DeltaQuest assists individuals and companies in registering and establishing an offshore company. For information, please visit our Company Registration service page.

Shareholders and shares explained

Most business entities formed are required to have a certain number of shareholders who own a specific percentage of the established company. However, shareholders only own stock therefore they do not become the owners of the corporation, unless they are the largest shareholding party.

Shareholders are granted certain rights in regards to owning shares in an offshore business entity, some of which are detailed below;

• Sell shares
• Vote for directors who will form the Board of Directors
• Propose shareholders resolution
• Purchase new shares

Investors are invited to buy shares and become shareholders of companies as it enables companies to earn capital. The procedure of transferring shares is dependent of the type of company, for example, in a partnership the shareholders are required to sell their shares through a formal process whereas in joint-stock companies the transfer of shares is much easier and can be anonymous.

Individuals and companies who wish to register and form a company in an offshore jurisdiction are advised to acquire the services of a professional consultancy firm. Through the advice and guidance of expert consultants, investors are able to ensure that their offshore company is established in a professional and timely manner. Moreover, experienced consultants with many years of practice in offshore company formation are able to ensure that the company registered is in compliance with all the jurisdiction’s regulations.

DeltaQuest offers assistance and guidance in regards to registering and establishing offshore companies in jurisdictions around the world. For information, please visit our Jurisdictions service page.

Standard terms and conditions explained

Individuals and companies that offer clients goods and services are advised to set the standard terms and conditions of sale. This agreement stipulates all the terms of engaging with your business thereby reducing the chances of customers disputing sales due to unclear communication of terms and conditions.

The main reason that companies determine their standard terms and conditions is to avoid unnecessary disputes that may cause them additional costs and hassle. The agreement between costumer and company safeguards the company from any charges made against it. The main aspects that the standard terms and conditions cover are detailed below. This list is not exhaustive;

• Delivery of goods
• Risk involved
• Insurance
• Ownership
• Payments
• Quality
• Limitation of liability
• Warranty

Through outlining the liabilities and the restrictions of the sale of goods and services, companies can protect themselves against any allegations that are unsupported.

Individuals and companies that seek to register an offshore company and establish the standard terms and conditions of the business entity are advised to acquire the services of a professional consultancy firm. Through the advice and guidance of experienced and expert consultants, investors are able to startup their business in a professional and timely manner, whilst being in compliance with jurisdictional regulations.

DeltaQuest has a wealth of experience in regards to registering and establishing offshore companies in jurisdictions around the world. For information, please visit our Company Registration service page.

The definition and scope of interest and interest rate

In order to register and form an offshore company, investors are required to invest a certain amount of capital and obtain the relevant licensing from the regulatory body in the chosen jurisdiction. It is likely that the investor borrows this capital from a financial institution as often the minimum capital requirement is quite high.

In the event that investors borrow money, they are required to pay a certain amount of interest to the lending body. The percentage of interest rate applied to each loan is dependent on the nature and amount of the loan. It is often set over a certain period of time in which the investor will be expected to pay back the entire loan. Interest is also paid to investors who have a certain amount of funds in a bank account, that is, they earn interest of their deposited funds.

Individuals and companies that seek to register an offshore company are advised to acquire the services of a professional consultancy firm. Through the advice and guidance of expert consultants, business professionals and entities are able to startup their company in an offshore jurisdiction in a professional and timely manner. Additionally, consultants who specialize in the field of establishing offshore companies are able to ensure that your company is formed in compliance with the regulations of the chosen jurisdiction.

We offer advice and guidance in regards to registering an Ireland offshore company. For information, please visit our Company Registration service page.

Registering an Ireland Offshore Company

Ireland offshore companies are regulated under the Common Law, which is largely based on English Common Law. All companies in Ireland are formed under the Companies Acts 1963-2009. In order to register an Ireland offshore company, investors are required to submit the relevant documentation – including Memorandum and Articles of Association – and the completed official application form to the Registry in Ireland. All companies are required to engage in some business activity within Ireland however they cannot solicit funds or sell shares to the Irish public.

An Ireland offshore company is required to have a registered office in the Republic of Ireland, where the details regarding the directors and secretaries are maintained. The corporate tax rate in the Republic of Ireland is 12.5% on trading income, which is relatively low compared to other countries in the EU.

The other requirements include the following;

• Minimum of one shareholder, although most companies have two.
• Minimum of two directors – must be a natural person, not a corporate body. Additionally, one of the directors must be a resident of the European Economic Area (EEA).
• Secretary of the company.
• Authorized capital of €1,000,000.

In order to establish an Ireland offshore company, it is advised to seek the assistance of a professional consultancy firm. Through the advice and guidance of experienced consultants, investors can ensure that their Ireland offshore company is established in a professional and timely manner, as well as in compliance with the Irish regulations.

DeltaQuest can assist with company formations and registrations. For information in regards to what type of entity you would like to establish, please visit our Select a Company Entity service page.

Characteristics of shares

Shares are a basic individual unit which represents how much of a business entity is owned by its shareholders. The number of shareholders is dependent on the nature of the business entity and which jurisdiction the company operates in.

The main purpose of shares is that they entitle the shareholder to a certain percentage of ownership; thus providing them with a form of financial value – whether this is through a company, mutual fund or stocks. Buying into a financial asset enables individuals and companies to exercise a certain degree of power in regards to their investment.

Share prices are highly volatile, depending on the demand for particular shares in the market. For example, if a company is not doing well, the share price for the day will go down. As a result of this, individuals are able to acquire more shares for a lower price.

It is important to invest in shares that will be profitable in the long term. Through buying shares in the right industry, individuals are able to raise capital from their investments. Most shares tend to pay a dividend, which is a certain percentage of the profit paid to a shareholder. Therefore, owning shares in the right company and financial assets can result in individuals gaining more income from dividends.

When establishing a business entity, investors are required to outline the process of buying shares in their business entity. It is advised to seek the assistance of a professional consultancy firm to advise and guide you in the entire process of establishing the foundations of the company.

DeltaQuest 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

When an individual or company establishes an offshore entity in an offshore jurisdiction, they are subject to comply by the fiscal policies imposed by the jurisdiction’s regulatory body. Many jurisdictions do not levy a stamp duty, however it is common practice that all legal documents are notarized in the presence of a notary in order to denote that the document complies with the jurisdictional regulations.

Traditionally, stamp duties were a widely practiced and recognized type of tax, however with recent technological developments around the world; legalization of documents has been simplified. Most jurisdictions across the globe do not require individuals and companies to pay a stamp duty as their documents are legalized through other methods.

For example, in the UK, stamp duty is only required on purchases of property or shares. This is referred to as the Stamp Duty Land Tax (SDLT) in terms of property and Stamp Duty Reserve Tax for the buying of shares.

When registering an offshore company, investors are advised to seek the assistance of a professional consultancy firm in order to complete the process in a professional and efficient manner. Additionally, experienced consultants are able to guide individuals and companies in regards to the jurisdictional laws as well as administering the correct documentation for establishing an offshore company.

DeltaQuest offers advice and guidance in regards to company formation, with services ranging from accounting and auditing to tax planning. To view our full range of services, please visit our Company Services page.

Consultancy agreement explained

A consultancy agreement is a legal document that is usually established between two or more parties. The parties involved include a business entity and a consultancy agency (either a company or individual), both of which establish the consultancy agreement in a bid to clarify their responsibilities and duties.

The consultancy agreement is a document and is often formed between a legal entity and a consultancy company when one party seeks the assistance and guidance of the other. By forming this agreement, the business entity is able to establish the duties the consultants will be expected to carry out in addition to providing the consultants with a concise document detailing the services which they are expected to provide. The purpose of a consultancy agreement is to act as a basic foundation and guide by which consultants and business entities can refer to, to make sure that the clauses outlined are complied with.

There are many legal documents involved when entering a business venture with another party therefore it is advised to seek the assistance of a professional consultancy firm. Through this, individuals and companies that have established offshore companies are able to ensure that they have registered their business entity in compliance with the jurisdictional regulations. Additionally, all legal documents are filed to the correct regulatory body in a professional and timely manner.

DeltaQuest assists individuals and companies to register their business in a number of jurisdictions. For information on how to establish a business entity, please visit our Company Registration service page.

Environmentally friendly companies explained

Business entities across the world engage in activities that cause pollution on a daily basis. Whether it is printing numerous documents or using an air conditioner in their company’s building, these small activities cause an indirect harm to the environment. As a result of the large detrimental impact businesses have on the environment, companies have taken an approach to become environmentally friendly and increase awareness of this growing issue.

By operating in an ecologically-friendly manner, companies are able to appeal to much larger clientele as well. Most customers prefer an eco-friendly company to one which harms the environment, whether it is through their recycling policy or energy efficiency measures. There are a growing number of large multinational companies that joined the eco-friendly campaign, some of these include the following;

• Nike: through their chemical toxicity checks, water usage and carbon emission monitoring, Nike seeks to reduce their carbon footprint. Additionally, the company has invested in teleconferencing equipment in order to reduce business travel.
• Yahoo: in making their website visitors aware of the environmental situation and providing green tips. Moreover, Yahoo has taken the initiative to locate their data centers in cooler environments therefore reducing air conditioner requirements.
• Adobe: due to their strictly office based environment; the design giant has proposed recycling plans in all their offices.

The above are a few of the leading green businesses in the world. By becoming an eco-friendly company, businesses are able to help sustain the environment and be part of a much bigger cause in the world.

DeltaQuest offers a many years of experience in registering companies in favorable tax jurisdictions. For information on the varying tax rates in different countries, please visit our Jurisdictions service page.

The definition and scope of corporate tax

All companies established in a specific jurisdiction are subject to abide by the tax regulations of that country. Some jurisdictions implement a flat tax rate however, most countries tend to have a progressive corporate tax rate, that is, the tax rate is dependent on the income the company gains. Corporate tax is imposed upon all legal entities established within a certain jurisdiction. Corporate tax is often just one branch of the various taxes than a company is subjected to comply by; other taxes include interest on dividends, shares and stamp duty.

The tax is applied on the net income or capital of the legal entity of a rate dependent on the jurisdiction. Individuals and companies that wish to establish an offshore company strive to register their legal entity in a jurisdiction that proves to offer them the most favorable conditions in regards to corporate tax rate and minimum capital requirements. These are two of the most important factors that are considered by investors as it determines their net income after their company is established.

Therefore, individuals and companies are advised to seek the assistance of a professional consultancy firm when starting up their offshore company. Experienced consultants can offer assistance and guidance in regards to which jurisdiction will benefit your specific needs and purpose of establishing an offshore company. Additionally, through seeking the assistance of a consultancy firm individuals and companies are able to ensure that the process of registering an offshore company is completed in a professional and timely manner.

For information in regards to forming an offshore company in jurisdictions across the globe, please visit our Jurisdictions service page.

The principles of United States Chapter 13 Bankruptcy

Business professional and corporations that reside and operate in the United States have the ability to file for Chapter 13 bankruptcy. This form of bankruptcy provides its seekers with the opportunity to pay off their accrued debt without having to deal with bill collectors and creditors as the court provides them protection. Unlike chapter 7, this type of bankruptcy does not discharge individuals or companies from paying off their debt however, it will assist them in paying it off through a payment plan.

Due to the stringent laws governing chapter 7 bankruptcy, many individuals and companies seek to file for bankruptcy under this code. Chapter 13 does not serve as an “eraser” of debts like chapter 7 but it acts as a repayment structure for debtors to pay off their debt over a period of time.

Once an individual or company has filed for bankruptcy under chapter 13, the court assists them in establishing a plan for them to commence repayment. It is likely that the court will form an interest-free plan to help pay off the debt faster. Creditors are not involved in the repayment schedule structuring as the court provides its debtors full protection from them. Once the payment plan is in place, the debtors are required to commence payment within 30-45 days of filing for bankruptcy.

Chapter 13 enables debtors to keep their assets secured even though they might be temporarily repossessed by the court, however this is unlikely. Another benefit of chapter 13 bankruptcy is that the repayment plan allows individuals and companies to pay off their debt in an interest-free plan.