How To Incorporate Offshore

This article takes some of the mystery of theis straightforward.LIST OF OTHER OFFSHORE
offshore incorporation process. It brings you aermuda-British Virgin Islands-Cayman Islands-Cook
summary of the different stages which theIsland-Cyprus-Gibraltar-Guernsey-Hong
incorporator goes through when setting up anKong-Ireland-Isle of
offshore company.JURISDICTIONThere are manyira-Malta-Marshall
optional offshore jurisdictions in which you canoa-Seychelles-Singapore-Switzerland-Turks and
incorporate your business. In this guide we focusCaicos-VanuatuENTITY TYPEInternational Business
on two of the most popular jurisdictions and listCompanies - IBCWhat is IBC?
other separately.Cayman IslandsThe CaymanA term used to define a variety of offshore
Islands consist of a group of three islands in thecorporate structures. Common to all IBC's are the
Caribbean. The main island- Grand Cayman- isdedication to business use outside the
situated at approximately 1100km south of Florida.incorporating jurisdiction, rapid formation, secrecy,
The three islands have a total area ofbroad powers, low cost, low to zero taxation and
260km², the Grand Cayman by itself havingminimal filing and reporting requirements. An
an area of 200km² . The population of allincreasing number of offshore jurisdictions are
three islands is of approximately 30 000permitting the use of nominee shareholders,
inhabitants most of which reside on Granddirectors and officers.ENTITY nameYour entity's
Cayman where the capital, Georgetown, isname must not match or be too similar to the
located.The Cayman Islands are a British colonyname of an existing company registered in your
and the United Kingdom retains the right todesired state.OfficerOfficer is appointed by the
legislate. They have a special statute that hasboard of directors and responsible for the daily
allowed them to become an important Offshoreoperation of the corporation. The titles and duties
Financial Centre where all the big banks areof each officer are usually listed in the company's
established or represented for years. In thisbylaws. Common officer titles are president, vice
jurisdiction there are no income tax or currencypresident, secretary, and treasurer. An officer can
exchange controls. Approximately 50 000be one of the shareholders, owners or employees
companies, 450 to 500 insurance companies (of the entity. Officer is part of the entity's
most of which are captive of great Internationalmanagement.ShareholdersShareholders: Owners of
groups ) and between 600 and 700 offshorethe issued stock of a corporation. Shareholders do
banks are incorporated in The Cayman Islands.not own specific corporate property; they merely
The islands are an appealing jurisdiction to openown an interest in the corporation. Shareholders
offshore banks.During the year 2000, the Caymanappoint the entity's board of directors which
Government decided to negotiate a "Goodwill"oversight the entity's management (officers).Bank
agreement in order not be listed as " NonaccountOnce the incorporation has been
Cooperative Country" by the OECD's Financialcompleted the entity can set up a bank
Action Task Force. The name of Cayman Islandsaccount.The information we need to collect from
was not anymore on the June 2001 report (theyou includes:Proof of IdentityTo establish the
latest one) probably as a result of negotiationsidentity and signature of directors, account
with the FATF. Will this lead to the removal ofsignatories and beneficial owners you must
bank secrecy and exchange of tax informationprovide a copy of a current valid full passport.
with the members of the OECD ? This yetSuch copy must bear a photograph, a signature
unanswered question leads us not to recommendand the number and must be certified by:Passport
this jurisdiction as an alternative on a long-termphotographs of each party - The passport copy
basis.However, it is correct to say that thisyou send to us must be sent by mail or courier
situation will cause no problems whatsoever to(not Fax) and it must bear the ORIGINAL
our existing clients since all the companies createdsignature of the person certifying the identity
for them were done with Nominee Shareholders,document; it must not be a copy.Proof of
Nominee Directors etc. The names of theResidential Address - To validate the home
Beneficiaries are not registered on Public oraddress of directors, account signatories and
Private Records in Cayman Islands. Actually, andbeneficial owners please provide one of the
this is true for all of our tax-optimizing structures,following, for each party original recent (not older
the only entities that know the names of thethan three months) credit card statement or
Clients are the banks themselves, those chosenthree original utility bills (telephone, electricity etc.)
for the opening of the commercial accounts. Forshowing the residential address.References - All
obvious reasons of confidentiality and assetsthe banks require original bank references from
protection we always recommend to select athe personal bankers of the directors, account
different Jurisdiction for locating the Banksignatories and beneficial owners.Merchant
operations of your newly formedaccountA Merchant Account is simply a
company.SeychellesSeychelles Internationalrelationship between a retailer and a merchant
Business Companies are useful alternatives tobank that enables retailers to accept web-based
offshore companies established in jurisdictionscredit card payments from their customers. This
such as the British Virgin Islands. In Decemberis the account into which a Merchant Account
1994 the Seychelles enacted legislation enablingProvider deposits payments into your business
the registration of International Businesschecking account from the transactions made
Companies, International Trusts and the licensingonline. To qualify for a merchant account, retailers
of International (free) Trade Zone Companies.must meet the bank's requirements.Tax USA Inc.
More recent legislation covers the licensing of------------
offshore banks, offshore Insurance, mutual fundsTax USA, Inc. is a complete tax, accounting and
activities and the regulating of a securitiesfinancial management firm specializes in small
industry. The new laws were a result of intensivebusinesses, corporations and high income
studies of long established offshore jurisdictionsindividuals. Tax USA Inc.'s mission is to exceed
and world-wide trust legislation.Although notclients' expectation by providing superb tax,
dissimilar to those of the well-established offshoreaccounting & financial Management services. We
jurisdictions such as the Cayman, the laws take aoffer our clients tax, accounting and bookkeeping
most comprehensive, modern and attractiveservices, CFO Outsourcing, Budget Review and
approach to the establishment and operation ofBusiness Plans, Cash Flow Management, Payroll
offshore companies, mutual funds, offshoreServices and Entities' Incorporation.Our Clients
banking, offshore insurance and freeport activities.We focus on small and mid size businesses,
Seychelles is one of the fastest IBC registrar innon-profit organization and high income individuals.
the world. The International Business CompaniesClient list comprised of corporations, non-profit
Act, 1994, governs the operations of offshoreorganizations and high-tech employees.
companies. The registration process in Seychelles