Offshore company formation – tips you could useby Groshan Fabiola I try to cover as many topics as I can
If you plan to run an online business then the option of forming an offshore company may sound interesting to you. Conventional companies have to pay great taxes, but because you will not have a physical premise, you will be exempt from some tax laws. Another benefit you get if you start an offshore company is that you can open an offshore banking account. Why is an offshore banking account better than a standard one? It comes with more investment opportunities, with higher interest rates, and even with the possibility to open the account in a jurisdiction more stable than the one where you are staying.
Now that you are sure that this is the best solution for you, you have to set the company, and here is how.
Create a list of questions
All businesses need a plan, but in order to create one you need to know the questions it should answer. Here is a list of questions you should put on your list:
- Will you have partners?
- Do you have a business strategy?
- What market industry do you prefer?
Once you have a list with all the questions related to the process you can start creating the business plan.
You need an adviser
If you do not have experience in the domain, it is not advisable to do things alone. The entire process will require knowledge and experience because it is not as simple as it may sound. You will have to collaborate with an adviser who has experience in opening offshore companies and who can guide you. They should be able to offer answers to your questions and to help you build a business plan.
Once you decide the name of the business you can collaborate with a company specialised in offering offshore company formation packages. It is the simplest way to start a business when you do not have experience. The offshore company package includes complete services like government registration fees, Vat registration, a monetary account and other similar ones. It is advisable to get help during the formation process to make sure that your business will be compliant with the legal requirements.
Decide where you want to open the company
Before deciding your company’s jurisdiction, you should know that not all destinations are respectable and trustworthy. The golden-rule for your business to have success is to choose a jurisdiction with a long-standing good reputation, a country with a stable economy that accommodates full or partial tax exemption, and it is considered an offshore financial centre.
Hong Kong, Seychelles and Belize are good reputation destinations.
Make sure you are running a legal business
All off shore companies are legal entities and this means that you have to operate your business legally. You will have to check the local laws and regulations and to abide them. This is not a simple thing to do because it takes time to study them. In addition, it is important for you to know that you are not allowed to set up a physical presence and do business in your jurisdiction.
Some destinations like Uruguay, Singapore and Hong Kong allow you to do business locally. This means that you will have to pay taxes on the income you generate on their territory, and only the other sources of income will be tax-exempt.
Find out the costs
Some international incorporations services post their prices publicly, but many others do not. It does not mean that you should not trust a company that does not post their prices publicly; you only need to contact them and ask them to confirm the incorporation costs. Once they know your interest in their services, they will make you an offer.
The average services will include annual renewal fees and setup fees, but there are also international incorporations services that offer other extra services according to the needs of their clients.
When starting this type of company you need to consider multiple aspects, you have to identify the type of services and products you want to offer, you have to determine the number of people who will work for your business and you have to decide the jurisdiction that fits your business model.
Only extensive research will help you set a successful business because you need to know what the legal forms offshore companies in that jurisdiction are, what characteristics and features they have, and if they match your needs. Do not start a business in an offshore location if you do not fully understand the laws of the region because you want your company to comply with the local regulations. Once you know the above details, it is the time to start the process of forming your offshore business.
Created on Apr 26th 2019 04:13. Viewed 295 times.