There is a common misconception that having an offshore company means that you are doing something illegal. The truth is that having an offshore company can benefit your business in a number of ways legally. If you are looking at offshore company formation, there are a number of things that you need to know about. These tips will ensure that the offshore company formation process works for you.
Have a List of Questions
The very first thing that you need to know about is to have a list of questions ready which are related to your business. These questions should include why an offshore company will work for your business. You should also consider who will be involved with the business and what your business exit strategy will be if something were to go wrong. Any question that you have about forming an offshore company should be put on the list and you need to have this with you when you visit an advisor.
Choosing the Right Advisor
DIY offshore company formation is not recommended because there is a lot of knowledge that you will not have. This is why you will need to choose the right advisor to help you start your offshore company. The advisor will need to have extensive knowledge about different offshore locations and how you would form a company in these locations.
When you meet with the advisor, you will need to find out about their experience and training. You should also ask them the questions on the list that you have. If they are able to adequately answer all of the questions, you should consider working with them.
Choosing the Right Jurisdiction
One of the most important aspects of offshore company formation is choosing the right jurisdiction. Not all jurisdictions will work for your company and it is important to know this. You should look for a jurisdiction that has a good and long-standing reputation as well as being a stable country. The company tax of the jurisdiction should also be looked at. There are some popular jurisdictions such as Hong Kong and Belize, but you should ask your advisor for more information.
When looking at jurisdictions, you should also consider the other laws that govern the country. There are some countries that have stricter regulations for certain types of businesses and you need to know about this. You need to stay within the legal framework of the jurisdiction so knowing what this framework is will be important.
Know the Costs
There are many services that can help you form an offshore company, but not all of them will have their costs on their website. This is why you need to discuss the costs of using the service early to determine if the company is within your budget. The costs will typically include setup fees as well as the annual renewal fees.
Offshore company formation is not something that you should do yourself. However, there is a lot of research that you should do before you contact an advisor or choose a jurisdiction.