Private Equity Company in The West Bank

Bashar Masri, a Palestinian-American investor with interests in offshore business formation, has launched the first private equity company in the West Bank. With closing capital of sixty million dollars, Siraj Palestine Fund I has had investors from Palestine as well as Arab and international businesses.

One of the chief investors was Overseas Private Investment Corporation (or OPIC), which is owned by the United States government and gives financial assistance to emerging U.S. companies. Other major investors included the Soros Economic Development Fund (or SEDF), which is a nonprofit private foundation that invests in communities affected by poverty; the United Arab Emirate Crescent Investments; and the Pension Boards of the United Church of Christ

While Siraj Palestine Fund I is not a lending company, it does invest in small to median companies within the Palestinian territories. It will provide financial assistance for five to seven years only in an attempt to improve technology, increase jobs, and help with “the acute shortage of equity capital for local businesses due to years of political turmoil,” according to Masri.

The equity company is registered as an offshore business in the Cayman Islands and as a Palestinian company in the West Bank. As it attracts international investors, its capital should reach eighty million dollars.

Masri is the sole owner of the new equity company. He has experience in business as the owner of an offshore holding company called Massar International, which has been in existence for seventeen years. Massar is responsible for building the first Palestinian city in the West Bank, Rawabi. Right –wing Israelis oppose the city, which is located near Ramallah and is still under construction.

Resources:

http://www.monstersandcritics.com/news/business/news/article_1617810.php/First-private-equity-company-launched-in-West-Bank

http://www.sedfny.org/

http://www.opic.gov/

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

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

Is Offshore Business Formation Legal?

Criminals using offshore businesses as a method of money laundering have given a perfectly legal investment opportunity a bad name. Jurisdictions such as the Bahamas, Belize, Cook Islands, Nevis, and Panama have felt the pressure by the United States and countries in the European Union.

Several years ago it was possible to open an offshore bank account with only corporate documents and a company nominee’s signature. The real owner’s name was not required.

Criminals found this benefit irresistible and misused this confidentiality to hide illegal activities and money gained from those activities.

Thankfully, this criminal behavior has been put in check. Offshore companies can no longer be used to hide assets, finance illegal activities, or launder money. Any attempts to do so will be caught and stopped, as businesses are now required to provide verifiable proof of the company and the account holder.

In cutting off illegal activity, however, governments have made it impossible to hide electronic money transactions, such as bank or credit card transfers.

Investors still turn to offshore business formation for anonymity. This is helpful in cases where privacy is a must. With standard banks, just about anyone can access your bank information and wreak havoc on your personal and financial information.

Hackers aren’t your only concern. In cases of legal problems, onshore banks are required to release your financial information to those who request it. Lawyers, private investigators, and government agencies have complete access to your assets.

Investors also choose offshore businesses in order to reduce taxes or in cases to have creditor protection in special circumstances.

Sometimes, though, people choose to form an offshore business because they want freedom. If the home country’s spending is out of control and taxes are unbearably high, hardworking businessmen may chose to form an offshore business to achieve more profits in a low-tax or no-tax jurisdiction.

Regardless of your reasons for considering an offshore business, be assured that it is not illegal. You have your rights and you should take advantage of the benefits that are available to you.

http://www.web-chamber.com/offshore-money-laundering-tax-savings-or-asset-protection

http://asset-management.bestmanagementarticles.com/a-20773-offshore-bank-account-is-a-must-for-many-individuals.aspx

http://www.offshoretactics.com/categories/Freedom

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

Offshore Company Formation Types

One of the biggest decisions regarding your offshore company formation is which vehicle you choose for your business. Offshore corporations take on many forms, and you should be informed on all types before choosing which one will best suit your needs.

Offshore company formation types include the following:

IBC – International Business Company

LLC – Limited Liability Company

CORP –Corporation

LTD – Limited (as in Private Limited Company)

PLC – Public Limited Company

LLP – Limited Liability Partnership

Additional formation types include S.A., AG, GMBH, BV, SL, SARL and special purpose vehicles in many different jurisdictions.

The most popular choices for offshore companies are the IBC and LLC’s. The choice often goes hand-in-hand with the chosen jurisdiction. LLC’s that register in an offshore financial center receive complete tax-free advantages that are not available for LLC’s located within the United States.

Both IBCs and LLC’s are limited liability companies. An IBC is restricted from conducting business in its jurisdiction; however, LLC’s are often not under those same restrictions.

Both IBCs and LLC’s are not taxed on income earned outside of the jurisdiction and are exempt from local taxes. They offer complete privacy and allow owners the confidentiality they desire. They are easy to form and have very little paperwork or filing requirements.

IBCs are popular in the Bahamas, Belize, the British Virgin Islands, Panama, and Seychelles. They are most often formed by individuals wishing to hold offshore investments and international real estate.

Limited Liability Companies, on the other hand, are more common in Nevis and United States. They are quite similar to IBC’s, but are considered to be somewhere between a limited corporation and a limited partnership. Like corporations, LLC members are protected against debts or other obligations. However, income and expenses are handled directly by individual members, similar to a partnership.

The structure serves a purpose. It separates the owners from the company from the business. Each area of the business is divided, allowing asset protection similar to a grantor trust, but for smaller amounts of money. Unlike grantor trusts, foreign LLC’s are not expensive to maintain. Additionally, LLC’s have lower tax rates than IBCs and profits from assets are put onto the owner’s U.S. tax return.

http://www.sterlingoffshore.com/about-offshore/offshore-company/formation-types.html

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

http://www.freedomoffshore.com/offshorelimitedliabilitycompany.html

Offshore Company Formation Mistakes

Choosing to form an offshore company is not a decision that should be made without properly researching your options. To ensure that you do not make mistakes that you regret, it is best to consider some of the following points.

Fully research each jurisdiction for offshore companies. The main jurisdictions include Belize, the British Virgin Islands, Cyprus, Guernsey, Hong Kong, Luxembourg, Mauritius, Panama, and Seychelles. While many offer similar benefits, there are reasons for choosing one jurisdiction over another. Be sure to discuss your options fully with your company formation agent.

Do not form your company in your home country. A distinct benefit of offshore company formation is the confidentiality that comes with it. Forming your company within your own jurisdiction will leave a paper trail to your name, enabling private investigators, attorneys, or others to locate your assets.

Determine the type of company that would best suit your needs. There is a wide array of company vehicles, from Limited Liability Companies to Corporations to International Business Companies and more. Again, each has its own benefits. Know what your goals are so that you can determine which company vehicle would help you reach those goals. Are you looking to raise capital? Are you trading stocks? Are you planning on being a lender? Each option may require a different vehicle. Know your options.

Be sure that you really do need an offshore company for your goals. If you are not that concerned about privacy and you are not working in large dollar amounts, it may be a bad idea to form an offshore company. While offshore companies are usually tax-free, there are yearly costs associated with them in order to keep the company in good standing. In some cases, it is more cost-efficient to use your own name or perhaps a second passport name for your financial transactions.

Another important element to consider when forming an offshore company is which company formation agent to use. There are many companies clamoring to get your business, so researching the best company is essential to your success.

The company you choose should charge comparable rates to others offering the same services. They should respect your privacy, be available to answer your questions, and work with you to help you make the best choices for your needs.

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

What is an IBC?

An International Business Company or Corporation (also known as an IBC) is just one type of offshore company. IBCs are usually formed by investors or business people in a country outside their own country of residence. They are typically a corporation or Limited Liability Company (LLC).

People who create an IBC in a foreign country will then open a bank account in the company’s name. The international company will receive income as it engages in its business operations.

The United States, and other major business locations, has become known as a high-tax jurisdiction with disproportionate probability of lawsuits. Therefore, IBCs are formed in jurisdictions such as Antigua, Anguilla, the British Virgin Islands, the Bahamas, Belize, Gibraltar, Nevis, and Seychelles.

The Internet has caused the creation of many companies that have no brick-and-mortar storefronts, but are essentially digital organizations. Location has become less important in the scheme of things when creating a business. In many cases, business transactions can be performed via email, fax, and through websites. Since a company can be successful regardless of its location – whether it is in China or Gibraltar – many investors are considering the benefits of an offshore company.

Typically, IBCs are permitted to engage in a variety of different types of businesses, from futures trading, financing, and investment management. They are exempt from local taxation and duties; however, they must still pay annual fees, such as agent’s fee and registration taxes. They may not perform business within the territory in which they are formed.

One of the main benefits is the confidentiality of the company owner of IBCs. They may have a local registered agent, but all requirements for local directors or officers have been revoked. Additionally, IBCs do not need to prove actions are for the interest of the company and they can issue shares in both registered and bearer formats.

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

http://www.biba.bb/pageselect.cfm?page=16

http://www.offshorecorporation.com/international-business/

What to Think About Before Going Offshore

Once the decision is made to Form an offshore company, potential investors should seriously consider several things before moving forward with the business incorporation.

The most important consideration is jurisdiction. Not all financial centers are created equal. If privacy is a concern, than you must know which jurisdictions truly keep your information confidential. In some instances, the data is easily accessible to those who are trained at locating it, such as private investigators. In some cases, a jurisdiction’s government may not be trustworthy, or has been known to take bribes to reveal private information regarding your offshore company. Thoroughly consider all options before committing to a particular jurisdiction.

Choosing the type of company – such as a limited liability company, a corporation, or an international business company – is directly related to the type of business you plan on undertaking with your offshore company. Know your goals and choose accordingly.

Shop around to be sure that you are not being overcharged for your offshore company. Compare price and services to ensure that you are matched to a reliable company with which you can grow and prosper. Also consider verifying that your private information will not be sold by the organization from which you purchase your offshore company. This will link you to newly formed company, putting your private information at risk.

Potential investors who are not concerned with privacy issues should evaluate whether they truly need an offshore company. While the benefits are authentic, if you have no need to remain confidential in your transactions or do not plan on taking full advantage of everything an offshore company has to offer, you should consider moving forward under your own name.

Do not jump into any investments without completely considering all aspects and speaking with professionals about any questions you have. Moving forward slowly ensures that you are making firm, solid steps. Moving too quickly, may result in a mistake that cannot be fixed.

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