companies offshore formation


As the "world" becomes global, fewer businesses are local and many corporations are increasing going internationalization. Corporate structuring and planning have achieved higher levels of complexity than ever before while the need for anonymity remains strong. Corporation must keep pace and be constantly look out for new ways to profit. One way is to have a clear understanding of the characteristics offshore foreign corporations and how they may be put to advantageous use.

Offshore Companies are only applicable if you are doing business overseas and not in the country where your offshore company is incorporated. All income derived in and from the incorporated country is normally taxable. For e.g., An offshore company formation in Bahamas, doing business in Bahamas will require to pay taxes in Bahamas, where else, if the business was done in USA or Hong Kong, all profit are not taxable.

Offshore business is about using the possibilities offered by countries (commonly known as jurisdictions), whose legislation allows for certain advantages (tax, confidentiality, company structure, etc.) to be used by non-residents.

This means that a country, or jurisdiction, allow registration of a company and offer them certain tax freedoms in exchange for an annual licence fee. It is normally a legal requirement that the registered company must not conduct any business or own any assets in the jurisdiction of incorporation.

For instance, Hong Kong and Singapore both have a favorable tax regulation which is known as "territorial taxation". This effectively means that if correctly structured, managed and administered, these companies can be utilized for offshore business and international business without paying tax in Hong Kong or Singapore provided that any profits arising are not made in the respective country (non- resident company) and the earned money can be reemitted back.

Besides tax reason, there are many advantages to go offshore which include: Anonymity, asset protection, foreign property holding through a company in a third country, limiting of liability in business transactions, unrestricted flow of capital, transfer of assets etc. etc.

Is it legal for me to have offshore companies formation, and bank accounts?

Yes, because most nations encourage international trade and enterprise, there are usually no restrictions on residents doing business or having bank accounts in other countries. Reporting requirements on such accounts however, differ from country to country. Sophisticated and reputable high-net-worth individuals and corporations routinely use offshore investment vehicles worldwide.

How to start?

Start with a Business Plan and a budget, as maintaining an offshore company requires paying an annual registration fee.

Depending on your personal needs or preferences, there will normally be one or more offshore jurisdictions offering the services you are looking for.

Can I move my existing business offshore?

Some companies can just split parts of their business offshore almost immediately as separate subsidiaries and profit centres. Some companies need to restructure their business activities and start with a completely new business line. The possibilities are quite extensive, and we are able to assist you when it comes to applying offshore advantages to your existing company operations.

How do I find the right jurisdiction?

Some important factors to consider when choosing a suitable jurisdiction: Incorporation & annual maintenance costs, the tax regime, the double tax treaties, legal system, confidentiality, exchange controls, banking facilities and the political and economic stability.

If you don´t have a personal preference or a recommendation from a friend, please ask our experienced advisors for suitable suggestions.