International business company registration

Setting up an international-company offshore may seem like a simple and easy process at first glance. In fact, before registering, you need to decide in which country you want to create a legal-entity and study all the opportunities and benefits that are provided at the local level.

Even today, not everyone understands why it is worth registering companies in offshore-zones. Let’s try to understand this issue in more detail.

The concept of an offshore-jurisdiction and an offshore-company

First of all, it is essential to separate the concepts of offshore-jurisdictions and offshore-companies. Jurisdictions are territories or states where enlisted corps should work either in a low-tax zone (rates are much lower than in other countries) or not be taxed at all. Such companies are also often given opportunities to rent offices at low prices. In addition, legal entities in such zones can count on the high confidentiality of data.

Such advantages allow the creation of offshore-companies. They include legal-entities that have been enlisted and allowed to work from the territory of the offshore-jurisdiction. Such corporations mainly work in the field of sales in foreign-markets or offer various services. Also, agencies, holdings, and acquisition corporations are often enlisted offshore.

They can work with any other countries and open bank-accounts in any bank in the world. However, mandatory essentials are often the employment of employees inhabitant in the country where such a corporation was enlisted. Such laws for IBC are often in force in island offshore-zones (Bahamas, Seychelles, etc.).

Procedure for Establishing an offshore-company

The creation of such a legal entity must pass certain stages before the data will be entered into the CRS. Among the stages are distinguished:

• selection of the preferred jurisdiction;
• establishing the name of the corporation;
• Identifying the founders, board of directors’ representatives, and officers for management positions;
• vetting the corporation and dignitaries for obedience with business rules;
• working with an agent or other intermediaries to register the legal entity;
• preparing a set of documents to start the company.

Each of these steps is extremely important and without going through the first it is difficult to go through the rest. To date, it is impossible to find the ideal place to register a legal-entity. Therefore, it is possible to evaluate all the advantages offered by each jurisdiction. It is important not to register a company on the blacklists of banks, because then it will be difficult to open accounts in international-banks.

The name of the corporation should comply with the prerequisites of local legislation. It is best to make the structure of the corp linear and not to branch it out too much by departments (at least at the first stages of operation). For most offshore zones it is enough to have one chief and one shareholder. Remember that the more persons are listed in the constituent documents, the larger the package of documents you need to provide for due diligence.

The verification will be carried out by chosen agents , so you need to find loyal intermediaries who will try to help you and not delay your application. With their help, you can assemble the right set of documents and complete the enrollment faster than your competitors.

Taxation of offshore-companies

Most offshore-interchanges don`t pay surcharges or settle minimal percentages of contributions. In offshore jurisdictions, most foreign corporations do not pay corporate income-tax, capital-gains-taxes, and surcharges that are withheld when legal entities are created.

Income tax may not be paid if the corporation receives payoffs from foreign transactions. In some jurisdictions, income tax may be paid if the transactions are carried out in the countryside where the founder is the beneficiary.

However, in many offshore-jurisdictions, taxes are levied at a minimum. For example, corporations need to pay annual fees to extend their active offshore-status. Delinquency in such payments may result in penalties and the founders will have to repay them to restore operations.

Benefits of arranging an offshore-company

The main benefit can be called low taxation. In addition, offshore-companies are exempt from most types of reporting. Recently more and more multinational rules have begun to force offshore-companies to file additional reports, but they are still less than in offshore-jurisdictions.

Yes, offshore-companies do not need to file financial audit reports, but they are obliged to keep accounting records and provide such reports to regulatory authorities upon their request.

Some jurisdictions may request annual financial proclamations showing the company’s profit (loss) and balance sheet accounts. Also, companies need to file economic content reports.

Another advantage of arranging an offshore-company is the confidentiality of the founders. In many jurisdictions, beneficiary data is not released upon requests from other international-jurisdictions. This increases the confidence of beneficiaries in offshore-zones.

Who can help with the establishment of offshore-companies

The speed of registration of an offshore-company depends on the correct advice and the collected package of documents. To speed up these processes, we recommend you consult our specialists beforehand.

They have repeatedly worked with all offshore-jurisdictions. Therefore, we know their rules, prerequisites, and procedures very well. We will help you collect the correct set of docs and process the enrollment of a legal-entity after the first submission of docs without the need to make any kind of changes.