An overview to incorporate offshore company

[alain]

For several years, individuals and business corporations adopted a common practice of setting up offshore entities and move their assets with an objective of avoiding paying higher taxes on their capital gains. Today with the growth of globalization that has eliminated geographical boundaries; several small and medium-sized enterprises are using this route.

/register-offshore-company-online/wp-content/themes/TheCorporation/timthumb.php?src=/register-offshore-company-online/wp-content/uploads/2010/05/nominee-director-shareholder.jpg&h=220&w=330&zc=1​

Is it legal to incorporate offshore company?


Most business owners who contemplate using this route first question the legality of this option. It is a commonly known fact that non-resident companies cannot do any business in the jurisdiction where these are incorporated. The primary objective is to take advantage of the favorable taxation laws of the country and avoid paying huge amounts of national tax liabilities. It is completely legal for businesses to adopt measures to reduce their tax burdens without moving out of the regulatory guidelines. Forming an offshore entity for this purpose is legal; however, withholding information related to the income of this company in the reports is illegal. If such information is withheld it is deemed to be an act of tax evasion and is subject to specific penalties.


Requirements for offshore company incorporation


When you want to incorporate offshore company, you will need to complete certain formalities. You will firstly need to provide the registered address of the entity within the jurisdiction where it is being formed. As a proof of existence, owners will need to produce a certificate of incorporation. Owners will also need to provide a list of directors and members to show names of those behind the company. You will also have to hire the services of a qualified and licensed company secretary who will be responsible for ensuring all the legal processes are adhered to strictly. The articles of association will have to be prepared to clearly outline the internal procedures of the company, rights of the members, and the objective/s. The company will also need to maintain and provide minutes of the meetings, which are available to the public and financial records must be audited at regular intervals. If there are any shadow directors controlling or holding majority stake in the company but not actively participating in the daily management, their details must also be made available. Finally, you will have to provide the details of the registered agent who will be responsible for incorporating the company in the chosen jurisdiction.


Other benefits of setting up companies in other countries


Besides the reduction of the tax liabilities, incorporating an entity offshore has several other benefits. This step is perceived as an intelligent method for businesses that want to enter the international trade or as an investment vehicle. Moreover, this procedure provides more anonymity to the shareholders and directors, which acts as an asset protection measure. In case of legal liabilities arising in the future, personal assets are not attached preventing directors and shareholders losing their wealth. As seen there are numerous benefits of using this option; however, before you make a final decision it is recommended to consult a professional expert for advice.

 

[JohnLocke]

Actually it's not much you need to complete a company formation offshore, it's just a copy of passport and utility bill and that's it. So you need to provide information about the shareholders and how many shares you want to have together with different terms outlined in the memorandum and articles.

 

[alain]

Here is some additional information for you if you really don't know what this is all about and what it is you need.


What You Need To Realize About Business Incorporation?


Do you know what incorporation is? There are financial advantages for incorporating. You no longer files taxes as an individual. As the owner, you have 100% of the company stock. By incorporation you are given limited liability protection. Find out some benefits in incorporation business in this article. Business incorporation may be something that you want to consider. A corporation is a legal entity created and recognized by the laws of the States. Although the existence of the corporation is separate from its members, a corporation is regarded like a real person.


This means that it can enter into and dissolve contracts, sue and be sued. Corporations also pay taxes, apart from its owners. They are capable of incurring debts, own and acquire assets, and sell


properties and goods.


If business corporations are chartered by a state or federal government, it is recognized as a legal entity with rights, privileges and liabilities. There are many reasons why you should do business


incorporation.


Having a limited liability is among them. The owners, known as stock holders or incorporators, are given limited liability protection. This means that the owners are not at high risk for satisfying


corporate liabilities and debts.


A separate corporate tax is another. Because a corporation is a separate legal entity, it pays taxes separately as well; particularly if the corporation is type C. Corporate owners pay taxes based on


their salaries, dividends and bonuses.


Many businessmen are encouraged to join corporations because they are an attractive investment, considering its excellent built-in stock structure. The stock structure is among the best strategy to attract talented employees by offering them ownership interest either by stock or stock options.


There are circumstances in which the business incorporation has its owner/s its employees. Hence, as an owner and employee, you are entitled for benefits such as health and life insurance. And you will


have tax deductions.


State laws dictate that corporations follow an organizational structure. Besides the owners, who are shareholders or stockholders, there will be Board of Directors elected by the owners.


The Board of Directors, in turn, will elect the officers. And the Board of Directors is responsible for managing and exercising rights and duties of the corporation; the officers are responsible for the


day-to-day activities, while the shareholders are passive.


The type C Corporation is the most common type of corporations. To this belong the for-profit and state-incorporated businesses. C corporations file their separate income taxes at IRS using form 1120. The


business owners are exempted, then, from personal liability for debts incurred by the corporation.


One noteworthy advantage of C business incorporation is the owners protection of personal assets, in case the business goes bankrupt or sued. C corporations, like other types, can also sue


other business corporations.


The General Corporation is another type. It is also the most common corporate structure. If a corporation is general, it may have an unlimited number of stockholders, whom are protected from creditors of


the business. This is mainly because of its distinct legal nature.


If one of the shareholders of general business incorporation dies, the ownership continues to live on. The shares of stocks are transferred to the rightful heirs. Moreover, the change of ownership does


not affect the management.


Business incorporation is among the safest way to have a business. This is very true if the capital is limited, although, it should not have difficulty employing qualified individuals. If you are


interested, you can do thorough research on how to incorporate business.

 

[JohnLocke]

When you want to incorporate offshore company, you will need to complete certain formalities. You will firstly need to provide the registered address of the entity within the jurisdiction where it is being formed. As a proof of existence, owners will need to produce a certificate of incorporation.

All relevant incorporation documents will be send to you upon the incorporation has taken place.. you should receive such by e-mail first and later by courier.

 

[suzy]

Does anyone know if it is possible for US citizens to incorporate a offshore company? I mean because of FATCA? What I heard is that many Agent has stopped serving anyone from the USA in regards to banking and company formation!!

 

[JohnLocke]

There are no problems for any US citizens to get a company setup offshore as long as the Agent and jurisdiction comply to the fatca, I actually found a news site who has collected a whole lot of information about Fatca, take a look here Ras Al Khaimah it's going to be interesting.


US citizens may not incorporate for tax benefits but for all other reasons!

 

[alain]

Does anyone know if it is possible for US citizens to incorporate a offshore company? I mean because of FATCA? What I heard is that many Agent has stopped serving anyone from the USA in regards to banking and company formation!!

I know of at least 3 offshore company formation services that are accepting clients from the US. I don't believe they are all rejecting you. What reasons do they tell you?

 

[Cauddyensutty]

I know of at least 3 offshore company formation services that are accepting clients from the US. I don't believe they are all rejecting you. What reasons do they tell you?

You know, please tell us the names of the companies?

 

[alain]

You know, please tell us the names of the companies?

Sure one of them is the forum owners, invalid1c

 

[Cauddyensutty]

Sure one of them is the forum owners, invalid1c

And what about the other offshore company service companies?

 

[alain]

And what about the other offshore company service companies?

You may want to do some search in Google, one of the major agents are http://www.incorporatebelize.com they are good for company registration only. don't expect them to have any knowledge about tax structures or similar if it gets complicated. They also are not willing to help you answer simple questions. They are more like a SuperMarket for offshore companies, take, pay and go to hell!