Where to incorporate new offshore company if you had to start from the beginning?

[forcet]

Where would you incorporate your offshore company if you had to start from the very beginning with your business?

 

[dwilson]

Hello forcet!


There are many considerations when choosing an offshore jurisdiction and services provider. Here are a few:


1) Customer's domicile - What are local tax ramifications? This mostly applies to USA and Mexico - not an exhaustive list.


2) TIEA - If you understood how this process actually works, it should influence your decision, yet many customers get concerned about them, so I've added it.


3) Foreign Exchange Controls - My expertise is Caribbean jurisdictions e.g. BVI, Belize and Anguilla. There are no FX controls in these countries for IBCs.


4) IBC Business license /restrictions - Depending upon the business activities, there may be restrictions on how you can conduct your business.


5) Cost - What is the size of your budget? You should consider your needs and wishes. Many customers make the mistake of choosing the cheapest options and then suffer consequences later on.


6) Bank Account considerations - Will you require special services such as a merchant account or trading platform? What is the general level of service in the jurisdictions being considered? Bank costs? etc.


Hope this helps.

 

[forcet]

2) TIEA - If you understood how this process actually works, it should influence your decision, yet many customers get concerned about them, so I've added it.

What do you think in terms of privacy is it good or bad? Is it possible to hide in a offshore country even if they have signed a TIEA?

4) IBC Business license /restrictions - Depending upon the business activities, there may be restrictions on how you can conduct your business.

Only local restrictions I think! I have read that if you are not doing business locally you can do almost what you like with the company or not?

 

[dwilson]

First let me correct my typo, "TIEA - If you understood how this process actually works, it shouldn't influence your decision, yet many customers get concerned about them, so I've added it."


1. A TIEA does NOT affect privacy at all. The purpose of a TIEA is to tackle tax evasion only. This is why every responsible offshore services provider encourages clients to chat with local, licensed tax specialists in their domicile prior to engaging in offshore business. That way, clients are protected from inadvertently breaking the law (tax).


2. There are only a few restrictions on business activities depending upon the jurisdiction that you choose. These restrictions only apply to about 2-3% of prospective clients and for the most part it simply means that clients have to apply for a special license. Most of the restrictions apply to business activities related to financial services.

 

[powerbeme]

So you can still maintain privacy while the offshore country has signed a TIEA with my country?

 

[dwilson]

Absolutely. TIEA are used to facilitate information related to tax evasion matters. If your solution is tax-compliant, then you will have no issues. In addition, understand that when you incorporate a company - a locally, licensed business (registered agent) maintains your information. Your company name and its company bylaws are registered with the Government Registry. That means that the local Government does not know the names of the officers of the company.


Foreign governments must be able to demonstrate that the client is associated with an offshore company and this information can only be discovered if the client is negligent/ loose in how he/she conducts their business affairs. i.e. Clients should be discrete and conduct their business in a confidential matter and that is half the battle won in keeping your offshore affairs private.

 

[orangeye]

5) Cost - What is the size of your budget? You should consider your needs and wishes. Many customers make the mistake of choosing the cheapest options and then suffer consequences later on.
6) Bank Account considerations - Will you require special services such as a merchant account or trading platform? What is the general level of service in the jurisdictions being considered? Bank costs? etc.

I agree to this, it all depends on your budget, profits generated and what other it is you try to achieve.


I have been pleased with the Seychelles setup and as well our Belize and Cyprus company setup.

 

[img]

dwilson - (Point #5) Could you give a bit of detail about these possible consequences? Still very much learning. Thanks.

 

[phantomoffshore]

dwilson - (Point #5) Could you give a bit of detail about these possible consequences? Still very much learning. Thanks.

Second that question an answer would be much appreciated

 

[JohnLocke]

5) Cost - What is the size of your budget? You should consider your needs and wishes. Many customers make the mistake of choosing the cheapest options and then suffer consequences later on.

It is the CSP you have to look at and what they are able to help with when you established a client relationship with them! Most often the lack of backup support is the biggest issue and the mistake one can do by going for the cheapest solution.

 

[dwilson]

I think that Admin summarized it well, but I'll go a little further. My personal background is as a compliance officer for a licensed trust and corporate services provider (I won't comment on the jurisdiction). During my audits, I reviewed a significant portion of company records and in many cases, records were in breach of regulations.


Just to name a few - simple issues from how a director was appointed, share transfers conducted incorrectly, incomplete records, etc. What was worse was that when I raised points with the customers was that they had no idea that matters were not handled correctly or indeed what were the consequence of these actions. In many cases, clients trusted their CSP to provide guidance and these matters were overlooked. In the majority of these instances, the director/ shareholder/ company secretary would be held responsible and monetary fines can be imposed directly on the company and not on the CSP in some of the examples that I mentioned. In many instances, the beneficial owner was the director or shareholder.


It could have been avoided had they used a CSP that was more knowledgeable and provided more support. These CSPs tend to charge more for their services because they ensure that each customer transaction is compliant. Clients normally have no idea that they are doing wrong and believe me - ignorance is no excuse for breaking the law!

 

[cosmo]

Just to name a few - simple issues from how a director was appointed, share transfers conducted incorrectly, incomplete records, etc. What was worse was that when I raised points with the customers was that they had no idea that matters were not handled correctly or indeed what were the consequence of these actions. In many cases, clients trusted their CSP to provide guidance and these matters were overlooked. In the majority of these instances, the director/ shareholder/ company secretary would be held responsible and monetary fines can be imposed directly on the company and not on the CSP in some of the examples that I mentioned. In many instances, the beneficial owner was the director or shareholder.

True, so many unreal services out there and only a handful deliver mg:

 

[forcet]

I have been looking into a Belize company and made some look around before I decided to incorporate there, the company is OK but Im not able to find any processing for the company in Belize!

 

[dwilson]

@ forcet - A lot depends on the activity of the business for merchant services in Belize. At the moment, only a handful of the banks are offering merchant services! We just assisted a client with this.

 

[forcet]

What banks are there in Belize who open Merchant Account? It is Belize and not other country right?

 

[dwilson]

Yes it is Belize!