Offshore Business Formation in Panama

The Republic of Panama is on the isthmus that connects North America to South America and is the southernmost country in Central America. The Panama Canal, completed by the United States Army Corps of Engineers in 1914, is a waterway connecting The Atlantic Ocean and the Caribbean Sea to the Pacific Ocean. Tolls from the Canal make up a large portion of the country’s gross domestic product, or the value of all goods and services produced within the country. Panama’s economy is quickly growing, making it a popular choice for offshore business formation.

Panamanian Corporations, the name given to offshore businesses in Panama, are created under Law 32 of the General Corporation Law. This law provides for a flexible corporate structure while protecting privacy. It is an excellent statute for offshore businesses to develop and interact in the international business world. In fact, it is so well-designed that other jurisdictions have mimicked its framework.

This jurisdiction offers a completely tax-free haven for all offshore business activities outside of Panama. Two local citizens act as the organizers and subscribers for the incorporation, and it is customary to have a local registered agent in Panama as well. At least three directors are required; however, nominee directors are typically appointed, as their information is part of public record. The jurisdiction also requires at least three officers to fill the roles of president, treasurer, and secretary. The officers can be individuals, corporations, or some other entity. While an officer may hold more than one position, he may not be both president and secretary. Those named as directors can also be officers.

Shareholder and director meetings are not required, but can be held in any country or by way of virtual meetings. Panamanian Corporations have no reporting requirements nor are there any exchange controls or restrictions.

http://en.wikipedia.org/wiki/Panama

http://en.wikipedia.org/wiki/GDP

http://www.panama-corporations-incorporate-in-panama.offshore-companies.co.uk/

Offshore Business Formation in Guernsey

The offshore business jurisdiction of Guernsey is the second largest island of the British Channel Islands. Citizens speak both English and French, although the former is the official language. This small island, whose capital is St. Peter Port, is an associate member of the European Union and under European law.

The island of Guernsey is twenty-five square miles of mostly level terrain. It is located approximately thirty miles from the Normandy coast of France and seventy-five miles from Weymouth, England.

Guernsey is unique in that it issued interest-free money, as well as using gold and silver coins, during a fourteen year period following Napoleon’s wars. This move stimulated the economy, enabling the country to keep the job of creating money out of the central bank. Even today, financial services like banking, insurance, and fund management make up thirty-two percent of local income, which may be behind the jurisdiction’s decision to restrict offshore company formation in the business of banking and insurance.

The offshore business formation vehicle that Guernsey specializes in is the Exempt Private Company (or EPC). EPCs must have at least two, but no more than twenty shareholders, and no corporation may have any beneficial interest in the EPC’s shares.

Guernsey does not require corporate taxes, nor is auditing required; however, accounts must be maintained on the company. Only one director is required for a Guernsey EPC, and he or she does not need to be a local resident. A registered office in the jurisdiction is necessary, and the company must have a secretary. Director and share holder meetings can be held anywhere, either within the jurisdiction or even via a virtual meeting. Like most jurisdictions, an EPC in Guernsey cannot do business within the jurisdiction.

While confidentiality is important to most investors interested in offshore business formation, one should realize that in Guernsey, the authorities have the right to know the details of the beneficial owner of an EPC.

While individuals may choose a name for their company, they are required to end it with the word “Limited.”

http://en.wikipedia.org/wiki/Guernsey

http://www.gbsei.com/guernsey.php

http://www.acra.gov.sg/Company/Making_Changes/Annual_Return_of_Local_Company/Exempt+Private+Companies.htm

How to Incorporate an Offshore Business?

While obviously there are conditions that affect the time it takes to incorporate an offshore business, you can generally expect your new company to be formed within two to three weeks.

The steps in creating your business involve first determining exactly for what you will use your business. Are you interested in investing? Owning property? Protecting your privacy? Establishing exactly what your purpose is will make it exceptionally easier to move through the process and be happy with the results.

Next, you will need to select the jurisdiction for your offshore business. It is best to review the pros and cons of each jurisdiction. Check that the area has reliable communication and financial systems, that the political and economic situation is stable, and verify that the legal system is established. Some jurisdictions are more suitable for specific vehicles, so take this into consideration as well.

You will need to prepare the paperwork prior to submitting it to Alexandrou Corporate Services to form your offshore business. Once we receive your documentation, it will take approximately one week to finalize your documents. From that point, your paperwork will be processed, your offshore company incorporated, and the paperwork will be sent to you in two to six days.

If you are not interested in waiting that long, or would like an aged company, you can purchase an “off the shelf” company based in the jurisdiction of Cyprus. Documents will typically be sent to you in one to two business days.

A shelf company is already formed, but without an owner. It will remain “on a shelf,” so to speak, until an individual chooses to purchase it. The new owner will not have to wait as long for their incorporated offshore business and at the same time, they will receive a company that has a past and credibility that goes with that. Investors pay more for shelf companies, not only for their inherent advantages, but also in order to pay the yearly fees associated with them.

http://www.alexandrougroup.com/en/faqs-offshore-company-incorporation.html

Offshore Business Formation Jurisdictions: Hong Kong

Hong Kong is located on the South East Coast of China and is a Special Administration Region (or SAR) of the People’s Republic of China. Both English and Chinese are used on documentation.

Unlike other jurisdictions, Hong Kong does not have specific legislation for offshore business formation consultants. The laws do not separate whether businesses are local or offshore, but all companies are treated equally, and with many benefits for offshore business formation as seen in other jurisdictions. As long as a company does not do business within Hong Kong and no income is derived through local business, then that company will not need to pay any taxes there. Therefore, while a business is not a typical offshore company in Hong Kong, it is treated as such.

Offshore-type businesses in Hong Kong are not required to do financial reporting, nor are they audited. It is necessary, however, to file a Declaration of No Business Activity in Hong Kong as verification that no income is derived within the jurisdiction.

Hong Kong enjoys a calm political climate with a legal system similar to British Common Law. Technology, communications, and banking are all thriving within this jurisdiction, and there are no exchange controls.

Neither directors nor shareholders need be residents of Hong Kong, and while they are not kept private – both are listed in government and public records – there is still a way to maintain one’s privacy. By utilizing nominees, one can remain anonymous. The nominees will be listed publicly, while the owner remains confidential. Hong Kong law does require that a local secretary is utilized.

Investors interested in reaping the benefits of an offshore business, while maintaining a low profile in a location that is not publicized as a jurisdiction for offshore business formation will find that Hong Kong is a perfect choice.

http://www.milonline.com/companies/hong-kong-offshore-company.html

Offshore Business Formation Jurisdictions: British Virgin Islands

The British Virgin Islands (or BVI) consists of four main islands – Tortola, Virgin Gorda, Anegada, and Jost Van Dyke – along with about fifty smaller islands located in the Caribbean Sea. The majority of the population of 22,000 people lives on the island of Tortola, and some of the smaller islands are completely uninhabited.

The archipelago that makes up the entire set of islands includes both the U.S. Virgin Islands and the British Virgin Islands. The BVI are a British overseas territory and maintain the same political stability as Britain itself. The currency system does not include domestic currency and uses the U.S. dollar. This is beneficial, because the government cannot regulate the money supply, and therefore, can never impose currency controls.

The BVI are a popular choice of investors interested in International Business Companies (or IBCs). Around 50,000 IBCs were incorporated there in 2010 alone. It is technologically advanced with ample transportation and international communication. It is in the Atlantic Time zone, and there is no Daylight Savings Time, making it on the same time as Eastern Standard Time, such as in New York, during the summer months.

The legislation regarding benefits of offshore company formation is advanced, often imitated by other jurisdictions in the Caribbean. Only one shareholder and one director are required, neither of which have to be individuals, but can be corporations instead. Corporate officers are not needed, and there is no need for annual general meetings. The IBC laws are very flexible regarding accounts and records, requiring only as much as the Director deems necessary.

IBCs in the BVI are completely confidential, with no legal requirements regarding divulging the identity of shareholders or directors. Additionally, since the BVI is a successful financial services sector and maintains a higher standard of living, it has no need for membership in the Caribbean Basin Initiative (or CBI). The CBI requires the release of financial information and records, thereby destroying all confidentiality achieved by an offshore company. The BVI is not a member of the CBI and maintains strict laws on confidentiality. If you would like to learn more about offshore business formation in BVI please leave a comment with your contact info and someone will get back to you shortly.

http://www.britishvirginislands-ibc-registration.com/BritishVirginIslands_Most_popular_jurisdiction.html

http://en.wikipedia.org/wiki/British_Virgin_Islands

Offshore Business Formation in the News – Foreign Property in Dubai

A popular reason for offshore business formation is to invest in over seas property. Investors interested in owning property in Dubai will need to take into consideration a new ban put in place by the Dubai Land Department. According to Clyde & Co, the new restrictions are on companies that are not registered in Dubai or offshore with the JAFZA (or Jebel Ali Free Zone Authority). The policy does not apply to individuals, but to offshore companies only.

Prior to this ban, Law No 7, created in 2006, allowed “foreign persons” to acquire property in Dubai as long as they were granted approval by the Ruler of Dubai. The term “foreign persons” was defined as both natural and legal persons, including foreign companies. Initially, it was assumed that those companies registered with other free zones, such as Shariah airport free zone, would be permitted, but this has proved false.

Clyde & Co clarifies that the Dubai Land Department “will register property in the name of a JAFZA offshore company that is owned by a foreign offshore company (i.e Cyprus or British Virgin Islands) provided the foreign offshore company is owned by individuals and the identity of those individuals is disclosed to the Land Department at the time of registration.”

Companies that have already purchased property in Dubai prior to the new law may still be affected by it. Law No 13, passed in 2008, required land to be registered on the interim property register, and when complete, it would then be posted on the main registered with the Land Department. Those companies with property listed on the interim register will find that they must be registered with JAFZA or they will not be granted a title deed.

The new ban only applies to your offshore businesses set up after January 1, 2011 and does not affect foreign companies which already hold title deeds to land in Dubai.

Resources:

http://www.clydeco.com.

http://www.bi-me.com/main.php?id=50864&t=1&c=33&cg=4&mset=

http://www.clydeco.com/knowledge/articles/real-estate-alert-policy-changes-affecting-foreign-companies-registering-property-in-dubai.cfm

Belize for Your Offshore Business

Belize, the northernmost country in Central America, has a sparse population of only 333,200 people. It borders Mexico and the Caribbean and unlike its neighboring nations, it is the only country in Central America with a past steeped in British history. However, the people of Belize still have a heritage that is both Caribbean and that of Latin America.

Investors choose Belize for the jurisdiction of offshore business because of its lack of paperwork and unnecessary regulations as well as its ease of incorporation. The nation has high-quality telephone and Internet services, but they do not come cheap. One major downfall is the lack of administration and support professionals within the country; however, there is a recent steady rise in qualified individuals in the jurisdiction.

International Business Companies (or IBCs) enjoy the tax neutral status as well as the double taxation treaties the country has with Denmark, Sweden, the UK and other CARICOM (or Caribbean Community) countries. Offshore IBCs are exempt from the country’s corporate, business, and withholding taxes. Belize does not have a capital gains or an estate tax, nor does it impose transfer taxes on gifts or upon one’s death.

While the jurisdiction offers a wide range of vehicles for offshore business – including private companies, limited liability companies, limited liability partnerships, public investment companies, limited duration companies, international business companies, and mutual funds – a large majority of offshore businesses choose the IBC option.

Belize IBCs offer great benefits for investors. Companies have no minimum requirements for capital, and larger companies with greater capital are not subjected to government fees. Since Belize follows the International Business Company Act of 1990, there are few requirements on shareholders or officers. Offshore companies must have at least one member and one director, but they do not have residency requirements. The names and contact information of individuals involved in the IBC remain confidential. Additionally, there is no annual reporting or meeting requirements.

IBCs within this jurisdiction are not permitted to conduct business with residents of Belize, nor are they permitted to own real estate; conduct banking, trust, or insurance business within the country.

Resources:

http://en.wikipedia.org/wiki/Belize

http://www.icstrust.com/en/jurisdictions-belize.html

Seychelles for Your Offshore Business

The Republic of Seychelles is a country that consists of 115 islands located east of Africa in the Indian Ocean. It is a democratic republic that is part of the British Commonwealth. Seychelles has a stable political system and a prosperous economy based on tourism, fishing, and offshore finances.

Seychelles is known for its exceptional legislation for developing the country as an offshore tax haven. It provides two vehicles for investors, including Special License Companies, which pay a low tax, and International Business Company (or IBC), which is tax-free.

Seychelles is a highly competitive jurisdiction for offshore business formation, particularly for IBCs, which have a tax-free status. Seychelles IBCs can be quickly incorporated, do not require any reporting or paperwork, and there is no need to file annual returns. Additionally, the maintenance fees are remarkably low with an annual license fee of approximately $100.

Seychelles has strict requirements for privacy. There are no regulations for record-keeping of the names of directors, officers, or shareholders. Plus, Seychelles does not hold any information-sharing agreements with any other countries.

A Special License Company (or CSL) is a relatively new vehicle for offshore businesses. This domestic company was established under the Companies (Special Licenses) Act of 2003. While not completely tax-free, the CSL is a low-tax company required to pay 1.5% to Seychelles on all income worldwide.

Why choose a vehicle that requires your offshore company to pay taxes when a tax-free alternative is available? The answer is quite simple. The advantage of the Seychelles CSL is that it bypasses foreign blacklisting because it is taxed. Since a CSL is taxed in this jurisdiction, it is less likely to be scrutinized. Seychelles is also quickly accruing a Double Taxation Agreements with other countries, allowing your company to avoid taxation outside of your jurisdiction.

Resources:

http://www.britishvirginislands-ibc-registration.com/Seychelles-Offshore-Companies.html

http://en.wikipedia.org/wiki/Seychelles

Offshore Business and Privacy

Many investors choose to place their money in an offshore business because they are concerned about privacy. However, there are some considerations to take into account in regards to the privacy of your assets.

offshore business formation is well-known for investor confidentiality. In many cases, the owner’s name is considered top secret. Sometimes this secret leaks out on other levels. It can, however, be prevented.

Be certain that you trust your offshore business formation agent. Some less trustworthy agencies have been known to sell investor’s contact information to third party marketing services in order to make extra money. Ask your agent about their privacy policies before you commit to doing business with them.

Perhaps the offshore business formation agency does not sell your information, but they still might let your secret slip. Do they shred documents before throwing paperwork out? Are the files kept in a secure location? What about their employees? Do they sign confidentiality agreements? Are they given background checks prior to being hired?

Another area of concern is the quality of computer security. If hackers are able to access the agencies files, your information is not safe. Verify with the agent that customers’ private information is kept in a secure manner and protected from hacking attacks.

While investors should seriously consider the reputation of the offshore formation agency, the biggest cause of a breech in privacy is from the investor him or herself. Perhaps it’s arrogance. Maybe it is a matter of defending one’s honor. Either way, one must not let one’s self-esteem get the best of him or her.

When someone says you never amounted to anything. When someone claims to be more well off than you. When you feel the urge to brag. Stop. Do not chance loosing the benefits of your offshore business by divulging in the details of your private, financial situation.

Choosing to form an offshore business for the sake of privacy is a wise decision. Be certain to protect those benefits. Ensure that your personal business remains confidential.

http://www.offshoretactics.com/articles/KeyMistakesWhenBuyingAnOffshoreCompany

Pros and Cons of Cyprus for your Offshore Business

The Republic of Cyprus is the third largest island in the Mediterranean and an attractive location for offshore business formation. It is a tourist destination with crystal blue waters and white sand beaches. But for the investor, it is ripe with opportunity.

Cyprus has an advanced economy and a legal system that is aimed at financial growth. The jurisdiction allows for a variety of offshore business vehicles including: sole proprietorships, general and limited partnerships, private companies limited by shares or guarantee, public companies limited by shares, exempt private companies, trusts, or foreign companies with branches in Cyprus. Private company limited by shares is the most popular choice of investors, due to the wish for unsurpassed tax-optimization. However, trusts are also quite prevalent because they can be beneficial by themselves or with an international business.

Many investors choose Cyprus because it has an English-based legal system and a wide range of high-tech services available for offshore business formation. Cyprus is quickly developing into the leader in low-tax offshore companies because of the investor’s ability to develop a corporate structure that meets his or her foreign company’s needs.

Cyprus has the lowest tax rate in the European Union and offers many incentives to attract new investors. For instance, stock trade profits are not taxed, and profits made outside of Cyprus are not taxed. The jurisdiction does not penalize companies that reorganize or restructure. Additionally, Cypress has signed Double Tax Treaties with many other countries to prevent offshore businesses from being over taxed.

Unlike many jurisdictions, Cyprus is not a safe haven for offshore businesses. However, Cyprus offers a unique blend of tax breaks and incentives, which enables it to offer companies better tax planning options. Its favorable tax regime has been backed by government policies and laws, ensuring no surprise changes in legislation.

Cyprus has sometimes been referred to as the “ultimate international business center,” which is backed up by over 120,000 businesses that call it home.

http://www.ukincorp.co.uk/s-O8-offshore-cyprus-company-formation.html

http://www.lawyers.com.cy/CyprusCompanies/tabid/68/articleType/ArticleView/articleId/17/Why-Cyprus-Benefits-of-the-Cyprus-Offshore-Company.aspx