Why Company Registration is an Important Step towards Offshore Formation

Registering your company and structuring it the right way is the first and most important step in offshore company formation. It’s prudent to seek the services of a consultant or offshore registration service provider that is based in the jurisdiction you are interested in. The best consultants provide not only company registration services, but also a number of complementary services like virtual offices, professional directors, company management, nominee shareholders, company secretary, fund administration, and offshore bank accounts. Look for a consultant that is licensed and regulated, with competitive fees and the ability to help you register your company in popular jurisdictions sometimes incorrectly referred to as “tax havens” including the Seychelles, Anguilla, Belize, and Panama.

The best consultants don’t just stop at company registration—they also offer ongoing support services and in some cases even management services. They can walk you through the entire registration process, giving professional consultation and guidance down to drafting your company formation documents and thereafter provide the appropriate services necessary to achieve the objectives.

Offshore company registration involves the preparation of a long list of documents, and a consultant can take care of most of them for you. They can prepare all papers necessary to register your offshore company in the jurisdiction you have chosen. They will generally use standard templates with some modifications as necessary. After your offshore company is properly registered, they will then provide domiciliary services—such as a secretary and a registered office—as well as other services you may need to ensure that your offshore company remains compliant.

Are you wondering where you should register your offshore company? That really depends on your goals and requirements. A consultant can give you expert advice as which jurisdiction is optimum for your specific situation. They can help you understand the potential benefits you can enjoy through tax treaties as well as give you guidance on structuring your offshore company to minimize potential risks.

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.