Directory Image
This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Privacy Policy.

Top Ten Tips on Offshore Company Formation

Author: Bobby Brantley
by Bobby Brantley
Posted: Jul 03, 2017

Some offshore companies are set up for shady reasons, but this does not mean that offshore company formation is illegal. In fact, it is perfectly legal to set up a company in another jurisdiction such as Seychelles. Offshore company formation can provide many benefits to your international business, such as protection of your assets, confidentiality, and tax exemptions or incentives in the jurisdiction of the company. You can open an offshore bank account, too, which can open up more opportunities to invest your earnings in a stable jurisdiction or more easily conduct international business depending on the purpose. Once you have decided to set up your own offshore company, consider the following tips to help you get started and learn more about the process:

  1. Make a list of reasons why you want to set up an offshore company. Clearly define your objectives, who will be involved in it, and your exit strategy.
  2. Never do it yourself. Offshore company formation usually requires a local agent to provide the relevant services, but in any case it would not be recommended to do everything by yourself, unless you have the necessary experience and knowledge. Paperwork and major decisions will be involved in the process. Keep in mind that you need to understand the jurisdiction where you want to set up your company, too.
  3. Work with an experienced offshore company formation consultant.Find a licensed and regulated advisor that specializes in helping clients set up their offshore companies in popular jurisdictions like Seychelles, British Virgin Islands, Panama, Hong Kong, Anguilla, and Belize. With their help, you can easily compare offshore companies, select the right set up, and prepare the correct documents.
  4. Consider Seychelles. Seychelles is popular for offshore company formations, but there are still a lot of company names available. It has a good track record of being a reputable jurisdiction for offshore companies, too with between 10-20k companies set up each year.
  5. Do your research.Look up the requirements for offshore company formation in your preferred jurisdiction and learn the benefits of choosing that country.
  6. Make sure the consultant is qualified. Work only with an expert who is licensed and regulated by the Financial Services Authority. The consultant should have multiple licenses in Seychelles, including the International Corporate Services Provider license, which can only be issued by the FSA in order to be able to provide various services that you may require initially or in the future. The management should hold further qualifications such as membership of a professional organization like STEP (Society or Trust and Estate Practitioners).
  7. Hold meetings with the consultant. Meetings are your opportunities to have your questions about offshore company formation answered.

8. Mind the expenses. Talk to the offshore company formation specialist about the costs early on. Make sure you receive the breakdown of expenses, so you know exactly what you are paying for. It is usually necessary for the service provider to provide services such as professional directors and management services in order to avoid tax risk so be sure to compare services from different providers on a like for like basis. The "cheap" option may end up being very costly later. Do you think a tax authority is going to believe the janitor of your service provider who has been appointed as the director of your company is really qualified to be managing a company as a director where he or she has "effective management and control" over its operations? If the answer is no, the company may very well be deemed to be tax resident where you are located if the director is just a "nominee" acting on your instructions.

  1. Avoid using you offshore company for questionable purposes. Your offshore company is a legal entity, but and you must operate it legally as well.
  2. Remember to follow the local regulations and laws. Abiding by the laws will keep your business in good standing in your preferred jurisdiction.

About the Company:Sterling is a leading licensed and regulated corporate, trust, fiduciary and fund services provider delivering specialized solutions for a global clientele of international corporations, institutional investors, high net worth individuals and families as well as their intermediaries. Whether an end user of our services or an intermediary, Sterling provides an efficient, personalized approach to ensure smooth, efficient delivery of services that meets the requirements of each client.

About the Author

Sterling is a leading licensed and regulated corporate, trust, fiduciary and fund services provider delivering specialised solutions for a global clientele of international corporations.

Rate this Article
Leave a Comment
Author Thumbnail
I Agree:
Comment 
Pictures
Author: Bobby Brantley

Bobby Brantley

Member since: Nov 18, 2015
Published articles: 34

Related Articles