Offshore company business structures are one of the best investment vehicles when it comes to asset protection or proceeds towards saving tax. Offshore entities are widely preferred by individuals who are looking forward to safeguarding their assets after a divorce, or from the competitors who might harm them. The same turns out to be an excellent choice for the high-net-worth-individuals who are looking for tax exemptions. Also, it is widely preferred by:
- Investors seeking for better investment options
- Individuals who look forward to diversifying their assets
- Business investors who want to globalize their business
- Business entities looking forward to forming a subsidiary in the overseas
- E-business or online business who doesn’t have a physical presence
- Investors looking forward to entering Forex Trading
- Startups who wish to enter the international market and pay low tax
- Service business entities
- The families who are looking forward to investing in real estate, planning and wealth management etc.
This guide outlines the essential points that are to be considered while proceeding towards the incorporation of an offshore company in the popular offshore jurisdictions.
What is an Offshore Company?
An offshore company is one of the jurisdictions that allow foreign investors to operate the business activities outside the country of its formation. As compared to the online company establishment, the offshore company formations hold a more straightforward process due to tax-legislation and business-friendly regulations. Before one head towards the incorporation process, one must be clear about the following parameters.
- Type of business entity selected
- No. of persons involved in the company set up process
- Best offshore jurisdiction
- Procedure for the offshore bank account, nominee director services etc.
How to Start an Offshore Company?
To start an offshore company, a specific process needs to be followed accordingly:
1.Be Clear Regarding the Core Reason of Company Establishment
The very first step is to be clear as to why do you want to open an offshore company. You should have a clear picture of the same.
2.Select a Certified Business Consultant
The second point is to look forwards a certified business consultant, who can be your guide and help you to start your offshore company. Once you select your business guide, you can discuss the business plan and understand the required procedures to be followed.
3.Prepare the Essentials
In the third step, you have to take the initiative to prepare the required essentials, which includes:
- A duly filled company incorporation form
- Proof of financial status
- Identity proof(s) of the shareholder(s)
- Address proof(s) of the shareholder(s)
- Well-drafted business plan
- Memorandum Of Association (MOA)
- Articles of Association (AOA)
4.Submit the Essentials for Verification
Once the essentials have been gathered accordingly, it needs to be handover to the business consultant, as he will take it forward to grab the required approvals from the relevant government authorities.
5.Open an Offshore Bank Account
After the verification of the documents submitted, you need to proceed towards the opening of an offshore bank account. The offshore jurisdictions provide the flexibility to the business owners to open a bank account in the same offshore ground where the company gets incorporated, or even to proceed with any other destination. Here’s a guide on the advantages of offshore banking that will help you to understand the perks of opening one.
6.Carry out the Relevant Business Activities
Finally, after opening the offshore business account, you can proceed ahead to carry out the relevant business activities. Although it is not mandated to maintain the accounting books, still it is recommended to maintain the respective records for future reference.
Why Start an Offshore Company?
The core benefits of offshore company formation for the business investors and owners hold the following grounds:
Forming a foreign company can help you to get rid of the tax burden to a great extent. If the country you reside has got no CFC laws, then you can virtually eliminate the tax burden. In case, if the state holds the CFC laws, then it’s likely that the tax reduction is possible. Any investor can obtain complete tax elimination by changing the residency.
Diversifying one’s earning is the best way of making a profit and multiplying the company assets. Investors prefer to go ahead with the offshore company option as one can find multiple companies and offshore bank accounts that enables greater security during unwanted risks like bank failure, seizure or forfeiture.
3.Separate Legal System
Business owners enjoy a different legal system by incorporating a business in offshore locations. This system provides flexibility to reduce your dependence and the authority of the country where the investor resides.
Once a company attains the international tag, the goodwill of the company shoots up, which helps to increase the reputation and sense of belongingness in the eyes of business investors. The route for new investors at a global level also get widened.
Thus, you have seen the complete process of starting an offshore business in a tax-haven jurisdiction. Clearing the legal proceedings at the initial stage might be tough as you may not be aware of the legal proceedings. It is advised to proceed ahead with the help of certified business experts as they can guide you accordingly. To understand the reasons in-depth, have a look at our guide on the Core Reasons for Hiring an Offshore Business Consultant.
Business Setup Worldwide stands as a prominent consulting firm who takes charge of providing the best company formation services at an affordable price. We take care of our client requirements and are dedicated to providing the necessities in a hassle-free way. Our experts are well-versed with the incorporation proceedings and can provide tailored solutions accordingly. In case you hold any query, do contact us today-we’d be glad to assist.