Why set up an offshore company if you can establish one back home? Well, offshore companies may offer much more convenient conditions for entrepreneurs than your current jurisdiction, including lower taxes, less reporting and control, and wider opportunities. More importantly, an offshore company is a part of your Plan B: if something happens in your home country, including any political, economic, or social events, you can always relocate to another jurisdiction and wait for the situation to get better. A complete Plan B also includes real estate abroad, an offshore account, and a second passport. However, this post is all about offshore company formation.
Welcome to our portal if you want to know more about offshore company registration steps. We write about international business and banking, tax optimization, investments, asset protection, and much more. You can schedule a personal meeting with our experts to discuss your situation and needs and find the best jurisdiction, company form, and so on. You can also delegate the administrative procedures to us, and we will set up an offshore company for you on a turnkey basis at a reasonable fee.
Is an Offshore Company Legitimate?
Offshore companies are absolutely lawful tools in the present-day business environment that will help you engage in any activities provided they are lawful, so a company formed abroad does not differ in this respect from a company set up in your home country! It is true that offshore companies have a reputation of being used mostly for illegal activities, but this is a thing of the past.
An offshore company has a registered office address abroad. However, it will be entitled to all the benefits provided by the respective destination, such as low or zero taxes, on the condition that it derives 100% of its income abroad.
Please take a meticulous look at all the local laws and regulations related to company setup or discuss all these details with a professional. You also need to know the legislation of your current country of residence to comply with its requirements regarding possession of a company abroad: you may need to declare the fact of your ownership not to infringe the laws.
Why Form an Offshore Company?
Let’s look at the legal purposes of offshore company formation:
- If you set up a company along with a bank account, you will get access to better banking services and loans than you may have back home.
- You can directly access markets across the globe.
- You can set up a trust in an offshore jurisdiction along with your company to protect your assets in a better way.
- You can organize a holding company to run your business more efficiently.
- You can use your offshore company to invest in real estate abroad as a step towards more reliable asset protection.
- Your personal data will be protected in a more efficient way.
- Import and export operations will be easily completed across the globe.
- Your ownership rights will be protected much better.
- Your cooperation with international partners and partnerships may become far more active and fruitful.
- It will be possible to set up and run an offshore company remotely.
- Finally, why not set up an inheritance trust to diversify your wealth?
It is very important to know the goal of offshore company formation as it will help you opt for the right jurisdiction:
- If your purpose is to engage in gambling activities, for instance, the best jurisdictions for offshore company establishment will be Costa Rica and Curacao.
- Your partners are from China or Asia Pacific and you are going to carry out trading activities? Hong Kong and Singapore seem to be the best destinations. And if you want to diversify the risks, you can form a company in one jurisdiction and a bank account in the other one.
- You need a reliable solution for asset protection? You will hardly find better destinations than Nevis or Belize as their legal frameworks are specially designed to form strongholds for your assets.
- If you are planning to establish a financial startup, the most attractive jurisdictions are Ireland, Estonia, Luxembourg, or the UK.
- Targeting the US market? There are two good options here: you can set up an offshore company in or outside the USA. In the first case, you will need to make all arrangements in particular states that offer the best conditions for non-resident companies (these include Nevada, Delaware, and Wyoming). In the second case, consider Costa Rica, Panama, or one of the Caribbean countries.
- Finally, if you need a banking license to carry out your activities, look no further than Panama, Saint Lucia, Puerto Rico, or Vanuatu.
As you see, the purpose of starting your company determines where it is better to open it – but this is not the only factor. This is the reason why we recommend contacting an expert as it is simply impossible to describe everything that determines the choice.
Company Formation: Steps
Select an appropriate jurisdiction by choosing the most beneficial terms and weighing all the risks. Take a good look at the local legal framework and resources, requirements for offshore company establishment, and current trends in your business area, and define your target market. Choose the bank and make sure its conditions are suitable for you.
Choose a name for your company, receive the company documents, get a registered address, and find a reliable registered agent (this is a mandatory step!). Collect the required package of documents and send them to the agent. Set up your management and accounting processes. Finally, open a bank account.
Pay all the relevant fees, including the state duty, the registered agent’s fee, a license fee (if applicable), the fee for the agent’s annual non-financial report, and so on. Don’t forget to pay the authorized capital!
If the above steps look complicated, simply contact us to buy a turnkey package of services that includes all the fees, a reliable registered agent, and all administrative steps to be taken. Get in touch with us to avoid all the hassle and start your offshore business in no time!