Offshore company formation — what it is and how it works?

Incorporating offshore is no different from your regular business; the only disparity is the jurisdiction in which it has been incorporated. Usually incorporated in the form of IBC, short for International Business Corporations, setting up an offshore company offers a range of valuable benefits. Many people set up offshore companies to protect their assets, save towards their retirement fund, family planning, etc. Also, there are many people who believe that offshore companies are illegal. However, there is nothing illegal in offshore corporations unless you intentionally do it for tax evasion.

What is an offshore company?

An IBC is a corporation that can do business in any part of the world apart from the country it is incorporated in. There are a number of consultants or service providers who can assist you in setting up an offshore company and advise you on all the required legal aspects and procedures. So, if you are considering setting up an offshore company, then please ensure to look for a reliable and notable service provider to help you. They will assist you right from the beginning i.e. from filing the application form to completing the documentation process and successful set up of the merchant account to process all the payments. Most of the consultants also offer you to choose an already registered offshore company with providing the nominee shareholder and nominee director, depending upon the requirement. However, please note, if you are concerned that the ready to trade offshore company might have outstanding liabilities or procured debts then don’t worry. Each ready to trade offshore companies have no debts and are free from any trade or past debts.

How offshore companies function?

Unlike onshore companies, you are not required to actually live in the country where your offshore company is registered. There are a number of offshore locations or jurisdictions where there areno restrictions based on your residence. You can manage your business or govern your company yourself or appoint an agent to take care of your business. Most of the industries that conduct trade all over the world do so through offshore formations. Now, the first step is choosing a favorable jurisdiction which caters to your every single requirement. Different jurisdictions have their own set of requirements, rules, advantages and disadvantages. Many offshore jurisdiction and banks have very strict rules on who they accept as their customers. A number of offshore banks have good reputation as a reliable and trustworthy financial institution and won’t allow you to avail their services if you have any foul credit. Like banks everywhere, these offshore banks have their own minimum requirements and other related services.

Lastly, contrary to the myth, offshore incorporations are legal company formation in an offshore location which offers a lot of advantages such as asset protection, complete privacy and confidentiality, etc. All you need is to associate with a reliable consultant to pick the suitable jurisdiction and be aware of all the advantages and disadvantages offered.