Determining the location for establishing an offshore company is the most crucial and challenging part of offshore company formation. The jurisdiction in which the company is set up essentially dictates the entire formation and operation procedure.
Choosing a jurisdiction for your Offshore Company Formation
A number of individuals and companies wish to establish their business entity in an offshore location. There are various benefits of establishing a company in an offshore jurisdiction, some of which are listed below:
- Decreased levels of bureaucracy
- Low or zero taxation
- Higher levels of confidentiality and privacy
- Improved asset protection opportunities
- Political and financial stability
The most popular locations that offer favorable corporate structures include the BVI, Belize and Cayman Islands. Determining the location for your offshore company is the most important stage of company formation therefore it is advised to consider the benefits of each location and relating them to your specific business needs.
Once you have chosen the location for your company formation, the next step is to research the requirements for establishing a business entity. Each jurisdiction has a different set of criteria that must be met in order to become a legalized entity. The basic requirements for setting up a company include:
- Minimum share capital
- Director, shareholder and secretary
- Memorandum and Articles of Association
Many offshore jurisdictions require the presentation of a range of documented evidence, which must confirm their good reputation, financial status, and character. This involves presenting business and bank references, certificates from police and other law enforcement agencies along with other similar documents. However, once again, this procedure and the required documentation will differ from one jurisdiction to another.
Starting Business has many years of experience in offshore company formation and registration in jurisdictions across the globe. For information about our services in locations worldwide, please view our Jurisdictions page.