News: FAQ

Offshore or offshore company is a company registered in one of the states that provides a zero or close to zero rate of income taxation for companies operating outside the territory of such states. It serves as the main instrument of international tax planning.

Limitation of liability is the main factor determining its legal status. The principle of limitation of liability first appeared in the nineteenth century to separate the liability of a corporation, as a legal entity, from the liability of its owners. This makes it possible to reduce the possible losses of the company's shareholders and limit them to the amount of the contributed authorized capital or the share capital that is required for being contributed.

The company, being the legal entity and separated from its shareholders and directors, must pay corresponding prescribed taxes in the country of its registration. Residents of a country with high taxation can organize and register a company in countries with low taxation or with a zero tax rate.

Entrepreneur may be interested in having a company in offshore jurisdiction because of the following reasons:

• absence of taxes
• no need to obtain licenses (other then banking and insurance ones)
• confidentiality of doing business and information about owners
• facilitating the investment process
• absence of tax audits
• increase of business security from illegal takeover
• confidentiality of financial information.
• absence of inheritance tax;
• protection and optimization of assets
• management of risks
• cost reduction
• lack of bureaucratization and excessive regulation

One of the main advantages of offshore jurisdictions is a high degree of confidentiality, privacy of doing business.

Currently, almost anyone can benefit from the advantages of offshore jurisdictions. When transferring all or part of the business to offshore, there are wide opportunities to the owner to use savings obtained as a result of the absence of taxes for broad investments and new business opportunities.

As any other instrument, an offshore company can be used in legal schemes of tax planning and operation in general, as well as in illegal operations, including illegal tax evasion and money laundering. The legality of a particular transaction through an offshore company is determined in accordance with the provisions of both the legislation of the country of its registration and the legislation of the countries of other participants in the transaction, as well as the provisions of international treaties.

In general, this is an absolutely legal instrument for doing business, which, only according to official statistics, is used by 90% of large and medium-sized companies. None of the world's legislations contains a prohibition on working with an offshore company. As you know, everything that is not forbidden is allowed.

From the point of view of international law, offshore company is an independent legal entity and conducts its activities in accordance with the laws of the country of registration.

Selection of a country of offshore registration is directly related to the planned types of your activity and work scheme.

In fact, all countries can be divided into two groups: the first is the countries that tax the offshore with a minimum tax, and the second is the countries completely exempting the offshore from any taxation (in this case, the offshore pays a fixed fee for renewing the activity license, as a rule, not exceeding $300-400 per year to the government of the country of registration).

The first group includes many European countries, known as "tax shelters or tax heavens", namely: Switzerland, Luxembourg, Liechtenstein, and others.

The second group includes the Central American countries, which are large offshore zones: Panama, Bahamas, British Virgin Islands, Belize, Turks and Caicos, Cayman Islands, etc. Registration of European offshore companies and their maintaining is somewhat more expensive than registration and maintaining of offshore in countries belonging to the second group.

At the moment, we offer registration in more than 130 jurisdictions falling under the first and second group, so selection of jurisdiction requires very detailed consideration. Among the factors of selection, political and economic stability in this jurisdiction should be primarily taken into account. Another factor is the rules of legislation on companies, which provide guarantees of full confidentiality. Following a number of factors, it is possible to indicate the requirements of the audit and the company's compliance with its status, currency control and banking operations, the existence of double taxation treaties and others. It is also necessary to take into account the cost of incorporation, domiciliation and maintenance in this offshore center.

Therefore, the answer to this question depends on the nature of the company's future activities, personal and business preferences of the client.

No! You can register a company without leaving your workplace. We will do everything for you.

Usually the process of registration of the company takes up to 24 hours. After that, the full package of documents of the company is prepared and sent to you by regular mail or courier. Thus, you get a ready-made company within 5 days, as a rule.

No, there is no need for this. The entire registration process is carried out by our employees independently. In rare cases, a power of attorney is required from the applicant.

Offshore owners can be any legal or natural persons who are not residents (citizens) of the country of registration.

In most countries, with the exception of several European ones, there are no restrictions on the formation of authorized capital and its payment at the time of offshore registration.

A nominal shareholder is a person who does not have actual ownership rights in relation to the company and acts at the direction of the real owner (beneficial owner) of the company with whom he has contractual relationship. Often, the services of nominee owner are used by an offshore company to preserve the confidentiality of the beneficial owners.

A nominee director is a director who does not exercise actual management of the company, but only acts according to the instructions of the beneficial owner of the company with whom he is contractually bound. In fact, nominee director is not the owner of the company, but is appointed as a director by the latter. The company's owners use the services of nominee directors to preserve the confidentiality of personal data. The nominal director subsequently issues a general power of attorney to conduct all affairs of the company to a person who enjoys full confidence of the owner of the company or to himself.

This Deed is the legal basis for the fact that a nominee shareholder has no right to dispose of shares unless he has an authority from the beneficial owner (owner) of the company.

Due Diligence is a special inspection commission that takes an interim decision on the authorization or prohibition of the provision of services to an individual or legal entity. Speaking about the spheres of the competence, Due Diligence commissions can be in banking structures, as well as there can be state/governmental Due Diligence commissions in the countries of Saint-Kitts & Nevis and Dominica, examining the applicant's identity for granting economic citizenship.

The agreement on avoidance of double taxation or double taxation treaty concluded between the two states in order not to impose two taxes at once on the same profits. In order to take advantage of the terms of this agreement, the company must confirm its tax residency. It is confirmed by a "certificate of residency", which is issued by the tax registration country.

International tax planning is a legitimate activity of the company in minimizing tax costs, including through the use of companies and other legal structures established in states with preferential or zero taxation, including so-called offshore ones, for conducting activities.

Apostille is a special written declaration of the authenticity of a public document (for example, a Certificate of Good Standing) issued in accordance with the standards of the 1961 Hague Convention. Documents issued in the country of the agreement that have been certified by Apostille are recognized in other countries of the agreement without further authentication.

A notarized copy of the document is a copy of which there is a notary's certification with the notary’s signature and seal, in that it fully corresponds to its original.

Apostille on the document is a certificate issued by a special government body, in that this copy of the document is a notarized true copy of the document. Apostille is an internationally recognized certificate under the Hague Convention. Not all countries are parties to this convention, but the majority of English-speaking and other European countries are parties to it.

The nominee director signs a general power of attorney, which is issued to the owner or his authorized person. Also, the nominee director signs a letter with a request for resignation of the nominee director from the position. The date is not put in this letter, in case the owner of the company decides on the appointment of himself or another person as the director of the company. Thus, the control over the company belongs to the owner.

Placement of money, reserves, funds, assets, financial claims, etc. abroad does not contradict the law. When the internal tax legislation provides for the declaration of your income and assets, and you do not comply with the foregoing, you may be fined; fee may be imposed; as well as there is a possibility of criminal prosecution. The main detail is as follows: are your assets and profits subject to the reporting in this current year? The acquisition of offshore is not contrary to the law, but in some countries, hiding information about your investments in offshore may be illegal. Countries, in which the level of taxation is high, are interested in the residents to keep taxable assets within this country. Offshore jurisdiction is regarded as a foreign power with certain advantages. This applies to banking secrecy laws, advantages of organizing companies for international trade and investment, absence of a tax on bank interest, increment of capital, inheritance taxes, income tax and so on.

In order to preserve the confidentiality of the personal data of the company's beneficial owners, it is possible to use the services of nominee directors and nominee shareholders. Another means is to use the shares to bearer (holder), where possible. Personal data may only be known to a registered agent of the company. Government bodies can request information from an agent only upon a court decision if they provide convincing evidence to the court about the criminal nature of the company's actions.

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