How to Set Up an Offshore Shell Company?

You must have heard of the Panama Papers record. It was this one report that garnered public interest in shell companies. However, shell companies are not as illegal as the newspaper reported. An offshore shell company is a completely legal entity. So, if you want to learn more about the what, where, how, who, and advantages of a shell company, you have come to the right place.

If you are interested in setting up a company in an offshore tax haven offshore location, a shell company can be a good option for you. Such a company can help you avail of lower taxes, privacy, and access to foreign markets.

What is a Shell Company?

Shell Companies, commonly known as Phantom Firms, Mailbox Companies, or Letter-box companies, do not actively conduct daily business or hold assets.

These companies are used for confidentiality, fund storage, accessing funds, and reducing tax liability. Moreover, unlike different holding companies, these companies do not produce or sell products and services, nor do they recruit employees or generate independent revenue. 

How do Shell Companies Work?

Shell companies are popular because of the anonymity they offer. So you can conduct your business with ease. Here are some salient features of a shell company.

• Shallow operation activities
• Almost non-existent operational assets
• Mainly used as a channel for some other purposes
• Eligible to transfer funds and open bank accounts
• Enables you to purchase and sell property and some other assets.

So, a shell company exists only on paper.

How to Create an Offshore Shell Company?

Now that we understand a shell company’s purpose and operation, let's learn more about setting up a shell company.

Seeking the help of an advisor to help with the legalities and formalities is highly recommended. Offshore company registration can be a swift process with the help of experts.

The procedure for offshore shell company registration is as follows:

1. Selection of jurisdiction and name of the company

Choosing an ideal jurisdiction for you depends on your company’s requirements. Additionally, you must keep the trade name laws of your preferred jurisdiction in mind while selecting a name for your business. Here are some popular offshore jurisdictions to help you make an informed choice.

• Nevis
• Panama
• Seychelles
• Delaware
• Wyoming
• Hong Kong
• Singapore
• Belize

2. Appointing a nominee director

To maintain privacy, appointing a nominee director is the best approach. The nominee director’s name will appear on all the official documents and records, but you will enjoy actual control and ownership over the company.

3. Complying with documentation

The registration process varies from one jurisdiction to the other, but generally, the standard documents required by the authorities are:

• Registration form
• Articles of Association
• Memorandum of Association
• Identity proof copies of director(s) and shareholder(s)
• Proof of residence

You must pay a registration fee while submitting your required documents. Interestingly, you can also buy a shell company and skip these formalities. Purchasing an already registered company also allows you to start utilizing it instantly. Moreover, an existing company already commands a certain level of goodwill and trust in the market.

If you want to set up an offshore company, availing of the services of experts is the best way to go. Your business advisors will help you with the registration process. On top of that, they may also provide additional services such as opening an offshore bank account, accounting and bookkeeping services, and more.

Where Does Business Setup Worldwide Fit In?

Understanding the complications and legalities of setting up a company can be an arduous task. With our help, you can ascertain whether or not you should go for an offshore shell company.

We at Business Setup Worldwide can help you by providing customized business solutions. Contact us; we would be more than happy to help you with your queries.