Offshore Company Formation

Offshore company is always a preferable company structure for enjoying the high level of privacy protection, tax exemption and limited liability. Offshore company can be incorporated in different jurisdictions, four of the most higher-ranking jurisdictions are as follows:

Minimum Requirement

  BVI Samoa Seychelles Anguilla
Legal System Based British British British British
Offshore Profits Tax Exemption Yes Yes Yes Yes
Chinese Name Yes Yes No No
Min. No. of Shareholders 1 1 1 1
Min. No. of Directors 1 1 1 1
Min. No. of Company Secretary 0 0 0 0
Standard Authorised Capital US$50,000 US$1,000,000 US$1,000,000 US$1,000,000

Advantages of offshore companies

  1. Exemption from tax
    • An Offshore Company does not need to pay Profit Tax, Capital Gain Tax, Interest Tax, Inheritance Tax, Stamp Duty on share transfers. It is simply tax free in all areas.
  2. Simplified set up procedure and requirements
    • Some offshore companies can be registered within the same day, other offshore companies may require only one person registered.
  3. Public undisclosure
    • Confidentiality is one of the key features of the offshore companies all the directors, shareholders and ultimate owners’ information and their details do not need to be filed with local governments. Therefore, any third party cannot obtain a search report from a local government on any company information and its structure.
  4. Costs and the fees
    • Initially establish an offshore company is relatively inexpensive. There are no further costs. It is very attractive to use an offshore company because there are numerous advantages and benefits.
  5. Reporting requirements
    • Some offshore companies require periodic financial reports being filed, other offshore companies need not filing anything at all.
  6. Limited liabilities
    • Almost all offshore companies are private limited company in nature, the investors who subscribe the shares of the offshore company are limited to contribute up to this amount (of the shares), and no more.

Uses of offshore companies

  1. Investment Holding Company
    • Vehicles to hold investment portfolios: Cash assets held by offshore companies can earn deposit interest gross or can be placed in collective cash funds.
    • Inheritance purposes and probate expenses reduction: Such companies can provide privacy and may save legal and other professional fees.
  2. Property Holding Company
    • Property and property rights holding in an offshore location: Such companies are used to avoid capital gains taxes on property when it is sold, as well as inheritance taxes.
    • Privacy to ensure tenants are unaware of the property owner's identity.
  3. International Trading Company
    • Purchase of goods in low cost production countries e.g. China, India, Thailand etc. and selling them to distributors in high income market areas e.g. USA, Europe, Australia etc.,: The goods bought by the trading company are sent directly from the country of origin to the country where they are to be sold.
    • Improved profits: An offshore company can be used as a trading medium for buying, shipping, and selling the goods.
  4. Professional Service Companies
    • Considerable tax savings: Individuals receiving consulting income can be employed by a company incorporated in a low or no tax jurisdiction and the fees generated will flow into this company. The OFFSHORE COMPANIES can contract with an individual to provide him/her with services outside his/her normal country of residence and personal income can be accumulated free from taxation in the offshore centre.
  5. Finance Companies
    • Inter-group treasury management: Interest payments from group companies may be subject to withholding tax, but these taxes differ from the standard corporation taxes. Many large companies establish their own offshore companies for the purpose of mixing dividends of subsidiaries and deriving maximum advantage from tax credits. The interest paid can be a deductible charge for taxation purposes, thus consolidating interest payments in an offshore finance company provides a tax saving.
    • Tax-deductible item for the parent company

Processing Time

  • Ready-made Offshore Company, it normally takes 1-2 days to get the Certificate of Incorporation
  • Tailor-made Offshore Company, it normally takes 2-3 days to get the Certificate of Incorporation

Required Information

  • Identity Document/ Certificate of Incorporation of all members/ directors/ secretaries (e.g. HKID/ Passport)
  • Residential Address Proof of all members/ directors/ secretaries (e.g. utility bills, bank statements issued within 90 days, etc.)
  • Proposed Company Name
  • Incorporation form

Offshore companies can also be incorporated in other jurisdictions:

  • Bahamas
  • Mauritius
  • Jersey
  • Bermuda
  • Nevis
  • Panama
  • Cayman Islands
  • Turks & Caicos
  • Vanuatu
  • Delaware
  • Isle of Man
  • Labuan
  • Marshall Islands