Tuesday, 18 April 2017

What is Offshore ? Why Offshore ? What is the benefit ?



An international business company (also called "offshore company") is a corporation or limited liability company that has been formed outside of your country of residence. One is well advised to choose the country of incorporation wisely.


Benefits of Offshore Company
We lay out the 10 most common reasons why people incorporate a company offshore and how the incorporation directly benefits them with everything from financial planning to privacy protection.

1) Corporate Tax Reduction – If you’re considering incorporating a company offshore through which you can trade, transact and conduct business, it is possible to select a jurisdiction through which you can trade but within which you have no corporate taxation liability at all for example.

· As you can imagine, this is a strong deciding factor for many when it comes to the consideration of offshore company incorporation - but please note, you will need specialist advice on methods of incorporation so that you do not accidentally lay yourself open to greater taxation in your country of residence as a result of offshore incorporation!

· We can help you get the specialist advice you need on everything from jurisdiction to company type, from overall structure to the use of nominee services for example. Simply complete our brief offshore advice service form and through our strategic partners we will help you get advice and establish an offshore company that benefits you to the max


2) Conduct Business - an offshore company is a legal entity which has many of the same intrinsic rights as an individual person so it can allow you to trade and invest through it for example whilst remaining one step removed from operations.

· 3) Maintain Confidentiality - many offshore jurisdictions require little or no data be held on public file relating to those involved in the offshore company or to the affairs of the company. Even where data is required, there are options to include nominee director services to protect the beneficial owner of the company for example.

· Additionally if you place an offshore company within an offshore trust for example, or make use of a hybrid company structure you can create even more confidentiality benefits for you and your affairs.



· 4) Reduce Expenses - certain jurisdictions allow those with offshore companies incorporated therein the benefit of being able to reduce employee related expenses. If you have employees working in other countries you can legitimately avoid the likes of social security payments or withholding tax for example.



· 5) Personal Tax Reduction - as part of an overall financial management strategy for you, the individual, it is sometimes possible to incorporate an offshore company within your overall financial plan to offset personal taxation liabilities. This requires specialist advice and depends entirely on your own personal circumstances though



· 6) Protect Investments - Sometimes an offshore company can lend funds to businesses in other countries, therefore as an investor you could establish but not directly own such an offshore company and lend to a company set up in another country. You could ensure interest rates are charged to lower tax obligations and you can protect your ability to repatriate investment funds. This is a benefit that investors sometimes use when they are working in countries with strict exchange controls and high taxes.



· 7) Maximise Profit, Minimise Tax - by operating a business through an offshore company in a low or no tax jurisdiction it’s possible to minimise taxation exposure whilst maximising profits. For example, the offshore company as a legal entity can buy from one country and sell to a company in another country with the profits of the transaction being accrued in the offshore company in the low or no tax jurisdiction.

· 8) Asset Protection - when an offshore company is used in an overall asset protection strategy it is an incredibly useful mechanism towards the protection of your assets from taxation, litigation, erosion and general risk.



· 9) Simplify Business Operations - many offshore jurisdictions have very loose reporting and auditing requirements making it far simpler for those setting up or running a business to manage day to day operations.



· 10) Simplify Personal Wealth Management - Selling, transferring or reinvesting property, assets, investment or real estate in various countries around the world can be time consuming, expensive and complicated – but if you hold such assets within an offshore company, complete or partial ownership can be simply transferred by company shares rather than through the physical transfer of the assets in question.

Main Offshore Jurisdiction

The British Virgin Islands is a British Crown Colony and has approximately 40 islands. They are situated in the Caribbean about sixty miles east of Puerto Rico. The principal Island of the archipelago is Tortola, whose capital city is Road Town. Under the 1976 constitution, the BVI are independent from the UK, except with regards to its external affairs, defense, internal security, civil services and Court administration for which the UK has kept the responsibility.

Main characteristics of the British Virgin Island (BVI) Offshore Company:

Type of company : Business Company (BC)

Governing corporate legislation : The BVI Financial Service Commission is the governing authority and companies are regulated under the Business Companies Act 2004

Information published relating to company officers : there is no public register of company officers

The BVI offers a high level of anonymity and privacy

No accounting / reporting requirements

No taxes of any sort

Modern offshore legislation

The British Virgin Islands is an independent territory

The British Virgin Islands has a fast and efficient Registry

Business can be conducted internationally

Stable jurisdiction with very good reputation

Convenient world time zone : GMT-4

Low IBC incorporation and renewal fees set for life

No paid up capital requirement

Under Common Law

Minimum of 1 Director / Shareholder

Bearer Shares not permitted

The Seychelles is a group of 115 islands located in the Indian Ocean to the north of Madagascar. The Seychelles economy is primarily based on tourism and fishing. The rapidly growing financial sector, linked to the establishment of the Seychelles International Business Authority and the introduction of progressive laws facilitating the establishment of offshore structures and encouraging inward investment, is now a significant element of the economy. An ever-increasing number of international banks and insurance companies have established either branches or subsidiaries whom, together with local management, accounting and legal firms provide clients with support.

Main characteristics of the Seychelles Company:

Type of company : International Business Company (IBC)

Governing corporate legislation : Seychelles International Business Authority (SIBA) is the governing authority and the companies are regulated under the IBC ACT 1994

Information published relating to company officers : there is no public register of company officers (Directors, Shareholders, Secretary)

The Seychelles offer a high level of anonymity and privacy

No accounting / reporting requirements

No taxes of any sort

Modern offshore legislation modelled on BVI

Seychelles is an independent territory with no ties to the EU

Seychelles has a fast and efficient Registry (name and incorporation usually same or next day)

Business can be conducted internationally

Stable jurisdiction with very good reputation

Good communication means

Convenient world time zone : GMT+4

Low IBC incorporation and renewal fees set for life

No paid up capital requirement

Under Common Law

Minimum of 1 Director / Shareholder

Bearer Shares are permitted



Cyprus is an island in the Mediterranean Sea with a population of less than 900,000. The official languages are Greek, Turkish and English. English is widely used in business, industry and government. Cyprus joined the European Union in 2004 and has showed a considerable growth in its economy during the past 15 years. Cyprus has a long history as an International Financial Center. Cyprus enjoys the lowest corporate tax rate in Europe : there is a 10% corporate tax levied on the resident companies based on the worldwide income. The companies that we incorporate are Private Companies Limited by Shares.

Main characteristics of the Cyprus Company: 

Type of company : Private Company limited by shares
Corporate legislation : The Cyprus Bar Association is the governing authority and companies are regulated under the Cyprus Companies Law, Cap.113
Information published relating to company officers: All company officers appear in the business registry, available for public inspection. We can appoint nominee officers to avoid the client's name to appear
Cyprus offers a high level of anonymity and privacy
Lowest taxation in Europe
Access to many Double-Tax Avoidance Agreement
Modern offshore legislation
Cyprus is an independent territory
Business can be conducted internationally
Stable jurisdiction with very good reputation
Very good communication means
Convenient world time zone : GMT+2
Under Common Law
No paid up capital requirement
Under Common Law
Minimum of 1 Director / Shareholder
Bearer Shares permitted



1. The Republic of Panama is situated between Costa Rica in Central America and Columbia in South America with coastlines on both the Pacific and Atlantic Oceans. Its capital, Panama City, is on the Pacific coast at the entrance of the Panama Canal. Panama was a Spanish colony until 1821. In 1903, Panama broke an alliance with Colombia and became an independent republic. The population of Panama is approximately 2.4 million, of which 700,000 live in Panama City.

Main characteristics of the Panama offshore company:
Type of company : Sociedades Anonima (S.A.)
Governing corporate legislation : the Panama Supreme Court of Justice is the governing authority and companies are regulated under the Law 32 of 1927
Information published relating to company officers : the company directors' name will appear in the register, available for public inspection. Nominee directors can be used in orer to avoid the client's name to appear
Panama offers a high level of anonymity and privacy
No accounting / reporting requirements
No taxes of any sort
Modern offshore legislation
Panama is an independent territory
Panama has a fast and efficient Registry
Business can be conducted internationally
Stable jurisdiction with very good reputation
Convenient world time zone : GMT-5
Low IBC incorporation and renewal fees set for life
No paid up capital requirement
Under Civil Law
Minimum of 3 Directors and 1 Shareholder
Bearer Shares permitted

2. Anguilla is a British overseas territory in the Caribbean, one of the most northerly of the Leeward Islands in the Lesser Antilles. It consists of the main island of Anguilla itself, approximately 26 km long by 5 km wide at its widest point, together with a number of much smaller islands and cays with no permanent population. The island's capital is The Valley. The total land area of the territory is 102 km², with a population of approximately 13,500 (2006 estimate).

Here are the main characteristics of the Anguilla Offshore Company: 

Type of company : International Business Company (IBC)
Governing corporate legislation : the Anguilla Financial Service Commission is the governing authority and companies are regulated under the IBC Act 2000
Information published relating to company officers : There is no public register of company officers
Anguilla offers a high level of anonymity and privacy
No taxes of any sort
Modern offshore legislation
Anguilla has efficient Registry
Business can be conducted internationally
Stable jurisdiction with very good reputation
Good communication means
Low IBC incorporation and renewal fees set for life
No paid up capital requirement
Under Common Law
Minimum of 1 Director / Shareholder
Bearer Shares permitted



3. Hong Kong is an island in the South East part of Asia, close to Taiwan. Until 1997, Hong Kong was under British administration. In July 1997 Hong Kong was handed over to China by the United Kingdom. The population of Hong Kong is approximately 7 million. Hong Kong is a unique location for the incorporation of companies and for international business since its tax system is based on source and not on residence. Hong Kong has become the first place in terms of trading with the rest of Asia and also on a worldwide point of view and its tax system offers different advantages. Indeed, as long as a Hong Kong company does not conduct any business in Hong Kong, and does not generate any incomes from Hong Kong sources, the company will not be taxable in Hong Kong.

Main characteristics of the Hong Kong Company : 

Type of company : Limited Company
Governing corporate legislation : the Hong Kong Company registry is the governing authority and companies are regulated under the Hong Kong Companies Ordinance 1984
Information published relating to company officers: Names of companies officers appear. Nominee officers can be used to avoid the client's name to appear
Hong Kong offers a high level of anonymity and privacy
No taxes on foreign profits
Modern offshore legislation
Excellent corporate law
Important financial centre
Business can be conducted internationally
No paid up capital requirement (1 $)
Good communication means
Under Common Law
Bearer Shares are not permitted
Minimum of 1 Director
Corporate Directors are allowed
Preparation of accounts required
Accounts are not publicly accessible
Capital may be denominated in any currency
Stable jurisdiction with very good reputation

4. Delaware is located in the United States of America on the East side near Baltimore and Washington D.C. This geographical position represents a real advantage in terms of export markets due to its close location to the sea and main highways. The General Corporation Law of Delaware has built a good reputation for this jurisdiction and has helped Delaware in becoming a famous place for company incorporation. The companies incorporated in Delaware are known as LLC’s which offer the advantages of a combination between a corporation limited by shares and the Limited Partnership. This is a good way to protect the personal liability and assets of the owners. At the same time it allows the owner to enjoy the benefits of a tax-free jurisdiction on all business transactions and profits generated outside the United States without having to go through the restrictions of a US Corporation. It offers the possibility to have a US company with the similar advantages of an International Business Company (traditionally called “offshore company”).



Main characteristics of the Delaware Company:
 

Type of company : Limited Liability Company (LLC)
Governing corporate legislation : the Delaware Secretary of State is the governing authority and companies are regulated under the Delaware Corporation and business law
Information published relating to company officers : There is no public register of company officers
The State of Delaware offers a high level of anonymity and privacy
Modern offshore legislation
Delaware has an efficient Registry
Business can be conducted internationally
Stable jurisdiction with excellent reputation (USA)
Excellent communication means
Under Common Law
Minimum of 1 Director and 1 Shareholder
Bearer Shares not permitted
All corporations incorporated under this particular legislation must us LLC at the end of its name
There is no requirement to hold meetings or present books to any authority. If meetings are held or books kept these may be done anywhere in the world
The distribution of profits, the management powers and the members responsibilities are stipulated in an agreement referred to as The Members Operating Agreement



5. Ras al-Khaimah is one of the seven emirates of the United Arab Emirates and can be found about 100 Kilometers north-east from Dubai in the southern part of the Persian Gulf. Formerly known for building of ships and commercial activities in the maritime sector it is now better known for its industrial sector. Ras al-Khaimah is the largest producer of cement in the UAE and the world’s largest producer in ceramics. A lot of interest has gone towards the financial and investment sector in Ras al-Khaimah due to new legislation and regulations adopted by the authorities; this in turn has led to interesting business and investment opportunities for individuals and companies worldwide. An International business company in Ras al-Khaimah can conduct business internationally, own real estate in the UAE, be used as a trading vehicle, maintain bank accounts, and much more.

Here are the main characteristics of the RAK Company: 

Type of company : International Business Company (IBC)
Governing corporate legislation : the RAK Investment Authority is the governing authority and companies are regulated under the RAK Offshore Regulations 2006
Information published relating to company officers : There is no public register of company officers
RAK offers complete anonymity and privacy as well as protection of any other information or assets
No corporate taxes of any sort
No exchange controls, import and /or export taxes
Modern offshore legislation
Business can be conducted internationally
100% foreign ownership is allowed, no requirement to have a local partner
Good communication means
Convenient world time zone : GMT+4
Low IBC incorporation and renewal fees set for life
No paid up capital requirement
Minimum of 1 Director / Shareholder
Bearer Shares are not permitted



6. Mauritius is situated in the Indian Ocean approximately 800 km off the East Coast of Madagascar. The island, which is of volcanic origin, covers an area of 1,800 sq. km. The British ruled Mauritius for 158 years until 12th March 1968, when it became an independent country within the Commonwealth. Mauritius is one of the few countries with a hybrid legal system based on English and French law. Mauritius has developed from a low income, agriculturally based economy to a middle-income diversified economy with growing industrial, financial, and tourist sectors.





7. Mauritius offshore company: 

Type of company : Global Business Company 2 (GBC2)
Governing corporate legislation : the Mauritius Financial Service Commission is the governing authority and companies are regulated under the Companies Act 2001
Information published relating to company officers : Names of company officers are filed with the Registrar but are not open to public inspection
Mauritius offers a high level of anonymity and privacy
No accounting / reporting requirements
No taxes of any sort
Modern offshore legislation
Mauritius is an independent territory
Mauritius has a fast and efficient Registry
Business can be conducted internationally
Stable jurisdiction with very good reputation
Good communication means
Convenient world time zone : GMT+4
Low IBC incorporation and renewal fees set for life
No paid up capital requirement
Under Civil Law
Minimum of 1 Director / Shareholder
Bearer Shares not permitted



8. Bahamas offshore company:
Type of company: International Business Company (IBC).
Governing corporate legislation: Companies in Bahamas are regulated under the IBC Act 200. The Securities Commission of the Bahamasis the governing authority.
Information published relating to company officers: The names of company officers appear on public record. Nominee officers can be used to avoid the client's name to appear.
No accounting / reporting requirements.
No taxes of any sort.
Bahamas has a fast and efficient registry.
Business can be conducted internationally.
Very stable jurisdiction with excellent reputation.
Convenient time zone (GMT-5).
Minimum share capital: $50,000.
Under Common law.
Minimum of 1 Director and 1 Shareholder.
Bearer Shares are not permitted.

9. Belize was formerly called British Honduras and is an independent democratic Commonwealth country located on the Caribbean seaboard of Central America. Since independence from Britain in 1981, it has enjoyed a stable and democratic Government.

The administrative capital is Belmopan, but the major commercial center is Belize City, which is located on the eastern coast close to the major international airport. The total population of Belize is around 300,000 of which some 60,000 live in Belize City.

Main characteristics of the Belize offshore company:
Type of company : International Business Company (IBC)
Governing corporate legislation : The Belize International Financial Service Commission is the governing authority and companies are regulated under the IBC Act 1999
Information published relating to company officers : there is no public register of company officers
Belize offers a high level of anonymity and privacy
No accounting / reporting requirements
No taxes of any sort
Modern offshore legislation
Belize is an independent territory
Belize has a fast and efficient Registry
Business can be conducted internationally
Stable jurisdiction with very good reputation
Good communication means
Low IBC incorporation and renewal fees set for life
No paid up capital requirement
Under Common Law
Minimum of 1 Director / Shareholder
Bearer Shares permitted



12. A Dubai offshore company incorporation or formation may be used for many activities including

· Tax mitigation,

· Estate planning

· Asset protection

· Hold approved Dubai property and other assets


Type of company : International Business Company (IBC)
Governing corporate legislation : Jabel Ali Offshore Authority
Information published relating to company officers : There is no public register of company officers
Dubai Offshore offers complete anonymity and privacy as well as protection of any other information or assets
No corporate taxes of any sort
No exchange controls, import and /or export taxes
Modern offshore legislation
Business can be conducted internationally
100% foreign ownership is allowed, no requirement to have a local partner
Good communication means
Convenient world time zone : GMT+4
Low IBC incorporation and renewal fees set for life
No paid up capital requirement
Minimum of 2 Director / Shareholder
Bearer Shares are not permitted 



Contact :

Vithul Murali 

Email : Vithul@a2zconsultus.com

Mobile : +971 50 55 73 53 8

Skype : Vithul.murali

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