Offshore Company Formation and Uses

Forming an offshore company can often be a wise and profitable decision for new business owners. The offshore company enjoys many perks.

Offshore company formation is often useful for new companies

Businesses set up in the company of residence of the beneficial business owners are not privy to these benefits. The offshore company, sometimes called an IBC or International Business Company, can be extremely advantageous to those who use it appropriately.

Process

The process for the formation of an offshore company is incredibly easy. With the advent of the internet, the formation process can take from 48 hours to 7-10 business days depending on the jurisdiction. The various offshore locations each require different paperwork.

In general, the requirements include the completion of a company application form signed by the beneficial owners of the company. Also requested is a notarized (or apostile approved) copy of passport for all beneficial owners, shareholders, and directors. They may also require recent proof of resident of less than 2 months old such as bank statement or utility bill for all beneficial owners, shareholders and directors. All of the paperwork needed (and again, the amount varies from location to location) can be handled by professionals like Financial Guardian. They will guide you through the entire process. This removes any confusion from the incorporation procedures.

Another service that you may find valuable is that of nominee services. Nominee services are used to appoint ‘proxy’ shareholders and directors for your new company. This allows for a crucial layer of privacy when necessary for the filing for the formation of the offshore company. Financial Guardian provides these sometimes crucial nominee services upon request.

Perhaps one of the most perplexing of the choices is where, from one of the 70+ offshore choices available, should you incorporate. Each location has both advantages and disadvantages. It is necessary to do research to determine where you will receive the best conditions for your specific business needs.

The offshore company may have to file paperwork on a yearly basis depending on its location. While new business owners may shudder at the thought of creating this paperwork, it is shockingly much less required from other standard onshore locations. It is these kind of irritations, although seemingly small, that send new business owners running to create offshore companies.

The offshore company (or IBC) can be formed to enjoy a variety of benefits. These include tax benefits, low to no overhead, reduced start-up costs, privacy, and sometimes simply a preferential location.