Offshore Company Formation
offshore company formation and registration, a process formally called company incorporation, is an offshore product offered in many countries and jurisdictions worldwide, including, but certainly not limited to: Anguilla, BVI, Bermuda, Belize, Cayman Islands Cyprus, Cost Rica, Dominica, Dubai, Gibraltar, Mauritius, New Zealand, Nevis, Panama, Seychelles. Essentially, the jurisdiction choice for offshore company formation depends on personal needs, corporate needs, and the best-fit model.
Offshore company registration would include the incorporation of offshore companies such as International Business Companies (IBCs), Limited Liability companies LLCs and other hybrid corporate structures corporate bodies used for personal or commercial means.
Generally, licensed professionals administrate the process of offshore business establishement, similar to Belize companies formation. The professionals who handle offshore company formation are offshore service providers and offshore agents. In Panama, lawyers provide this service. The laws for offshore company incorporation, demands the appointment of a registered agent. The agent represents the beneficial owners of the offshore company. The registered agent is responsible for the filing of documents for offshore company formation and ongoing maintenance and administration of the company for the owner.
Individuals and business groups form offshore companies to capitalize on the automatic advantages and benefits proffered by “offshore” products. Companies formed in offshore jurisdictions benefit from low or no tax schedules enabling effective tax planning and reduced taxation. Furthermore, offshore business corporations are widely accepted legitimate corporations used in a variety of trading activities. Individuals often form offshore companies to maximize on asset protection.
By and large, when an offshore company is incorporated, the revenue generated by the offshore company in any form, be it interest, capital gains, profits, dividends: are , not subject to any form of taxation in most tax havens whilst in a few, a very low tax rate is applied.
Competitive offshore company legislation prompts key characteristics and offshore company features that are inherited, modified and developed to generate maximum interest. By rule of thumb then, offshore jurisdictions considered tax havens, seldom ever impose capital gains tax, corporate tax, estate tax, withholding tax and gift tax. Some jurisdictions exempt Stamp Duty applied to transactions made by offshore business companies.
Another competitive feature in offshore company incorporation is speedy incorporation. The offshore company formation and incorporation process is accomplished in less than a week, though some very advanced jurisdictions such as Anguilla, offshore same day incorporation. Offshore company formation process can be started online, speeding up the process.
The information required for the offshore company formation is similar in content though; the documents required are referred to by different names (Memorandum of Association, Articles of Incorporation or Articles of Formation).
The incorporation documentation for offshore companies will depend on the type of offshore company, but generally requires:
- The proposed name of the company;
- The registered address of the company;
- The name and address of the registered agent;
- The name and address of the company shareholders, directors, members;
- The authorized share capital
- The currency of authorized share capital
- The number of shares issued
- The types of categories of shares to be issued
- A statement of formation LLC The duration of the company
- A partnership agreement
- The privileges, powers, rights and limitations placed on each category of share issued
- The by-laws of the company
Upon successful application, a Certificate of Incorporation is prepared. This certificate legitimatizes the offshore company, signifying the completion of the offshore company formation process.
Generally, offshore companies are not allowed to do business in the jurisdiction of incorporation though there are exceptions such as the Republic of Panama allows offshore corporations to do business operations both in and out of the jurisdiction.
Most jurisdictions require just one director and one shareholder, or one member for offshore company formation, where the nationality and location of the officers is not relevant.
These requirements are by no means the complete list, and there are variations in the legal requirement in different jurisdictions for offshore company registration. Other jurisdiction based conditions will apply to the offshore company.
Offshore company formation fees are also widely varied, but it is found that rates area comparative in regions, and very competitively priced. Fee structure would include agents incorporating and administrative fees, and government or registry fees. Some jurisdictions have fixed fees, whereas other have fees that are scaled, based on authorized share capital or investment value for the offshore company.