Have you ever heard of the company which conducts business in its country of incorporation where taxes are lower and reporting solutions are more convenient than the country in which you reside, yes that company is called offshore company.
offshore company is also known as non resident company or international business company (IBC).
Nowadays offshore company is chosen by many individuals for international trading, offshore investment, purchasing and owing real estate abroad, ownership of intellectual property, protection of certain asset classes, employment of overseas placed staff, efficient tax planning, offshore e business.
If offshore types of company has large benefits then why can't we set up our own offshore company? To set up offshore company you have to employ one of the many companies which offers offshore company formation services and buy a company off the shell in your benefits. Every company has various benefits and features of its own but it depends on us to choose which company can fulfill our requirements.
The first step to purchase off the shell company and become the legal owner is to submit the documents like passport, ID card, driving license, or social security card which shows your clear photograph with personal details and signature just for ID verification. You can also choose the country entirely on your personal circumstances so that you can easily tell what you want from the company. The price to set up this company can varies because it depends on which company you choose and what extra services they will provide you such as bank accounts etc.
Once the company is set up it is necessary to register it. For registration, first of all you have to decide its name but there is a condition that you can't use the name of existing company and certain words like president, chamber of commerce etc.
Then you have to select request type and they are of three types:
Once the name and memorandum articles of association are verified you have to pay certain amount of fees for each form submitted and also have to submit two copies of approved memorandum articles of association. After that this document is sent to database administrator who will search for similar names and sent it to registrar. Now registrar has the authority to approve the name and he can also ask for more information if clarifications are required in the forms attached. When the whole process is done the final fees should be paid and the company gets registration.
Many people invest in offshore company to expand their portfolios and even to save tax to be paid on capital gains. Nowadays many companies provide various investment products just as insurance bonds, insurance linked bonds, investment funds, residential and commercial property investment funds. This means that offshore investment service ensures the investors that their investments are protected against mismanagement and they can fulfill their financial objectives very easily.
Offshore banking provides the facility of internet banking and debit cards which allows easy assessment of funds anywhere in the world without deduction of tax and to open these accounts it is not necessary to visit the location because they can be opened by courier post. Offshore banking accounts also include personal privacy, asset security, and complete convenience. It requires only two to ten days in activation of account. Once account is activated you can deposit initial balance which varies company to company.