What Are Offshore Companies and What Are They Used For
What is offshore, and is it possible to explain this concept in simple, understandable language? Of course! There are too many rumors and conjectures about offshore companies and offshore accounts. We will talk about what offshore companies are and why they are needed, and how to create offshore company quickly and safely.
The main thing you need to know is that opening an offshore company requires careful planning and thoughtfulness for it to fulfill the business objectives you need. Indeed, it is better to choose a particular jurisdiction and type of company for each specific purpose.
The best solution would be to seek help from experienced professionals of the International Wealth website, who have already completed more than one thousand successful business cases for opening companies and accounts in offshore zones. This approach to resolving the issue will save you from unnecessary costs and problems and help you create a structure that will correspond specifically to your tasks.
What are offshore companies
An offshore company is a company that is established and operates in accordance with the rules and laws of an offshore jurisdiction. In most cases, such companies are prohibited from conducting their activities on the territory of the jurisdiction itself – only outside it.
Offshore jurisdictions are countries or separate territories that legally offer certain tax benefits to businesses and individuals. If you register a company in a classic offshore jurisdiction, then all its income is not subject to corporate tax.
Why are offshore companies needed? Here is a short list of possible uses:
● a tool for protecting property rights to assets (companies, real estate, shares, etc.)
● active business companies for conducting international activities, whether it is import-export operations or the provision of goods or services
● companies that obtain licenses to conduct specific activities – gambling, insurance, or even banking
● help enforce inheritance rights according to the rules you want, not your country’s law
● help to optimize business processes, reduce the time to work with reports, gain access to new customers, and reduce the effective tax rate.
In general, offshore companies are needed for a business to work more efficiently and safely.
How to register an offshore company
To register an offshore company quickly and without unnecessary worries, you need to follow a few steps:
- Contact consultants from a trusted company such as International Wealth.
- Tell why you need an offshore company and what you are going to use it for. This will help the specialist to select a specific service for you to achieve your chosen legal goals and offer you cheapest place to start a business.
- Determine the list of additional services: accounting, professional officers service, opening a bank account, etc.
- Provide copies of documents – most often, certified copies of your passport and a document confirming your place of residence (utility bill) are required.
- You pay for the service – the price depends on the place of company registration and the additional services you have chosen.
- After the receipt of funds, the procedure for registering a company begins.
- As soon as the company is registered, you will be sent the original documents for the company. You will receive copies of the documents for starting the activity immediately after the end of the registration.
We would like to draw your attention to the fact that the registration process in many jurisdictions can take place entirely remotely.
Nevis as one of the best jurisdictions for offshore business
If you do not know where exactly you want to open an offshore company, then International Wealth experts recommend Nevis as one of the best options.
Nevis is a small tropical island of volcanic origin located in the Caribbean Sea and is part of the Windward Islands group. It is part of the island nation of Federation Saint Kitts and Nevis and an independent member of the British Commonwealth.
The legal system of the island nation is based on English common law. Nevertheless, corporate law is based on the laws of the state of Delaware (USA) and includes American and English law elements.
Most often, international business uses Nevis offshore companies to protect assets and optimize taxation. This Caribbean jurisdiction is perfect for such purposes due to the optimal combination of compliance with international laws and minimum requirements for legal entities created by foreign investors.
Among the main advantages of companies registered in Nevis are:
● No taxes on income, property, capital gains, inheritance, wealth, and dividends. It is worth noting that these tax benefits are only valid if the company conducts business outside the jurisdiction.
● Fast and relatively cheap process of establishing a legal entity. With a properly prepared and submitted package of documents, the registration process takes from 1-2 days.
● There is no requirement for minimum authorized capital.
● Minimum requirements for directors and shareholders. To register a company, only one director and shareholder are required; it can be a legal entity or an individual.
● High level of privacy. According to local law, the registration authority does not have the right to require the disclosure of the personal data of beneficial owners and shareholders.
● Asset protection. This is one of the main advantages of jurisdiction. Nevis has strict laws to protect assets from creditors, government agencies, and lawsuits from other jurisdictions. Court decisions of other countries have no legal force here.
● Minimum administrative costs and annual fees to maintain active status.