24 December 2015
What is an offshore company?
Each company registered in a different country to the one it is having business at, is considered to be an offshore company. Offshores are registered in order to structure, secure assets and taxation optimization.
There are two sore points of offshore companies’ registration.
- The location of the offshore company – where to register or buy it?
- The choice of the reliable and responsible registrar. The right company will help to prepare all necessary documents and provide support for offshore company.
These two particular questions will be answered below.
How to choose a country to register and purchase an offshore company?
There are more than 50 offshore zones in the world. They provide favourable conditions of taxation for offshore companies.
Requirements list can consist of dozens of points. But actually all jurisdictions can be divided into offshore and onshore.
What to choose – offshore or onshore?
There are two main jurisdictions types that offshore companies can be registered at.
1. Offshore zones or tax heavens.
Companies registered in such offshore jurisdictions are free from paying taxes. That is why there is no need to submit any financial or other reports on the company’s activity. In most cases all you will have to pay is a minor annual fee.
You should be aware that nowadays the level of trust to offshore companies, which are registered in offshore jurisdictions, has decreased. Offshore jurisdictions are also under pressure now. They are forced to open lists of final beneficiaries of the companies registered on their territories. It is mostly connected with the worldwide trend to prevent tax evasion, money laundering and financing of terrorism. That is why you can be refused to conclude contracts or even to open a bank account if you are registered in an offshore zone.
If these risks are essential for you and you would like to significantly optimize tax burden and provide additional protection for your assets, choose an offshore jurisdiction.
The most popular offshore jurisdictions are Panama, Belize, Seychelles and BVI.
2. Onshore zones of tax jurisdictions
Onshore jurisdiction are countries with conventional taxation e.g. Great Britain. Such countries usually have some special conditions, which allow getting tax advantages. For instance holdings in Latvia are free from dividends tax or capital gains payments. Another example can be partnerships, registered in UK. They are fully freed from taxes if their activity is held outside Great Britain’s territory.
This is the reason, why companies should submit financial reports but are free from taxes in such zones.
Main reasons to register a company in an onshore zone is trade, assets protection, well-respected by foreign partners' jurisdiction and the work in more sustainable legal environment.
Examples of onshore jurisdictions are Latvia, Canada, UK and Singapore.
Professionals will help you to choose a country
Unfortunately, spending even 10 hours surfing the web is not enough to understand all peculiarities and choose an optimal jurisdiction yourself.
Legal environment, tax rates and conditions are changing from time to time. So it is quite possible that the information, which you will find on your own, is already outdated.
Thus it is important to find a reliable professional or a company specializing in offshores. Such professionals keep their eyes on the ball and track all changes in legislation. They will help you to define the best jurisdiction for you.
Offshore companies’ registration services are very popular nowadays on the market and it is very easy for lawyers to step into it. Registering a company is also not such a big problem. The most important things in this process are
- The experience and the skill to choose the correct jurisdiction, which will respect all goals and needs of the business;
- The ability to provide safe and clear legal and accounting services of company registration.
The devil is in the details – if you choose the wrong executing agency, you might lose a lot of money.
How to choose a registering company
The jurisdiction is defined and you should only register your company. But the most important point here is to get guarantees that your company will be supported by professionals, reliable lawyers and accountants.
The biggest companies have their representative offices in offshore zones and this dramatically influences their services’ cost. Most of registrars cooperate with local partners in respective jurisdictions, i.e. work like intermediaries.
Choosing a likely reliable registrar cannot guarantee its partners’ reliability. Actually, they are the ones who will process your requests. It is up to them, whether your requests will be fulfilled accurately, professionally and quick.
A lot of details must be taken into account. Differences in time zones, mentality, distance, remote control issues can dramatically influence the flow of process. Because of these reasons registrar might fail to provide the required client service or simple extract from register in due time.
BBCRiga has many years’ experience of working with offshore zones
Our professionals know all the details and conditions of both onshore and offshore jurisdictions. Hundreds of clients and years’ experience with taxes optimization allow us to quickly process your request and advise you the best option in each particular case.
We have looked over a lot of partners to work with those who correspond to our standards of client service and quality of work.
There are three main criteria
- Response and requests processing speed;
- Accuracy and professionalism;
- Comfort during communication.
This is the reason why our existing pool of partners in 12 key jurisdictions allows us to close all our clients' needs and to provide them comfortable work. With our help you can register a new offshore company or buy an already existing one that fits your requirements.
After an analysis of your business’ peculiarities and the goal you would like to reach via registering an offshore, we can advise you the right option. We are providing registration services and further company’s support for you.
Please contact our managers to get more details. They will answer all your questions as for jurisdiction choice, registration and support of offshore companies.