(Newswire.net — January 19, 2023) —
Offshore Company Establishment: Points to Consider
Has the thought of offshore company registration ever occurred to you? If yes, you probably spent some time weighing the pros and cons and searching for information. We at Offshore Pro Group believe that worthy business ideas should be realized, and no administrative hurdles should stop them. That’s why we help entrepreneurs from all over the world with hassle-free company set-up and bank account opening.
In this post, we are going to make a kind of digest to structure the information we give to our customers at free consultations (when we just help to choose the right jurisdiction, legal form, or banking institution) or paid ones (when we practically assist in company and banking matters). If you need more information, read our material on offshore corporation establishment on our portal, and you will surely find lots of other useful information.
Here are some points and explanations that relate to the most important aspects of offshore business establishment:
The right jurisdiction is the one that best suits your priorities by overall parameters.
Suppose you want a low-priced offshore company setup. This is a tactical decision, but what about strategy? Are you prepared to cope with high maintenance costs or bad reputation implications later on? No, you are not. And the list of priorities expands at this point: you want affordable registration costs and reasonable maintenance afterward. And here we have to choose a different destination than we would do at the start, right?
Or let’s imagine that you would like to have an opportunity to actually move to the country of incorporation with your family if the situation in your home country deteriorates in some way. You need not just registration but a full-fledged Plan B to realize in case of any black swans on your way. In this case, Vanuatu is the wrong option: the country is perfect for offshore company registration but unsuitable for living due to major natural disasters that occur there quite often.
Last but not least, you have particular partners you are going to work with – for instance, they are from China. You will need to make wire transfers to them, sign contacts, and things like that. In this case, the most suitable location for offshore company incorporation is Singapore or Hong Kong, or you can combine these and start a company in Hong Kong and open an account in Singapore. That way, you will have seamless communication with partners and convenient cooperation terms.
Each expert at Offshore Pro Group knows what questions to ask to help you make an informed decision. Feel free to have a look at our services related to global wealth protection in all its aspects at our portal – or schedule a meeting with a specialist to clarify all the things once and for all.
Being an offshore company owner is absolutely legitimate.
People sometimes express their doubts as to the legitimacy of offshores as a class (as the latter have acquired a dubious reputation during major scandals). However, there is just one thing you have to do: study the laws of your country of residence with regard to the possession of a foreign company. Some countries want to know what assets you own and require you to declare your company registered abroad.
Otherwise, your chances of infringing laws are pretty much the same as in the case of onshore businesses:
- The company may be registered incompetently, leading to further problems. To avoid this, choose a reliable intermediary to help you and never let yourself be lured by cheap offers as some important details will surely be left out.
- Tax evasion is out of the law. With offshores, you become a tax resident of another jurisdiction, but you don’t hide anything. Of course, you have to make sure your change of tax residency is clear for the officials of your country.
- And, of course, dubious or illegal business activities (or money laundering, for that matter) remain illegitimate no matter whether you have an onshore or an offshore company.
As you see, offshore companies are absolutely legitimate business tools that can be used to your benefit.
You will need a Registered Agent to represent you on-site.
And this is a mandatory player in your offshore company like your registrar of business singapore and maintenance process. His role is similar to an attorney in court: he represents your interests in official institutions at the registration stage and submits annual non-financial reports on your company’s activity later on. He can be entrusted with some other responsibilities, of course, but these are the basic ones you cannot do without. We can recommend trusted persons to represent your company.
Pay special attention to choosing the bank that will suit your needs.
All companies need corporate accounts for their operations, but the banking services they use most often may differ. You will have to plan your banking activities for us to help you choose the right bank. For instance, you may pay your counterparties in crypto, and this fact will limit the number of suitable banks.
Another aspect is to make sure the bank you select will onboard you. For example, some banks choose not to deal with high-risk businesses, like gambling or adult entertainment. Our service package includes pre-approval of your application with the bank to minimize the risk of being turned down.
Substance requirements may require additional costs.
These differ greatly from country to country, so you’d better get the information on them in advance.
In most countries, you will need at least a virtual office. Some require a physical one, and some others want you to hire local staff.
Anyway, you will have to prove somehow why you want to set up your business in a country where you don’t reside, so you will inevitably incur some expenses.
These are the major points that our clients usually find useful. If you have more questions, you are welcome to find answers on our portal by following the above links – or requesting a consultation.
May your business endeavors be realized in the best way possible!