Once you have decided to set up your business base in another country the first step in offshore company incorporation would be to decide upon the particular country where you intend to set up. Choose one whose jurisdictions are secure and legitimate and corresponding laws and regulations are simple.
The tax laws, communications efficiency, foreign exchange laws and regulations, banking facilities available and overall cost of company incorporation and maintenance etc should be given utmost importance. Always opt for expert advice regarding the actual formation. There are numerous firms which specialize in offshore company incorporation.
Once the location has been fixed, it is up to the owner to decide whether to visit the place or not. The services provided by certain online firms who are registered agents can be utilized to carry out the incorporation formalities. It takes very little time if you have all the necessary documents ready. An online application form can be filled and all necessary documents sent to them by fax or courier.
A major step is to open an offshore bank account. Proof of identification such as Drivers License, Passport copies or National ID has to be provided to your incorporation agent as they have to maintain records of all directors, shareholders and beneficiaries of the company. All information provided remains undisclosed with your agent.
A Beneficial Owner’s Declaration known as BOD has also to be filed with the agent. This will highlight the present activities of the entrepreneur, the business he plans to conduct through the newly incorporated company, information related to his career etc. There should also be a signed statement accepting to obey the jurisdictions of the offshore country and not stray into any prohibited areas etc.
There is usually a middle man involved known as the ‘Incorporator’ who plays a vital role in offshore company incorporation. He is the official signatory of the incorporated company in its initial stages and is also the first share holder of the company. He has to subscribe to the minimum number of shares as required by the law and later transfer them to the rightful owner. You can further appoint nominee directors and company secretaries if you further look forward to not being actively involved in the company operations.
An amount will be charged as the incorporation charges as well as the fees of the agent whom you have employed. Choose a good name for your company which is acceptable to the offshore company regulations.