Offshore Company Formation
Offshore business establishement, similar to Seychelles company formation, is a simple process by which international business companies are registered in a foreign country. Offshore company formation is regulated by the relevant authorities in an offshore jurisdiction.
Offshore enterprise construction is an activity that is conducted by offshore service providers who serve as the agents of offshore companies. The services providers that offer this type of service are licensed and registered to operate as such and people that incorporate offshore companies are unable to do so without a service provider. Mainly, the service provider is responsible for communicating with the customer so that he or she is guided on the documents that must be submitted and the procedures that are involved in offshore company formation. The agent is responsible for any service of process that is served on a company that it represents.
In the offshore company formation process, offshore companies are provided with their memorandum and articles, minutes of first meeting, registers of shareholders and directors and powers of attorney where necessary.
To incorporate an offshore company, the registrar of that jurisdiction must be used to register the company on the register of the jurisdiction. The registrar must approve the company’s name and upon being satisfied the registrar issues a certificate of incorporation which is proof of the company’s legal existence and contains the offshore company’s name, registration date and is signed and sealed by the registrar.
Offshore companies are basically international trading companies. Because of their tax exempt status, offshore companies are useful in reducing taxes. This tax free status helps prevent companies from double taxation as far as their international income and profits are concerned. Offshore company formation is a legal and simple way by which corporations and small companies can get hold of an offshore company in order to achieve these goals.
Offshore company formation is not a service that is available to the local residents of an offshore jurisdiction. Incorporation services are available only to non residents, and offshore companies are not permitted to trade or provide their services in the jurisdiction where they are incorporated.
The memorandum and articles of association of an offshore company contains:
- The company’s name
- The company’s address in the jurisdiction (registered address)
- The objectives and purpose
- Currency in which shares are issued
- The number and classes or series of shares issued
- The powers, rights and limitations placed on each share
- The authorized capital
- The total number of shares intended to be issued to the bearer and or registered
In offshore company formation the memorandum and articles are submitted to the registrar of companies. Any changes to the memorandum or articles must be filed with the registrar, thus the agent must be informed about any changes or amendments made to these documents. The shares that offshore companies can usually issue include: voting shares, non-voting shares, shares that entitle participation in specific assets, options, rights, warrants or securities, shares with one or more vote per share, and shares that can be converted or exchanged for other securities.