Offshore companies offer a range of benefits. They are commonly used by those owning a global, internet-based, digital, or service-based company. They can also serve as holding companies for assets, bank accounts, physical properties, intellectual properties, patents, or investments.

Forming an offshore company is not about evading taxes or conducting illegal activities. Instead, it is about legally minimizing tax liabilities and enjoying the flexibility provided by different jurisdictions.

Individuals with business and financial activities in areas like offshore savings and investments, forex and stock trading, e-commerce, professional services, internet services, international trade, and ownership of intellectual property can significantly benefit from forming an offshore company.

Offshore companies provide an added advantage to businesses with a global or non-localized structure, such as internet-based service industries, service providers, consultants, brokers, and currency traders. By incorporating businesses and bank accounts offshore, these entities can minimize their overall tax burdens effectively.

An offshore company has a variety of uses and benefits for clients wishing to engage in international financial trade and investment activities. Depending on the specific offshore jurisdiction companies that are formed offshore may have the following features and advantages:

• Ease of Incorporation 
  • Registration and incorporation procedures are very straightforward and, in some cases, may take only 24 – 48hrs for the process. This, of course, requires that you prepare and provide all the required documentation before submitting incorporation paperwork to the appropriate authorities.
• Minimal Fees 
  • There are very low associated fees, after start-up costs; many jurisdictions have fees between US$200-300 per year.
• Flexible Management and Minimal Reporting Requirements 
  • Minimal number of directors and shareholders are required. Financial reporting, account information and annual returns are also often not required or remain minimal.
• No Foreign Exchange Controls 
  • Most all jurisdictions have no restrictions on foreign exchange.
• Favourable Local Corporate Legislation
  • Many offshore jurisdictions have supportive legal frameworks to promote and encourage the growth of the offshore industry and foreign investment, which supports and gives companies a high degree of flexibility.
• High Confidentiality
  • The details of owners, accounts and financial information remain confidential, though to a varying degree, depending upon the jurisdiction. Some have minimal publicly available information (Hong Kong and New Zealand), whereas in (Nevis, Panama, Seychelles) absolutely no public information is available. The availability and use of nominee shareholders and directors give you greater anonymity.
• Tax Benefits
  • Most jurisdictions offer zero to low corporate taxes, with an exemption on most other taxes such as income, sales, capital gains, value-added, estate, succession, gift, and stamp taxes.
• Freedom in Investment Opportunities
  • No limitation in regards to the business activities involved. Companies are free to engage in virtually any economic, financial or business activity. In some jurisdictions there are necessary formalities and licensing that must be obtained prior to setting up certain types of business operations (as in the case of bank, insurance, real estate industries).
• Relocation Possibilities 
  • Many jurisdictions offer smooth transition possibilities between jurisdictions without any needed restructuring or complicated documentation.

There are many different types of offshore companies, each having slight differences usually dependent upon the jurisdiction and the corporate laws where the company is incorporated rather than the name itself.

Offshore entities that roughly refer to the same type of structure:

• Offshore Company, Foreign Corporation, Non-Resident Company, International Business Company, International Company, Private Limited Company

They all are synonyms and can be used interchangeably.

However, there are two main offshore structures which we will go into in detail, namely an:

• International Business Company (IBC) and;
• Limited Liability Company (LLC)

Forming an offshore corporation is not as complicated as it is often made out to be. In fact, the offshore corporate services industry is often not only easier to establish a company but often is quicker, less hassle with rates even comparable to that of many modern financial centers. To form a company the entity must draw up and submit:

• Memorandum of Association
• Articles of Association
• Know Your Customer (KYC) documents
• Corporate Application Document
• Name, Date of Birth, Social Security or National Insurance Number
• Notarized Bank Statement
• Banking Reference Letter
• Professional Reference Letter
• Copy of Passport for Identity verification
• Copy of Utility Bill to confirm your physical address

**The Memorandum of Association represents the companies external affairs and complements the Articles of Association which represents the internal dynamics and structure of the company including the by-laws, purpose of the company, organization of its members including the Director, Shareholder, and Secretarial duties, as well any financial obligations, share capital, meetings, and any day-to-day tasks.

1. These documents are sent off to the appropriate jurisdictions’ Corporate Registers Office.
2. Once these documents are approved, there might be additional documents needed to satisfy the Registry then a Certificate of Incorporation is issued signifying the formation of the new company.
3. Any additional requirements of a newly formed company post-incorporation are dependent upon your needs and wishes, which may include the appointment of the company’s first director, the first meeting and appointment of company officers, registration of directors (in which nominee services may be used), issuance of company shares, and the opening of any international bank account.