There are a lot of Offshore Centers that offer competitive turnkey packages to float Offshore Companies with complete infrastructure to own and operate businesses, to hire local employees, to enter into agreements, to rent office space, to sell goods and services, to draft contracts and to offer investment, taxation and banking advice.
The very first step towards formalizing such an offshore enterprise is to appoint a registered agent in the country of the offshore enterprise and to have a registered address where the company formally operates from. The agent forms a link between the local government and the offshore enterprise and the registered address is also the correspondence address where local Governmental notices and legal circulars can be served.
The entire exercise of putting an Offshore Company in place can take anywhere from a minimum of twenty four hours to a maximum of three weeks, depending upon one's choice of country for an Offshore project. One would anticipate that forming an IBC [International Business Company], would be a huge expense given that it is a relocation of an enterprise in its entirety. On the contrary, the fee for floating an Offshore Company is extremely reasonably and attractively prized at the outside range of just around US$ 1000.These non resident companies do not require Business License prior to starting operations internationally. A large number of such companies are private yet the shares of some key players are traded on the world's major stock exchanges. Such Offshore Centers are free from book keeping and heavy reporting requirements. This explains the attractive tax holiday which is the major benefit of Offshore Companies. These entities utilize local laws to advantage to avail tax benefits in a confidential and secure manner. Offshore Companies operate with a great degree of independence as they do not have the system and the tax authorities breathing down their necks. Nor are they required to disclose details about their share holdings. Moreover, they are not required to make public disclosures regarding their assets and other acquisitions.
New Offshore Companies are not required to deposit the authorized paid up capital at the time of incorporation. If the company does run into debts the shareholders are personally liable to the limit of their declared shares.
Shifting businesses offshore is a modern and popular trend devised by companies and corporations to overcome the pains and travails of running flourishing businesses in their current area of operation, and there is a vast multitude of available options by way of offshore jurisdictions to choose from.