The registration of offshore companies has continued to gain momentum with each passing day. This has largely been attributed to the variant benefits that come with managing a business offshore. Investors are assured of a free and conducive working environment where confidentiality and convenience are the driving forces behind the establishment and sustaining of companies with a sound capital base.
Nicosia, Cyprus -- (SBWIRE) -- 03/07/2010 -- You will need to come up with Memorandum or articles of Association which will spell out your objectives as a company, rights of members and other internal processes such as the mode of operation.
You will also have to acquire a certificate of incorporation which will give you legitimacy. The certificate if incorporation is usually granted by the Registrar of Companies in line with the legal provisions in your country of operation.
Offshore Companies will also need to appoint and register an agent in their respective jurisdiction. The agent will in most cases take liability on behalf of the offshore company and oversee smooth running of your business.
The Offshore companies will also require an official address before registration is done as this is meant to create a platform for official correspondence. Shareholders may be nominees from existing corporate organizations. In some cases corporate service providers will nominate directors for the offshore companies as long as they are able to take charge and are not opposed with the operations of offshore company
Offshore companies will also require a company secretary who will ensure that they meet their statutory requirements. Furthermore, a statutory record will be required to indicate the level of their engagement but this will again vary from one country to another.
The Directors will also have to keep proper records to prepare audited accounts. But this requirement will also vary from country to country.
Offshore companies are not subjected to taxation and will enjoy every single cent from their earnings. Unless you are operating a bank or financial institution, other entities are not regulated and in fact some countries will go out of their way to not only facilitate the formation of offshore companies but also oversee their maintenance. The cost of operation is relatively low as companies have the discretion to decide where they need to incorporate their companies. They don’t have to buy or rent business premises and the business can be a one man show and therefore you do not need to hire support staff.
You can register different types of offshore companies depending on the type of business you are engaged in. You can register a company with a share capital. This type of companies will in most case grant shares to allow ownership. However shareholders have a limited engagement with the company and mostly their association will end once they finalize payments on the initial cost of a share.
Offshore companies can still be registered as ventures limited by guarantee where owners will commit themselves to payments of a certain amount of money in the event that a company is declared insolvent.