What is Stamp Duty
Stamp duty is a type of tax levied on documents in order to denote that they are legally effective. Usually the stamp duty is in form of a physical stamp however, due to technological advancements, stamp duty is not a necessarily denoted with the use of a physical stamp anymore.
EFSAG can assist individuals and companies in the process of establishing an offshore company. Our services expand over a wide range of associated consultancy services, for information please view our Company Services page.
The purpose of stamp duty
Stamp duty refers to a type of tax levied on legal documents, such as receipts, cheques, and land transactions. Traditionally, a physical stamp had to be impressed or attached upon the document to signify that stamp duty had been paid and therefore, the document is legally effective.
Stamp duty used to be a prevalent type of tax; however, with recent technological advancements around the globe, legalization of documents has been made simpler. The majority of jurisdictions around the world do not require individuals and companies to pay a stamp duty, as their documents are legalized through other methods. For instance, in the UK, stamp duty is only needed on purchase of property or shares.
When individuals or business entities form an offshore legal entity, they are obliged to comply by the regulatory policies enforced by the jurisdiction’s relevant authorities. Although, most offshore jurisdictions do not impose a stamp duty, it is common that all legal documents are notarized in the presence of a notary in order to signify that the document abides by the jurisdictional laws.
Individuals and companies who wish to establish an offshore company are advised to seek the assistance of a professional consultancy firm. Specialized consultants ensure that the process is carried out with a professional and timely manner, and provide guidance in regards to jurisdictional legal compliance.