Company Incorporation

Offshore company incorporation is an offshore investment which has many benefits. Not only do offshore companies make excellent business companies but have added advantages of receiving tax exemptions and are protected by privacy laws. An offshore company is an excellent investment to make when considering offshore investing. Other offshore investment tools which are available in the offshore tax havens are offshore foundations, offshore trusts, offshore accounts and others.

Offshore company formation can be done in the following countries which are also referred to as offshore tax havens or offshore jurisdictions; Belize, Bahamas, Cayman Islands, Dominica, St Kitts & Nevis, Isle of Man, Seychelles, Cyprus, British Virgin Islands (BVI), Panama, Singapore and others. When considering offshore company incorporation a lot of thought must be given to the offshore jurisdictions where offshore company formation is to take place. Not all offshore jurisdictions are pure tax havens which provide tax exemptions on local taxes some are actually low tax havens and taxes are paid on the global profits of offshore companies at a low tax rates.

Offshore companies which are called International Business Companies (IBC) in most offshore jurisdictions are incorporated in a process which is supervised by an offshore agent or a registered agent. The registered agent is in charge of preparing the documents for offshore company incorporation and filing with them with the registration authority in the offshore tax haven. The process for offshore company incorporation can take one day in some offshore jurisdictions and up to two (2) weeks in others. The documents for offshore company incorporation are the Memorandum of Association and Articles of Association (the names may differ in some jurisdiction but the information required is basically the same). The required information is listed below.

  • A proposed name for the offshore company
  • The name and address of the offshore agent handling company incorporation
  • The names, nationalities and addresses of company shareholders
  • The names and nationalities of company directors
  • The purpose for offshore company incorporation
  • The authorized share capital
  • The types of shares to be issued
  • The rights, privileges, restrictions, voting rights and powers attached to each type of share
  • The by-laws of the offshore company

Offshore companies registration in most offshore jurisdictions requires just one shareholder and one company director. In most instances the company shareholder and director can be the same individual. Corporate shareholders and directors are allowed in select offshore jurisdictions. The names of offshore companies must be chosen carefully; offshore jurisdictions do not allow names which are considered to be offensive and names which suggests connections to political parties, governments, educational institutions

Once the Registrar of Companies approves of offshore company incorporation a Certificate of Incorporation will be issued making the offshore company a legal entity. An offshore company can only engage in business which the company was licensed to perform. Offshore companies are not allowed to offshore financial services, investment fund management, act as bank offering locals and savings unless that company has applied for and received the relevant license.

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