Offshore Concept

As reflected in the legislation that governs overseas jurisdictions, is there more pressure to survive?

It should be noted that now the pressure on the offshore zones reduced. Offshore zones could survive at a critical time and have the best in today's environment legislation.

What are the advantages of using an offshore company?

There are a number of successfully used offshore schemes to allow for the free movement of funds in order to take advantage of the business being in a different location to where you are initially running the business.

What jurisdiction is the most favourable for the registration of an offshore company?

The profitability of offshore jurisdictions is usually one of the factors that make it most favourable. However the profitability is subjective, depending on the type of business you will be conducting and the company as a whole. Generally speaking, we have compiled a list of jurisdictions that we have found to be the most popular:

  • Cyprus: is a member of the European Union and provides the best solution for businesses both in Europe and globally as a whole.
  • The Seychelles: is one of the largest centres for running overseas companies.
  • The British Virgin Islands: characterised by well-functioning practice using offshore companies.
  • Belize: Among the many advantages of this jurisdiction is that registration takes an extremely fast amount of time, as well as the low cost of incorporation and maintenance fees.

What type of businesses do Eltoma Corporate Services recommend to incorporate overseas?

It is not necessary to generate vast revenue in order to register an offshore company and protect your business from risk or tax losses. Even if you own a small company, the use of an overseas company can help you effectively manage your capital, whilst minimising the tax burden and expanding the development of your business. 

If you are the Manager of a large company, after weighing up the pros and cons of whether to open a company overseas becomes apparent. Even with ever-changing legislation and regulations and the drop of confidence for government agencies globally, it is precarious not to choose to protect your assets in this way.

We recommend purchasing an overseas company in the following fields of work:

  • Individuals who have received an inheritance.
  • Businessmen and Entrepreneurs. 
  • Small business owners. 
  • Property owners. 
  • Senior Management.
  • Writers.
  • Athletes. 
  • Inventors & designers.
  • Owners of intellectual property rights.
  • Medical practitioners.
  • HNWI- High net worth individuals.

What is the main purpose of using offshore companies?

1) To minimise the tax burden
This is arguably the main reason for many companies. Several examples use overseas companies to minimise tax:

  • Conclude profits from countries with high taxes in the tax-free territory. 
  • Reduction of the tax base through the use of an offshore company as an intermediary in trading operations. 
  • Acquisitions of property on behalf of an offshore company, which can significantly save on income tax, on profits and capital, as well as taxes on property received as an inheritance. 
  • Registration of ships and yachts in offshore territories and their transfer to the ownership of offshore companies to avoid taxation of their profits from chartering and other uses. 
  • Output from taxation income from the use of copyrights, patents, trademarks, by selling licenses to offshore companies in the property. 

2) Protection of assets
As a rule, legitimate offshore companies registered on the basis of the principle of limited liability. Therefore, the company does not meet its assets for the obligations of their respective owners. Accordingly, the withdrawal of assets in offshore territories, the owner of these assets can be sure of their safety.

3) Maintaining confidentiality
A distinctive feature of the legislation of the majority we offer offshore jurisdictions (namely Belize, Seychelles and the British Virgin Islands) has a de jure ban on the disclosure of any information about the confidentiality of Business Owners or Shareholders of an offshore company. Such information may only be issued by the verdict of an international or a local court. Therefore obtaining information about the Beneficial Owners of an offshore company is almost impossible.

4) Safe storage of funds
Once you have accumulated enough profit and want to put it in a safe and reliable bank, with round the clock immediate access, at your disposal and free movement globally, perhaps in order to protect it from the political instability of the state that you are living?

What can we do? The solution can be only one: register an offshore company and act on its behalf as a director or a person authorised by the general power of attorney from nominee director (i.e Directors, which will appear only on paper).You will be able to manage the account of the company, manage it online, get a plastic card for the company, and get free round the clock access to their money. You will be totally exempt from any taxes in full compliance with privacy. 

The offshore company as a member of your business
Your company is in foreign economic activity, you need to minimise taxes, simplify workflow, accelerate cash flow and to ensure their safety, to protect themselves from the tyranny of the fiscal authorities. An offshore company in this case can play the role of mediator between your local company and the seller (buyer), with which you drive your international business. 

Using an offshore company to import equipment
If necessary purchases of equipment from abroad without the unnecessary payments to customs and VAT, you may want to consider to purchase this equipment for an overseas company and to make the equipment as the authorised fund of the joint venture is simple and effective.

What is meant by the term “offshore”?

Offshore (offshore), or an offshore company - a company registered in one of the states that provide zero or close to zero, the level of tax revenue for the company, leading its operations outside the territory of these states. It serves as the primary instrument of international tax planning.

Why do you need offshore company?

An offshore company means managing a company outside of your jurisdiction of birth or current residence. This is one of the main instruments used in international tax planning. It can also be used for the purchasing of real estate, securities, ships or aircrafts etc.

Is it legal to use offshore?

Like any other tool, it can be used offshore and legitimate tax planning schemes, and illegal activities, including illegal tax evasion and laundering criminal capital. The legality of a particular transaction through offshore determined in accordance with the provisions, as the legislation of the country of its registration, as well as with the provisions of the legislation of countries other participants in the transaction, as well as international treaty provisions. Many developed countries have applied to its own residents certain restrictions on transactions with offshore, but a total ban is not widely applied, including in Russia.

What is international tax planning?

International tax planning is legitimate activities companies can take in order to optimise their tax burdens, including the use of operations to set up companies and other legal entities in countries with low or favourable tax regimes, most likely overseas jurisdictions.

Are there any specific restrictions on the location and activity of an offshore company?

An offshore company may engage in any lawful business, with the exception of business requiring special licenses (such as banking, insurance, betting houses etc.) or other activities with territorial restriction. An offshore company is not entitled to participate in any business relationship on the territory of its country of registration (excluding relations with registered agents, Lawyers, Auditors, etc.).

Is there a guarantee that real owner of an offshore company can remain anonymous if this information is requested from tax authorities or governmental bodies?

When registering an offshore company using the assistance of a Nominee Director or Shareholder, the state registration where the company is registered  does not know who is the real owner of the company, therefore, no information about the real owners of the company at all desire cannot be obtained. In addition, in many offshore jurisdictions do not classify details of Directors and Shareholders as common practice.

If you order a company with nominee Directors and Shareholders (or bearer shares), it greatly increases the confidentiality of the company owner, only the registered agent. Authorities may request this information from the agent only by a court decision, but it needs to show a sufficiently good reason.

Which offshore jurisdictions should be improved or recognised objectively?

When choosing to incorporate your company overseas, there are many jurisdictions to choose from! The jurisdiction of your choice can be selected according to personal preference for you and your business. Do you wish that the business was completely unavailable for partial control, or you are willing to make some concessions in this way, in order to appear as a more solid parent company? You should also assess the incorporation costs and annual maintenance of the company, you must also consider visiting the jurisdiction of your choice for signing of contracts and initial tasks. You must be ready to travel to several offshore jurisdictions in order to see if they satisfy any overseas schemes for Entrepreneurs and novices in every type of business.

How can an offshore company be used effectively?

It’s a common misconception that offshore companies are used only for exporting and importing goods, which is incorrect! There are many schemes whereby the profit of a company is turned into a personal investment, for example, by registering a trade mark in the company’s name, or to conclude the rights of its parent company are just a few examples. As well for tax-free transfer of property (such as inheritance), international leasing, cheaper maintenance costs such as office rental, international transportation of goods, the creation of a franchise offshore company and purchase of its parent company, tax benefits and other benefits.

How can you liquidate and effectively close a company registered in Hong Kong?

In Hong Kong, for the dissolution of a company, it is necessary to pass the simplified liquidation process, or a strike off from the register from the company Registrar, this is officially called de-registration. De-registration can be carried out, subject to the following:

  • All Shareholders consent, established via Shareholder meeting.
  • Repayment of all debts of the company to the State (all reporting should be deposited), external creditors, the officers of the company, its Employees and Shareholders.
  • The absence of three months prior to submission of the application.
  • The company is not involved in the litigation.
  • Closed bank accounts.
  • All assets should be liquidated (sold out, returned to shareholders)
  • Audited financial statements must be prepared for the last fiscal period and put together a form of Profit Tax Return to the tax auditor.

Keep in mind that:

  • Striking off from the registry entirely depends on the decision of the registering body, he may refuse to carry out a simplified liquidation, and then the total elimination.
  • The entire process can take from 4 to 5 months. Company Directors are required to further keep the documentation within 6 years.
  • A company can be restored after 20 years.

What is the difference between these addresses: registered, postal and business?

1.       The registered address of a company is indicated in its founding documents. This is usually the address of the Secretary or the registering agent.

2.       The postal address can be the same as the registered address. This is the address where you would like to receive correspondence for the company. The address may be different from the official registered address and may be selected by the customer.

3.        The official business address is where the actual activities of the company take place (for example, this could be the address where the Shareholder meetings take place and general running of the company).

What is the difference between these addresses: registered, postal and business?

1.       The registered address of a company is indicated in its founding documents. This is usually the address of the Secretary or the registering agent.

2.       The postal address can be the same as the registered address. This is the address where you would like to receive correspondence for the company. The address may be different from the official registered address and may be selected by the customer.

3.        The official business address is where the actual activities of the company take place (for example, this could be the address where the Shareholder meetings take place and general running of the company).

Cyprus:
+357 25 02 50 34
Singapore:
+65 62 47 71 92
Russia:
+7 812 458 46 22
Skype:
eltoma.0015