An offshore company is one that conducts little or no real business in the country where it is incorporated. The main reason for incorporating in another country is to take advantage of lower tax rates and other advantages. In addition, many foreign tax havens offer greater flexibility in reporting requirements than the country where the company is actually based. It is fairly easy to set up an offshore company using the services of a specialist in the country where the business wishes to incorporate. Here is how to set up an offshore company.
Things You'll Need
- Internet connection
- Offshore consulting firm to register the company
- Money to pay for the consulting firm's services
Hire an Offshore Consulting Firm
Hire a consulting company to help you set up offshore company. Insightful information can be gathered by doing an Internet search for consulting firms that handle this procedure in the country you are considering.
Pay the required service fee to the consulting company. Prices may vary widely depending upon the company you use and the country where you intend to incorporate.
Read the detailed project plan provided by the consulting firm. This document should explain the steps for incorporating your offshore company.
Register Offshore Company
Registration of your offshore company with an appropriate corporate structure will be handled by the consulting firm that you hired. Little or no involvement on your part is required.
After the corporation has been registered, you will be provided with a kit that includes such things as the original Certificate of Incorporation, copy of Memorandum & Articles that have been officially approved by the country in which you are incorporating, blank share certificates, an excerpt from the Public Register showing the details about the company which will be made available to the public, and an original receipt verifying payment of the annual registration and license fees for the offshore company.
In most cases, you will also be provided with a legitimate international business address as well as a telephone number and fax line.