Offshore Company Formation

Why Should You Incorporate Your Business

2006-05-15T09:01:00.000-07:00

For the business owner, one of the questions that will inevitably come up is whether or not to incorporate. Incorporation can be a complicated and intimidating process and, because of that fact, many business owners avoid it like the plague. Although it can be a complicated process it has many benefits that make the labor of incorporation worthwhile.

Incorporation allows the business to increase profit potential, it affords the business owner and the shareholders safety from liability for the company’s debts, and it establishes credibility for the company name.

When a business incorporates it gains the ability to sell shares of itself in the form of stock. The selling of stock immediately increases capitol gain and, if the company does well, will continue to produce earnings in the long run. Typically the owner of the company will be the one who holds the majority of the stock. Should the owner decide to sell the business and move on to something else, that stock will give a great financial boost for starting a new venture.

A business that has not been incorporated and exists as a sole proprietorship or general partnership puts the business owners at risk of losing their personal assets if the business goes under. In that situation, in order to collect debts, personal assets such as cars, houses, or boats, can be seized by creditors. A business that is incorporated provides security from that liability for the owners and the shareholders.

When a company sets out to make its mark in the corporate world, it has to compete with every other business of its kind. The key to business success is to be able to separate from the pack, so to speak, and have individual appeal. For many small businesses this can be easily achieved by incorporating. The credibility that is gained and the peace of mind that it brings to the customer is invaluable. For a client to know that you are serious enough about your business to have set up and registered as a corporation lets them know that they will be taken care of as a customer.

The advantages of an incorporated business are many and the disadvantages are inconsequential. The profit increases, the freedom from liability, and the credibility gained are benefits that no smart business owner can ignore. The process of incorporation can be made extremely manageable by consulting with a professional who can help you through the process. When the peace of mind is high and the profits are higher, you’ll be glad you did.

Where to Incorporate

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While you may think that the state in which you live and will do business must be the one in which you incorporate, that is not the case. In fact, many businesses choose to incorporate in a primary location in another state and just have a branch of the business where the work will take place. Deciding on where to incorporate is a matter of determining what business laws and regulations will most benefit your business and what tax structure will help you pay out less money.

Delaware and Nevada are by far the most common choices for business location because they place fewer restrictions on businesses located in their states. In addition, Delaware permits companies to charge as much interest as they want, while other states have caps on the percentage of interest permitted. Until recently, Delaware had close to half of all publicly traded companies incorporated there. Other states have begun to change their laws, however, so that they can reap some of the benefits Delaware gets from being so business-friendly.

Determining where to incorporate is not a simple task, however. You must consider whether or not you will benefit from the tax breaks and other benefits of incorporating in Delaware or Nevada when you take into account the additional state tax you will pay. When you are incorporated in one state but do business in another, your company is known as a foreign corporation in the second state. You will have to pay fees to function as a foreign corporation, so you need to make sure the breaks will allow you to save enough money to make it worth it. Think through every decision carefully.

Finding a business planner you can trust and making use of government websites, such as the Internal Revenue Service and the Small Business Administration, will help with the process of deciding where to incorporate. Remember that you may not have considered all of the available options. When you start looking, you just might find that you have choices you never imagined. Think hard before you make a decision so that you can make the best financial decisions for your business. Benefits are great, but only if you need them. On the other hand, if your company will benefit from incorporating in a more business-friendly state, then you will be glad you considered all of your options carefully before making a final choice.

UK Company Formation

2006-05-15T08:59:00.001-07:00

The allure of creating your own business and becoming your own boss can be impossible for budding entrepreneurs to exist. Dreams and expectations, however, can be sidetracked by the time-consuming, and often convoluted, UK company formation process.

Savvy prospective company owners know the best way to work through the UK company formation process is to let experts handle the administrative paperwork and details while they focus on building and growing their business dream. Even the UK government’s web site for company formation suggests consulting with an expert before beginning the registration process.

Choosing the right legal structure is a key decision for prospective company owners. Whether you choose to form a private or public company, there are sub-options to consider (such as limitation) that could affect the company if the best option is not pursued. Each kind of company structure offers pros and cons, and a seasoned professional can help you make the best choice based on your current needs and future objectives and goals.

Naming your company is also an important, and often under-considered, element to forming a company in the UK. A company name should reflect the business and be helpful to customers. Keep in mind that some words may not be used in a company name without permission. Speak to a UK company formation process consultant to guide you through the pitfalls of choosing a company name.

A professional consultant can also give advice about how to report your company’s directors, or to file your incorporation documentation in compliance with the latest UK company formation regulations and in a timely fashion.

Focus on your business and what you do best. By handing over the UK company formation process to a qualified expert, the details will be handled in a worry-free manner while you put in the hard work it takes to make a new business grow and prosper.

Registered Address & Mail Forwarding

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By law, every company must have an official UK registered address for receiving official documents. You will also need to have this official address printed on all of your business letterheads and stationeries.

A UK Registered address & mail forwarding service can help you conduct business legally, especially if you don’t live in the UK or run a small business from your home. If you have a small company that may be outside of the UK and want to conduct business in the UK, then a UK registered address & mail forwarding service can help you meet the standards of the law and conduct business in the UK legally.

You can use your UK registered address & mail forwarding service for routine mail. It is vital that you don’t use this virtual address for trading, but for routine mail use only. All Companies House letters and reminders must be sent to your official UK registered address. This must be an address that is in England, Wales, or Scotland.

By using a UK registered address & mail forwarding service doesn’t mean that you can only conduct business from that address. You just need that address for your official mail and business letterhead. The UK forwarding system will receive your company’s mail and then forward it to your address unopened.

You will need to work with your accountant to ensure that your company’s interests will be handled well with the tax company used by your UK registered address & mail forwarding service. Usually, the registered office will choose the tax office that your company will use.

You may also choose to use the UK registered address & mail forwarding service for the forwarding of general mail as well, and not just for Companies House letters and Inland Revenue official mail.

Trust Formation

2006-05-15T08:57:00.000-07:00

A trust is a legal and business arrangement in which a bank or other financial institution has the authority to act as the guardian of an account. There are two different types of trusts that may require the use of a trust formation company. Individuals may want a formation company because they are looking for companies that will provide a solid living will. Many business owners want to set up trust companies to manage their money, particularly in accounts in other countries.

A company that provides trust formation services in essence sets up these trust relationships with banking and other financial institutions or helps create these legal documents in case of the client’s death. In the case of businesses trusts, the trust formation company helps to create accounts that will be managed internationally.

Individuals who are looking for trust formation companies will want a company that can set up a family trust. This trust will ensure that the people the client wants gets control of his or her money. The trust formation company has some of the legal responsibility for managing the assets and has some decision-making power over the assets. The trust company will be able to handle all of the details of setting up trusts for children and other relatives.

Finding a good trust formation company can be tough. The most vital element in selecting a formation company for your trust is integrity. Researching the company should give you an idea of whether or not there have been any concerns voiced by previous clients. Making sure that you feel comfortable with your trust agent is key as well. You should know exactly what is happening with your money and who is in control of it. Be sure that you understand all of the provisions in your trust agreement so that you are making the best financial decision for your business and family.

The Caymen Offshore Company

2006-05-15T08:52:00.000-07:00

There are five types of companies that may be registered in the Cayman Islands – resident companies, non-resident companies, exempted companies, limited duration companies and foreign companies. They may be incorporated with members’ liability limited by shares, guarantee as unlimited companies, or as non-profit organizations.

Exempted Corporation
Exempted companies are identities where the proposed activities of a company are to be carried out mainly outside the Islands. The most appropriate use of offshore transactions is the exempt company which is prohibited from doing business in the Cayman Islands except in pursuance of its offshore business.

Benefits the Exempted Corporation:
An exempted company:
need not keep a register of members, nor file annual returns with the Registrar
need not hold an annual general meeting
Has written guarantee that if taxes ever be introduced in the Islands the company will be exempt for an initial period of 20 years, which period can be increased to 30 years.
May alter its Memorandum and Articles of Association without restriction.
may issue shares with nominal or no par value, and which can be either negotiable
or non-negotiable annual meetings must be held once a year in the islands by the company's board of directors

Annual Returns:
The annual return to the Registrar is a simple matter, requiring only the declaration that:
No changes, other than those notified to the Registrar, have been made in the Memorandum of Association
The provisions of the Companies Law have been observed
The company’s operations have been mainly outside the Islands
An exempted company need not include the word "Limited" after its name
The Registrar must give one month’s notice before taking action to strike off an exempted company
An exempted company may express its capital in any currency

Incorporation of an Exempted Company

Corporate name
A name can be reserved for 30 days.
Any of the following words or abbreviations can not be included:
Chamber of Commerce
Building Society
Royal
Imperial
Empire
Municipal
Chartered
Mutual fund
No name may contain the words "co-operative", "assurance", "bank", "trust", "Insurance or any similar word which in the opinion of the Registrar connotes any of such activities or any derivative of any of such four words or of such similar words, whether in English or in any other language, or in the opinion of the Registrar suggests or is calculated to suggest any of such activities.

Corporation Registration
They are able to arrange the registration of an exempt company on a same day basis although it will usually take a day or two for the co stating documents to be returned to us.

Resolutions or Amendments
All special resolutions of the company including the change of name of a company or amending the Memorandum or Articles of Association must be filed with the Registrar of Companies within 15 days. A resolution changing directors and officers of the company or changing the registered office of the company must be filed with the Registrar of Companies within 30 days. In addition, an exempt company is required to hold an annual meeting of the directors once a year in the Cayman Islands, and to file an annual return. Alternate directors who approve and file the annual return usually hold the annual meeting. This satisfies the requirement to hold a meeting in the Cayman Islands without actually requiring the directors to come to the Cayman Islands.

Banks, Insurance, and Trust companies
Banks, insurance, re-insurance and trust companies may be registered as exempt companies provided they are licensed accordingly.

Capital and Members
The minimum government incorporation fee allows for a share capital of up to US$960,000.00 (US$900,000 for an exempted company) which is, therefore, the authorised share capital most commonly chosen by companies. There are no minimum capitalisation requirements (other than for banks, trust companies and insurance companies).

Shares
Cayman Islands companies may issue shares of different classes and designations such as preferred, common or
Confidentiality
The Register of Shareholders of an exempt company is a confidential document, which may be held at the registered office of the company or at any other place within or outside the Cayman Islands.

Directors and Officers
A minimum of two directors is usually appointed (one director can serve as secretary). There are no nationality or residence requirements for directors.

The subscribers of the Memorandum and Articles of Association appoint the first directors of the company. After that, the shareholders or the existing directors appoint directors for such term as determined by the shareholders or the shareholders or the directors. If not, unfilled positions can be filled by a resolution of the shareholders or of a remaining director. The directors generally elect the officers.

Generally the Register Agent require all directors, officers and members of an exempt company to provide them with two business references each to meet our internal due diligence requirements. If the company intends to be licensed by the Cayman Islands Government, the directors, officers and shareholders (who are natural persons) will be required to complete and file with the Monetary Authority a personal questionnaire in which they will be required among other things to demonstrate their relevant experience in the respective business.

The Register of Directors and Officers in not a public documents, although copies of the registers are filed with the Registrar of Companies.

The Articles of Association of a company may be drafted to permit a director or officer of a company to bind the company and directors and officers have ostensible authority to bind the company.

It is normal for the Articles of Association of a company to permit the Resolutions of the directors to be passed by unanimous consent in writing. Similarly this is normally permissible for shareholders resolution as well.

Meetings
Shareholders must assemble at least once a year at a general meeting. The shareholders’ meetings can be held anywhere in the world.

The Articles of Association of an exempt company will define the quorum required at a meeting of the shareholders or the Board of Directors.

The use of proxies or of alternate directors who are local residents can meet this requirement. Directors have the right to appoint a company manager. If the Memorandum and Articles so provide, a meeting of members or directors is considered valid if only one person is present.

The Articles of an exempt company will define the notice the notice period required for meetings of the company.

Books and Registers
A simple exempt company, which has no licenses, will not require to file annual accounts.

An exempt company is required to maintain a register of directors, officers and mortgages and charges at its registered office and a register of members at any place within or outside the Cayman Islands.

It is normal for an exempt company to obtain a company seal, which normally kept at the registered office of the company. Duplicate seals may be authorised by the company and may be kept at a location approved by the directors of the company. A Company is not required to obtain a seal and pursuant to Cayman Islands law all documents, which were required to be sealed may now be executed as deeds and are not required to be sealed.

An exempt company is required to file an Annual Government Return, and to pay an annual fee to maintain its good standing. In addition an exempt company will normally pay an annual registered office fee. There is no taxes payable by an exempt company and the company may apply to the Executive Council of Government for a tax undertaking. When obtained this guarantees to company exemption from taxes for a period of twenty years from the date of issue.

The information that is available to the public is the following:
Company Name
Date of Incorporation
Company type (i.e. exempt, non-resident etc.)
Company Status (i.e. active or inactive)
Name and Address of registered office
Company Number

The Barbados Offshore Company

2006-05-15T08:51:00.000-07:00

Barbados is the most easterly of the Caribbean islands, some three hours flying time from Miami by direct flight. The island is 166 square miles in size and has a population of approximately 260,000. Barbados is known for the friendliness of its people and that, together with its beautiful beaches and wonderful climate, have made it one of the most popular tourist destinations in the Caribbean.

In 1966, after nearly 350 years of British rule, Barbados became an independent nation. The political, economic and social stability that were a feature of its colonial past continue today.

The Barbados legal system is based on English common law and has been supplemented by modern legislation. Courts exist on the English model with the final appeal being to the Privy Council in London.

The official language of Barbados is English. Its currency is the Barbados dollar which has a fixed exchange rate of 1.99 “Bajan” dollars to each U.S. dollar. Barbados is a member of Caricom, the Caribbean common market.

Since 1965, when it first enacted enabling legislation for international business companies, Barbados has permitted companies that do not trade locally to establish a presence on the island. The original legislation has undergone periodic amendment and the current statute is the International Business Companies Act (IBC Act) which was enacted in 1991.

International Business Companies (IBCs) or offshore companies benefit from significantly reduced tax rates which can be as low as one percent on profits in excess of U.S. $15 million. (IBCs can negotiate for higher tax rates, with the Ministry of Finance, in circumstance where that would be advantageous).

Interest, rent, management fees or royalties paid by an IBC to another IBC, or person not resident in Barbados are also exempt from withholding tax. No tax or duty is levied upon the transfer of shares of an IBC, by a non-resident person or other IBC, to another non-resident person or IBC.

Duty free importation of plant and equipment for business purposes is also allowed for IBCs.
IBCs are exempt from exchange control regulations and books and records can be maintained in any currency. They can also provide services to other IBCs or companies operating under similar “incentive” legislation.

The exemption of withholding tax for dividends makes Barbados IBCs particularly attractive to Canadians as the dividends an “active” IBC pays its Canadian parent company are also not taxed in Canada as they form part of the parent’s exempt surplus. Under Canadian law, the exempt surplus is the active business income of a foreign affiliate carried on in a listed country such as Barbados. U.S. citizens and others can also benefit from the tax treaties that Barbados has with many countries including the United States. More than 3000 offshore companies (IBCs) are registered in Barbados.

To establish an offshore company (IBC), application must be made for an international business company license to the Barbados Ministry of Finance. This application should be made as soon as possible after the incorporation of a company.
To apply for an IBC license the following information must be provided:
Company name
Date of incorporation
Copy of articles of incorporation
Address of registered office
Name and address of shareholder(s)
A profile/resume of each Director and the Shareholder in English (Please note, this information is treated as confidential by the authorities and is not for public consumption)
Brief description of business to be carried on
Declaration to the Minister of Finance that the company qualifies to be recognized as an international business company
Application for an IBC license must be accompanied by the license fee.

RESTRICTIONS
An offshore company (IBC) must satisfy the following restrictions:
Local or Caricom resident shareholding must be restricted to 10% or less.
It must not carry on a trade in buying or selling goods and services in or originating in Barbados.
Trade in selling of services that originate in Barbados must be for non-Caricom residents.
Manufactured products must be exclusively for export outside of the Caricom region.
It must pay an annual license fee.

OFFSHORE COMPANY SERVICES
Our Barbados offshore company (IBC) services include:
Supervising the incorporation of the IBC
Arranging for the services of a Barbados resident director (if required)
Application for and renewal of the IBC license
Arranging for the appointment of a Barbados auditor
Serving as the registered agent in Barbados
Holding of shareholder and directors meetings
Maintenance of the company records
Filing all required Barbados elections, reports and returns

DIRECTORS
As part of our normal administration fee we provide for the services of a director. However, in many cases, particularly where the IBC wishes to take advantage of the Canadian exempt surplus rules, an independent Barbados resident, who must be a professional person of good standing, will be appointed as an independent director.

The Bahamas Offshore Company

2006-05-15T08:47:00.000-07:00

The Bahamas is a chain of islands comprising 5,358 square miles, located 40-50 miles east of Florida, it has a population of 300,000. Most Bahamians live in two major urban centers: Nassau (its capital) and Freeport.

The Bahamas is a member of the British Commonwealth, but maintains absolute independence in government matters (Government of the Bahamas). It is well served by International Accountants, International Banks, and long established Law Firms, and an advanced telecommunications service.

Apart from tourism, the Banking and Finance sector is the second most important aspect of the Bahamian economy. The Bahamas is one of the largest offshore financial centers in the hemisphere with over 400 banks, trust companies and other licensed financial institutions. It is renowned for its tax haven status and banking secrecy. Since the International Business Companies Act 1989 came into effect in 1990, The Bahamas has become one of the most popular areas for registering an I.B.C. (Banks and Trust companies in the Bahamas).

Advantages of Bahamas Offshore Companies (IBC’s)
The IBC: The International Business Companies Act established a corporate entity, which requires the minimum of administration. Total secrecy and anonymity is maintained, and there is no need to disclose the beneficial owners of the Company. There is no requirement to file annual returns or financial statements, or to hold annual general meetings of the shareholders or directors. Meetings of shareholders and/or directors may be held in any country and same may attend meetings by proxy or by electronic means (telephone, facsimile etc.).

Proposed Names
The word "Limited" may be used in a Company's name. However, use of the following words is restricted: "Assurance", "Bank", "Building Society", "Chamber of Commerce", "Chartered", "Cooperative", "Imperial", "Insurance", "Municipal", "Royal", "Trust", or any word conveying a similar meaning. Endings such as "Limited", "Incorporated", "Société Anonyme", or "Sociedad Anónima" or its abbreviations may be used.

Shelf Companies
We have a number of existing offshore companies for sale. These offshore companies have never traded or engaged in any transaction whatsoever.

Capital
The standard capital is $50,000.00 USD, divided into 50,000 shares of $1.00 USD each which may be issued as Bearer or as Registered shares, at the discretion of the Directors. Capital up to the equivalent of $50,000.00 USD attracts the smallest license fee - $250.00 USD.
Directors Meetings may be held in any part of the world. There are no limitations as to their number or nationality of shareholders.

Shares
Bearer, Nominative, par or no par value shares, as desired.

Shareholders Meetings
Shareholders' meetings may be held in any part of the world. The format will depend on what is set forth in the Articles of Association.

Registered Agent/Registered Office
The IBC Act requires that every offshore company (IBC) have a Registered Office and a Registered Agent, qualified to act as such, in The Bahamas. In our standard Memorandum of Association, our own office is the Registered Office and we act as the Registered Agent of the IBC in The Bahamas.

Taxation
Income of IBCs is exempt from income tax in The Bahamas. This includes all dividends, interest, rents, royalties, compensations, capital gains realized with respect to any shares, debt obligations or other securities, and any other amounts paid to the company. In addition to this, no estate, inheritance, succession or gift tax, rate, duty, levy or other charge is payable with respect to shares, debt obligations or other securities of a company incorporated under the IBC Act.

Prohibitions
An IBC, being an offshore company, is a company that cannot:
Carry on business with residents of The Bahamas;
Own an interest in real property situated in The Bahamas or a lease of real property other than a lease of property for use as an office from which to communicate with members or where books and records of the company are prepared or maintained;
Carry on banking and/or trust business;
Carry on business as an insurance or reinsurance company; or
Carry on the business of providing the registered office for companies

Singapore Offshore Companies

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Singapore offshore companies are a good option for anyone who needs the benefits of international banking. Singapore has the best infrastructure in Asia and leads the way in telecommunications as well. That gives any offshore company based in Singapore the benefit of easy access to the bank accounts. People who wish to do business in this nation will find that they are able to use cellular phones, the Internet, and all other forms of communication, which makes the country an attractive place to do business because there is no downtime while there. Singapore’s airport and seaports are internationally known as they are of an excellent quality.

Another reason that Singapore is a good choice for an offshore company is the nation’s geographic location. Though it is a small island in the Pacific, it is located in a perfect position in Southeast Asia. You can travel from Singapore to anywhere else in the world very easily. Most financial gurus consider the small country to be the top banking center in all of Asia. This type of endorsement from other banking professionals means that people who opt to have their offshore company in Singapore will receive quality service. If you choose to bank with this country, you will not have to be concerned about the security of your accounts.

In addition to the geographic and infrastructure benefits, Singapore can boast a very stable and resilient government, which cannot be said for all nations offering international banking. The government structure has been in place and is set up to deal with the changing times so there is little chance of running into regulatory changes as a result of government unrest. In addition, the nation is able to provide security of investments for offshore companies because the nation has very strict guidelines for banks.

Offshore Company Formation

2006-05-15T08:45:00.000-07:00

Many people believe that using offshore companies is only for the rich, which is not true. Others believe that offshore companies are illegal, which is also not true. In using offshore companies and formation of offshore interests reputable management companies should be used, and then all legalities of your jurisdiction can be followed while still saving tax liability through proper structuring. If properly done many experts believe that offshore investments can actually be safer and sounder than those kept in the parent country.

Advantages also include such perks as anonymity, asset protection, foreign property holding through a company in a third country, the limiting of business transaction liability, unrestricted capital flow, asset transfer, and higher investment returns. As a businessman who works hard for money earned, you owe it to yourself to check out the advantages of offshore company formation. The biggest mistakes that people tend to make when going offshore are eliminated by using a knowledgeable and reputable company like ours. Through proper structuring and management of investments and transactions with www.worldcorporate.co.uk you’ll avoid risk. The key to success in offshore company formation and investing is in using the right company. At www.worldcorporate.co.uk we are proud to be able to offer our clients this effective and money saving service, and look forward to answering all of your questions. We hope to serve you in the future.

Limited Liability-What Does It Really Mean?

2006-05-15T08:44:00.000-07:00

As a business owner, you are faced with numerous decisions one of which concerns the formation of your company. One option American business owners have is to form a limited liability company or LLC. This type combines many elements of a corporation and a partnership, but is not either one.

In an LLC, the owners are called members and are not shareholders or partners. These members can be made up of an unlimited number of individuals, corporations, or even other LLC’s. An LLC has the same liability protection that a corporation does. Members are not liable for debts incurred unless they have made a personal guarantee. An LLC can determine its own division of profits among the members, unlike a partnership that is 50/50.

An LLC is easier to operate since it is not required to conduct meetings, maintain minutes, or record problem solutions. This is required of a corporation.

An LLC is taxed on a “pass-through” or “flow-through” taxation method, which means that the LLC is not taxed on its profits, losses, or expenses. This “flows-through” to the members, thus avoiding the double taxation of corporation taxes and individual taxes. This is a big plus for U.S. non-residents because the LLC is not taxed and the members can only be taxed on profits made in the U.S.

A corporation can exist forever, but an LLC is limited to the life of its members, or the time of bankruptcy at which time it is dissolved.

Each state allows for the formation of an LLC. Many law offices are capable of assisting in the process, but it can be done on your own. Each state requires that an “Articles of Organization” be filed. The state will then prepare an “Operation Agreement” which must then be signed and returned. Each state has its own individual rules and regulations.

In determining if forming a Limited Liability Company is for you, look at the type of company you want, and what you want it to become. It is recommended that you seek both legal and tax advice and assistance in making your final business formation decisions.

Hong Kong Offshore Company

2006-05-15T08:43:00.000-07:00

Having a Hong Kong offshore company can be extremely beneficial for those in the serious business world. Despite dire predictions that were in place when the British Royal Government turned Hong Kong back over to the Peoples’ Republic of China in 1997, Hong Kong still remains the third largest financial center in the world. Not wanting to change what was already a thriving enterprise, China has done very little to change how things work in Hong Kong.

The advantages of having a Hong Kong offshore company are many, with the major advantage being low business taxes. Hong Kong is a tax haven for companies, as no tax is levied on profit sources outside of Hong Kong itself. Only profits that are made by doing business with other Hong Kong residents are taxed – and this is rarely the case with Hong Kong offshore companies. A Hong Kong offshore company can have directors based in Hong Kong, bank accounts in Hong Kong, and even have one of their business addresses in Hong Kong without being subject to Hong Kong business taxes.

A Hong Kong offshore company is liable for a low capital duty and a low yearly fee. It also needs to have a yearly audit – which most companies in any country are used to. Help with setting up a Hong Kong offshore company can be had from consultant companies that have expert knowledge of all of the procedures that are required. Whether your business is small or large, there are details with which you may not be familiar, and hiring a consultant to take you through the process is usually the best way to make sure that everything is handled efficiently and professionally. The consultant company should also be able to help you with any ongoing concerns once your Hong Kong offshore company is established.

Delaware Offshore Companies

2006-05-15T08:41:00.000-07:00

Delaware is one of the most business-friendly states in the United States. Using Delaware as the state of incorporation for a company wishing to set up an offshore company is a common idea. That is because Delaware has positioned itself as a state that has more flexible banking and regulatory laws than most other states in the union. Delaware, which often gets little attention thanks to its geographic neighbors New York and Washington, D.C., was the first state to recognize LLCs, or limited liability companies.

Beginning with this recognition, Delaware legislators decided that they would become leaders in attracting business to their state. That means that an offshore company with ties to Delaware is in good hands. In addition to the incorporation laws, the state has the Delaware General Corporation Law, which permits a judge to hear issues related to businesses and to make decisions quickly.

These regulations all add up to creating an environment that is very friendly to business, which is a plus to American businessmen who seek to set up an offshore company for companies they have incorporated, or will incorporate, in the United States. Selecting Delaware as the state of incorporation, which many businesses do even if they do not have a physical location there, is a good decision for a corporation that needs the benefits of offshore banking.

Starting an offshore company is a smart business move in many ways. Like all business decisions, however, it is important to understand all of the intricacies involved. Because of Delaware’s openly known business decisions, you can feel more secure in your business’ position if you choose to incorporate in Delaware. As with all business practices, you should educate yourself before you make any final decisions. Just remember that Delaware may be one of your best choices when making plans for your business.

Company Formation for U.S. Non-Residents

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The United States is a popular choice for U.S. non-resident company formation due to its asset protections, privacy laws, and low taxation options. Many U.S. non-residents are forming companies in the U.S. without actually operating in the country. This is usually done to allow ownership of a website with no other U.S. connection. Generally, there is no residency or citizenship requirement. Most states do require that the Director’s information be disclosed at some point in the process.

It is recommended that non-residents form their company as an LLC (Limited Liability Company) rather than as a corporation. Formation of a corporation requires shareholders, and the shareholders are required to be U.S. residents. An LLC lowers the tax liability of the company and permits full ownership. A company formed as an LLC qualifies for “pass-through” or “flow-through” taxation, which means it is treated as a non-tax paying business. It is taxed instead as a partnership in which partners pay taxes only on profits made from operations in the U.S. or that have a U.S. source of income.

A company can be formed in any state, but many non-residents choose Delaware or Nevada because of their business-friendly system, low state taxation, and simple compliance requirements. Those wishing to form a company on the west coast often look to Oregon for the same reasons. The U.S. does not require a non-resident company to operate in the U.S.

Every state requires that an application be filed for an Employer Identification number, or Tax ID number. States also require that a Registered Agent and / or Registered Office be designated with an address in that state. This entity acts as the recipient of official communications, such as litigation, on behalf of the non-resident company. The Registered Agent can also assist with meeting the individual requirements for forming a company within that state.

Generally, a “Certificate of Formation” or “Articles of Organization” form must be filed with the appropriate state. After that, the state will send the non-resident company an “Operating Agreement” to be signed and returned. The Registered Agent can facilitate all of this. Formation of a company in the U.S. for a non-resident is a relatively simple matter, and each state has many agencies available to assist.

Company Formation Basics

2006-05-15T08:38:00.000-07:00

Forming a company does not have to be a difficult process. For starters, you should know that there are numerous resources available to you. The people at these places can help you understand company formation basics so that you are not going through the process on your own. Look up business or tax agencies in your country, and you will find that many of them have websites with great information. Tax and legal specialists, too, can provide all of the information you need.

There are a few things you will need to do before you can begin to form your company. First you will need to know the name of the company and what the primary purpose will be. The primary purpose can be broad, such as desktop publishing, or it can be narrow, such as bumper sticker creation. You will need to be able to give people an idea of what your company will do before you can find out about all of the forms and other documents that you must provide. Second, you will need a name for your company so that you can begin to distinguish it from competitors. Third, you will need to know who is involved in the decision-making and financial aspects of your company.

Corporations must have a board of directors. These people may or may not be financial backers for the company, but they do have the power to make important decisions. Partnerships will need at least two partners, and now is the time to determine the percentage of the business each partner will own. Sole proprietorships do not require another person to be involved, but most people get some type of liability insurance so that an untimely lawsuit does not zap personal assets.

One you have these basics down, you can begin the process of filing paperwork and paying fees. Much of the official side of a company formation, from getting bank accounts to getting a business license, is just about legalities that are not difficult to maneuver once you get started. Just pay attention and jot down important information so that you will be prepared.

Bank Account for Non-US Residents

2006-05-15T08:36:00.000-07:00

One thing that banks have shown us is that they are quite alert for any business opportunity that may arise in the market. So, when you consider the United States, should you consider only the American citizens? What about the millions of people that visit the country each year? Are they a potential market?

The financial sector found that yes, they are. Many of these visitors are persons who, in their country, have a high standard of living; and wish to have some, if not most, of their securities in a country whose economy is more stable.

That’s why the financial industry of the United States decided to point to these non US residents and create a series of financial products designed specifically for them. From all of these, the most common one is the bank account. According to law, any non US resident can have an account in a bank inside the USA, as long as the financial entity has approved his solicitation.

First of all, since you are not a US resident, your account would not be subject to taxes. This may sound kind of incredible since the IRS is known for being quite strict. But, as long as you don’t stay more than six months in the United States, taxes are not an issue.

The second principal advantage is that once you have a financial record in the United States, you may apply for other financial havens that are more difficult to enter, like Luxembourg. This is an important step for any corporation who wishes to transcend its boundaries.

And what are the requirements? If you are an individual, you need to complete the bank application, a copy of your passport translated to English and a W-8 declaration (this form certifies that you are non citizen) is also required.

If you are applying as an organization, you will require the bank application, the W-8 declaration of the organization, a W-8 declaration for each signatory, and passport copies of each one of the signatories.

As you can see, opening an account in the United States isn’t as difficult as it was in the past due to globalization and the widespread use of the Internet. Make a search on the top ten banks in the United States and ask them what kind of services they offer to non US residents.

Advantages of a Limited Company

2006-05-15T08:35:00.000-07:00

Creating a business isn’t easy. The owners or founders of an enterprise could find themselves in a crossroad, wondering which type of legal denomination they actually should choose. In the United States, there are several types of business forms like limited partnerships, limited liability partnerships, limited liability companies, and many others.

Out of all of these, limited liability companies (LLC) are one of the most popular types of companies in the United States industry, and have become quite popular. But what advantages does an LLC have over other kinds of companies? Let’s examine each one of them.

For starters, the main advantage of an LLC is that the members of the company are not responsible for any acts or debts of the organization. That means that if the company is going through financial trouble, the owners of the company do not have to use their patrimony to solve it.

The second principle benefit of an LLC is the reduced amount of paperwork. Since the LLC is much simpler to establish than any other kind of company and it doesn’t require an annual shareholder’s meeting (this means that the shareholders don’t have to meet in a specific physical point once a year to discuss company matters), the owners don’t need to establish a bureaucracy to take note of all of these procedures.

The third advantage of an LLC is that it can choose how it wants to be treated by federal and state income tax. For example, it can choose to be treated as a C or an S corporation (a C corporation has to pay a federal income tax, while an S corporation doesn’t need to do it).

Another tax benefit that an LLC isn’t subjected to is double taxation. In the case of a traditional company, it is taxed on its income and the profit distribution among the shareholders. Thus, double taxation. In the case of an LLC, its income is not subjected to tax; the members of the company are the ones subjected to the tax.

As you can see, an LLC type of company offers a series of advantages that need to be taken in account by any potential founder or owner. If you are interested in using this legal denomination, examine the limitations of the LLC and other kinds of organizations. That way, you will be able to select the most adequate in your case.

The Belize Offshore Company

2005-12-07T06:55:00.000-08:00

The Belize Offshore Company

Belize became a British Crown Colony in 1862 and became independent in 1981. Belize is now a parliamentary democracy. The government of Belize is fully committed to the ongoing development of Belize as a leading offshore jurisdiction for the incorporation of offshore companies. Through regular consultations with the private sector, the government ensures that its policies and legislation continue to meet the needs and interests of the international financial community in an environment which engenders trust and confidence.

The Belize International Business Company (IBC) is the most popular form of offshore corporate structure. An IBC is formed under the International Business Company Act 1990 and generally must conduct its trading and business outside Belize. However, Belize's legislation also allows an IBC to carry on a number of activities within Belize. Belize offshore companies are used for a variety of tax planning and international investment purposes.

Belize (formerly British Honduras) is a scenically beautiful, independent country located on the Caribbean seaboard of Central America. Belize has an area of approximately 23,026 sq km, and is bounded by Mexico to the north and Guatemala to the west and south. The administrative capital of Belize is Belmopan, but the major commercial centre is Belize City, which is located on the eastern coast close to the major international airport.
The total population of Belize is around 300,000 of which some 60,000 live in Belize City. The population of Belize is ethnically diverse and includes descendants of the original Mayan culture and people of Caribbean, Caucasian, Chinese and East Indian descent.

Belize has a long history of peace, stability and democracy. It became a British Crown Colony in 1862 and achieved complete self-rule in 1981. Belize is a member of the British Commonwealth, the United Nations and the Non-Aligned Movement. In Belize, executive authority is exercised by the Cabinet under the leadership of the Prime Minister, subject to approval by a 28 member Senate with the majority appointed on the recommendation of the Prime Minister. There are two main political parties; both parties are committed to the economic development of the country and the encouragement of overseas investment.

Belize's unspoiled environment with cays and barrier reef make it a popular destination for eco-tourists, whilst its clear unpolluted waters are excellent for swimming, diving, fishing and other aqua sports. The country also offers a unique mix of unspoiled woodlands, caves, rivers, mountains, waterfalls and jungle, in addition to a wealth of Mayan archaeological sites. There are also forest reserves, wildlife sanctuaries, marine resort areas and the world's only jaguar reserve.

The official language and spoken language is English. The currency is the Belize Dollar (BZ$). Offshore company activities are exempted from exchange control. The legal system is based on English Company Law.
Principal Legislation
• International Business Companies Act, 2000.
• Limited Life Companies Act, 1999.

the principle type of Company for International Trade and Investment is The Belize International Business Company (IBC) or the Belize Limited Life Company (LLC).

In order to incorporate a Belize company the Registered Agent must deliver the Memorandum of Association and Articles of Association to the Belize Registry together with the appropriate fee.

Restrictions do apply to Belize offshore companies (IBC’s) – they cannot trade within Belize or own real estate there. They also cannot undertake the business of banking, insurance, assurance or reinsurance. An offshore company incorporated in Belize has the same powers as a natural person.

For a list of Belize shelf companies and other offshore company services, contact Worldwide Corporate Services.

Article by Bruce Stander the Director of UK based Worldwide Corporate Services, specialists in offshore company formation .

The (BVI) British Virgin Islands offshore company

2005-12-07T06:52:00.000-08:00

The British Virgin Islands is a chain of 50 islands comprising 59 square miles. Approximately 15 of these islands are inhabited, of which the largest is Tortola with 21 square miles and a population of 19,000. The British Virgin Islands is a self-governing, politically stable British Crown Colony with a self-legislative assembly and has become an important centre for offshore business activities.

The islands boast two thriving economies, tourism and offshore investment. Major world banks and state of the art communications make the B.V.I. an ideal offshore financial centre. The U.S. Dollar is the legal tender in the B.V.I. and its official language is English.

Offshore companies / International Business Companies (IBC’s)
There are in excess of 250,000 Offshore Companies currently registered in the islands. Making it one of the fastest growing offshore investments centres in the world.

Advantages of British Virgin Islands IBCs
International Business Companies are designed to facilitate business using various tax and administrative benefits with reasonable costs and maintenance fees. Total secrecy and anonymity is maintained, and there is no requirement to disclose the beneficial owners of the Company. There is no requirement to file annual returns or financial statements, or to hold annual general meetings of the shareholders or directors. These offshore companies or IBC's are exempt from all local tax and stamp duty. Maximum security of assets includes the ability to transfer domicile.

Confidentiality
There is no requirement for an IBC to file accounting or director information with the Registrar of Companies.

Flexibility
IBC's can re-acquire and re-issue shares for a consideration other than cash denominated in any currency.

BVI Offshore Company Applications
Applications include investment, property holding, financial management, general trading and copyrighting or licensing.

Requirements For BVI Offshore Companies
Formation: Only one subscriber (the Registered Agent) may incorporate an IBC.
Proposed Name: Names ending with the words Limited, Corporation, Incorporated, Société Anonyme, Sociedad Anónima, or the abbreviations, Ltd., Corp., or S.A. must be used. The words "Trust Company", "Bank", or any words conveying similar meanings cannot be used, unless the company concerned obtains the appropriate license in the B.V.I.

Shelf Companies
We have a number of existing offshore companies (both aged and contemporary) for sale. These companies have never traded or engaged in any transaction whatsoever. One or more Directors who may be corporate entities or natural persons, of any nationality and residents of any country. Our firm can provide nominee Director(s) if desired. Directors may hold meetings in any country and they may attend such meetings by proxy. Neither the Directors nor the officers need to be shareholders. Shareholders may hold their meetings in any country and they may attend such meetings by proxy.

The Registered Office for the BVI Offshore Company should be in the British Virgin Islands. The offshore company is exempt from taxation on any business activity or transaction carried out outside the British Virgin Islands.

Article by Bruce Stander the Director of UK based Worldwide Corporate Services, specialists in offshore company formation .

Cayman Islands offshore company

2005-12-07T06:45:00.000-08:00

There are five types of companies that may be registered in the Cayman Islands – resident companies, non-resident companies, exempted companies, limited duration companies and foreign companies. They may be incorporated with members’ liability limited by shares, guarantee as unlimited companies, or as non-profit organizations.

Exempted Corporation
Exempted companies are identities where the proposed activities of a company are to be carried out mainly outside the Islands. The most appropriate use of offshore transactions is the exempt company which is prohibited from doing business in the Cayman Islands except in pursuance of its offshore business.
Benefits the Exempted Corporation:

An exempted company:
• need not keep a register of members, nor file annual returns with the Registrar
• need not hold an annual general meeting
• Has written guarantee that if taxes ever be introduced in the Islands the company will be exempt for an initial period of 20 years, which period can be increased to 30 years.
• May alter its Memorandum and Articles of Association without restriction.
• may issue shares with nominal or no par value, and which can be either negotiable
or non-negotiable annual meetings must be held once a year in the islands by the company's board of directors

Annual Returns:
The annual return to the Registrar is a simple matter, requiring only the declaration that:

• No changes, other than those notified to the Registrar, have been made in the Memorandum of Association
• The provisions of the Companies Law have been observed
• The company’s operations have been mainly outside the Islands
• An exempted company need not include the word "Limited" after its name
• The Registrar must give one month’s notice before taking action to strike off an exempted company
• An exempted company may express its capital in any currency

Incorporation of an Exempted Company
Corporate name
A name can be reserved for 30 days.
Any of the following words or abbreviations can not be included:
Chamber of Commerce
Building Society
Royal
Imperial
Empire
Municipal
Chartered
Mutual fund
No name may contain the words "co-operative", "assurance", "bank", "trust", "Insurance or any similar word which in the opinion of the Registrar connotes any of such activities or any derivative of any of such four words or of such similar words, whether in English or in any other language, or in the opinion of the Registrar suggests or is calculated to suggest any of such activities.

Corporation Registration
They are able to arrange the registration of an exempt company on a same day basis although it will usually take a day or two for the co stating documents to be returned to us.

Resolutions or Amendments
All special resolutions of the company including the change of name of a company or amending the Memorandum or Articles of Association must be filed with the Registrar of Companies within 15 days. A resolution changing directors and officers of the company or changing the registered office of the company must be filed with the Registrar of Companies within 30 days. In addition, an exempt company is required to hold an annual meeting of the directors once a year in the Cayman Islands, and to file an annual return. Alternate directors who approve and file the annual return usually hold the annual meeting. This satisfies the requirement to hold a meeting in the Cayman Islands without actually requiring the directors to come to the Cayman Islands.

Banks, Insurance, and Trust companies
Banks, insurance, re-insurance and trust companies may be registered as exempt companies provided they are licensed accordingly.

Capital and Members
The minimum government incorporation fee allows for a share capital of up to US$960,000.00 (US$900,000 for an exempted company) which is, therefore, the authorised share capital most commonly chosen by companies. There are no minimum capitalisation requirements (other than for banks, trust companies and insurance companies).

Shares
Cayman Islands companies may issue shares of different classes and designations such as preferred, common or

Confidentiality
The Register of Shareholders of an exempt company is a confidential document, which may be held at the registered office of the company or at any other place within or outside the Cayman Islands.

Directors and Officers
A minimum of two directors is usually appointed (one director can serve as secretary). There are no nationality or residence requirements for directors.
The subscribers of the Memorandum and Articles of Association appoint the first directors of the company. After that, the shareholders or the existing directors appoint directors for such term as determined by the shareholders or the shareholders or the directors. If not, unfilled positions can be filled by a resolution of the shareholders or of a remaining director. The directors generally elect the officers.

Generally the Register Agent require all directors, officers and members of an exempt company to provide them with two business references each to meet our internal due diligence requirements. If the company intends to be licensed by the Cayman Islands Government, the directors, officers and shareholders (who are natural persons) will be required to complete and file with the Monetary Authority a personal questionnaire in which they will be required among other things to demonstrate their relevant experience in the respective business.

The Register of Directors and Officers in not a public documents, although copies of the registers are filed with the Registrar of Companies.
The Articles of Association of a company may be drafted to permit a director or officer of a company to bind the company and directors and officers have ostensible authority to bind the company.

It is normal for the Articles of Association of a company to permit the Resolutions of the directors to be passed by unanimous consent in writing. Similarly this is normally permissible for shareholders resolution as well.

Meetings
Shareholders must assemble at least once a year at a general meeting. The shareholders’ meetings can be held anywhere in the world.
The Articles of Association of an exempt company will define the quorum required at a meeting of the shareholders or the Board of Directors.

The use of proxies or of alternate directors who are local residents can meet this requirement. Directors have the right to appoint a company manager. If the Memorandum and Articles so provide, a meeting of members or directors is considered valid if only one person is present.

The Articles of an exempt company will define the notice the notice period required for meetings of the company.

Books and Registers
A simple exempt company, which has no licenses, will not require to file annual accounts.

An exempt company is required to maintain a register of directors, officers and mortgages and charges at its registered office and a register of members at any place within or outside the Cayman Islands.

It is normal for an exempt company to obtain a company seal, which normally kept at the registered office of the company. Duplicate seals may be authorised by the company and may be kept at a location approved by the directors of the company. A Company is not required to obtain a seal and pursuant to Cayman Islands law all documents, which were required to be sealed may now be executed as deeds and are not required to be sealed.

An exempt company is required to file an Annual Government Return, and to pay an annual fee to maintain its good standing. In addition an exempt company will normally pay an annual registered office fee. There is no taxes payable by an exempt company and the company may apply to the Executive Council of Government for a tax undertaking. When obtained this guarantees to company exemption from taxes for a period of twenty years from the date of issue.

The information that is available to the public is the following:
Company Name
Date of Incorporation
Company type (i.e. exempt, non-resident etc.)
Company Status (i.e. active or inactive)
Name and Address of registered office
Company Number

Article by Bruce Stander the Director of UK based Worldwide Corporate Services, specialists in offshore company formation.

Offshore merchant accounts

2005-10-16T10:05:00.000-07:00

Many people are interested in ways to reduce their current tax liability with the current business they have. They may be concerned about ways to move some of their assets offshore without public notification. Some people are interested in setting up a new business, usually on the Internet, and they need a way to accept credit orders. No matter what your requirement, an Offshore Merchant Account may be what you need.

A merchant account is a facility that allows you to accept credit card orders from your customers online or offline. So what is the main advantage of an offshore merchant account vs.a local one?

One thing that is certainly true about the global credit card business, is that it has become very competitive. As a consumer, you will know that interest rates charged on credit card balances have come down. For business owners, it has meant that where as you were charged high rates in the past to process your customer's credit card purchases, those rates have come down on average. Yet, there are still problems for the common small businessman wanting to set up his or her own merchant account.

One major problem is the application requirements, and the initial deposit requirements. Some banks or credit card processors will not even accept your application unless your business has been operating for two years or more. Others want a security deposit of £2,000 or more. Some others even want to "hold back" your monthly card payments as an additional "security deposit" for possible "charge backs".

Many people would agree that technology and modern telecommunications has provided at least some benefit. We now have fax machines, e-mail, and of course the Internet. What many people do not think about however, is the fact that the world has become a much smaller place. What this means for the business owner is, you no longer are "locked in" to doing business with just the bank or company in your town or state. You can literally "shop the globe" for the best rates, the best products, the best service, or what ever. You now can do business with a bank or credit card processor in Germany, Singapore, Holland, or any place else just as easily as "the bank down the road". In fact, nine times out of ten, you will find the level of service to be much better with a bank half way around the world, then you will with your neighborhood bank. Why? They want your business, and they are willing to prove it. The other benefits are obvious. If you intend to be virtual, the best place to begin is by becoming virtual in fact. An offshore merchant account places you in a virtual / offshore jurisdiction.

The problem of course with some offshore banks or credit card processors are the higher processing fees. The fierce competition that has been seen in the US, has not reached some parts of the world, at least not yet. However that is slowly changing. In addition, such things as "Internet Banking" and offshore merchant accounts are new services that many offshore banks are just starting to take a look at. Even in a banking location such as Panama, these services are not even available with a handful of banks.

Well, being able to get better service, little or no hassles getting your account opened, and lower or perhaps no deposit requirements are only the "tip of the iceberg". The fact of the matter is, if you have an offshore bank or merchant company process your credit card transactions for you, your money already is "offshore". This being the case, you now have the means to really make the most of your business income and keep more of what you earn.

Article by Bruce Stander the Director of UK based Worldwide Corporate Services, specialists in offshore company formation.

How to open an offshore bank account

2005-10-07T03:35:00.000-07:00

Many banks require a physical interview but not all of them do for a bank account formation. It is still largely possible to open your offshore account by mail.

Your bank will always be happy to find the following documents included in your account-formation package:

Bank Account Purpose.

Draw up a letter describing the purpose of your offshore company and the use to which its offshore bank account will be put, including intended annual turnover and information regarding the origin of the funds deposited in the account.

You should provide this information even if your bank has not asked; an upfront explanation might help avoid tiresome scrutiny later on.

Company Existence.

Provide evidence of your offshore company's legal existence. This can take the form of a Certificate of Incorporation or if the company was incorporated more than a year ago a Certificate of Good Standing.

Make the effort to have these documents either apostilled or legalised by consular authentication, unless, of course, you are opening a bank account in the same country where your offshore company is registered.

Company Charter.

Include a copy of your offshore company's Memorandum and Articles of Association, By-Laws or another form of your company's charter.

Directors' Mandate.

Include a resolution by the offshore company's board of directors to open the offshore bank account. Some offshore banks provide their own resolutions for the directors to sign.

Directors.

Provide firm evidence of the current directorships. Non-anonymous companies (those that place their directors on public file) can provide an officially certified copy of the relevant register for this purpose. Anonymous companies (those that only maintain a private, internal register of directors) must sometimes provide other evidence.

If your offshore bank does not accept the internal register alone, you can supply incorporators' resolution that originally appointed the first director(s) of the company, if they are still acting. If directors have changed since, be sure to also provide further documents evidencing any changes (letters of resignation, resolutions to appoint new directors, etc.)

Shareholders.

Many banks require information about the shareholders of any company seeking a banking relationship with them. Most often, this can take the form of a copy of the company's register of shareholders.

Some offshore banks provide their own-format declaration regarding ownership; if they do, you have to complete and sign that, too. In an increasing number of jurisdictions, banks have legal responsibility to have this information.

Confirmation of identity.

Virtually all offshore banks want to receive some form of evidence of the account signatories' identity. This is can be a copy of a passport or a driving license.

Depending on the bank, photocopies might have to be notarised. In addition, there are offshore banks that request proofs of identity not only for the actual account signatories, but for all directors and owners of the company as well (if different).

Bank references.

Many offshore banks, but not all, request that letters of reference from another bank is provided by account signatories.

Some offshore banks go even further: they demand that a bank reference each be given by all directors and shareholders of the company. There even are a few that will contact the issuing bank to verify references.

References are sometimes needed instead of, and sometimes in addition to, the confirmation of identity. There are jurisdictions where banks are under legal obligations to seek references, and there are banks that request references despite any legal obligation to do so.

Sometimes an introduction by a party known to the offshore bank (such as an existing customer) is accepted instead of a reference. A fair number of offshore banks still happily open company accounts without any references at all.

Policies vary greatly across offshore banks and jurisdictions, so make a choice that is acceptable to you.

Article By Bruce Stander is the Director of UK based Worldwide Corporate Services, specialists in offshore company and offshore trust formations.