What Do You Understand by Offshore Company Registration?

Are you interested in possibly registering an offshore company but are not sure what to expect? Talk to a professional consultant or corporate services provider to understand your options and receive guidance on the best course of action. It also helps to know some of the basic concepts discussed in this blog.

What is an offshore company and why do many business owners register one? An offshore corporation is a legal entity that is registered or incorporated in an offshore jurisdiction or financial centre, most typically with specific laws that are designed for international business. Classic offshore jurisdictions include countries such as the Cayman Islands, British Virgin Islands, and Bermuda, but the spotlight is now in emerging jurisdictions like the Seychelles which is the top alternative to the BVI company. You can also choose to register your offshore company in mid-shore jurisdictions such as Singapore and Hong Kong where certain incentives and provisions in tax law may be beneficial. However even in such cases it is often beneficial to establish a holding company in Seychelles for instance.

A good consultant can structure your offshore presence using an IBC or international business company or other suitable form of offshore company so that it becomes statutorily exempt or otherwise pays a low effective rate of tax in the jurisdiction of registration (as long as you don’t violate various terms of the special incentives). Note that the OECD continues to put pressure on countries around the world in terms of fiscal regimes that provide for special rates of tax.  So it is often necessary now to hire a offshore services provider that is able to provide sufficient services to establish a real presence (substance) in the jurisdiction. 

It’s vital that you choose the right jurisdiction with corporate laws that best serve your goals and requirements and a service provider that is competent and that you can trust. This is why it’s prudent to get professional advice from a consultant that specialises in offshore company registration and management. A solid offshore company can offer overall larger after tax profits, business flexibility, and privacy.