Incorporating Offshore Company

Incorporating offshore company is supervised by competent financial services unit or Ministries of Finance in many countries around the world. Companies which can be registered as offshore companies are Limited Liability Companies, Partnerships and a regular business company which is known as an International Business Company or more commonly as simply an offshore company.

Incorporating offshore is guided by the laws which makes up the offshore company act, although the name of the act might differ in the different countries of incorporation the regulations for offshore incorporation are basically the same. All offshore companies are incorporated by the Registrar of Companies or the authorities in change of offshore companies and international finance in the jurisdictions. Incorporating offshore companies can take anytime between one (1) working day to two (2) working weeks.

The first rule to incorporating offshore companies in jurisdictions such as Anguilla, Dominica, Belize, British Virgin Islands and Antigua is finding a Registered Agent. Offshore companies in many jurisdictions can only be incorporated by registered agents. These agents are persons who have been qualified and licensed by the appropriate authorities in the jurisdiction to carry out offshore services and incorporation. The registered agent files all necessary documents with the registering authority in preparation for offshore registration. The registered agent prepares the Memorandum of Association and Articles of Association for filing. Information to be filed includes the name of the offshore company, the names and addresses of the company shareholders and directors, the name and address of the registered agent, the authorized share capital of the offshore company, the types, par value of share and number of shares to be issued, the purpose of forming the offshore company, the rights, privileges and restrictions placed on each class of shares and the by- laws of the offshore company.

Incorporating offshore companies does not necessarily mean that the owner of the offshore company must travel to the offshore jurisdiction. Information for offshore incorporation can be communicated to the registered agent via fax, internet or telephone. A registration fee must also be paid to the Registrar of Companies.

Incorporating offshore company can be denied by the Registrar of Companies. An offshore company will not be considered for offshore incorporation if the company name is offensive. Companies with the following words attached to them will not be incorporated as offshore companies in most offshore jurisdictions; Insurance, Investment Fund, Chamber of Commerce, Cooperative, Building Society and any names which shows affiliation with political parties or governments. The name of an offshore company must be unique in that it should not be the same as another registered company or very similar so that it might cause mix-ups between the two (2).

For incorporating offshore companies in most offshore jurisdiction only one director and one shareholder is needed and most time one individual can take on both posts. This makes for the incorporation of a very flexible offshore company in terms of company management. The persons incorporating the offshore company can choose to use nominee shareholders and nominee directors for the incorporation of the offshore corporation. This can be done in most offshore jurisdictions as a means of protecting the identity of the offshore company owner.

Incorporating offshore company means tax savings as most offshore companies are formed in tax havens which gives tax treatments to offshore companies. The tax havens of the world have little or no tax systems in place for offshore companies therefore the offshore corporations do not get taxed on in tax havens on incomes which the company has generated from outside of the jurisdiction. Offshore company however must pay at the end of each financial year a license fee. Most offshore tax havens are free from capital gains tax, withholding tax and estate tax.