging, there are ways to do so legally so I'm not pointing fingers or saying its wrong but that is what it is. Having said that, if you do choose to go down this path I'd make sure I have a really, really good accountant/lawyer to ensure that everything is legally sound and then I'd ensure that they will be available to watch international tax laws to make sure I'm not burned by the constantly shifting practices of tax sheltering.

In reality, its probably not worth the trouble. Odds are it won't matter to begin with and if it does, investors will likely not appreciate you playing games with your incorporation.

[chmac]

Could it also discourage potential purchasers in the event of an exit? Instead of buying shares from a company in a known jurisdiction, they'd be buying shares from a foreign jurisdiction. Might complicate the legal work, and so on. This was one reason I considered as to why it doesn't seem to be common practice.