Choosing the Right Option for Offshore Companies Formation
The first thing you need to do to register an offshore company is to choose the right and suitable jurisdiction for business, as this is the most important step at this stage. Today, there are still a large number of countries that offer an offshore haven with different benefits, legal frameworks and requirements. The most popular in 2025 are still countries such as the Seychelles, the British Virgin Islands (BVI) and the Marshall Islands.
Many agents have ready-made companies. A ready-made company is a company that is already registered and waiting on the shelf for its owner. All the main documents of such a company are ready, there is a certificate of registration with the number and date of registration, constituent documents, there is a name of the company. When buying such a company, it is only necessary to transfer the company to the name of the new owner, that is, change the beneficiary of the company, shareholders of the company and appoint a new director(s). Usually, checking the documents of the new owners and transferring the company takes about the same time as a new registration. During the purchase, you also have the opportunity to change the name of the company or do it at any other time, or leave the name as it was originally registered.
In this case, what are the advantages of such a company?
The advantage of a ready-made company is that the company “seems to have a history” due to the time of registration, although the company is essentially “on the shelf”, does not carry out any activity, did not conduct any commercial activity, but the date of registration can be decisive for the owner to gain trust due to the earlier date of registration. Therefore, the choice of a ready-made (shelf) company depends on your specific needs and circumstances. By purchasing such a company, you have the opportunity to establish your presence in the commercial market due to the existing registration date.
In case there is no need to buy a shelf ready-made company, it is always much better to register a new one, with your chosen name for the company, with the appointment of your shareholders and the appointment of your directors that correspond to your strategic goals, and adapt the corporate structure to your specific needs. This choice ensures that the company will be created from scratch and in accordance with your business model.
The registration time for a new company takes 1-2 days, however, before registering a legal entity, time is still required to check the KYC of all parties specified in the company structure, which is very important and required by law.
Of the listed popular offshore countries, quick company registration can be used on the Marshall Islands. Registration and apostillation of documents are carried out within 1-2 days, whereas in the Seychelles and BVI, the time for notarization and apostille takes up to one week and depends on the workload of the legalization offices.
Choosing the right jurisdiction plays a very important role in registering a company. Each jurisdiction has its own differences and nuances, despite the fact that legislation has become similar in many popular offshore zones in recent years. Offshore countries, in order to avoid being blacklisted, are improving their legislation to comply with and join global tax initiatives, which include:
- Increasing transparency
- Increasing accountability and strengthening control
- Requirements for certain companies to establish economic presence in the country of registration
Popular Jurisdictions for Offshore Companies
Below we will look at some popular offshore jurisdictions and their pros and cons.
BVI Offshore Company Formation
The British Virgin Islands – a trusted offshore haven and continue to be the most popular country for registering offshore companies as the BVI provides a reliable legal framework for the financial and business sectors and has political and economic stability. BVI companies have a uniform status and are regulated by the BVI Commercial Companies Act 2004, the latest amendments to which were adopted in 2024.
The registration process is not complicated and registration takes 1-2 days.
The BVI, like many other offshore zones, has adopted many amendments and additions to the legislation and tightened its requirements for compliance with regulatory requirements. Innovations in legislation are important for maintaining a good reputation, avoiding sanctions and complying with international standards.
According to the new requirements, each BVI offshore company must provide the necessary information on the owners of the company, register beneficiaries, shareholders and directors with the Registrar of Companies. Information of beneficial owner and shareholder submitted to the BVI Registrar remains confidential and can only be provided to a limited number of executive authorities.
Requirements have also been introduced to provide annual financial statements, which consist of the main items of the profit and loss statement and balance sheet.
Incorporation of an offshore company in the British Virgin Islands can also be done through a registered agent within a few working days. Unlike the Seychelles, all companies in the BVI, including offshore ones, have a single status and are regulated by the BVI Business Companies Act 2004, the latest amendments to which were adopted in 2024.
The recent changes affect similar aspects of the activities of offshore companies as the reforms in the Seychelles. For example, one of the requirements is the transfer of information on beneficial owners to the state registration authority (BVI Registrar of Companies). However, this information remains inaccessible to the public.
In 2023, BVI companies were required to file an annual report with their registered agent. This report is essentially the company’s financial information and consists of a profit and loss account and a balance sheet.
It has also become mandatory for Companies & Limited Partnership to file an annual Economic substance annual declaration in Compliance with the Economic Substance Act 2018 (“ESA”) of the laws of the British Virgin Islands.
Financial benefit for IBC in BVI
A BVI Business Company is exempt from:
- Income tax/corporation tax
- withholding tax on dividends
- interest
- rents,
- royalties,
- stamp duty
- capital gains tax
- stamp duty
With respect to shares no tax is payable on
- estate,
- inheritance,
- succession
- gift tax
Seychelles Offshore Company Formation
Seychelles is one of the attractive offshore jurisdictions with an international financial center. The legislation of the Seychelles meets modern requirements and complies with international standards.
For international entrepreneurs, the jurisdiction of Seychelles, located in East Africa, is a popular offshore jurisdiction due to its attractive and favourable tax regime, flexible corporate legislation and fast registration procedure.
The main type of company used in international business is the IBC – an international business company, regulated by the Seychelles International Business Companies Act 2016, as amended in 2021,
Like many other offshore jurisdictions, the Seychelles authorities have carried out large-scale reforms in legislation in order to comply with international standards in the field of tax transparency and combating money laundering.
Company registration can be done through a licensed registered agent and can be completed within 1-2 working days.
The Seychelles International Business Companies Act 2016, as amended in 2021, regulates the activities of these entities.
The amendments to the Companies Act oblige international business companies to disclose information about beneficial owners to local authorities, register shareholders and directors. Failure to comply with this obligation established by law entails penalties. This information remains confidential and can only be issued to authorized authorities.
Financial benefit for IBC in Seychelles
IBC which derives its income outside Seychelles will not pay tax on
- dividends,
- interests,
- royalties, or
- other payments paid out to its stakeholders.
- capital gain tax.
Seychelles IBCs are exempted from stamp duty on
- formation of company,
- transfers of properties,
- transactions in respect of shares,
- debt obligations,
- other securities of a company if transactions not relate directly or indirectly to real estate situated in Seychelles.
The Marshall Islands Offshore Company Formation
The Marshall Islands are becoming the most popular offshore jurisdiction for company registration due to the absence of corporate taxes for non-resident companies, confidentiality, the absence of official registers of beneficiaries and shareholders, and the speed of registration and obtaining apostilled company documents.
Companies in the Marshall Islands are regulated by the Association Act with the Business Corporations Act, adopted in 1990.
As in many other offshore zones, the government of the Marshall Islands is updating and supplementing its legislation on Companies with requirements corresponding to international standards to strengthen control over offshore structures. The reforms are not radical and still have their loyalty to companies.
Licensed Marshall Islands registered agents are required to require beneficial ownership information from companies from December 2023, but this information is not sent to the Registrar but is held by the registered agent. Beneficial ownership information can only be obtained by authorized authorities and only upon formal request to the registered agent.
Since 2018, companies are required to maintain accounting records, all supporting documentation to explain and justify all financial transactions and keep them. Financial statements are provided to government authorities upon request.
According to the ESA ACT (2018) all non-resident domestic entities (NRDEs) and foreign maritime entities (FMEs) and which derive income from a “relevant activity” must submit the ESR report annually.
Financial benefit for IBC in Marshall Islands
Non-resident Domestic Corporations it is exempt from all taxes including:
- Corporate tax,
- asset tax,
- withholding on dividends,
- income Tax,
- capital gains tax,
- exchange controls,
- inheritance tax
- gift tax
- stamp duty
Conclusion
Offshore companies are still very popular for foreign entrepreneurs and play a major role in tax optimization. Therefore, you need to approach the choice of the right jurisdiction with great responsibility, consider all the pros and cons and you will be able to successfully use the advantages of an offshore company.
********
If you wish to register an offshore company our team will be happy to help you there and provide you with more detailed information, you can contact us at [email protected]
Related Pages:
