Offshore Company Formation

What Is an Offshore Company?

An offshore company refers to a corporate entity formed outside a particular jurisdiction where the company operations are carried out. In simple words, Offshore means located or situated beyond one's national boundaries.

cheapest offshore company formation serviceLaw and Trust International provide worldwide offshore company incorporation and registration around the world. Law and Trust is an international law firm with offices in Moscow, St. Petersburg, Kazan, Kyiv, London, New York, and Nicosia with representatives in 64 countries, successfully operating in more than 135 jurisdictions, working with more than 150 banks and providing services to over 3000 companies around the world. The process of offshore company formation will depend on the jurisdiction where the company is being registered, the registration process, requirements, costs and services in general.

Our lawyers offer the most optimal options for incorporating an offshore company or an already registered company that meets your specific needs. In addition to company formation, compilation of the necessary documents and comprehensive support of transactions, the Law and Trust team provides additional services for the company in compliance with the legislation of that jurisdiction, regardless of the location of the client as documentation processes can be made remotely.

Advantages of Registering  an Offshore Company: Offshore Tax Benefits

  • Exemption from corporate tax or legal minimization of domestic and international tax;
  • Exemption from annual accounting or audits;
  • Minimize withholding tax through double tax avoidance agreements;
  • Conduct trade in multiple countries in a tax efficient manner;
  • Investment friendly regulations for companies;
  • Protecting assets from impending litigation;
  • Shifting the tax burden imposed upon the company and; 
  • Protecting the company from political unrest or economic instability within the founder’s native country.

Disadvantages of Offshore Business Setting Up

  • There are laws prohibiting any trade activity or services to be carried out on the mainland of that jurisdiction in certain cases;
  • The business won’t be allowed to rent a local property;
  • There are legal fees (high in certain cases) involved in establishing and incorporating an offshore company;
  • There are certain minimum limit set out for investment in the companies; 
  • The host country (jurisdiction) could require the investors to own property in the country.

Common Types of Offshore Companies

  • International Business Company: IBCs are the most popular offshore companies;
  • Offshore Corporation: A more general offshore company type;
  • Offshore LLC: Offshore limited liability company or Zero tax companies;
  • Private Foundation;
  • Captive (Re)Insurance Companies;
  • Trusts.

Offshore Company Formation: Comparison and Benefits of Each Type

Offshore IBC Formation

International business company (Offshore IBC) is an important business entity type in the offshore industry. More Offshore Financial Centers are adopting the legislation on offshore IBCs.  Below are some benefits of IBC structure, they include:  

  • A convenient entity type for opening an offshore bank account and obtaining a credit card;
  • Offshore banking - bank accounts are held in an IBC name with total privacy, enjoying a tax free system;
  • Hold assets confidentially - Complete protection of your data is a priority, IBCs protect from product liability, malpractice cases and many more;
  • Valuable assets can be held by an IBC; 
  • An ideal vehicle for legitimate transactions, such as e.g. real estate investments;
  • An optimal and confidential way of investing offshore;
  • An IBC may serve all your private and business necessities when you are abroad;
  • A corporate tool for a yacht or ship registration.

This business company structure favors employee recruiting initiatives in the context of international business.

Business people who seek to set up a company within a tax-free environment as well as open a bank account should opt for an IBC. An IBC may be incorporated either by individuals or companies. Finally, the source of income of an IBC company must be derived from another jurisdiction other than the one it is registered.

Formation of a Private Foundation

The benefits of setting up a private foundation includes:

  • Protect assets from possible future litigation by creditors;
  • Keep assets away from political or economical instability;
  • Optimize tax planning;
  • Manage pension or profit sharing plans for employees;
  • Hold shares of affiliated companies (to be a holding company);
  • Management of bank and brokerage accounts;
  • Ability to invest offshore;
  • To provide continuity of family business, preventing splitting of property;
  • Helps in carrying out educational, philanthropic, humanitarian, scientific or charitable activities.

Captive (Re)Insurance Companies Formation

This company structure is a specialized subsidiary of a non-insurance of either a parent company, holding or association. The main aim for this company type is to improve risk management of the Parent company (and the business at large) while optimizing cash flows and tax planning issues. 
A captive insurance company (CIC) can serve the following purposes, they include:

  • Serve as an insurance vehicle to ensure the Parent company’s risk or as a reinsurance company;
  • Provide the Parent company with custom made policies that keep the risks insured or not insured on unfavourable terms by third parties;
  • Reduce the Parent company's operating expenses;
  • Provide tax planning elements (in some cases captive insurance costs may be tax deductible)
  • Furnish evidence of being insured required for some commercial operations of the Parent company;
  • Legally override exchange control restrictions when the Parent company should pay premiums for the coverage of its actual business risks.

! Note that an offshore CIC doesn’t pay tax on profits of investment, capital gains, premiums and reserves.

Formation of an Offshore Trust

An individual looking to set up an offshore trust will enjoy the following benefits, they include: 

  • To protect assets from likely creditors' claims (never from those existing!);
  • To keep assets away from political or economical instability;
  • To optimize tax planning;
  • To avert dissipation of property by some relative wasters, at the same time the Trustee could provide a steady flow of benefits for them from the Trust assets;
  • To be used as an offshore investments vehicle.

Banking in Offshore Jurisdictions

Offshore company formation and a bank account are common incorporation requirements, we work closely with all the banks in specific jurisdictions to open bank accounts for offshore companies. Based on your requirements, we will recommend a bank in that particular jurisdiction that will meet your offshore banking needs. Opening of a corporate bank account in the specific jurisdiction for your international banking transactions will be simplified by our professional experts.

How to Set Up an Offshore Company

Step 1. Law and Trust works with the client to get the company’s name and activity approval from the Company Registry of that jurisdiction;
Step 2. Law and Trust files the necessary document on behalf of the client and to the relevant authority of that jurisdiction;
Step 3. Law and Trust works to secure business premises and a tenancy contract (12months minimum) for the client’s company;
Step 4. Law and Trust works to open a corporate bank account;
Step 5. Law and Trust with the client and local partner get a drafted Memorandum of Association (MOA).
Step 6. Law and Trust submits MOA, license application, tenancy agreement and other necessary documents to the Company Registry of that jurisdiction for approval.

Operating or Doing Business On Offshore Territory

Operation a business or company offshore is not about evading taxes or withholding money from the government but it is about structure the company’s activities in a way to maximize the benefits of local and international laws. These laws are available to anyone who cares to use them to their benefit.

Offshore Company Formation FAQs

  • What is the legal status of offshore companies?

Forming offshore companies or corporations and starting businesses in a country different from the one in which you reside follows a process that is similar to creating business entities in your home country. Typically, similar legal statutes apply to the filing of the foreign company's articles of incorporation.

  • Why establish an offshore company?

Registering an offshore company legally minimize the tax duties of a company, which is the primary reason for incorporating an offshore business. Non-resident companies are often tax-exempt or enjoy low levels of taxation depending on the jurisdiction.

  • How to set up an offshore company without causing scrutiny from tax authorities in my home country?

An offshore company can be set up successfully without scrutiny from tax authorities by meeting the requirements and legally incorporating with the necessary offshore company formation authorities of that jurisdiction.

  • What is a tax haven and how does it work?

A tax haven is defined as a country or place with very low "effective" rates of taxation for foreign investors. In some traditional definitions, a tax haven also offers financial secrecy. Tax havens work by providing offshore banking services to foreign individuals and businesses that allow them to avoid paying income taxes in their countries of residence. 

  • Will my offshore company incorporation' details be available for public viewing?

Details of an offshore company incorporation are not available to the public.

Benefits of offshore company registration, formation, and incorporation service with Law&Trust International include:

  • Full range of related services: Provision of a full range of legal, corporate, government, and business intelligence related services in any jurisdiction of the world. A detailed overview of our services includes full legal support during the company registration procedure, obtaining a legal address, interaction with the official government authorities of the jurisdiction, state fees, legal address of the company for a year, production and registration of company stamps and advising the client as part of the registration process. Opening a bank account and the cost of this service are discussed during the consultation.
  • Professionals and expertise of Law: Worldwide registration and legal maintenance of companies, accounting services, and audit, tax planning and optimization, trademark and patent registration, and many more. Law and Trust provide the client with the best company incorporation services.
  • Domestic service: Law&Trust ensure our services cover every region, area or state in the chosen jurisdiction. Be rest assured that no matter where the company intends to incorporate in a particular jurisdiction, we’ve got the location covered.
  • Free initial advice: Free consultation from the lawyers of Law&Trust International regarding strategies or the provision of services for analyzing and developing a legal position on an issue the client raises anywhere in the world.
  • Confidentiality: Law&Trust makes use of modern technological features to keep the records and details of every client safe.
  • Efficiency and productivity: Strategically providing up to date personalized services to help your business succeed.

Ready for Offshore Company Formation?

If you are interested in registering and incorporating an offshore company in any jurisdiction around the world, contact Law & Trust International by simply sending an email or call now to take your business to the next level!

Offshore jurisdictions
Country Cost of registration $/€ The cost of the second year $/€ Financial statements
Anguilla 1690.00 USD 1650.00 USD No
Antigua 2215.00 USD 1635.00 USD No
Aruba - N.V. 1275.00 USD 900.00 USD Yes
Aruba-VBA 1200.00 USD 825.00 USD Yes
Bahamas 1455.00 USD 1390.00 USD No
Barbados 1050.00 USD 900.00 USD Yes
Belize 750.00 USD 720.00 USD No
British Virgin Islands 1195.00 USD 1170.00 USD No
Cayman Islands 2950.00 USD 2750.00 USD No
Cook Islands 1555.00 USD 1500.00 USD No
Curacao 3680.00 USD 2575.00 USD Yes
Dominica 1465.00 USD 1390.00 USD No
Guernsey 1965.00 USD 1200.00 USD No
Isle of Man 2325.00 USD 1875.00 USD Yes
Isle of Man - old style 2175.00 USD 1650.00 USD No
Jersey 2890.00 USD 1575.00 USD Yes
Labuan Offshore Non Trading 2775.00 USD 1425.00 USD No
Labuan-Offshore Trading 2815.00 USD 1425.00 USD No
Liberia 1315.00 USD 900.00 USD No
Marshall Islands 1315.00 USD 1185.00 USD No
Mauritius – GBC I Company 1615.00 USD 750.00 USD Yes
Mauritius-GBC II Company 1725.00 USD 825.00 USD Yes
Nauru 1185.00 USD 900.00 USD No
Nevis Corp 1350.00 USD 1290.00 USD No
Niue 1575.00 USD 975.00 USD No
Panama 1390.00 USD 1350.00 USD No
Saint Vincent and the Grenadines 1090.00 USD 1050.00 USD No
Samoa 1860.00 USD 940.00 USD No
Sark 2930.00 USD 1725.00 USD No
Seychelles 1090.00 USD 990.00 USD No
St. Kitts 1495.00 USD 863.00 USD No
St. Lucia 1635.00 USD 675.00 USD No
Turks and Caicos 1615.00 USD 1200.00 USD No
Vanuatu 2385.00 USD 1145.00 USD No
All prices are for reference only and it is not a public offer
For accurate information, contact the specialists