Guide on Opening an Offshore Company
An offshore
company is a corporation incorporated in a foreign country where none of the
founders is a resident. Offshore business processes are facilitated in a number
of locations around the world and, when investors open an International
Business Company, a common business form for this purpose, they will not be
allowed to trade locally in that jurisdiction.
This short guide on opening an offshore company aims to offer a number
of clarifications on the process of opening a legal entity in another location.
1. Choose the
jurisdiction
Offshore
companies offer a number of advantages, from easy incorporation to low taxation
regimes and the ease of doing business internationally. Of course, these
characteristics will vary according to the chosen jurisdiction. Therefore,
selecting where the company will be based is very important.
Investors who set up a company in Singapore will enjoy a number of advantages, even though the city-state is not perceived as an offshore jurisdiction in the traditional sense of the word. Low taxes and an easy set up process are available here, with none of the disadvantages of the jurisdiction being included on any blacklist.
Investors who open a company in the Isle of Man will also benefit from tax advantages (with a 0% tax rate for selected types of activities) and a fast incorporation process. Moreover, this is the preferred jurisdiction for those who wish to enjoy the zero tax advantages in a location that is close to Europe.
Popular
offshore jurisdictions also include the British Virgin Islands, where the
International Business Company can be incorporated, the Cayman Islands,
Seychelles or Labuan, among others.
2. Begin the
incorporation of the company
Company
formation in many of the offshore jurisdictions is simple and has low
requirements. A minimum of one shareholder and one director will be required
and the minimum share capital is low. Nevertheless, the company will need to
have a registered address and in some cases, a registered agent is also
mandatory. In some locations, the presence of a local company secretary is also
required.
Entrepreneurs
will be required to provide all of the needed details for incorporation and
they can also select nominee director and nominee shareholder services during
the initial incorporation stages if they wish to protect their identities.
Opening an offshore company has a number of benefits and it is a simple process that can be easily handled by foreign investors regardless of their country of origin.
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