Offshore Company
Formation

An Offshore foundation is a legal entity and created under civil law and registered in outside of the founder’s country of residence.
A Foundation can open a bank account and provide business activities outside of the country where the entity is registered.

The Foundation term:
There is a document call a Charter which includes wishes of the Founder, who establish the entity. The Founder can be a person or a company.

There is the Foundation councel who acts behalf of the company according to the Charter.
There can be a Beneficiary or few Beneficiaries for whom the foundation is created.
There are also can be appointed Guardian or Protectors who control the Foundation cancel activities according to legislation and Terms and conditions of the Charter.

A Domestic company is a local company registered in its own country and operating in the jurisdiction in which it is registered. It also pays taxes in the same country of incorporation, has a local management and usually handles domestic trade.

A non-resident company is not a local company, registered in a foreign jurisdiction and company’s management is based outside of that jurisdiction. Typically, a Non-Resident Entity does business in jurisdictions other than the country in which it was originally incorporated.

Asset protection in offshore companies refers to the use of legal methods under a foreign jurisdiction to hedge assets against domestic risks.
The best type of company and country that has laws that strictly protect offshore assets is the registration of a Trust in offshore jurisdictions such as the Cook Islands, Nevis and Belize. All these countries are politically stable and their legislation provides reliable asset protection.
The confidentiality of information about the beneficiaries and the trust is guaranteed by the Trustee, who is obliged to act in the interests of the beneficiaries and, accordingly, maintain confidentiality.

Many businessmen prefer offshore companies to use the opportunity to legally optimize their business costs and take advantage of the benefits offered.

The most important benefits of an offshore company are tax benefits, privacy and confidentiality, asset protection and lawsuits.

The advantage of setting up an offshore company lies in the tax benefits available to foreign businesses. Also, integral parts of the offshore company are the location of your business, minimal accounting, auditing, ownership of real estate, cost savings benefits.
An offshore company is an absolutely legal organization with a high level of privacy and confidentiality.

Advantages from an Offshore Company include:
Tax saving. Low tax benefits or tax avoidance.
Asset protection. Separating your assets from you as an individual.
Privacy. offshore corporate structure it separates you from your business as well as assets and liabilities.
High Confidentiality. In many offshore countries few or no records have to be maintained publicly.
Flexible and favourable corporate legislation. Simplified corporate laws, auditing and financial reporting requirements.
Perception of your business. The impression that you have an overseas business.
Owning property. Property ownership may include tax savings: inheritance tax, income tax, capital gains tax etc.
Broader range of investments. freedom to invest anywhere they like whether it be in any economic, financial or business activity. 
Lower labour cost. Reduce or eliminate the cost of recruitment.
Better banking infrastructure. there are still many banks that are welcoming offshore companies.
Low maintenance cost.
Low capital requirements for offshore business.
Access to Tax Treaties.

The agreement was developed by the OECD Global Forum Working Group on Effective Information Exchange with the aim of facilitating international cooperation in tax matters through the exchange of information in order to provide assistance to each other in the administration and enforcement of domestic tax laws.

As part of OECD standards, countries are expected to sign tax information exchange agreements (TIEAs) with other countries. TIEAs are particularly important in cases where no double taxation agreements exists because double taxation agreements often include arrangements for information exchange.

CFC rules have the effect of reducing the incentive to shift profits from a market jurisdiction into a low-tax jurisdiction.

The profits of overseas subsidiaries may be subject to domestic corporation tax under the controlled foreign company (CFC) rules. 

CFC laws work alongside tax treaties to determine how taxpayers must declare their foreign income.

• Main types of Offshore Companies:
• Offshore Trust – to be the strongest offshore structures in the world.
• Offshore Foundation.
• LLC – Limited Liability Company
• LLP – Limited Liability Partnership
• PLC – Public Limited Company
• LTD – Private Limited Company
• Company Limited by Guarantee – a Guarantee Company (whose members’ liability is limited by a guarantee)
• LDC – Limited Duration Company (a company with a short life cycle)
• Unlimited Company – a company with unlimited liability
• LP – Limited Partnership

• Offshore holding company
• Offshore Trust – to be the most powerful offshore structure in the world.
• Offshore shipping company
• Offshore trading company (export-import operations)
• Offshore professional services company
• Offshore intellectual property company (intellectual property ownership, licensing, franchising)
• Offshore Recruitment Outsourcing Company (RPO)
• Offshore finance company
• Offshore Leasing Company

IBC – An International Business Company is a type of offshore company incorporated under the laws of some jurisdictions as a tax-neutral entity that is subject to zero or minimal tax. An IBC is usually limited in terms of the activities it can carry out in the jurisdiction in which it is incorporated.

IBC is a private company designed for use in international commercial activities such as trade and non-local services, offshore banking, investment, as well as for asset protection.

The IBC structure:

• owned by shareholders, minimum 1 shareholder is required
• controlled by directors, minimum 1 director is required
• some jurisdictions require a company secretary

Features:

• Exemption from local taxation
• Confidentiality
• Powers to engage in different business activities
• Ability to issue shares (registered or bearer shares)
• Limited by shares
• Must have local registered agent
• Must have local registered address
• Financial Report is not required to submit to local tax authority

LLC – An offshore limited liability company is a legal entity incorporate in offshore country. Most popular countries for such type of companies are Belize, Nevis, Panama, St Vincent, Cook Islands. LLC is owned by members and controlled by managers.

The LLC structure:

• owned by members, minimum 1 member is required
• controlled by managers, minimum 1 manager is required
• some jurisdictions require a company secretary

Features:

• Members protection from lawsuits or debts
• Taxation is passed onto the members rather than the entity itself
• Assets protection
• Possibility of accumulating assets overseas avoiding capital gains tax
• Confidentiality in offshore countries
• Powers to engage in different business activities
• Limited liability to shareholders
• Must have local registered agent
• Must have local registered address
• Financial Report is not required to submit to local tax authority in offshore countries

The most famous asset protection structure used is the offshore Trust, which is considered the most powerful offshore structure in the world, as it is strictly regulated by the strongest corporate laws, which make it incredibly difficult to break into the trust structure.

The best offshore trust jurisdictions are:

• Cook Islands.
• Nevis.
• Belize.
• Luxembourg.
• Cayman Islands.
• British Virgin Islands.
• Jersey.

• Tax planning
• Protection of wealth
• Financial Privacy
• Protection from Foreign
• Court Rulings
• Statute of limitation
• Family planning.

Registering an offshore company is very simple, as it is handled by a registered agent or lawyer.

Incorporation Procedure and Documents required.

• You need to decide on an Appropriate Offshore Jurisdiction.
• Choosing a Company Structure: IBC/BC, LTD, LLC. LLP, LP, Trust etc.
• Chose the Company Name.
• Provide a company structure: Directors/Shareholders/Secretary.
• Provide details of the company’s proposed business activities.
• Provide documents of Beneficial Owner /Directors /Shareholders
  • A certified copy of passport;
  • A certified copy of a document proving residential address;
  • Source of Funds / Source of wealth.
  • Some jurisdictions will require additional information.

• Most overseas jurisdictions make registration easy for everyone. The statutory obligations to manage an offshore organization have also been simplified.
• An offshore company must have a registered address in the country of incorporation, usually this is the registered agent’s address.
• Every year the company must undergo renewal and pay an annual fee for the registered address, for the registered agent and the Registrar’s fee.
• If the structure of directors and shareholders has changed, it is necessary to make changes officially and documented.

• An offshore company is legitimate and can open business accounts in any country. Our company offers not only the registration of an offshore company, but also the opening of a bank account, which makes it easier for the owner to find a reliable bank. We are introducer of many banks from different countries and thus opening an account is much faster and without additional delays.

Corporate or Business Bank Account

• Corporate banking usually refers to services used by larger businesses with higher turnover.
• Business banking usually refers to services used by small companies, including individual entrepreneurs.

• Before you start the process of registering your business in an offshore country, we recommend that you study and understand all of the pros and cons of an offshore company.
• It is very important to draw up a business plan and strategy for your offshore company.
• These are the most important points that you need to familiarise yourself with offshore.

Our consultants, lawyers and accountants have long-standing experience. All of your private personal and financial information are kept completely protected. Our services are competitively priced across the market. Our goal is to be transparent and informative from day one. We want to be trusted on everything else you care about.