Incorporating an offshore company can be a very profitable decision.
Our most popular places to incorporate are:
What is an offshore company?
An offshore company is a limited company that holds the same rights as any other company but is registered often as an International Business Corporation (IBC) in an offshore jurisdiction, usually for greater freedom or lower taxes. Business is usually done outside of the jurisdiction in which the company is registered, resulting in lower taxes or sometimes no tax at all. All records are kept confidentially at the premises in the jurisdiction. Popular offshore company locations include the Seychelles, Cyprus, Belize, and the British Virgin Islands (BVI) etc. Aside from these offshore jurisdictions, there are also some other popular countries for International Business Corporations, such as the UK or Hong Kong.
Types of international business companies
Types of international business companies include holding companies, real estate, general trading, financial services and investment companies as well as FX trading, bio-Tec, e-commerce and, IT companies. real estate, general trading and investment companies.
What kind of rules are there?
Any offshore company is tax liable to any taxes compulsory in the offshore jurisdictions. For most there will be no or very low taxes on profits earned inside or outside the jurisdiction – such as the Seychelles or Cyprus. There is usually an annual nominal registration fee to be paid. In most jurisdictions, accounts will need to be kept at the registered office, and audited before being submitted annually. Usually the offshore company needs at least one director, one shareholder and sometimes one resident secretary. The annual meeting is usually required to be held in the jurisdiction where the offshore company is registered.
How easy is it to set up?
Set up depends on your choice of jurisdiction; some are easier than others as some have stricter rules and regulations than others. Usually though you can register your offshore company in as little as a few days, providing you have all the paperwork in order and all the necessary documentation.
What about costs?
Set-up costs also vary depending on your jurisdiction. It is worth researching your chosen jurisdiction or enquire with us for a quotation before making any choices. Some service providers will offer to set up your company and fill in all the paperwork for you, although this may seem like an easier option, keep an eye on hidden costs and expensive transactions that you may not be expecting with some cheaper quotations.
What about Confidentiality?
Some jurisdictions allow complete confidentiality of your company, director and shareholders, rather than demanding full public disclosure for example in Belize, who also do not require an annual meeting to take place. This can provide anonymity and confidentiality if you need it, but not all jurisdictions offer this. Many will require the names be disclosed on a public register on registration of the company. Our full nominee service includes nominee Directors, shareholders and Secretary which guarantees full confidentiality.
What about banking?
Some countries will have no problem opening bank accounts for offshore companies, whilst others, like Switzerland, will refuse to do so. It can be difficult in some jurisdictions to open an offshore bank account, so ensure you do your research before making a commitment. Some jurisdictions will also not allow you to set up a financial company or will restrict your company name so it cannot have the word ‘financial, bank, international, global’, etc… in it. It is important to look into the ins and outs of your chosen jurisdiction before making a decision. Linkia Trust is an experienced company and we are able to help you with all issues related to the registering an offshore company and choosing an offshore company jurisdiction.