Offshore companies can offer a variety of advantages over their onshore equivalents.
- Lower tax rates
- Easier company reporting requirements
- Security against creditors
- The protection of one's identity
- Avoiding local investing restrictions
Offshore companies for trading
Many companies which trade overseas have offshore bases. Some of these companies choose to set up an offshore company, mainly to benefit from the substantial tax savings available in these jurisdictions. These savings are available to companies of all sizes, ranging from multinationals to small owner-managed companies.
Offshore companies in protecting directors' identities
Due to local investment restrictions or risk of actions from creditors, directors may wish to keep their identities secret.
Offshore companies are similar to UK limited companies in that they are able to own properties, hold money and shares and other items in their own right. Thus, a person may use their company to make various purchases and then be protected by the fact that no one can discover that the company is owned by that individual. Different offshore jurisdictions provide different levels of privacy.
Offshore companies for tax savings
The zero or minimal tax rates applicable to offshore companies makes them very attractive to profitable businesses. The prospect of retaining all of the income earned compared to other countries where government would levy a tax on the income has led to some businesses opening offshore branches and using them as trading vehicles.
In addition to corporation tax savings, offshore companies usually enjoy tax-free capital gains and inheritance charges. The suitability of offshore companies to a particular individual can only be ascertained after a reasonably detailed analysis of their financial situation, their future plans and their goals. Having said this, the attractions of offshore companies are clear.
View our Offshore Formation services:
Offshore Formation FAQs
How long does it take to form an offshore company?
A typical incorporation takes about 48-72 hours but to prepare and receive the documents from the jurisdiction can take between 1 and 2 weeks even though couriers are used. There is no way to speed this up. Usually we get a scanned copy of the incorporation documents while we wait for the originals to arrive.
What is included in the fees?
The fee on the website is excluding VAT but inclusive of all services which means:
- Incorporation of the company
- Registered office and agent in the jurisdiction
- Government fees for the first year or part thereof
Are there any yearly fees for the offshore company?
Ongoing fees for the offshore companies are a single payment once a year. The amount and when the renewal fee is due depends on the jurisdiction. Renewal fees include VAT and are for:
- The renewal of the registered office and agent for the following year
- Government fees to keep the company on the register and tax exempt
How many jurisdictions do you offer?
We currently offer 2 jurisdictions to incorporate into: Belize and the Seychelles.
Can you give me tax advice regarding my offshore company?
We cannot really advise on the advantages or disadvantages in going offshore with specific relation to a company or jurisdiction. Under no circumstance can we give tax advice regarding offshore companies (as we are not licensed to do so).
Which banks are used for your offshore companies?
We offer a number of banking options. It is not a prerequisite that the bank account be in the same jurisdiction as the company, so the banks we offer can be used for any of our jurisdictions. We only offer bank accounts for offshore companies formed through us.
Do you offer merchant services for offshore companies or bank accounts?
Unfortunately, we do not offer merchant accounts or payment gateway services in our banking offers - this would need to be sourced separately by you.
How does the setting up of the offshore account work?
In terms of the bank account - this is a service we provide as assistance only and does not guarantee a bank account opening. You would still be subject to the bank's KYC and money laundering checks and any other checks the bank would do before deciding on whether to open an account or not. The assistance of the account opening is provided by our agents in the jurisdiction - the term 'assistance' means they will submit the corporate documents to the bank on your behalf and then you will send them your personal documents which they will double check to make sure it meets the bank's requirements, before sending them to the bank.
Do you offer nominee director and shareholders for your offshore services?
We do not offer nominee officers with our offshore formations. These would need to be sourced separately via a 3rd party should you wish to use them.
Do I need to provide ID and Proof of Address?
Due to Anti-Money Laundering legislation we are required to obtain ID and proof of address for all offshore clients. Each director and shareholder will need to produce both a photo ID and proof of address. Documents needed to be certified and translated in English (if applicable).