What is an Offshore Company Formation?

Offshore Company Formation means forming an IBC (a.k.a. International Business Company), Non-Resident Company or Exempt company in an offshore country. The offshore jurisdiction needs to be political stable and also requires a reliable legal system. Well known offshore company formation jurisdictions with low or zero tax rates are:

Belize

BVI

Dubai

Hong Kong

Marshall Islands

Panama

Seychelles

Typical use of an Offshore Company

Expatriates, high net worth individuals, entrepreneurs and business owners from all over the world set up offshore companies for international trading or consultancy business, as a holding company owning onshore companies or for investment purposes. Motives to form an offshore offshore company include asset protection, tax planning and less bureaucracy.

Offshore company owning assets

An offshore entity is allowed to own any assets such as cash, securities, shares, real estate, yachts & ships, aircrafts, patents, copyrights etc. If properly structured, the offshore company also provides an extra layer of privacy for the owner.

Offshore Company Advantages

Asset protection against threatening creditors or an angry spouse

Global Banking Solutions

Less restrictions on doing business

Less bureaucracy

Privacy protection

Low or no tax

Offshore Company - Definition

As the words offshore, international non-resident and exempt already imply, an IBC or Exempt Company is NOT ALLOWED to:

Do business in the jurisdiction of incorporation

Buy and own real estate in the jurisdiction of incorporation

Provide banking, insurance, trust or legal services

An Offshore company MAY

Maintain a local or international bank account

Engage local solicitors, accountants or managers

Hold meetings and maintain books offshore

Own a ship, yacht or aircraft registered in the offshore jurisdiction