A few of the benefits of an offshore company include low tax, location of your business, confidentiality, minimal accounting, auditing, property ownership, asset and lawsuit protection. For more information, contact one of our Offshore Specialists.
View all the Offshore locations we deal with.
Low Tax
One of the main benefits, and possibly the most talked about one is tax!
All business owners are always looking for ways to reduce their taxes as this area of a business can become the biggest burdens. Generally offshore companies are tax exempt or pay little tax in the country of incorporation. For example, many beneficial owners use offshore companies as holding companies, to receive dividends.
Companies can also benefit from importing or exporting within an offshore location. An example of this includes, receiving orders directly from the customer and the purchased goods being sent from the manufacturer. This would enable the profit from the trade to be either tax free or low tax. When choosing the right location be aware of the tax and choose a location with good shipping facilities.
Many of these countries appeal to shareholders/ directors due to their low administration costs - CFS work hard to keep all costs reasonable and extremely competitive. This allows our clients to concentrate on the more important aspects of their business.
Location of your company / business
If you are a small company and your trading premises are not the most ideal location, incorporating offshore could be your answer. Having an overseas / Offshore Company gives the impression that your business is located overseas, having a registered office that is worth shouting about.
If you are not sure where you should form your Offshore Company, you are able to seek business / tax advice and they should be able to assist you with making the best decision. When you are aware of the location, we can assist you with forming your Offshore Company.
Company Confidentiality
Some Offshore jurisdictions do not disclose the Company Directors and Shareholders on public records, therefore keeping the identity of the officers confidential. Some examples of these jurisdictions are Seychelles and Belize. Clients have a number of reasons for keeping the directors and shareholders identity confidential. A client has recently requested to keep their details confidential from their competitors so that the competitor couldn’t see that they had setup an Offshore Company. This has helped them a great deal with moving their business forward.
Another way to keep the identity of your offshore company confidential would be to use nominee Directors, Shareholder and Secretaries. This will then show the nominees details and not your own. Contact us to find out more.
Keeping Accountancy and paper work to a minimum
Ongoing yearly accounting and auditing is kept to a minimum as with some jurisdictions they do not require an audited financial report / accounts. Keeping your time precious and enabling you to focus on your company.
Offshore Companies owning property
Advantages for offshore property ownership include avoidance of many taxes, including inheritance tax, income tax, capital gains tax and much more. CFS recommend that legal advice is always undertaken before committing to any property ownership.
Here are some of the other benefits:
- Seeking asset protection – Due to the laws in offshore locations, offshore companies are often used to hold assets due to the level of protection they hold.
- Lawsuit protection – Due to the level of protection this offers, offshore company formations become more attractive due to the level of security and privacy.
Frequently asked questions about starting an offshore company
Can I register an offshore company if its directors do not live in the chosen country?
In many offshore jurisdictions, company directors and shareholders do not need to live in the country where the company is incorporated. This can allow a company to be formed and managed by people based overseas.
However, residency and local-presence requirements vary between jurisdictions. Some company types may require a local director, registered agent, secretary or representative. CFS Formations will confirm the requirements for your chosen location before the company is formed.
How many people do I need to form an offshore company?
In many jurisdictions, one person can act as both the director and shareholder of an offshore company. Other jurisdictions may require additional officers, shareholders or a local representative.
The number of people required depends on the chosen country, company type and intended business activity. You should check the specific formation requirements before placing your order.
View the offshore jurisdictions available through CFS Formations.
Can the registered office address be located in any country?
No. An offshore company will normally need a registered office address in the jurisdiction where it is incorporated.
The registered office is the company’s official local address for legal and government correspondence. It is often provided through the company’s registered agent as part of the formation or annual renewal service.
This does not necessarily need to be the address where the company conducts its everyday business.
How can we help?
Please feel free to speak to one of our CFS offshore specialist, who will be happy to answer any questions you may have. We will do our utmost to help and assist you in any way possible.
How to Start an Offshore Company
To start an offshore company, you will need to choose a suitable jurisdiction, decide on the company structure, provide details of the directors, shareholders and beneficial owners, complete identity checks and submit the required incorporation documents.
The exact process, costs and reporting requirements vary between jurisdictions. Before proceeding, you should take independent legal and tax advice based on where you live, where the company will operate and how it will be used.
You can compare the offshore jurisdictions available through CFS Formations before deciding where to register your company.
1. Decide Why You Need an Offshore Company
Start by identifying what the company will do and why an offshore structure may be appropriate. For example, the company might be used for international trading, holding investments or other assets, providing services internationally or operating in a particular market.
The intended activity can affect:
- Which jurisdictions are suitable
- Licensing requirements
- Banking options
- Accounting and reporting obligations
- Tax treatment
- The information and documents required during incorporation
An offshore company does not automatically remove tax or reporting obligations. These may apply in the country of incorporation, the countries where the company operates and the countries where its owners or directors live.
2. Choose an Offshore Jurisdiction
The best offshore jurisdiction depends on the company’s intended activities and the owners’ circumstances. Important points to compare include:
- Incorporation and annual renewal costs
- Local tax rules
- Accounting and filing requirements
- Director and shareholder requirements
- Availability of public company information
- Registered-office and registered-agent requirements
- Banking and payment-provider availability
- Relevant double-taxation agreements
- Local economic-substance rules
- The jurisdiction’s international reputation
CFS Formations can explain the practical incorporation requirements for the locations it supports. However, independent tax and legal advice should be obtained before choosing a jurisdiction.
3. Choose a Company Name
You will normally need to provide one or more proposed company names. The relevant company registry or registered agent will check whether the name is available and permitted.
Some words may be restricted or require additional approval, particularly terms suggesting banking, insurance, investment, government or regulated financial activity. Name restrictions differ between jurisdictions.
4. Confirm the Company Structure
The information required will depend on the jurisdiction, but you will usually need to confirm:
- The proposed company name
- The company’s intended business activities
- The director or directors
- The shareholder or shareholders
- The ultimate beneficial owner or owners
- The proposed share capital and share allocation
- The registered office
- The registered agent, where required
- Contact details for the people involved
Some jurisdictions permit one person to act as both director and shareholder. Others may have specific residency, licensing or company-secretary requirements.
5. Provide Identification and Due-Diligence Documents
Offshore company formation agents must carry out identity and compliance checks. Each director, shareholder and beneficial owner may need to provide:
- A certified copy of a valid passport or other accepted photographic identification
- Certified proof of residential address, usually dated within the required period
- Information about their occupation or business activities
- Evidence explaining the source of funds or source of wealth
- A bank or professional reference, where required
- A business plan or description of the proposed activity
Documents not written in English may need to be accompanied by a certified English translation.
The exact requirements depend on the jurisdiction, company activity and risk assessment. Additional documents may therefore be requested during the application.
6. Prepare and Submit the Incorporation Documents
Once the company details and identification documents have been approved, the incorporation application can be prepared.
Depending on the jurisdiction, the documents may include:
- An incorporation application
- Memorandum and articles of association
- Registered-office and registered-agent appointments
- Director and shareholder details
- Beneficial-ownership declarations
- Share-capital information
- A declaration describing the company’s proposed activities
The application is then submitted to the relevant registry or incorporation authority.
7. Receive the Company Documents
Once the application has been approved, the documents supplied may include:
- Certificate of incorporation
- Memorandum and articles of association
- Register of directors
- Register of shareholders or members
- Share certificates
- Registered-office information
- Company resolutions
- Other jurisdiction-specific corporate documents
The precise document pack will vary. Confirm what is included in your chosen offshore company formation package before ordering.
How Long Does It Take to Form an Offshore Company?
The formation time depends on the jurisdiction, the proposed activity and how quickly the required information is supplied.
Delays can occur when:
- Identification documents are incomplete or incorrectly certified
- Additional compliance checks are required
- The chosen company name is unavailable or restricted
- The intended activity requires a licence
- The registry requests further information
- Documents need to be translated or legalised
Any timescale should be treated as an estimate until the due-diligence checks have been completed and the application has been accepted.
How Much Does It Cost to Start an Offshore Company?
The overall cost may include:
- Company incorporation fees
- Government or registry charges
- Registered-agent fees
- Registered-office fees
- Document certification, translation or legalisation
- Compliance checks
- Licences or permits
- Banking or payment-service applications
- Annual renewal fees
- Accounting, tax and legal advice
The lowest incorporation price does not necessarily represent the lowest long-term cost. Annual renewals, local reporting and professional-services fees should be considered before choosing a jurisdiction.
View the available offshore company formation options for current package information.
What Happens After the Company Is Formed?
Forming the company is only the beginning. To keep it in good standing, its owners may need to:
- Pay annual government and registered-agent fees
- Renew the registered office
- Maintain company registers and accounting records
- Submit annual returns, accounts or declarations
- Report changes to directors, shareholders or beneficial owners
- Meet economic-substance requirements where applicable
- Renew any licences
- Comply with tax-reporting obligations
- Keep identification and due-diligence information up to date
Requirements vary significantly between jurisdictions. Missing a renewal or filing deadline may result in penalties, loss of good standing or the company being struck off.
Do You Need an Offshore Company Formation Agent?
Many offshore jurisdictions require the company to maintain a locally licensed registered agent and registered office. The agent may submit the incorporation documents, maintain statutory records and assist with annual renewals and regulatory filings.
Even where an agent is not legally required, professional assistance can help ensure that the application and supporting documents meet the jurisdiction’s requirements.
Before Starting an Offshore Company
Before placing an order, make sure you understand:
- Why the offshore company is required
- Whether the proposed activity is permitted
- Where the company will be managed and controlled
- Which tax and reporting rules may apply
- Whether a licence is needed
- What records and accounts must be maintained
- The complete initial and annual costs
- Whether suitable banking or payment services are available
- What information may be reported to tax or regulatory authorities
An offshore company can be a legitimate business structure, but it must be established and operated in accordance with all relevant laws. Independent professional advice is recommended before incorporation.
Start Your Offshore Company
CFS Formations can help with jurisdiction selection, incorporation paperwork, identification requirements and annual company services.
Compare offshore company formation options or contact an Offshore Specialist to discuss the practical requirements.
