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

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

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