Requirements in setting up an offshore company

2007-03-08 10:33:40

( Business )



An offshore company is basically just a company that is engaged in business outside its country of origin. There are many advantages of setting up an offshore company for example, in the case of taxation; offshore business may be constructed in such a way that profits are maximized because of limited tax liability. Offshore companies are also relatively easy to set up because of the simplicity of the requirements and maintenance. Also, offshore companies can protect their assets against possible future liability that may arise from their operations.

On the other hand, you should also be aware of possible disadvantages you may encounter in setting up an offshore company. For example, your business operations in your country of origin are strictly limited because a substantial part of your operations is located offshore. Offshore companies also face another disadvantage because the kind of business they can engage in must first be approved by the host country. Banks and financial institutions are usually restricted in setting up offshore operations because the host country does not have jurisdiction over them in some legal aspects. Setting up an offshore account may also pose as a problem because of the tight restrictions in some countries to prevent money laundering.

Here are some requirements you must meet in setting up an offshore company. One basic requirement you must have is the bylaws of your company and the certificate of incorporation. Other requirements include having a registration agent; this agent will be responsible in communicating with the registrar. You should also have a registered office; this is basically just your legal corporate office where official communications can be sent. But just like any other companies, offshore companies also have the common requirements like having a board of directors, company secretary, and shareholders. Overall, these offshore companies can provide better and cheaper services in the field of offshore data entry, offshore accounting, and call centers. These are just some of the areas where offshore companies have a competitive edge in.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.