Saturday, September 30, 2023


Offshore Companies: Details You Should Not Miss

PUNJAB NEWS EXPRESS | September 18, 2023 05:30 PM

Mass media creates a lot of myths and misconceptions about offshore companies. However, an offshore company is nothing more than a tool, and all you need is to know its functions and methods of correct application. This post is focused on the peculiarities of this tool and important details that every entrepreneur who makes a choice of a jurisdiction for the company should be aware of.

The full text is available on our portal, and we strongly recommend all those who intend to register or buy a company to read it from beginning to end. If you have any questions about offshore companies, simply follow the above link and contact our experts. We provide an initial free consultation, and we charge nothing for helping you with the choice of a jurisdiction that will be best suited for your company incorporation. And if you decide to delegate all the administrative issues to us, we will be glad to start a company for you for a moderate fee – with your minimal involvement!

Offshore Company: What Do We Mean?

It is very important nowadays to give a definition to an offshore company if you discuss it with someone – otherwise, you may refer to different things.

  • Some people mean that an offshore company is primarily an entity registered in a tax haven.
  • Others mean that this is a company registered outside the owner’s country of residence. That is, it is the same as a foreign company.

Entrepreneurs who say “I want an offshore company” commonly imply that they would like to have a legal entity in a jurisdiction that offers tax incentives, stimulates businesses in a different way, offers enhanced privacy standards, and does not require much reporting to be submitted. However, it is always better to clarify!

Take into account that offshores may differ a lot by the speed of their movement toward complete transparency. Some of them (like Panama) have a publicly available register of beneficial owners, others are moving quite fast towards the same standard, while some others (like Nevis, Belize, or Dominica) still offer the highest possible confidentiality. With that in mind, you can plan ahead and see how many years you have before a particular offshore turns into an onshore as far as the privacy of beneficial owners is concerned.

Offshore Company Incorporation: How Much?

Let’s look at some misconceptions about offshore companies. The main thing that should be kept in mind is quite clear: find the golden medium between minimizing your expenses and the “miser pays twice” situation.

Are Offshore Companies Cheap?

You have probably seen ads on the Internet that promise the services of an offshore company registration for a few hundred dollars in a matter of hours. As a result, many people think that an offshore company is a cheap solution. In reality, however, you will either get nothing for your money (that is, you will deal with scammers), or you will get a part of the service (though this is not specified anywhere in the ad). There is no way you can get a fully operational offshore company on these terms!

If we exclude scammers, what do you really get if you agree to an offer of a 500-dollar offshore company?

In most cases, this is the cost of a state registration fee. And when you meet a consultant online, you will hear something like that:

  • You will also need to pay for the registered agent’s services…
  • The documentation processing fee is not included in the price…
  • The compliance check will cost you…
  • You will need to rent an office to be approved…
  • The documents have to be translated, and the usual fee is…

And so on.

In other words, you will not buy a package of services at this price – you will always get a list of extra fees, and the total amount will differ a lot from the initial offer! Let alone the fact that they will hardly open a bank account for your company…

Conclusion: offshore company registration will cost less than onshore company registration, but it cannot be extra cheap if all nuances are taken into account and you get an instrument that is ready for work rather than a part that needs to be adjusted.

Is It Cheap to Maintain an Offshore Company?

Any company requires annual maintenance expenses, and an offshore company is not an exception.

First of all, you need to renew it, which means paying an annual state duty (from 300 to 500 US dollars).

Second, companies in most cases require substance. No more low-cost solutions like a website, a bank account, and a mailbox are available if you mean real business. What you need is a physical office, employees who work for you, and a director who performs all the business administration duties. All that does not come for free.

Your company needs substance to actively engage in operations, which will make it eligible for discounts, tax incentives, and DTT benefits.

Offshore Company Registration: How Long Does It Take?

There are three aspects that will determine how much time a specialist will need:

  • Preparation of personal documents to be submitted by all directors and beneficiaries
  • Company registration (1-2 days plus apostille and delivery)
  • Making duly certified copies of documents to be sent to the bank

If the first stage is complete, the further time needed is 1-2 weeks. However, you’d better not hurry when you collect the documents as well-prepared forms are the prerequisite to success.

If you see a promise of company registration within 1-2 days, you should know that you will only get a registration number from the Registry within this timeframe. Does that mean that your company has been duly registered? No, it does not, and the complete procedure will last no less than the mentioned term of 1-2 weeks.


There is much more to the offshores, of course. If you are interested in the topic, please follow the above link to read about other misconceptions and pitfalls on your way to a successful offshore business. However, the good news is that our specialists will help you avoid them! Do not hesitate to book an initial free session and make the first step to your profitable business.

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