Advancing Your Business with Offshore Company Registration

A completely legal solution for businesses that are looking to minimize taxes and save money while operating internationally, offshore company formation is becoming more and more popular for entrepreneurs. Don’t worry—setting up a company offshore does not mean evading taxes. In many cases, it simply means postponing the payment of taxes in order to reinvest your revenue and grow your operations. Everything remains legitimate as long as your offshore company is properly set up and maintained.

Taking your business to another jurisdiction also lets you enjoy a long list if benefits that go far beyond tax advantages, financial privacy being one of them. Whereas your company will be subject to strict public reporting and disclosure laws in the US or the UK, it will enjoy more freedom in an offshore jurisdiction like the Seychelles. Some of the best offshore financial centers in the world don’t even require yearly financial reports or information on directors and shareholders to be made available to the public. So if your goal is to increase confidentiality and privacy for your business dealings, setting up an offshore company is a great idea.

Did you know that many “offshore” jurisdictions have lower capital requirements? It doesn’t cost a lot to register a company offshore these days. In fact, in certain countries, there is no capital required for registration. Even administrative costs are often lower due to economies of scale and specialized expertise of the services providers of offshore companies..

If you have international business interests, it’s a good idea to set up an offshore company as a vehicle for holding intellectual property, real estate investments, and other such assets to keep them away from third parties such as potential future financial enemies. Even with the enforcement of stricter anti money-laundering regulations, the process of registering and running an offshore company is still relatively fast and simple—provided that you work with a good consultant.

Four Tips to Set up Offshore Company the Right Way

If you’re thinking of setting up an offshore company, make sure that everything is done lawfully. Any mistake—even if unintended—can cause legal and financial problems later on. Here are some tips.

1. Choose the right jurisdiction. Not all jurisdictions offer the same advantages. In general, you should choose a stable jurisdiction with a long-standing good reputation for accommodating partial or even full tax exemption if your goal is to minimize taxes. Some of the best offshore financial centers today include the Seychelles, Belize, and Panama.

2. Hire an offshore company formation consultant or advisory firm that specializes in that location. This is the safest and most convenient way to set up a company offshore and thereafter maintain it in compliance with legal and regularly requirements. In most jurisdictions, you will be required to retain the services of a local firm authorized to register an offshore company and provide domiciliary services. Enlisting the help of a professional corporate services provider makes offshore company formation a lot less stressful and more efficient. They can give expert guidance on the laws and regulatory requirements in the jurisdiction you are interested in, ensuring that your offshore company fulfils all requirements.

3. Discuss costs right away. Most providers of international incorporation services don’t list their rates on their website. You’ll need to talk to them about your goals and requirements before they give you a quote. Get this out of the way early on so you can set a budget and know exactly how much offshore company formation will cost you.

4. Start preparing documents early. Having all the papers ready to go will speed up the process of forming your offshore company. Documentary requirements vary depending on the jurisdiction. Your consultant can give you a list. You will probably need to open an offshore bank account for your company, which your consultant can also do for you. The most reputable offshore company formation experts can even provide local secretary services, company management services, professional director services, and nominee shareholder services.