Offshore company formation
Offshore companies or corporations are legal entities that arise in offshore countries called tax havens.
The list of tax haven countries includes for instance Andorra, the Bahamas, Belize, Bermuda, the British Virgin Islands, Cyprus, Seychelles, Delaware, Hong Kong, Marchall Islands, St. Vincent, Dubai etc.
A tax haven is defined as a country or place with very low “effective” rates of taxation for foreign investors. All these countries support entrepreneurial activities with friendly setted law structure and favorable business environment. Instead of taxes, there is both an annual license fee and fee for an registration agent.
Each state is specific, has its own laws and business conditions. There are strict restrictions exist, such as on the place of business cannot be the jurisdiction in which the company is registered as well as the offshore companies cannot conduct business activities such as insurance, banking, etc.
In some countries, certain business objects are also forbidden, for instance in Seychelles it is trading on Forex, for some activities it is necessary to even obtain a license.
Offshore company formation attracts many entrepreneurs from all around the world to establish companies and corporations by using such as advantageous taxation conditions and so they might take advantage of laws that are not available in one’s country of residence.
People also much often establish offshore companies for asset protection from lawsuits, financial privacy and international business expansion.
Furthermore offshore companies are not only mainly used for legal tax optimization but also to create the structures needed for the effective functioning of international companies and to protect real estate and properties in general.
In this article we will have a close look on offshore companies formation, their registration, offshore company setup and we will name some of the most valuable benefits but disadvantages too! So keep reading…
What it is?
An Offshore Company refers a corporation, LLC -limited liability company or similar class of entity formed in a foreign country to that of the principals of the organization or one that can only operate outside of its country of formation.
Reasons to have an offshore company..
• asset protection
• buying real estate
Offshore company registration & setup
How to open offshore company?
1. Crucial is to pick right destination overseas just for your type of business and the one which will perfectly suit your needs.
Do not rush in here, take your time, talk to specialised agents, hire a company or at least do your own research before making final decision on which legal jurisdiction to choose, in order to successfully benefit from all the advantages these countries actually do offer …
2. Secondly, decide on name.
Keep on mind that certain countries don’t accept plenty of specific words such as Bank, Royal, Insurance, Imperial, Municipal, Foundation, Casino, Fund, Securities etc. make sure the name of your business does not include any of them.
As part of the name you’ll also need to include a suffix at the end of the company name to denote limited liability. All the usual options might be considered including “Limited”, “LTD.”, “Corporation”, “Corp.”, “Incorporated”, “Inc.”, “LLC”“Société Anonyme”, “S.A.”, “Gmb”,“Namloze Vennootschap”, “Berhad” etc.
3. Another necessity is a certified copy of your valid documents including copy of your passport & ID card and of course prove of address your residential one as well as the company’s proposed business activities.
4. You will need to legally registered your company and fill all additional paperwork and answer questions such as:
- What kind of shares are to be issued? You will probably need to choose between “Registered” Shares and “Bearer” Shares.
- Who will the Company Director/s be? Whilst you can if you wish be appointed as a Company Director it may be advisable for tax and privacy reasons to have a “Nominee” Professional Company Director appointed.
- Who will the shareholders be? Whilst you can if you wish be nominated as shareholder it may more advisable for tax and privacy reasons to have us supply a nominee shareholder.
- Will a Company Secretary be needed and if so who? Many clients ask to have a Company Secretary appointed although in most jurisdictions it is not compulsory to do so. Whilst you can if you wish be appointed as Company Secretary it may be advisable for tax and privacy reasons to have a “Nominee” Company Secretary appointed.
So make sure you have all these details already figured…
When a person acts to create an offshore company, he or she must prepare to cover the fees to establish the company.
These are the services that are typically provided and expenses that are covered when filing a company.
- Government fee for offshore company incorporation.
- Company’s initial license fee, if needed.
- Registered agent for service of process.
- Corporate record book containing legally required documents.
- Corporate seal.
Offshore company formation may seem as a difficult task to create with all the formalities and legislatives but absolutely not with us! For professional consultancy contact our specialised management. We provide not only the best services and qualified specialists to guide you and take care of your interests but most importantly tailored solutions for your individual goals.