Where to Register an Offshore Company?

Whenever the thought of creating an offshore company comes to mind, it is always helpful to know that deciding where to register an offshore company is something that can be discussed with a friend who has already incorporated offshore or with a financial services firm. The question of where to register an offshore company is indeed important because developments are inevitable and unwanted surprises can be avoided, such as if, for example, you were to register offshore today and be informed a few months or a year down the road that legislative changes that will remove the tax exempt status of your offshore company were soon to be introduced.

Of course paying additional taxes is not a bother for everyone, but it is also true that almost everyone goes offshore to try to reduce tax liability in addition to expanding sales to new overseas markets. Thus knowing about where to register an offshore company, the advantages that one jurisdiction offers over the other, the reliability of the offshore company registration services in a certain jurisdiction and the ability of jurisdictions to make options available in other complementary offshore financial services along with or after offshore company registration are essential factors.

Every offshore haven would have introduced one major or a series of legislations to regulate company registration and formation services. When you choose where to register an offshore company, it is important to request information about any recent amendments made to legislation or new amendments that are expected to be made to the current legislation under which your offshore company is going to be registered and incorporated. The change might not have any impact on the company per se since it may only concern the rewording of a particular phrase or group of sentences for better understanding of their content. However, with so much going on relative to anti money laundering measures, tax treaties, background checks and creating a more level playing field for both foreign and local businesses and entrepreneurs within single economic spaces, knowing where to register an offshore company should factor in these matters. In one jurisdiction background checks might be speedy and efficient whereas in another the process might be very demanding, requesting a lot of documentation and raising the overall cost of an offshore financial service. After deciding where to register an offshore company, finding out about any major legislative change could have many financial and management implications for the company, as it might be necessary to restructure into a local company, pull out of a particular location of doing business or get prepared for new financial obligations that were once nonexistent.

This said, a thorough background check should be done before deciding where to register an offshore company. Factors such as whether the jurisdiction is an overseas territory that is vulnerable and subject to legal changes in the mainland, or has a repute of a sound track record in providing trustworthy, reliable offshore company registration services and is in keeping with international standards while providing efficient, professional offshore registration services are vital. Owning a company offshore can produce tremendous benefits, but where to register offshore companies carries with it a few personal responsibilities as well to ensure that this success is achieved.