Company Formations Offshore

There are several types of company that you can form in the UK, but did you know you can also undertake company formations offshore.  These companies are little more than shell companies – they often don’t have trading rights, or other items that people would expect a company to have after registration, but they can provide you with access to a bank account and other features that might otherwise be difficult to achieve. These companies are designed to be used as basic presences in those countries – perhaps as an investment to protect your company name, or for another reason.  Your businesses can have board meetings there – for example if your company would require to meet with your multi-national board, you may choose an offshore corporation to hold your interests in a neutral territory.

Tax and Other Questions for Company Formations Offshore

Company formations offshore are mostly subject to no or minimal tax in the location they are formed, but you will be taxed in your own jurisdiction, as will any other directors.  While you will be taxed in your own jurisdiction, some corporations are formed in places considered ‘tax havens’ which means you can invest your money in your bank account and it will not be taxed by either the country you’re investing your money in, and your own country may not be able to tax you either.

Advice for Company Formations Offshore

It’s critical however to understand that due to laundering, terrorism and tax evasion laws, you should only do this on the advice of your lawyer, financial expert or both – you could risk being punitively assessed or worse.  Some countries will require minimal taxes at their end – while others can be expensive to incorporate, but offer more protection, and no taxes.  You should ensure that you know all about the location you’re opening your company formations offshore in, and ensure that you can comply with all of their requirements.