Steps to Take for Offshore Companies Registration
Contrary to popular belief, most offshore companies are legitimate businesses that operate within all legal boundaries. An offshore company allows a business to protect its interests of confidentiality while reducing costs by optimizing tax. A company or corporation is a legal entity, similar to an individual. They can own assets, enter into contracts, and just like any individual liable to pay taxes and fees and follow laws and regulations. An overseas company simply means that they are registered in a country other than the domicile country of its owner. Such offshore or International Business Companies (IBC) are usually set up in jurisdictions that offer them freedom from high taxes and burdensome book keeping requirements.
The laws of the registering country govern the company, and apply forits registration and incorporation. While some rules and regulation vary, there are several common rules that need to be followed:
1. Naming: There are restrictions on the name of the company. The use of words like ‘banking’ or ‘insurance’ requires special licenses before they can be registered. Words that imply official or government endorsement of either the registering country or the domicile country are prohibited. However, registration officials may allow for some leeway if the presence of such a word makes sense. Derogatory or obscene words will be rejected outright. The primary objective of these rules is to avoid confusion or mislead the public or authorities.
2. Registered Address and Registering Agent: The IBC needs to have a physical address and a registered agent for official and government correspondence in the country of registration. Both these services are usually provided by offshore service companies at minimal cost.
3. Memorandum and Articles of Association (M&A): The IBC is required to file a copy of its M&A with the local Registrar of Companies. Depending on the laws of the country, these may be brief or extremely detailed. This document can be signed by the owner, but is usually signed by an onsite Subscriber or Incorporator, who becomes the first shareholder. They need to be allotted the legal minimum of shares in the beginning which can later be transferred. This service is provided by offshore registration service companies or intermediaries.
4. First Minutes: This document contains all the important information about a company when it is incorporated. Depending on the laws, a part or all of it may be available for public record. Any future changes may need to be registered with the Registrar of Companies.
5. Director: Most countries require an IBC to have at least one director. Most countries also allow a corporation to fill that role, allowing offshore registration companies to offer this service.
Apart from these points, laws and regulation vary quite a bit. It is a good idea to register shareholding patterns. Most laws and regulations in international finance centers are same as other countries, but with flexible regulations and no red tape.
About the Company:
Sterling is a leading licensed and regulated corporate, trust, fiduciary and fund services provider delivering specialised solutions for a global clientele of international corporations, institutional investors, high net worth individuals and families as well as their intermediaries. Whether an end user of our services or an intermediary, Sterling provides an efficient, personalized approach to ensure smooth, efficient delivery of services that meets the requirements of each client.
Sterling establishes, manages and administers offshore companies and international companies, offshore trusts, private foundations and funds utilized in various structures for an international clientele spanning over 80 countries. These entities combined with Sterling's supporting services allow us to provide a number of different solutions designed to achieve specific objectives of our clients. These objectives broadly include asset protection, international investment, tax optimization and foreign market entry.
|share||like 1||report||22 views|