Offshore Training Protect Your Wealth In 3 Simple And Easy Steps

Offshore formation with a bank account has become a proven method to protect wealth and income streams from heavy taxes and also to protect the confidentiality of the owners. You need to follow 3 simple steps to achieve offshore structure formation.

Three basic steps in offshore training

1. Choose the right jurisdiction, choose the right corporate service provider agent – ​​a CSP agent.

2. Decide the appropriate structure for offshore training.

3. Prepare the documentation to present for the incorporation and opening of a bank account in the name of your offshore formation.

More than 250,000 companies were incorporated in the world’s major offshore jurisdictions, primarily in the British Virgin Islands, Panama, Hong Kong, Seychelles and Mauritius.

Step 1. Choose the right jurisdiction and an agent for your offshore formation

You can choose from over 50 offshore jurisdictions incorporating various forms of offshore companies, trusts and foundations. They vary in costs, procedures, regulations, and degree of confidentiality.

Popular jurisdictions are: British Virgin Islands, Panama, Seychelles, Ras Al Khaimah, Mauritius, Hong Kong, Singapore, Cayman Islands, Jersey, Belize, and Nevis.

Some jurisdictions have information sharing agreements that you may not like. You must check this out. You should also check the local tax rates applicable to types of offshore structures.

You will need to engage the services of a CSP agent who is authorized to register companies in the jurisdiction of your choice.

Is your purpose in forming an offshore company to protect your assets or to run your business and receive income?

The answers to these questions will clarify your exposure to tax liability, if any. You will benefit even more from the advice of the CSP agent who takes care of your work and completes all the paperwork.

A good CSP agent will confirm whether your offshore formation goal can be achieved in the proposed jurisdiction and the tax and confidentiality implications as well as the security of your assets.

Step 2. Decide on the right structure for your offshore training

This is perhaps the most important step. Basically there are three forms of structure.

• An offshore company: this can be an offshore IBC (International Business Corporation) or an offshore partnership or limited liability company.

• An offshore trust

• An Offshore Foundation

An offshore formation as an IBC company is the most common form because almost all jurisdictions accept it. Whatever an IBC has certain advantages and also disadvantages compared to an Offshore LLC.

An IBC operates like any other corporate entity with shareholders and directors and passes resolutions.

Therefore, you can have a layer of confidentiality by taking advantage of nominee services. The most common being an IBC is accepted in transactions and legal agreements. It is also relatively cheaper to form.

However, an offshore LLC or LLP is more like a cross between a limited partnership and a partnership. It enjoys the benefit in taxation by having the income taxed only once as income of the partners. However, the responsibility of the company is not that of the partners.

Also, tax rates are lower in LLPs or LLCs, if they apply to your business at all. In the event of a legal dispute, the court may order an IBC share certificate to be attached, but that cannot happen in the case of an LLP. However, offshore LLC or LLP formation does not offer the same level of confidentiality as IBC.

You should choose the structure of your offshore training with this in mind. Carefully choose the share capital and offshore formation activity after due consideration of its intended use.

Step 3. Complete the documentation for your training abroad and bank account.

The documents for your offshore training are invariably the same. You, the shareholders and directors, must provide your KYC (Know Your Customer) documents that prove your authenticity as real people that exist.

1. A copy of the passport that must be notarized to prove its authenticity.

2. A proof of address, which can be a utility bill, credit card bill, bank statement, or tax return that has been mailed to your address. This must be more recent, less than 2-3 months old and in original.

3. A reference letter from a banker stating that you have a bank account in good standing. This can also be substituted for a reference letter from a law firm or licensed accounting firm in some cases.

4. A CV of all directors and shareholders.

5. A brief note about the business – Clients and suppliers and the commercial activity that will be carried out in the offshore formation.

6. In addition, some CSPs require a form to be completed that requires details about the source of the funds, the type of business transactions, and the assets that will be held in the company.

The agent will receive the documents along with the fees and from your company. He will receive the Certificate of Incorporation and the Memorandum of Association and also the share certificates upon completion of his training abroad.