Offshore jurisdictions in general have very low compliance requirements and zero taxation under certain conditions.
Even though there can be some significant differences between jurisdictions, the following information applies in most cases.
Incorporation Procedure
The first step is to complete some forms and send us the documents required to comply with our Due Diligence / Know Your Client requirements and the relevant anti-money laundering legislation (for example passport copies, utility bills and bank reference letters).
Our local agent will then submit the relevant documents to the Registrar of Companies of the jurisdiction in question. If the name of the company is approved, the process will only take a couple of days.
Please note, however, that even though the company will be incorporated within the above time frames it will take longer to receive the relevant corporate documents such as the memorandum and the articles of association. Consequently, if time is of the essence, we suggest that you purchase one of our already registered “shelf companies”.
Relevant Costs
Once off costs:
- Company formation
- Opening of a bank account
Annual costs:
- Domiciliary fees (provision of a registered address, agent, nominee directors, secretary and shareholders)
- Annual government licence fees
Management and Administration of the Company
Generally speaking this is exercised like elsewhere in the world according to the relevant laws, the memorandum and the articles of association of the company.
Shareholders, directors and other officers of the company do not have to be local. Similarly, the management and control of the company can be exercised from anywhere in the world so meetings do not have to take place within the jurisdiction. It is, however, required to have a registered office address and an agent in the jurisdiction of incorporation
Restrictions on Trading
In most cases offshore companies cannot trade within their jurisdiction of incorporation. Additionally, there might be some restrictions in the type of business they carry out, for example in some jurisdictions offshore companies are not allowed to engage in banking and insurance industries.
Financial Statements Required
There is no requirement to file audited accounts with the authorities, however, companies are required to keep financial records that reflect the financial position of a company.