What is an offshore centre?

An offshore centre or jurisdiction is a location, geographically connected or disconnected to a larger country's mainland, which operates within its own legislation and economic policies as an independent country. Most of the offshore centres offer tax advantages and various legal benefits that may not be applicable in the investors' own country of domicile. These jurisdictions are also known as tax havens, in that they often allow companies and individuals to repatriate their offshore earnings to their own countries, often avoiding any tax liabilities or incurring minor liabilities.

What is the reason behind an offer of low or zero tax rates for investors?

The low or zero tax rates are stimulants that drive multinational organisations, especially financial institutions to seek massive tax advantages. As these countries don't have a strong economy of their own, they rely on other countries and their successful businesses to set up their branches locally and if possible employ personnel locally. Most of these tax havens also have no restrictions to the flow of foreign currencies in and out of their markets, giving companies an edge in appropriately managing their cash flow and in turn maximising their profits with the circulation and usage of the money they have to offer.

What is an offshore company?

An offshore company is a like any other, except for the jurisdiction in which they have been formed or established. The territory or land considered as an offshore centre may or may not be directly connected to a specific country.

The companies can be of any legal status, however, most offshore centres offer the opportunity to form an International Business Corporation (IBC) or a company similar in nature. This company is an incorporated company, receives a major tax advantage often extending to decades of operation.

What are the major benefits of establishing an offshore company?

An incorporated body in an offshore centre can make the most of the benefits that may not be offered by the individual's or company's country of residence or domicile. These may include:

• A very low or zero tax rate on earnings within the offshore centre and/or earnings from outside;
  
• A higher level of privacy and non-disclosure requirements. In some cases, an attempt to disclose information pertaining to companies may be penalised;
  
• There is a simpler legal system and government in operation that reduces bureaucracy largely;
  
• The investor bears minimal costs in setting up a business as registration and other associated costs are considerably lower and several tax exemptions are available on purchase of capital assets from inside or outside the country. This helps in maximising the company's profitability.

How will I manage the company if I am not there?

Offshore Company Formation has a specialised team of professionals who are capable of running our client's company in accordance with the requirements of the legal system of the country in concern and the procedure adopted to facilitate the operation. We can also arrange for other professional services such as accountancy, audit, legal servicing and management of the business, including obtaining appropriate licenses for their business.

How soon will my company be incorporated and ready for business?

The period of incorporation and licensing varies with each offshore centre. Most take about 24 to 48 hours for the entire process, this may go up to 1 month, depending on the type of company and the registration process and the documentation required. Some have to undergo investigation to ensure that the name or the objective of the company is not in contrast with the country's policies.

What are pre-registered companies?

Pre-registered or shelf companies are businesses that Offshore Company Formation have registered with offshore centres to provide our clients the fastest incorporation service that money can buy. We guarantee that all our pre-registered companies are in congruence with the legal requirements of each state concerned and certified to have never been used for trading purposes or otherwise by anyone. Furthermore, each company name is continuously updated with the relevant country's registration office.

Are there any restrictions on foreign exchange transfers?

The majority of the offshore centres do not have any restrictions on fund transfers to and from between the offshore and onshore countries. Some jurisdictions levy a small tax on transfers and exchanges through banks, but not in the open market.