Offshore Registration

Offshore Registration can be done for different types of offshore business corporation in different countries in the world. Offshore company formation is not without many clearly visible benefits for company owners and the offshore company itself. Offshore registration takes can be done for partnerships, limited liability companies and International Business companies. Offshore registrations can also be done for offshore entities such as foundations and trusts.

Offshore registration is a process which is similar to that carried out for the incorporation of a regular or onshore business company. The main differences between the onshore and offshore company is that the offshore company normally pays no taxes (percentage taxed by both type of companies depends on the jurisdiction of incorporation) and in some jurisdictions the regular company can do business in and out of the country but the offshore company is usually restricted to doing business outside of the jurisdiction of incorporation. Offshore registration of companies can take from one working day and sometimes up to two weeks but all of this depends on the regulations which are put in place in the countries of incorporation.

Offshore companies registration of a normal offshore company is completed by submitting to the Registrar of Companies a complete Memorandum and Articles of Association. The information contained in the documents is very basic but important. The information to be filled is; the name of the offshore company, the name of registered agent, authorized share capital of the company, the value of the shares to be issued, the types and number of shares to be issued, the names and addresses of company shareholders and directors, the rights, privileges and restrictions placed on each type of share issued, the purpose for forming the offshore company and the bylaws of the company. This is filed along with a registration fee. For the formation of an offshore company most jurisdictions accept one (1) shareholder and one company director. The director and shareholder can be the same person. There are jurisdictions which state that offshore registration must be completed with at least two (2) or more company directors.

Issuing of a Certificate of incorporation by the registering authority in a country means that offshore company formation has been approved and the offshore company is now a legal entity. Offshore company formation can be denied for a number of reasons one of those being the proposed name of the offshore company. Most offshore jurisdictions will not incorporate an offshore company if the name chosen has already been used by another offshore company or if the name is very similar to that of another company and might cause confusion between the two companies. An offshore company will not be registered by the registering authority if the company’s name is deemed to be offensive or contain words such as Chamber of Commerce, investment fund management, Building Society, Chartered, Cooperative, Insurance, Municipal and Royal. Names which show patronage to any royal family, university or other educational institution or political parties are not acceptable for offshore company incorporation.

Once incorporated there are offshore jurisdictions which prohibits offshore companies from carrying out their business operations from within the jurisdiction and with or on behalf of residents of the jurisdiction of incorporation. There are exceptions of course, in offshore financial centers such as Panama offshore companies legislations allow Panama offshore companies to do business in and out of the country and tax is levied against the earnings of the Panama offshore companies which have been generated in the country. Most offshore companies are allowed by legislation to keep annual general meetings at any location which is suitable for the companies’ shareholders.

Offshore registrations have its advantages over a regular offshore company. Offshore registrations have become so popular that each day thousands of offshore companies are incorporated around the globe.