Tweet

How to set up an offshore company

Guest post by: Lawrence Smith

Article Overview: Provides an overview of the procedures required to set up an offshore company. The article covers different aspects to be considered by entrepreneurs when deciding if offshore company setup will meet their business objections.

How to set up an offshore company

Whether it is to save taxes, achieve greater business freedom, protect assets, minimize reporting, or maintain privacy, having an offshore company (a company that conducts business outside the country of incorporation) can be an optimum business solution. Offshore company formation is popular amongst international entrepreneurs, independent contractors, consultants and traders.

Setting up an offshore company is simple with the help of a corporate services company. The typical set up procedures are as follows:

1) The hired consulting company collects the required due diligence from the client.

2) The consulting company provides the client with a detailed project plan, which includes steps to incorporate the potential offshore company.

3) The consulting company proceeds to register the offshore company with the suitable corporate structure. This requires minimal client involvement.

4) After registration is complete, the consulting company will provide the client a complete company kit including i) original Certificate of Incorporation ii) a bound copy of government-approved Memorandum & Articles iii) original share certificates iv) an extract from the Public Register illustrating company details available for public viewing (if applicable) and v) an original government receipt as evidence of payment of annual offshore company registration license fees.

5) For invoicing purposes, the consulting company will provide the client with a reputable international business address, telephone and fax line.

It is important to note that exact offshore company set up procedures and the duration vary according to the jurisdiction. It is important to choose a respectable jurisdiction that is free of any negative stigma of illegal activities, such as money laundering and tax evasion.

Examples of popular jurisdictions in which to set up an offshore company smoothly and relatively quickly are Singapore and Hong Kong. These two ideal offshore jurisdictions boast excellent international reputations to customers, suppliers, investors, banks and other organisations. For example, Singapore and Hong Kong have strict client confidentiality and bank secrecy laws and are not listed on OECD black or grey lists. This is important, as they are not given any tax haven stigma. Singapore and Hong Kong also have investor-friendly business environments and are economically and politically stable.

Regardless of jurisdiction, after offshore company incorporation, it is advisable to consider the additional ways your corporate services firm can assist your offshore company to prosper. Services may include financial services, such as assisting corporate bank account opening, business website design and Search Engine Optimisation (SEO), marketing services and human resource services, such as staff recruitment and obtaining employment visas.

Setting up an offshore company under the guidance of a corporate services firm will help to ensure smooth company registration and also provides the strategic advice for successful business operation.

Related Articles
  SEO Companies in the UK, US, Canada and Australia are Outsourcing SEO Offshore?
  The Benefits Of Registering An Offshore Company
  Options for Offshore Company Formation
  Setting Up An Offshore Company In Hong Kong
  Offshore Software Development
  Effective Locations for Offshore Incorporation
  Setting Up An Offshore Company In Singapore
  Singapore Offshore Company
  Offshore Banking – Top 5 Facts
  Offshore Outsourcing Web Services: PHP Web Development
  Why Hong Kong For Offshore Banking?
  The Importance of International Tax Planning
  Offshore Banking - Explained
  ‘What can I do with an offshore company?’
  Why Singapore For Offshore Banking?
  Offshore Investing
  How To Complete Offshore Company Formation
  Offshore Banking in Singapore
  Disadvantages of Outsourcing to Offshore Virtual Assistants
  Choosing the Marshall Islands for Company Registration

Article Tags: Hong Kong offshore company, offshore company, offshore company formation, offshore company incorporation, offshore company registration, offshore company set up, offshore company setup, Singapore offshore company



Related Forum Posts
Re: How will an african make money truely on the net? - [quote="OmnivoreInk":1gmz8h93]Is it possible for an African business to set up an "offshore" account in the US or England... or even Switzerland... where all monies are paid? And a trusted agent there, who gets a percentage of any money, can then take that money from paypal and wire it or mail it or whatever to an African bank? There are lots of countries in Africa, is this a problem in all of them? Seems like an internet entrepreneur who can set up a "Paypal" like company of their own might be able to make money on this... ? Course you'd need governmental contacts...[/quote:1gmz8h93] You can actually get an offshore account but you have to provide many documents except if you will open a brokerage account which operate like checking account. Omnivorelnk, i believe one of these days a company will spring up to meet this challenge and make internet a worthwhile for africans and other under priviledge.
Re: What is your biggest challenge? Today? - Here are some tips on how to choose the right outsource company for your business: *Figure out what expectations you have and how you plan to reach them. *Do a background check on the companies that you have shortlisted. *Send the company a sample project for them to accomplished so you can gauge their infrastructure and competence. *Determine if the offshore service provider is financially strong. *Make sure there are no culture clashes between you and the service provider. *See if the service provider is one that has plans to build a long-term relationship with you.
Re: What Do You Outsource Mostly? - [quote="Alan Mater":2ioumbqb]Hi Rob, As I mentioned above, I mainly outsource content to an online friend, and I occasionally outsource content to a very reliable freelancer who runs an article writing service which I found in the Warrior Forum. Both provide quality content that I usually go over just to touch things up a bit, but nothing major.[/quote:2ioumbqb] That's good to know, Alan. But if your company becomes incredibly huge for freelance writers to handle, I say the best path for you to take is an organized offshore outsourcing company. By looking at the big picture, this will not only save you money, time, what have you; It will enable you to focus more on your core business and how to make it even bigger.
Re: How will an african make money truely on the net? - Is it possible for an African business to set up an "offshore" account in the US or England... or even Switzerland... where all monies are paid? And a trusted agent there, who gets a percentage of any money, can then take that money from paypal and wire it or mail it or whatever to an African bank? There are lots of countries in Africa, is this a problem in all of them? Seems like an internet entrepreneur who can set up a "Paypal" like company of their own might be able to make money on this... ? Course you'd need governmental contacts...
Re: A note for software companies struggling in this bad economy - Are we talking about programmers, techs or both? What type of workers do they have specifically? I would be leery to go offshore from the U.S., as I think that may actually hurt our economy here, but I'm still interested in knowing how this all works.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Qualities of Leadership Part 1

TOP Level Selling

The Importance of Master Data Management (MDM)

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.