Offshore Company Services
Offshore Company incorporation, economic citizenship, trust and foundation formation, offshore bank formation and other similar activities are some of the more common offshore products available in hundreds of tax haven (low tax/tax free) jurisdictions worldwide. The process of conceptualization, formation and registrations of offshore business entities requires the administration by skilled, professional and knowledgeable operators.
These operators who manage the offshore company services and other offshore entity services are known by many different names such as offshore service providers, offshore agents, or company formation specialist, company formation agents or offshore intermediaries. These are local business bodies that are specifically licensed in the jurisdiction to provide the necessary offshore services.
It is very unlikely that an individual can enter an offshore territory and incorporate an offshore company. Offshore service activities must be done through the appropriate channels, namely registered agents.
Offshore company incorporation services can be a lucrative revenue earner for a country. The offshore services provider has to be licensed (pay fees) and to incorporate an offshore entity, the subscriber must pay registration, and later renewal or maintenance fees to the state.
There are several offshore administrative, processing and management incorporation services necessary to establish and maintain the offshore corporations and businesses. The primary offshore services offered are:
- Enterprise construction, like Belize companies formation, and registration (offshore corporations in accepted forms: IBC, LLC, Partnership, etc.)
- Licensing of specialized entities such as Offshore Bank Licensing, Insurance, Licensing of other offshore entities (gaming licensing)
- Application processing /Economic citizenship/residency applications
Offshore company incorporation is by far, the most popular offshore product in all the successful jurisdictions. Offshore incorporation services are of significant economic value such that the offshore company service industry often is often well regulated and developed to ensure the sustainability of the offshore incorporation business.
When international corporations such as the international business company (IBC), the offshore limited liability company (LLC), and other types of offshore entities including the offshore trust, the offshore foundation or the offshore bank or the like are formed, there are several services involved.
The supplemental or management services required to maintain and enhance the confidentiality and functionality of the offshore company profile include:
- renewal of licenses
- provision of registered address and registered agent for the offshore company
- maintenance of corporate documents and registers
The objective of these additional offshore incorporation services is to keep the offshore corporation or entity in good standing. Where it is required by law, or expressed wishes of the beneficiary, the offshore incorporation service provider may provide administrative offshore services such as:
- upkeep and update records of the company
- prepare and file mandatory reports and returns
- make bank introductions and assist with bank account application processing
- conduct and attend meetings
- provide virtual offshore secretarial services- fax and answering services, email services
- document holding and forwarding services
- provisions of nominee shareholder, director
- provide a Power of Attorney
- Certificate of Good Standing, Notarization and Apostille of documents, Translator services
- rubber stamp and Corporate Seal provisions
- by-law preparation, minutes preparation
- Dissolution or Liquidation of Business
Offshore activities such as Trusts, Insurance, Offshore Banking, Foundations require more complex offshore services and the application circumstances are more all-inclusive and time consuming.
Of these services to keep up with international standards and requirements and to be able to compete internationally, the offshore jurisdiction will often review its specific laws pertaining to offshore companies, the regulations and the requirements, making way for new and upgraded offshore incorporation services that are offered through the licensed and registered offshore service providers. Generally, the aim is to improve on the offshore incorporation services and incorporation process by making it faster, easier, more streamlined process, which will appeal to offshore investors.
Ongoing revision, assessment, and feedback from the offshore service providers, regulatory bodies and other stakeholders are essential to improving the offshore company services. These are the stakeholder who help develop develop the necessary protocol for advantageous improvements to the offshore company service industry. Offshore company services should be investor friendly with appealing laws that support the investor’s interest.
Some offshore service agents offer legal and tax consultation as a supplementary service, but generally offshore service agents do not provide legal or tax advice and prefer to exclude such services and provide only the administrative and management services for offshore companies.
Offshore corporations are employed for two main purposes: asset protection and confidentiality and the second, tax minimization, deferment or prevention, each reason being quite independent of the other, but often overlap and complement each other.
The rewards of using a offshore corporations include tax free provisions on revenue, capital gains, or profit; flexible corporate structures and administrative flexibility. Offshore company services would include a wide range of services beginning with the company’s formation, incorporation, maintenance and administrations and dissolution.
Offshore services should be provided by professionals who are well versed in the process of offshore company set up, thus minimizing time and cost of the services, and fast turnaround and response time.