COMPANY INCORPORATION

WHY IS IT WORTH THINKING ABOUT

Individuals looking to start investing in a tax haven could start what is known as a tax haven corporation which is a service most offshore financial institutions offer. This tax haven corporation is often referred to as an International Business Company (IBC). This IBC, depending on which tax haven jurisdiction you choose to do business with, could potentially be tax free or low taxed. Tax haven companies do not require much to start up, in most instances you can have one shareholder and one director, which can be the same person. In some places such as Panama you might require a minimum of three directors, but again they can be shareholders. In tax haven companies the financial institutions do not have to disclose any information about the beneficiary owners of the company. Many tax haven companies exist today only on paper and are operating with success and security, they are typically used for conducting international trade legally. Tax haven companies are becoming a more intriguing option with ever growing economic instability, financial instability, a tax haven company could provide economic stability, as most tax havens jurisdictions are actually stable.

WHY FORM AN OFFSHORE COMPANY AND HOW?

The establishment of an offshore company is perfectly legal and complies with decree 92.521 (11th EU Directive 99/666/CE), which applies in accordance with the international law. An offshore company can therefore be created by any individual in legit way. An offshore company is so called because it is basically be based in a country different from where it generates its revenue. Consequently it can not exercise or avoid an economic activity in its country of residence or origin. For example, an Indian offshore company based in Singapore may do business anywhere in the world, except in Singapore (this prohibition may not be applicable in few cases).

ADVANTAGES OF OFFSHORE COMPANIES

As already mentioned earlier that, offshore companies are based in such countries where taxes are low or no tax, which allows you to increase profits and grow more liquid cash. Choosing an offshore solution allows you to simplify the management of the financial structure, especially in terms of reporting, which is often reduced drastically.

Offshore companies are completely separate and legal, therefore, the name of the managing director does not appear on any official document, ensuring full anonymity. Depending on the destination country or offshore country, the principle of visible capitalization may not exist, this means that; there is no minimum share capital requirement at all. Having an offshore company actually incurs much lower operational costs than the rental of premises, the use of accountants, suppliers, information technology service providers, etc.; and most importantly your privacy, safety and security of your funds.

WHAT IS SHELF COMPANY?

A shelf corporation, shelf company or aged corporation is a company or corporation that; has had no activity. It was created and left with no activity – metaphorically put on the “shelf” to “age”. The company can then be sold to a person or group of persons who wish to start a company without going through all the procedures of creating a new one.

Or this is a company that exists only on paper and has no office or no employees. It’s usually registered to the address of a company that; provides a service setting up shelf companies in a tax haven.

Shelf companies are 100% legal. They only become illegal when they are used for criminal activities; things like tax evasion or money laundering. Unfortunately they are actually used for criminal purposes in most of the circumstances. This is because to setting up a shelf company or shell company doesn’t require much identification and in most of the cases, clients are promised their identity would be secret.