SET UP YOUR OVERSEAS COMPANY ONLINE

Offshore
Company
Setup

Online Company Formation
for Your Offshore Business

The international offshore company formation industry is about taking advantage of local and international corporate tax laws and capitalizing on opportunities provided by multi-jurisdictional incorporation.

An Offshore Company refers a corporation, LLC or similar class of entity formed in a foreign country foreign to that of the principals of the organization.

It also refers to a company that can only operate outside of its country of formation. This article provides information to help one understand the definition of the term “Offshore Company.” It will also describe how they differ from domestic companies.

What is an Offshore Company?

First of all, we will define the term Offshore. Offshore means located or situated beyond one’s national boundaries.The term Offshore Company has two definitions depending on its perspective. From the standpoint of the principals of the company, it is a company that one has filed outside of the country where its principals reside.

The principals include the officers, directors, shareholders, members, partners. From within its country of formation, it is a company that has been formed for the purpose of operating outside of the jurisdiction where it was originally filed.

As an illustration, an offshore company filed in the Caribbean island of Nevis can hold a bank account in that country or other countries but it cannot operate a business within the country of Nevis.

Nevis LLC legal statutes were written to protect the assets held inside the company from being seized by lawsuits and creditors. So, those who do research on creditor protection may chose Nevis as the jurisdiction to form their entity.

Many countries omit the word 'offshore' entirely from the company ordinances even though the entity might function similar to an offshore company such as Malta or the UK.

Herein is what makes the offshore formation market so confusing; as many modern financial centers like Luxembourg, Cyprus, and Malta have international business entities that enjoy many of the same benefits in regards to tax benefits and corporate flexibility as traditional Caribbean tax havens even though they are in Europe are not generally considered offshore jurisdictions.

There are, however, some distinguishing features which separate traditional offshore jurisdictions from modern 'onshore' financial centres, namely offshore jurisdictions usually have: fewer reporting requirements, public registries are not open to the public, and generally offer more tax reductions possibilities.

Despite these differences, many of the same financial activities and offshore corporate services can be found in both types of offshore jurisdictions such as the creation of Captive Insurance funds, Hedge Funds, Bank Accounts, and Mutual Funds to name a few.

Why setup an online business ?

How can we help you?

Gone are the days of adding an offshore company to your virtual shopping cart.There are no longer one-size-fits-all offshore solutions.

Why Register a Company
in an Offshore Jurisdiction?

Anyone stands to benefit from incorporation offshore. If we remember that offshore formations aren’t necessarily about getting established in some fancy Cayman Islands Company (although in reality, the Caymans are a lot less fancy and exotic then the name implies).

If you are an American and you form a company in Cyprus, that is considered an offshore company.

A foreign company established in a country other than the country of your residence, for all intensive purposes is considered an offshore company.

The confusion comes for most people is because there is such a tight association with the term offshore company and illegality. Whether its money laundering, tax evasion or straight-up drug dealing, the media has done a great job in misinforming people.

Offshore Companies are literally for anyone who owns a global, internet-based, digital, or services company. It can also act as a holding company for assets or accounts, for holding property, intellectual property, patents, investments as well as conduct other financial and investment-related activities.

The benefits gained will be determined primarily on what one is hoping to achieve.While nearly everyone is hoping to reduce their taxes. It might not necessarily work for everyone to go from paying 40% taxes to 0% overnight. Though anyone can start a company offshore, not everyone receives the same benefits.

For today’s entrepreneur, too best take advantage of your financial freedom, the most reliable strategy is to create a global mindset, by creating an offshore lifestyle maximizing your international leverage by diversifying your residency, company and accounts across multiple jurisdictions.

What Type of Businesses Benefit from Incorporating Offshore?

It really depends on what your business is, where you reside and what you hope to achieve by going offshore. Some individuals who are to benefit the most from a foreign-based company are those with business and financial activities in:

  • Offshore savings and investments

  • Forex and stock trading

  • E-commerce

  • Professional service company

  • International based company

  • International trading

  • Ownership of intellectual property

Advantages of Offshore Companies

An offshore company has a variety of uses and benefits for clients wishing to engage in international financial trade and investment activities. Depending on the specific offshore jurisdiction, an offshore company may have the following features and advantages:

Ease of Incorporation

Registration and incorporation procedures are very straightforward and, in some cases, may take only 24 – 48hrs for the process. This, of course, requires that you prepare and provide all the required documentation before submitting incorporation paperwork to the appropriate authorities.

Flexible Management and Minimal Reporting Requirements

Minimal number of directors and shareholders are required. Financial reporting, account information and annual returns are also often not required or remain minimal.

Minimal Fees & No Foreign Exchange Controls

There are very low associated fees, after start-up costs; many jurisdictions have fees between US$200-300 per year.

Most all jurisdictions have no restrictions on foreign exchange.

Favourable Local Corporate Legislation

Many offshore jurisdictions have supportive legal frameworks to promote and encourage the growth of the offshore industry and foreign investment, which supports and gives companies a high degree of flexibility.

High Confidentiality

The details of owners, account and financial information remain confidential, though to a varying degree, depending upon the jurisdiction. Some have minimal publicly available information (Hong Kong and New Zealand), whereas in (Nevis, Panama, Seychelles) absolutely no public information is available. The availability and use of nominee shareholders and directors give you greater anonymity.

Freedom in Investment Opportunities

No limitation in regards to the business activities involved. Companies are free to engage in virtually any economic, financial or business activity. In some jurisdictions there are necessary formalities and licensing that must be obtained prior to setting up certain types of business operations (as in the case of bank, insurance, real estate industries).

Tax Benefits

Most jurisdictions offer zero to low corporate taxes, with an exemption on most other taxes such as income, sales, capital gains, value-added, estate, succession, gift, and stamp taxes.

Relocation Possibilities

Many jurisdictions offer smooth transition possibilities between jurisdictions without any needed restructuring or complicated documentation.

Offshore Incorporation Document Requirements

Forming an offshore corporation is not as complicated as it is often made out to be. In fact, the offshore corporate services industry is often not only easier to establish a company but often is quicker, less hassle with rates even comparable to that of many modern financial centers.

To form a company the entity must draw up and submit:

  • Memorandum of Association
  • Articles of Association

The Memorandum of Association represents the companies external affairs and complements the Articles of Association which represents the internal dynamics and structure of the company including the by-laws, purpose of the company, organization of its members including the Director, Shareholder, and Secretarial duties, as well any financial obligations, share capital, meetings, and any day-to-day tasks.

These documents are together sent with:

  • Know Your Customer (KYC) documents
  • Corporate Application Document
  • Name, Date of Birth, Social Security or National Insurance Number
  • Notarized Bank Statement
  • Banking Reference Letter
  • Professional Reference Letter
  • Copy of Passport for Identity verification
  • Copy of Utility Bill to confirm your physical address

These documents are sent off to the appropriate jurisdictions Corporate Registers Office. 

Once these documents are approved, there might be additional documents needed to satisfy the Registry then a Certificate of Incorporation is issued signifying the formation of the new company.

Any additional requirements of a newly formed company post-incorporation are dependent upon your needs and wishes, which may include the appointment of the company’s first director, the first meeting and appointment of company officers, registration of directors (in which nominee services may be used), issuance of company shares, and the opening of any international bank account,