Start your Offshore Journey in 2022

Start your Offshore Journey in 2022

How to Start Your Offshore Journey? Opening an Offshore Company in 3 Steps Questions to Ask When Setting up an Offshore Company Establishing yourself offshore has never been more popular, as many people are seeking alternative business opportunities and ways to save money, protect their privacy and assets in these uncertain times.

Setting up an offshore company is simple, straightforward and can be completed in a matter of days but choosing the right offshore company formation agent is crucial to ensure a smooth process.

This article is to take you through how to set up an offshore company: from selection, registration, all the way to the offshore company formation process in order to break the commonly held idea that a company formation process is a complicated and time consuming process with lots of difficulties and pain along the way.

Below I have outlined a few questions that are important to ask yourself as you begin to decide where to set up an offshore company, the type of entity you would like to form and how you would like to structure your new company.

How to Set Up an Offshore Company Creating an offshore company can be broken down into three steps. These days most company formation processes can be completed online with minimal documentation and fees in as little as a few days.

Open an Offshore Company in 3 Steps Offshore Company Selection - Choose Your Offshore Company Jurisdiction, Type Of Company, And Company Name Offshore Company Setup - Submit Fee, Business Plan and All Personal Documentation And KYC Forms Offshore Company Incorporation - Add on Any Extra Services, Offshore Bank Account Opening and Understand Your Reporting Obligations 1. Offshore Company Selection The first task it too chose what jurisdiction and offshore vehicle structure is right for you. While not all jurisdictions and offshore structures are created equally, there are many similarities and overlaps, without as much difference and variances as you might expect.

However, it is important to ask yourself:

What is the main function of the entity going to be? Is it for Asset Protection, Charity, Estate Planning, Business, Investment, Holding Company, etc. Depending on your needs there are different offshore structures whether that is a Trust, Foundation or IBC, LLC etc...

Due to the continually changing nature of the offshore industry and regulations, especially when it comes to offshore tax laws, it is important to have up-to-date information, as local tax laws are increasingly changing due to global corporate pressures.

Which Jurisdiction would you like to incorporate in? While there are offshore company formation vehicles all over the world, it is important to consider:

Do you want to be able to visit the destination and have easy access to it? Do you want to live in close geographical proximity to the chosen jurisdiction? Is the jurisdiction right for your business? While these are more practical questions. They are equally important to think about as many individuals like to keep things close to home.

1.1. Tax and Transparency Laws The next questions are going to take some careful research as tax laws are different in each country. To make sure you are tax compliant it's important to speak to a qualified accountant or lawyer who is familiar with the chosen jurisdiction.

Wherever your primary residence is, will largely determine your tax structuring and whether or not certain privacy services can be used so as to maximise confidentiality, asset protection and privacy.

That is why it is so important to speak with an experienced offshore company formation agent. Without this specialised knowledge, there is the risk of forming the wrong entity in the wrong jurisdiction, with the wrong corporate structure which will cause major problems and a lot more expense to put right.

1.2. Offshore Company with a Bank Account If you are starting an offshore company as a holding company, then the following questions would not need to be asked. But in all other circumstances the following will need to be addressed:

Do I need a personal or corporate bank account with my company? Opening an offshore bank account in many jurisdictions will not be required to be done in person and can be completed online.

However, the offshore banking industry has changed dramatically in the last few years and in many jurisdictions, it is required to have a local company formed in the jurisdiction, and will undertake extensive background checks or ask for much more documentation.

While that is not always the case, it is becoming more common in places like Singapore, Panama, and Hong Kong where there are more restrictions, higher price tags and more due diligence.

Offshore jurisdictions like St Vincent, Nevis, or Andorra that do not require a local company and can be opened with an online application without any in-person requirements. A good offshore company formation agent can often complete the application for you. And Lastly: Do you require any Corporate, Virtual Office, Management, Secretary or Nominee Director services for your company? These corporate services can be added to your offshore company structure. Offshore Company Setup 2. Offshore Company Setup Once you have chosen your offshore jurisdiction and offshore company formation, drawing up Articles of Association creates a legal document for the formation of the company.

The company-by-laws will layout the responsibilities of the Directors/Shareholders and create an internal structure for which the business operates.

The importance of a properly structured offshore company setup is obvious and is especially important to ensure the security of assets and protect the privacy of the individuals in case of legal or financial issues arising.

2.1 Offshore Company Structuring If a beneficial owner wants to remain anonymous, in some jurisdictions it is possible to use nominee shareholders or nominee directors that act as third party whose name and details will be recorded on the legal documents and accounts, however, the beneficial owner still maintains direct control of the company, but remains unaffiliated. While most offshore jurisdictions still have very strict privacy and banking secrecy laws, there are many countries like the US and many parts of Europe that require individuals to declare a foreign ownership of a corporation, thus making your obligations to declare any companies and assets an obligation required by the country where you live. 2.2 Offshore Company Filing Documents Company registration requirements are:

Name of director(s) or beneficial owner copy of passport proof of physical address processing and governmental fee However, depending on the company and jurisdiction there might be the need to provide documentation such as more comprehensive Due Diligence or Know Your Customer (KYC) forms. This needs to be completed before the registration process can be finalised.

In some jurisdictions, requirements for opening an offshore bank account have become tighter and can sometimes require a banking or professional reference letters, and a copy of a business plan. So bear this in mind when choosing an offshore bank account Set up an Offshore Company 3. Offshore Company Incorporation Once the appropriate offshore company registration and government fee are received together with all the necessary documents the application is sent to the relevant company registry. If the registration is not successful it is usually because the documentation is insufficient or they require a more thorough background check. However, in most cases more extensive checks are not required and companies are formed without too much trouble.

Corporate documents are usually received 6-8 weeks following offshore company registration although the company registry number will already have been issued after the successful application usually within days to a week or two upon successful completion of the application. Are You Ready to Incorporate an Offshore Company? Setting up a company offshore while it can be completed in just a few steps does take some very careful research and advice. Offshore company registration though simple, is not easy. Ensure you choose the right structure, in the right country for your business requires with the right offshore company formation agent.

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