Registering an offshore company provides its owner with many advantages, which can make doing business more efficient. For example, companies can reduce taxation or receive tax benefits, or make their business more confidential. It is quite easy to become the owner of this type of company, you just need to buy a ready-made offshore company. Let's take a closer look at how to do it right in order to really save time and get the right form of company in a favorable jurisdiction without overpaying.
Our lawyers are experts in registering or buying offshore companies in any country! We will help you choose the best option, collect all the necessary documents, and quickly set up a ready-made offshore company.
How to order a ready-made offshore company: a step-by-step procedure
It is possible to order a ready-made offshore company in the chosen country and quickly become a business owner if you have all the necessary documents. Let's take a look at how to buy an offshore company step by step:
- choosing a company;
- reserving the selected company;
- paying for the service;
- providing the necessary documents;
- taking ownership of the ready-made company.
It should be noted that it is impossible to buy a ready-made offshore company quickly if the future owner does not have a package of necessary documentation:
- documents confirming the identity of the company's beneficiary;
- documents confirming the identity of the attorney;
- confirmation of the address of the attorney's and beneficiary's residence;
- an information certificate briefly describing the company's occupation.
If you have these documents, you can buy an offshore company in 1-2 days.
Offshore account
If you need to order a ready-made offshore company with an open bank account, you should consider the following points:
- the need to change the account owner;
- the need to notify the financial institution of the change;
- waiting for the mandatory verification procedure for the new owner and company.
After verification, there is a possibility that the old account will be blocked and a new one will need to be opened. In this case, you can open a free account in the Payoneer payment system (USA).
If you need to choose another payment system, such as Bilderlings (UK) or Nebeus (Spain), the offshore company must have a tax number. Often, such payment systems open an offshore account only for a specific transaction.
In which countries is it possible to buy an offshore company?
It should be noted that countries that are considered offshore are gradually changing their legislation and requirements. This is due to the creation of so-called blacklists, which create restrictions on offshore activities in a number of countries. To fix this, offshore countries are implementing new laws. This should be borne in mind when ordering a ready-made offshore company. For example, in a number of countries, offshore companies now have to prepare financial statements and submit annual reports.
Today, there are several countries that are considered to be the most popular to register or buy an offshore company. Below, we will consider each of them.
Seychelles
The easiest way is to buy an offshore company and conduct business in the Seychelles. To order an offshore company in this jurisdiction, you need to pay a small fee. That is why the islands are in the first place among foreign entrepreneurs in terms of popularity.
Since 2019, international business companies (IBCs) have been authorized to operate in the islands. If such a company receives income in Seychelles, it must submit an audit and financial report every year. An offshore company that does not work with local companies and has an account in a foreign bank may not do so.
A preferential tax rate can be obtained by a company that at least has a registered office in the islands. This applies to the following activities:
- investment advisory services;
- securities exchanges;
- clearing agencies;
- securities dealers.
It should be noted that every organization in Seychelles can obtain a TIN if necessary now. This is available even to those companies that do not have any activities in the country. To obtain a TIN, you must contact the company's registration agent and keep internal accounting records at the place of business registration.
Panama
Another popular jurisdiction where you can buy an offshore company is Panama. Firms in Panama have the form of a corporation, and a limited liability company is less commonly used. It is a country with a high level of confidentiality, i.e. the company register is not publicly available. But it should be understood that it can be accessed by authorized registration agents. If you need to order a completely confidential offshore company, you should use a nominee service.
Also, offshore companies do not submit an annual financial report. However, they must maintain internal accounting records and keep them for the last 5 years.
Before you order an offshore company in Panama, you need to remember the following. Companies that do not receive income from activities in Panama do not pay taxes. However, there is a fixed fee of $350 for each company. If it is not paid on time, the annual fine will be $50.
Belize
Belizean offshores are also high in the ranking of popularity and accessibility for foreign entrepreneurs. In 2019, the country introduced new rules for international business companies (IBCs). That is why offshore companies in Belize have the right to:
- work with residents of the country;
- hold shares in local companies;
- own local real estate;
- open accounts in local banks.
Those companies that have to operate with an IFSC license must open offices in Belize and hire local residents. This applies to companies providing brokerage services, banking and insurance services, as well as working with securities.
Additionally, such companies must keep corporate documents and registers, as well as prepare an annual report and pay local taxes. In order to avoid paying taxes, a company must have a document confirming its tax residency in another country. In the absence of such a document, the business must pay a fixed fee depending on the authorized capital.
British Virgin Islands
Ordering a ready-made offshore company in the BVI will cost a business owner more money and complexity. That is why it is not often chosen by foreign entrepreneurs. In addition, under the new legislation, it is possible to buy an offshore company in the islands only if you have a registered legal address. A mandatory aspect of offshore business in the British Virgin Islands is the need to submit Economic Substance Reports.
All information about the company and its documentation must be kept, because the ITA BVI may request information about finances, tax residency, official office address, etc. If the request for data is ignored, the company may be fined or even removed from the Register.
Additionally, the country stores all data on beneficiaries in the Beneficial Ownership Secure Search system (BOSS) and provides it upon request.
UAE
Today, this location is not in the top of requests for offshore registration due to the high cost, long-term nature and complexity of the process. All companies of this type cannot operate in the UAE due to the lack of a business licence. That is why offshore companies have only foreign capital. You can buy a ready-made offshore company in the following emirates:
- Ajman.
- Dubai.
- Ras Al Khaimah.
You can order an offshore company in the UAE without physically opening an office in the country. There are also no tax obligations.
Advantages of offshore companies
Usually, people choose to buy an offshore company because of the following advantages:
- tax benefits - offshore zones provide companies with the opportunity to avoid paying taxes if they do not operate in their territories;
- increased level of confidentiality - state registers do not contain information about the owners of an offshore company;
- the possibility of using nominee directors and secretaries - this significantly increases the level of confidentiality;
- minimal requirements for submission of annual reports and audits - in some cases, companies may not submit documentation at all;
- no requirements for a real presence in the country - companies may not open an office if they do not operate in the offshore territory;
- quick opening - usually, an entrepreneur can buy an offshore company off the shelf;
- no regulation of the authorised capital;
- no need to pay a salary to the company's director;
- if you buy a ready-made offshore company, the owner can conduct business transactions with other companies from all over the world;
- providing information about the company's founders takes a long time and is not always possible, which improves confidentiality.
What to do with an existing offshore company?
Due to changes in offshore legislation, in some cases it is better to close or restructure such a company. If this is not possible, you can redomicile offshore. This term means moving the company's registered office to another country. At the same time, its management structure remains unchanged.
To make such a move, you need to make sure that such actions are possible in the chosen country. You will also need corporate documents and an extract from the state register of the country where the company was registered. An offshore domicile is not possible in such cases:
- the company has debt obligations;
- the company is in the process of bankruptcy/liquidation;
- the organisation is a party to litigation.
Upon completion of the transfer procedure, the offshore company receives a certificate of redomiciliation.
If you want to set up an offshore company and quickly become a business owner in the chosen country, it is important to entrust this process to professionals. The experts of the international law firm Maira Consult will help you choose the best jurisdiction, prepare all the necessary documents and accompany you at every stage. We provide a full range of services - from choosing a country to the successful launch of your company. Sign up for a consultation and we will find the best solution for your business!
