How To Incorporate Offshore

This article takes some of the mystery of theIsland-Cyprus-Gibraltar-Guernsey-Hong
offshore incorporation process. It brings you aKong-Ireland-Isle of
summary of the different stages which the-Malta-Marshall
incorporator goes through when setting up an offshorea-Seychelles-Singapore-Switzerland-Turks and
company.JURISDICTIONThere are many optionalCaicos-VanuatuENTITY TYPEInternational Business
offshore jurisdictions in which you can incorporate yourCompanies - IBCWhat is IBC?
business. In this guide we focus on two of the mostA term used to define a variety of offshore
popular jurisdictions and list other separately.Caymancorporate structures. Common to all IBC's are the
IslandsThe Cayman Islands consist of a group of threededication to business use outside the incorporating
islands in the Caribbean. The main island- Grandjurisdiction, rapid formation, secrecy, broad powers, low
Cayman- is situated at approximately 1100km south ofcost, low to zero taxation and minimal filing and
Florida. The three islands have a total area ofreporting requirements. An increasing number of
260km², the Grand Cayman by itself having anoffshore jurisdictions are permitting the use of nominee
area of 200km² . The population of all threeshareholders, directors and officers.ENTITY nameYour
islands is of approximately 30 000 inhabitants most ofentity's name must not match or be too similar to the
which reside on Grand Cayman where the capital,name of an existing company registered in your
Georgetown, is located.The Cayman Islands are adesired state.OfficerOfficer is appointed by the board
British colony and the United Kingdom retains the rightof directors and responsible for the daily operation of
to legislate. They have a special statute that hasthe corporation. The titles and duties of each officer
allowed them to become an important Offshoreare usually listed in the company's bylaws. Common
Financial Centre where all the big banks areofficer titles are president, vice president, secretary,
established or represented for years. In this jurisdictionand treasurer. An officer can be one of the
there are no income tax or currency exchangeshareholders, owners or employees of the entity.
controls. Approximately 50 000 companies, 450 to 500Officer is part of the entity's
insurance companies ( most of which are captive ofmanagement.ShareholdersShareholders: Owners of
great International groups ) and between 600 and 700the issued stock of a corporation. Shareholders do not
offshore banks are incorporated in The Caymanown specific corporate property; they merely own an
Islands. The islands are an appealing jurisdiction to openinterest in the corporation. Shareholders appoint the
offshore banks.During the year 2000, the Caymanentity's board of directors which oversight the entity's
Government decided to negotiate a "Goodwill"management (officers).Bank accountOnce the
agreement in order not be listed as " Non Cooperativeincorporation has been completed the entity can set up
Country" by the OECD's Financial Action Task Force.a bank account.The information we need to collect
The name of Cayman Islands was not anymore onfrom you includes:Proof of IdentityTo establish the
the June 2001 report (the latest one) probably as aidentity and signature of directors, account signatories
result of negotiations with the FATF. Will this lead toand beneficial owners you must provide a copy of a
the removal of bank secrecy and exchange of taxcurrent valid full passport. Such copy must bear a
information with the members of the OECD ? This yetphotograph, a signature and the number and must be
unanswered question leads us not to recommend thiscertified by:Passport photographs of each party - The
jurisdiction as an alternative on a long-termpassport copy you send to us must be sent by mail or
basis.However, it is correct to say that this situation willcourier (not Fax) and it must bear the ORIGINAL
cause no problems whatsoever to our existing clientssignature of the person certifying the identity
since all the companies created for them were donedocument; it must not be a copy.Proof of Residential
with Nominee Shareholders, Nominee Directors etc.Address - To validate the home address of directors,
The names of the Beneficiaries are not registered onaccount signatories and beneficial owners please
Public or Private Records in Cayman Islands. Actually,provide one of the following, for each party original
and this is true for all of our tax-optimizing structures,recent (not older than three months) credit card
the only entities that know the names of the Clientsstatement or three original utility bills (telephone,
are the banks themselves, those chosen for theelectricity etc.) showing the residential
opening of the commercial accounts. For obviousaddress.References - All the banks require original
reasons of confidentiality and assets protection webank references from the personal bankers of the
always recommend to select a different Jurisdictiondirectors, account signatories and beneficial
for locating the Bank operations of your newly formedowners.Merchant accountA Merchant Account is
company.SeychellesSeychelles International Businesssimply a relationship between a retailer and a
Companies are useful alternatives to offshoremerchant bank that enables retailers to accept
companies established in jurisdictions such as theweb-based credit card payments from their
British Virgin Islands. In December 1994 the Seychellescustomers. This is the account into which a Merchant
enacted legislation enabling the registration ofAccount Provider deposits payments into your
International Business Companies, International Trustsbusiness checking account from the transactions
and the licensing of International (free) Trade Zonemade online. To qualify for a merchant account,
Companies. More recent legislation covers the licensingretailers must meet the bank's requirements.Tax USA
of offshore banks, offshore Insurance, mutual fundsInc.
activities and the regulating of a securities industry. The------------
new laws were a result of intensive studies of longTax USA, Inc. is a complete tax, accounting and
established offshore jurisdictions and world-wide trustfinancial management firm specializes in small
legislation.Although not dissimilar to those of thebusinesses, corporations and high income individuals.
well-established offshore jurisdictions such as theTax USA Inc.'s mission is to exceed clients'
Cayman, the laws take a most comprehensive,expectation by providing superb tax, accounting &
modern and attractive approach to the establishmentfinancial Management services. We offer our clients
and operation of offshore companies, mutual funds,tax, accounting and bookkeeping services, CFO
offshore banking, offshore insurance and freeportOutsourcing, Budget Review and Business Plans, Cash
activities. Seychelles is one of the fastest IBC registrarFlow Management, Payroll Services and Entities'
in the world. The International Business Companies Act,Incorporation.Our Clients
1994, governs the operations of offshore companies.We focus on small and mid size businesses, non-profit
The registration process in Seychelles isorganization and high income individuals. Client list
straightforward.LIST OF OTHER OFFSHOREcomprised of corporations, non-profit organizations and
uda-British Virgin Islands-Cayman Islands-Cookhigh-tech employees.