|WHY REGISTER AS AN OFFSHORE COMPANY?
WHAT IS AN OFFSHORE COMPANY?
An offshore company is a legal entity registered according to the rules of a particular country or jurisdiction, performing its business outside the country or jurisdiction in which it is registered.
An offshore company can also be registered as an International Business Company (IBC). Offshore companies:
- Are exempted from paying tax on profits gained outside the jurisdiction (0% tax rate)
- Can maintain confidentiality of company information
- Have minimal regulatory compliance requirements
WHY REGISTER AS AN OFFSHORE COMPANY?
An offshore company enjoys a number of benefits over an onshore company. The benefits are as follows:
Most offshore companies are exempt from taxes on all profits gained outside the jurisdiction. The taxation rate is zero percent (0%) for an offshore IBC.
An IBC has the right to keep all information about its directors, secretaries or shareholders confidential. The law prevents anyone from enquiring about the details of owners and employees. The owners are not legally required to disclose any information about their company to anyone.
MINIMAL COMPLIANCE REQUIREMENTS
An IBC enjoys the benefit of having to fulfill only minimal compliance requirements. However, the following conditions must be fulfilled for incorporating an International
- At least one person must be appointed as a company director at the time of incorporation. The director can also act as the sole shareholder. There is no requirement for appointing a company secretary, as is in the case of registering an onshore company.
This means that a single individual can register an International Business Company in an offshore jurisdiction.
- It is legal for an International Business Company to keep all company details confidential. Details of ownership such as the personal information of the directors, secretaries and shareholders need not be disclosed to public. Similarly, financial records of an IBC can be kept private. This includes information such as company accounts and share capital.
- Another major advantage for an IBC is that it need not file annual returns.
- An International Business Company has diverse investment opportunities. In other words, offshore companies may conduct almost any type of business activity. For this reason, offshore jurisdictions attract business from all over the world.
- Company meetings of an IBC can be held anywhere in the world - not necessarily in the jurisdiction where the company is registered. Moreover, physical presence of attendees is not required during meetings – meetings may be conducted over the telephone and over the Internet, etc. This saves time and travel fares expenses. International Business Companies also need not hold Annual General Meetings (AGM).
- Offshore jurisdictions attract international trade and business activities, which in turn render them credible as business jurisdictions.