offshore solutions since 1988
▪ Offshore And The Law
Although most countries have a carefree approach to their resident wishing to protect their asset elsewhere rather than in their home country. There are, however, a number of countries such as the United States that requires it citizens disclose detail of all their financial affair whether they be in their home country or not. It is therefore important that you, consult a lawyer in your country to confirm the legalities. Remember, you are doing nothing illegal by establishing an offshore company or trust. Individuals and other entities are forming companies or opening bank accounts all over the world. All you are going to do is form a company/trust in a country that promises not to charge you any taxes. Each country has it's own policy and requirements relating to it residence going offshore. Taking professional advice will ensure that you stay well within the law no matter how harsh they may seem to be. Remember that Tax Evasion is illegal Tax Avoidance is not.
It is absolutely essential that an individual understand the difference between "Tax Avoidance" and "Tax Evasion". "Tax Evasion" involves being taken to court and charged with a criminal offence. With "Tax Avoidance" the worst case scenario is the government disagrees with you on a tax issue and they make a strong enough case that you have to pay the tax. The best case is you don't pay any tax.
Transferring legally obtain funds to an offshore jurisdiction providing taxes have been paid to the relevant authorities should not cause reasons for concern. This is entirely legal and you are free to transfer your money anywhere you choose. For those who wish to keep a low profile move your funds in small amounts you should avoid such exposure.The movement of funds to the mainland by an individual may be a little more difficult since it could appear as earned income and liable for personal tax unless you take certain precautions. Your managers should be able to secure International Money Orders for small amounts, which will allow you to pay your suppliers etc. You could have the company pay for a number of high priced items.The most popular and successful method for the repatriation of funds to the mainland is through the use of a secured offshore credit card in your company's name. Such as Visa, MasterCard or Amex. This will enable to access funds through ATMs worldwide.
U.S. Citizens And Offshore Companies/AccountsThe United States of America has one of the most severe tax systems in the world. U.S. citizens are required to pay U.S. taxes on their worldwide income and capital gains regardless of where they may reside and filing tax returns. Citizens of United States are required by law to state whether they hold controlling interest or similar influence on an offshore company. If it is declared that there is a controlling interest, then profits and/or interest will be liable for Federal tax. They are also required to notify the Department of Treasury if they have an overseas bank account that holds over US$10,000 and report any income from offshore investments for the purpose of taxation.
Although some individual are quite comfortable with the idea of not making such a declaration, since no detail of Directors, Shareholder or Bank Accounts can be obtained by outside agencies, it may be considered as "Tax Evasion" if discovered and be deeming illegal. Although to our knowledge, no such appeal has been made to date in an offshore jurisdiction. For those of you that wish to stay on the right side of the law there are a number of legal ways to overcome this requirement. The most popular and effective is not to have a controlling interest of the company or account. You must have great confidence in your offshore Management Team. For your peace of mind you can stipulate that two signatures be required when signing on the accounts, yours being one. Seeing that each signature is in actual fact worthless on its own, it can be argued whether you have a controlling interest. A less practicable option to avoid all taxes is to give up your citizenship.
For the self-employed you can form an offshore management company and employ yourself, pay yourself a modest salary and declare it to the taxman. Your salary should reflect your lifestyle. Naturally all the companies profit go offshore since payment for your services are made to the offshore company tax-free. For a solution to your particular circumstances it would be best to seek advice from an attorney. When obtaining such advice bear in mind that tax consultants do not have the same client/Attorney relationship when it comes to confidentiality and are therefore more like targets during an investigation.
Remember when going offshore you should above all, keep a low profile, don't provoke the taxman, pay some tax and avoid disclosing your Offshore Status.
What is an Offshore Company?
An "offshore" company is any company which is formed in any of the so-called tax favored or "tax haven" jurisdictions. In the past few years, among the most commonly-used countries are the British Virgin Islands, the Cayman Islands, Nevis and the Bahamas and Barbados. The more traditional and longer-established havens include the Isle of Man, Jersey, Guernsey, Gibraltar, Panama and Liberia. What these countries have in common is the fact that they generally impose no (or an extremely low) tax on companies which are formed there but which do not do any business in that country. The type of the entity formed differs country by country but they usually have most of the characteristics of a US corporation or Limited Liability Company. International Business Companies (IBCs) and Limited Companies are probably the most common. These companies can be formed for various reasons - to hold investment property such as real estate and financial portfolios or to engage in international business transactions.
If you are a citizen of a country that does not tax income earned outside of its borders, an offshore company can be most advantageous - your money can grow tax-free (and therefore a lot faster!) until it is repatriated. Some countries have tax systems like the US - "global" taxation where all income is taxed regardless of where it is earned. If this is the case, you must declare any income earned when you file your return so there are few tax advantages.
However, many US citizens find another legitimate advantage to offshore companies - asset protection. In our increasingly-litigious society, many people keep their nestegg offshore. It's much more private (the confidentiality laws of these jurisdictions are usually very strong) and it's much harder for potential creditors in a frivolous lawsuit to get at your money. It's best to begin this planning as early as possible. Many courts can seek to set aside such a transfer of funds as fraudulent if it's within a certain period of time (generally 3 years) of a lawsuit or "in contemplation" of litigation.
Offshore company – the most common definition describing an entity incorporated in a jurisdiction with low level of taxation and no exchange control. There are about 50 states that have reduced taxes.
One of the main advantages of incorporation of a company in a jurisdiction with low taxation is comparatively low cost of registration – around $1000 and almost the same price annually for a registered address. Thus some states stimulate budget revenues from registration and annuals fees. Companies incorporated in such tax havens are as a rule either Corporations or partnerships and have the status of the International Business Company (IBC).
International Business Company (IBC)
An International Business Company is a corporate vehicle having limited liability, which, provided it has no business activities in the jurisdiction of registration, is wholly exempt from taxation on its income and from inheritance or estate tax on its shares. Only a nominal annual fee is payable to the Government.The IBC is a very flexible and well tried corporate vehicle suitable for a wide range of trading, investment and asset protection activities and solutions. IBCs can be formed in a day and with a minimum of formality.
An IBC can have bank accounts in any jurisdiction, deal with lawyers, accountants, trust companies and other professionals locally, hold company meetings and keep its accounting books and records in the same jurisdiction without breaching this restriction.
There are popular fallacies that persons or entities pay taxes only in the country of their residence. In most countries taxes are levied from everyone who stays there for 6 months or more. For example, one who stayed in Great Britain for six months and then moved to USA and stayed there for another six months can be treated as a taxpayer in both countries. Thankfully there is an Agreement about avoidance of double taxation between those two countries but the person in our example would pay taxes on the highest rates applicable in the both countries.
A similar situation may arise for companies as well. Most of the countries treat as taxpayer a company that is managed or controlled from their territory. The company is considered as managed from the country's territory if the company's directors reside in that country. So if a company is incorporated in the USA and it's directors reside in UK the company will have to pay taxes in both countries. That is why British taxes are levied on all offshore companies that are managed and controlled from British territory.
''To Offshore Or Not To Offshore''
Many of the people who have established offshore companies have felt their governments has far too much control over their destiny. One of the first thoughts that comes to mind when the phrase "offshore investing" is mention to an individual, is tax savings, but consider this. In today's ever changing society the respect for an individual's or corporation's right to privacy has been lost completely. All personal and corporate transactions are carefully watched and in some cases if you deposit more than a certain sum of cash it is reported to various government agencies. Besides that, the financial institutes are all too willing and ready to disclose the detail of your personal private records to different agencies, such as credit bureaus when asked for.
If you reside
in an onshore country, there is no privacy when incorporating a local
company. Information relating to the names of past and current shareholders,
directors, officers and financial records are easily obtained through
the corporate registry and are available to anyone for a small fee.
Fortunately offshore companies are not under such regulatory disclosure
requirements and benefit from more extremely flexible legislation and
no direct taxation.
There are a variety of reasons why someone would choose to conduct their financial affairs offshore, here are a few reasons:
1. To achieve financial
To avoid taxes in
your resident country
To protect their
To conduct business
under more favourable legislation
To avoid exchange
To protect property
against seizure during legal proceedings
For the transfer
To reduce the charges
on the sale and purchase of real estate
To raise capital
by sell its shares
Offshore legislations have been created to provide a suitable vehicle for all the reasons mentioned above and many more. The use of offshore companies and/or trusts are only limited by the imagination of the individual, and new ideas emerge day by day.
Offshore jurisdiction by their very nature preserves the privacy of individuals, as well as the integrity of their industry and it is absolutely legal to form an International Business Company, establish an International Trust, open an offshore bank account and conduct other business in an offshore tax haven. However, you should consult a lawyer in your country to confirm the legalities. Each country has it's own policy and requirements relating to it residence going offshore. So as you can see whatever the reasons for choosing to go offshore it is clear that there are numerous advantages in doing so.
Which Offshore Jurisdiction?
The question will always remain "Which is the best jurisdiction to establish my offshore structure?" In actual fact the products offered by most Tax Havens are virtually mirror images of each other. The decision will largely depend on the quality of after sales service, objectives and goals of the purposed corporation or trust and the Clients own personal and business circumstances. There are however, a number of factors which must be considered, these are the principal indicators which determines the merits of a good tax shelter.
1. Stable political and economic climate - The offshore
jurisdictions should not be subject to violent political factions,
civil unrest, poor economic performance or the likelihood of
invasion or military coup.
an International Business Company to suit your individual needs may
not be as difficult as you might of first thought, and with our assistance
the process is even simpler.
Whether you require the simple company formation or complete incorporation
package we can structure your company correctly. Closely working with
a selected group of top legal and financial experts we then create the
most appropriate corporate structure, ensuring that it is set up in
such a way as to comply with any legislation in your country regarding
the operation of offshore structures.
We will first assist in the selection of a jurisdiction based upon a
number of factors, ensuring that: legislation in the offshore jurisdiction
is compatible with your desired objectives; and tax treaties are effectively
used where applicable.
By forming of your Offshore Company we provision Registered Agent, Registered Office and all relevant company documents including the company seal.
With special arrangements we could undertake the complete management and administration of your offshore company including:
An International Business Company incorporated in your desired
jurisdiction, where total confidentiality is required by law. Your
company will feature in addition to strict confidentiality enforced
by law: Nominee Shareholders and Directors (as you might require.
The beneficial (legal) owner is not disclosed. Bearer shares are
issued and delivered to you or to whom you name.
On request we could provision an administrative office for nominal fees based upon services required. These services can include phone, fax, email and mailing address (not P.O. box). Bookkeeping and accounting, invoicing and fulfillment services are available.
for incorporation of an International Business Company have been kept
to a minimum. This makes for a cost effective, efficient and speedy
Establishing a bank account can be a time consuming exercise for the set up of an offshore company structure. Should you require our assistance (for a modest fee) opening an offshore corporate bank account, you must provide the following documents:
1. Copy of Certificate of Incorporation and the Memorandum and Articles of Association.
2. Notarised copy of passport, Birth Certificate or driver's licence with photograph for each shareholder/director or authorised signature to the account.
3. For each shareholder/director or authorised signature to the account a letter of reference from their present bank or recognised investment institute confirming their address, signature and that they have held the account with the bank for three or more years.
4. A current utility or phone bill confirming residential address for each shareholder/director or authorised signature to the account.
5. Funds to deposit in the account (US$ 1,000.00 minimum).
- We will supply all the relevant documentation required and make the introduction to the bank.
fax:+1 917 4648381, +44 870 1387648, +385 51 214355