Offshore companies registration is one of the mechanisms of the company tax burden regulation. By registering such company in offshore jurisdiction, the entrepreneur is dismissed from the payment of taxes, and therefore the profit of the company will be increased. The capitals kept on the offshore companies accounts will not be taxed either. Such conditions are created in offshore states thanks to the local legislation, which is aimed at attracting foreign investments in the country. Today there exist dozens of such offshore jurisdictions. To such zones can also be added countries, where the level of taxes is very low for foreign companies. Offshore popularity is very high and keeps growing; this is due to the international trade and other business activities development.
Offshore companies advantages
The most popular offshore jurisdictions today are:
Such offshore zones as Cyprus, Switzerland and Hong Kong are demanded as well. All of such zones give offshore companies a number of advantages, which ease their commercial activity. First of all such companies are totally dismissed from the payment of taxes. The annual fee is required only to keep up such expenses as local office work, secretary, etc. The offshore companies are not obliged to keep accounting and other records, provide them to local bodies of control.
An important advantage of such offshore companies is complete confidentiality of information concerning the company itself and its shareholders, which, in the majority of cases, is guaranteed by the government. The access to this information is permitted only by the court decision. In addition the offshore companies do not have any limitations concerning deals with currency.
Many low-tax offshore jurisdictions have signed an agreement on double taxation avoidance with a number of other states. After paying the tax at low rate in such jurisdiction, the company is dismissed from corresponding tax in its own state; this allows the company to optimize the revenue even more.
Peculiarities of registering offshore companies
The procedure of registering offshore companies is very simple, which adds atraction for the companies to the offshore zone. Firstly, all necessary documents are prepared and registration fee is paid. The amount of fee may vary in different offshore zones. Afterwards the company is incorporated in the general register and may begin its work. The procedure of registration itself may take from few hours to few weeks depending on the offshore country and its legislation.
In general there are no specific requirements to the residency of shareholders and directors. In some offshore jurisdictions a secretary for the company is needed, who will be dealing with documentation. The company must own an office and a legal address as well as an agent who is registered in offshore jurisdiction. The agent may be either a company or an individual, who represents the offshore company in the country of registration.
The offshores are popular not by chance. By registering an offshore company, the entrepreneur obtains a very convenient tool of doing international business, and friendly and progressive legislation promotes its effective work. To avoid possible complications with offshore state legislation, please contact our company Goldblum and Partners. Our specialists can assist you in any question concerning offshore company registration abroad.