Organisational types of offshore companies
Types of offshore companies.
There are several organisational types of offshore companies:
Private Limited Company or Ltd
It is most common type of organizational form of offshore companies – Limited liability company. In other countries, can be used reduce Gmbh, Sarl, Co, Corp, Inc, Pte Ltd, Sdn Bhd, NV, etc.
Limited Liability Company or LLC
It is a hybrid legal form of business. It has some features of both corporations and partnerships. Like the shareholders of a corporation, the liability of LLC members is limited to their contribution to the statutory fund. However, in contrast to the shareholders of the corporation LLC participants run its activities directly.
Limited Liability Partnership or LLP
This is a legal form of business that combines properties of a partnership and a corporation. Like the shareholders of the corporation, the liability of LLP members is limited. LLP form is useful when all participants are going to take an active part in management of a company.
Limited partnership – for example, Scottish Partnership – SLP
If your company follows a number of set simple rules simple SLP is completely exempt from taxes. It can be used instead of a traditional offshore when working with countries where there are strict anti-offshore legislation.
Hybrid company is a company where the liability of its members is limited by a warranty or guarantee. In a company that is limited by a guarantee the founders are not required to invest any funds. Instead, they only make a certain amount of guaranteed money to cover the company’s liabilities.
In case of a bankruptcy of the company founders are responsible for its obligations with all its assets. Therefore, these companies are rarely used. Their use is limited to situations where the risk of bankruptcy is minimal.
Some offshore jurisdictions allow special types of companies:
- Private Trust Company;
- A company with a limited duration;
- A company with restricted purposes (SPV);
- Private Foundation.
Types of offshore companies
If you would like to form any of the above types of offshore companies we would be happy to provide you such services based on your individual requirements fast, simple and at a low cost.