Offshore companies are businesses that has been filed or incorporated outside of one’s country of residence.

An offshore company has tree main three characteristics. Firstly, it should be incorporated under the offshore companies’ regulations of the relevant offshore jurisdictions. Secondly, it should be incorporated by incorporators outside the offshore jurisdiction where it is incorporated. Finally, it should not conduct substantial business within the offshore jurisdiction where it is incorporated.

Tax Havens

Presently, thirty per cent of the world's working population is unemployed. Additionally, the world's population is increasingly expecting higher standards of living and improved work opportunities.

These radically changing patterns in expectations, population and wealth will continue to create political and economic instabilities. Governments in both the developed and the developing world will have no option but to continue to levy high taxes to meet these expectations and the associated costs of providing new and improved infrastructure.

World-wide political and economic trends, such as the spectacular growth in South East Asia, emergence of South America, India and China as economic power houses and volatility in currency markets, will influence the development of the offshore industry.

For example, in South East Asia, approximately 6 million people in the ASEAN countries enjoy the equivalent of Australian middle class living standards. Therefore, it is not surprising that South East Asia will become the world's paramount market, not only for consumer goods but also for financial services.

Because tax rates have always varied, not only from individual to business but from country to country, there has always been an incentive to live or work in or from a lower tax area. As the wealth of both companies and individuals has increased over the years, this incentive has become the foundation for a business in its own right.

The principle motivations behind the demand for offshore services from both individuals and corporations are:

• Tax Minimization  
• Risk Management  
• Cost Reduction

With global instability, currency fluctuations and political uncertainties set to continue, there is a need to not only to minimize their global tax exposure, but also to protect and preserve their assets and investments in safe havens.

In addition to political and economic catalysts there are also global tax related catalysts that continue to influence the growth of the offshore industry.

These include:

• High tax regimes.
• More effective tax recovery.
• The opportunities of utilizing double taxation treaties.

Offshore Centers

Most modern corporations, be they medium sized companies pursuing international expansion, multinational companies, conglomerates, shipping companies or financial institutions, are market driven and many have been able to establish and maintain their competitive edge by efficiently structuring aspects of their operations through offshore centers.

Holding companies, foreign direct investment companies, mixing vehicles, royalty companies and treasury management companies are but a few examples of the types of companies that have been established by corporate users in offshore centers.

Treasury management operations would typically include cash management, capital raising exercises, the provision of finance to subsidiaries and risk management. Corporate treasurers often apportion their cash resources between their subsidiaries. This process can be undertaken from an offshore center.

Many corporate users have favored establishing a physical presence in offshore centers, which, in addition to treasury management, are utilized for:

• Regional headquarters.
• Marketing, trading and administration centers.
• Re-export, trans-shipment and pre-positioning.
• Manufacturing and assembly plants.
• Transportation and distribution.

Recommended Jurisdictions

There are many offshore jurisdictions that have favorable laws. These jurisdictions compete for international clientele by favoring privacy of ownership, privacy granted to officers and directors and non-recognition of foreign judgments.

We recommend one of the following jurisdictions:

• British Virgin Islands
• Panama
• Samoa

Offshore companies offer much greater financial privacy than domestic entities, such as corporations and Limited Liability Companies.

Uses of Offshore Companies

• Property holding
• Holding company
• To hold vessels, patents and trade marks
• Trust, Asset Protection and Estate Planning
• Joint Ventures
• International trade

Features of an Offshore Company

• No capital is required
• Full tax exemption
• No requirements for audit or to file accounts
• No requirements to file Annual Returns
• Sole director allowed
• No reporting of change in directorship
• Certificate of incorporation can include Chinese characters

Offshore Company Incorporation

Forming an offshore company is relatively the same process as forming a domestic legal entity. The articles of incorporation are drafted according to legal statute. The documents are filed with the jurisdiction government office by a licensed company, as required by law. Then, initial offshore company formation documents and registration certificates, as well as a declaration location of a registered agent within the incorporating jurisdiction, are filed with the appropriate agencies. However, the exact requirements of forming offshore companies vary from each jurisdiction.

There are also offshore shelf companies available for sale.

Contact us so that we will help your business strategize towards going international, complete all of your required paperwork and facilitate the entire offshore incorporation process for you.

We can also help you open an offshore multi-currencies bank account in Hong Kong or Singapore.

Important note

Offshore companies are not vehicles used for illegal activities.

US Anti-Tax Haven Bills and UK Tax Amnesty presumes that non-publicly traded offshore companies or trust are mere nominees and could be disregarded, unless the taxpayer can prove otherwise.