Posted by offshorepedia on Dec 28, 2009 in Company Formation | 1 comment
When selecting some service online what is the first thing we pay attention to? Yes, exactly, company origin. When some new online payment system appears, what do we check first of all? Yes, registration. So, in any case those few lines of address play a great role for us, and we perceive them as a key factor determining our choice. However, when choosing some product, e.g., a pack of milk in supermarket we tie the country of the manufacturer with some quality level and make purchases basing on it. But then it comes to some internet financial service we in most cases find some obscure names and addresses in some unknown countries, widely known as offshore countries. So, why are those countries are so attractive for the online businesses? Why do they need it? And how much does it cost to run business in some exotic country?
First of all let’s go to the term “offshore business” itself. According to encyclopedia offshore company is a company which is incorporated outside the jurisdiction of its primary operations. There are three characteristics of offshore companies:
• it should be incorporated under the offshore companies regulations of relevant offshore jurisdictions.
• it should be incorporated by incoporators outside the offshore jurisdiction where it is incorporated.
• it should not conduct substantial business within the offshore jurisdiction where it is incorporated.
Today there is a great number of territories have officially a status of the offshore zone: Andorra, Anguilla, Antigua, Aruba, Bahamas, Bahrain, Barbados, Belize, Bermuda, British Virgin Islands, Cayman Islands, Cook Islands, Costa Rica, Cyprus, Djibouti, Dominica, Dublin, Ghana, Grenada, Guam, Guernsey, Hong Kong, Isle of Man, Israel, Japan, Jersey, Labuan, Malaysia, Lebanon, Liechtenstein, Luxembourg, Macau, Malta, Marianas, Marshall Islands, Mauritius, Micronesia, Montserrat, Nauru, Netherlands Antilles, Niue, Palau, Panama, Philippines, Puerto Rico, Samoa, the Seychelles, Singapore, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, Switzerland, Tahiti, Tangier, Thailand, Turks and Caicos, Uruguay, Vanuatu and the United States (particularly, Delaware, but some other states have offshore characteristics).
The main advantage of offshore companies is easiness of running the business. The benefits of offshore companies are evident: easiness of business set up, low taxation, loyal laws and protection of the foreign jurisdiction. Such form of business became a real heaven for the organizations and especially for financial institutions such as online payment systems. Being protected by the law of some offshore country such companies can operate worldwide without any fear of being prosecuted.
So, how to open a company in offshore? Actually it is not a long procedure. You needn’t to go to any exotic country and to speak to local agencies in their language to get the desired address. Today it is enough just to open your favorite browser, choose one of the numerous companies dealing with registration in offshore jurisdictions, select the offshore country you like and contact the registering company. What happens later is not your trouble since the company will do everything itself.
Today the most popular offshore jurisdictions are Panama, the Seychelles, Costa Rica, Singapore, Switzerland, Belize, Cyprus, Hong Kong, USA Delaware and others. Every customer has his or her own preferences and the choice of the jurisdiction depends solely on the consumer, since only he/she knows what will be the best for their business.
What about the registering companies? As we have already stated today there is a great number of companies providing services in the sphere of offshore business registrations. One of such companies is CSR-corporation offering registration and formation of offshore companies in all reputable jurisdictions. The company offers a full rage of services starting from consultations and ending with additional services to your company, such as virtual office and etc. Besides CSR today we can see significant activity of such companies as OCRA, SeychellesOffshore, FletcherKennedy, and others. Actually all of them have almost the same range of services, however the prices varies.
Usually the formation of offshore company is performed as follows:
If you are a newbie and do not anything it would be better for you to address the company advisors. They, knowing the offshore jurisdictions to a nicety will help you to find the best jurisdiction for your business, including money aspects.
Having chosen the company you need to make a written request, or order the company. Usually companies provide ready made forms and you will need just to complete them and indicate such key factors as prices, services and terms, and your precise contact details. Also, here you can choose where to select from the list of ready-made companies or to create a new one. Actually all the companies have that list of ready-made companies. Those ready-made companies are the same companies that have already been created but have the so-called “open” configuration, and are to be finalized in accordance with client’s requirements. Having made an order you need to wait for a while to let the company staff to process your order. Usually this procedure takes up to one business week however, the terms depend on the company.
After completion of your order processing the company will address you for payment. Here, advance payment is a usual thing and not a single company will work under other terms and conditions. The only exception is the regular customers. For payments the companies send the invoices and there specify all the payment options available. Usually payments are made via bank transfers, or credit cards. However, the latter ones are not so popular along with the online payment systems.
The prices of the companies range. First of all they depend on the company type, jurisdiction chosen, additional services and the registering company itself. Usually the prices for the whole registration start from $600, the upper level is determined by the customer. However it rarely exceeds 10-12 thousand USD. The most common price is about $1,000. However, some companies offer special suites which include various services and provide some discount. So, for example, SeychellesOffshore offers its clients wishing to open business in the Seychelles Premium Incorporation Package for $999 which includes all the fees, preparation of all documents, legalization, provision of a corporate nominee director and shareholder, registration of office and provision of Registered Agent, delivery cost. CRS corporation offers to register your company in the Seychelles just for 680 Euro.
Once the payment is accepted the registering company starts fulfilling its obligations. The registrar collects the necessary papers (in addition to the papers provided by you), files them to the appropriate government bodies and pays all the necessary fees and capital duties.
Usually such procedure lasts 1-10 business days, sometimes longer. The period needed for company formation depends on the created company itself. Sometimes, especially if it comes to some financial institutions it is necessary to pass several certifications and verifications which are carried by various bodies, hence the registration and company approvals may be drawn out.
After obtaining the necessary approvals and passing the certifications the registrar sends you by a regular mail or courier all the documents confirming your authority and legality of the company.
And… our congratulations! You’ve become the owner of the offshore business with all its benefits and advantages. Now you can run your business and get great profits from it however you should keep in mind that some jurisdictions such as the Seychelles, for instance, demand paying annual renewal fees. However it doesn’t mean that you will be required to pay the whole amount you paid to get the registration. It usually varies from $500 – $3000 depending on company type and jurisdiction. Non-payment of those fees results in annulment of the registration and loss of the offshore registered company status. Though usually government thinks of its “businessmen” who usually busy and sometimes forget paying their taxes and fees and changes them together with your professional fees.
And if the government of the offshore cares about you, why not to care about yourself and make your company even more profitable by lowering your taxes and obtaining more freedom in business? Of course, offshore businesses have such disadvantages as impossibility to make deals with the local companies. But actually having refused servicing the population of Panama, for example, you open new horizons and eliminate the borders of all the countries worldwide. And it makes sense to consider…
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Posted by offshorepedia on Dec 15, 2009 in Property Offshore | 0 comments
Real Estate Investment sounds like a cool thing to do during the weekend but the problem arises when you start having to many properties to handle. The solution to your real estate investment problem would be to hire a property manager who can then run your property for you and deal with any problems that may arise. The key is to get a reliable person who can then do any repairs or maintenance work for you.
This article will highlight three additional reasons why you might want to hire a property management company to look after your real estate investment property for you.
Firstly, you might be a busy professional or business person during the weekdays and you do not want to run around looking for a plumber or roof repairer sometime during the week. Time is valuable also if you have several properties that you own and it does not make sense to baby sit your properties.
Thus you would do well to remember that your monthly income is dependent on the number of deals that you can find to add to your real estate investment portfolio. Get your focus right and you will make more money from your real estate investments.
Secondly, proximity is a key issue. One real estate investment author states that he does not own property unless it is within one mile from his own residence. If you want to look after your own properties it is fine but you must be able to go down and take a look if there is any issue arising from your properties.
Note that returns from both offshore rentals and capital appreciation currently in places like Dubai might prove more lucrative so if you are looking into offshore real estate investment, hiring a property management company is a must. Similarly, if you are looking at investing in property outside the state that you reside in, it will be necessary for you to hire a property management company to look after your property.
Thirdly, if you are new to the type of property class, you might want to consider employing the services of a property management company. For example if you have been involved in residential real estate for a long time and you decide to expand to commercial real estate, you might not be familiar with the documentation, the procedures and the possible problems that may arise from such real estate. Hiring a property management company therefore may help you solve some of your transition problems and like mentioned earlier free you to explore other real estate investments.
In conclusion, real estate investment property when done on a small scale in your locality may be okay for a while but when your investments start getting numerous and unwieldy, you might want to tap on the services of a property management company to help you manage your properties thus freeing you to look for more property deals.
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Author: Joel Teo
Joel Teo runs a real estate investing website. Start making money with mortgage foreclosures today by visiting the online Real Estate Investment Guide
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Posted by offshorepedia on Dec 14, 2009 in Offshore Banking | 1 comment
Many of us think of offshore bank accounts as something that applies only to celebrities or spies, but they actually have some great advantages for regular investors. Offshore investment accounts are mainly about reducing taxes and liability. Read on to learn more about this exciting method of investing.
What is an Offshore Bank Account?
As exciting as the term “offshore bank account” sounds, it’s really less about James Bond than you might think. Offshore bank accounts are any bank holdings you have in another country. Despite the associations many people have, there isn’t anything illegal about opening an offshore investment account.
Offshore bank accounts come with a multitude of advantages. Most people find that the many benefits of offshore investment accounts help them overcome their preconceptions about the topic. Some of those advantages include the following:
- Keeping your money in an offshore bank account can have significant tax advantages, since the income from these accounts is not reported to your home country.
- When liability is a concern, offshore investment accounts are a good idea. A creditor is limited in accessing your money when it is held in an offshore bank account.
- Privacy is another important advantage of offshore investment accounts. When your money is kept offshore, you are the only one who has to know the details about your account.
What are QROPs?
“QROP” stands for “qualified recognized overseas pension schemes.” QROPs are offshore investment accounts that are a great alternative for citizens of Canada and the UK who are living in other countries. This is a completely legal way for citizens to move their pension accounts off shore. Citizens of the UK and Canada must have lived overseas for more than five years to be eligible for QROPs.
Advantages of QROPs
There are several advantages to setting up a QROP. It’s important that investors work with a reliable, responsible offshore investment firm to ensure the process is handled legally and correctly. Some of the many advantages of QROPs include the following:
- QROPs allow investors to consolidate their pension accounts. Rather than hassle with managing several accounts, pension-holders can handle one QROP instead.
- QROPs allow pension-holders to choose exactly how much they receive from their accounts and when they receive it. This flexibility is extremely helpful to most people.
- If you have a QROP, your assets may not be vulnerable to estate taxes. This is important for investors who hope to protect their assets for their families.
- Setting up a QROP is easy!
Typical Services Provided for Offshore Investment Accounts
In many ways, having an offshore investment account is much like having any other type of bank account. Many of the same services are provided, including the following:
- Offshore banks take deposits and extend credit to customers.
- Electronic funds transfer is available for most offshore bank accounts.
- Most offshore banks provide fund management, trustee services, and investment management.
- Offshore banks usually provide letters of credit and participate in foreign exchange.
These services are not offered by all offshore banks.
More About Offshore Investment Accounts
It is estimated that about one third of the money belonging to wealthy individuals is held in offshore bank accounts. This amounted to $6 trillion in 2000. In addition, more than a quarter of the world’s wealth is held in offshore investment accounts.
Offshore investment accounts are a great alternative for many people. These accounts have many of the same benefits as regular bank accounts, as well as many unique advantages.
Article Source: http://www.articlesnatch.com
About the Author:
Wondering how an offshore bank account can benefit you or if you can apply for Qualifying Recognised Overseas Pension Scheme , contact LOM. Our market professionals can answer any of your questions related to your offshore bank account.
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Posted by offshorepedia on Dec 6, 2009 in Misc, Taxes | 1 comment
By Chris Heath
At the G20 summit this week, Gordon Brown has tried to garner support from the world’s leaders to expose and punish multinationals and individuals using offshore shelters, or tax havens, for tax avoidance and crime.
According to the British press, this move is has provoked near fury amongst business leaders where some companies operate offshore. City of London sources have indicated that the move was more “headline grabbing” than a serious attempt to tackle the economic crisis, but some countries involved have already moved to transparency in the midst of the furore.
It has been reported that tax havens are increasingly a large part of the world’s economy, so much so that financial speculation that takes place within their respective realms are said to have been a major factor behind the global crisis. Some people have even estimated that as much as half of global trade passes through these shadowy financial systems.
For example, it is estimated that the Cayman Islands is home to some 10,000 hedge funds. However, dealing with the banks in this crisis has not been at all smooth sailing and many of the major banks have branches in these tax havens.
Meanwhile, governments of the G20 are perhaps nearing agreement on measures aimed at cracking these secretive tax havens wide open, but are divided over how best to do it and what levels of punishment should be meted out on those that won’t cooperate.
Gordon Brown has asked G20 leaders to “spread the net” on transactions with tax-haven companies much more widely which would, in effect, be that these offshore shelters would be liable for charges. He also proposed that agencies such as the IMF should desist from making loans to them.
The sums involved are enormous. The Tax Justice Network, an international group that campaigns against tax avoidance, estimates that some $11.5 trillion is held in these havens, which amounts to an estimated aggregate of $250 billion in tax being “avoided” each year.
Brown is determined that the measures he is proposing would make tax havens unacceptable and too costly to operate. These measures are broadly supported by President Barack Obama, who last year sponsored the Stop Tax Haven Abuse Act in Washington.
However, the Cato Institute, an institution that seeks to promote public policy based on individual liberty, limited government, free markets, and peaceful international relations, says that: “if the government suddenly said you would incur more onerous and expensive tax regulations and reporting requirements if you moved your business to a low-tax state such as Texas or Florida from a high-tax state such as New York or California, you would be justifiably outraged.” Now, if you were to substitute Switzerland and Panama for Texas and Florida, and Britain and Germany for New York and California, you’ll begin to understand their point.
Proponents, like Messrs Brown, Obama and Sarkozy, say that measures are needed to catch tax cheats — but ignore the fact that most of the low-tax jurisdictions such as the Cayman Islands already have tax information exchange or tax withholding agreements with the West.
But aside from the claims of tax evasion, European leaders, including France’s President Nicolas Sarkozy, have tried to scapegoat these low-tax jurisdictions as somehow being responsible for the global recession, which is of course nonsense when you consider the case of Bernie Madoff who was able to conduct the biggest ever Ponzi scheme right under the noses of the authorities.
Whatever the outcome of these measures, the accord has advanced further than many governments believed likely, and it reflects the hardening attitude of many governments toward tax havens, which they see as restricting revenue collection during this recession.
With the prospect of being blacklisted, and with ever harsher sentences being proposed so as to be backed by sanctions, it has already prompted Switzerland and at least nine other tax havens to relax their secrecy laws and to cooperate with foreign governments trying to chase down tax evaders and criminal gangs.
In the US, the Obama administration will soon propose much tougher reporting requirements for thousands of foreign banks that handle accounts for US clients, and has created a taskforce that is suggesting further methods of attacking offshore tax-avoidance.
Even if there is no G20 consensus, some governments are already preparing to draw up sanctions anyway. Germany, for example, plans to introduce legislation to increase pressure on tax havens and French budget minister Eric Woerth is said that his ministry is referring to prosecutors three cases of suspected money-laundering and tax evasion in Liechtenstein.
As the global financial crisis has suddenly brought tax havens into the equation, both US and European leaders are crying out for tighter regulation. Barack Obama only recently said there is “a building in the Cayman Islands that supposedly houses 12,000 corporations. That’s either the biggest building in the world or the biggest tax scam in the world.”
Meanwhile, as President Nicolas Sarkozy presses for curbs for offshore tax havens, the French government has demanded tax fraud investigations into bank accounts. It has been reported that “large dossiers” have been passed to the prosecution service, concerning accounts allegedly held by “foundations” linked to the tyre giant Michelin, the sportswear company Adidas and the oil company Total.
These are indeed desperate days for the offshore financial centres. Never before have the world’s most powerful countries been so united in their determination to expose the shadowy banking system that has mushroomed unchecked for the last fifteen years.
In recent months a surge of treaties have been signed by countries including Switzerland, Liechtenstein, Singapore, Austria, Andorra, Belgium, the Isle of Man, Jersey and Guernsey in an effort to abide by global protocols.
Of course, as countries sink trillions of dollars bailing out banks and running up huge deficits in the process, treasury ministers must be mindful of the $11.5 trillion that is thought to have been locked away in these tax havens, which could provide $250bn in taxable income if and when exposed.
The result of this opening up of the tax havens is not confined to the banking system, however. There must be thousands of shadowy individuals at large using these offshore havens for their ill-gotten wealth. It is not just tax avoidance or evasion that’s at stake here, but also the proceeds from theft and money laundering.
It seems likely that, with the tax havens capitulating into opening up their books, criminal elements will move their money out, and quickly. But where will they hole it up next: offshore real estate?
Originally posted 04/03/2009
Written by Soho Properties http://www.soho-properties.com
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Posted by offshorepedia on Dec 5, 2009 in In the Media | 0 comments
Author: Aurelia Masterson
Executive Summary – There is a political party in Switzerland called the SVP party. It is the country’s largest party. It is angry over the USA versus UBS fight and wants retaliation against the USA. Here we go. Some of the retaliatory measures proposed were as follows:
They said the Swiss National Bank should repatriate the gold it has stored in the USA. Ouch.
The Swiss should ban the sale of US funds in Switzerland to protect Swiss investors after the financial crisis in the USA. The Swiss banks alone have about 3 Trillion dollars and then add in the insurance companies, stock brokers etc. Doom and Gloom on Obama.
The Swiss said they should no longer represent the USA in countries where the US has no diplomatic relations. Hmmmm that will be fun.
The Swiss should not take in any detainees from Guantanamo if in fact they ever close the place as promised. Nice.
The SVP party said they would call for an urgent debate in Parliament to find other ways to protect Swiss Bank Secrecy from further foreign blackmail. This gets a five star rating. Discussion – Obama is way too inexperienced, insecure and weak to stand up to Swiss in the midst of a life threatening financial crisis the USA is in. The Swiss win this one is my guess and the USA loses face. When Obama was a very junior Senator with one year under his belt he started with the Tax Haven Abuse Act, which never went anywhere. Now things are different in that the USA is fighting for its life. Now that the Swiss told the USA to go fly a kite other countries will follow suit for sure.
I would not be too quick to look for Obama handing out money in the form of financial aid for those that comply with his wishes and give up the banking business in their country. This might be the end of the USA international financial terrorism. What is needed is a new international bank wiring system that the USA cannot monitor. Then bring back the old numbered accounts without any need for a beneficiary owner that is a real person and we are back.
In the old days you walked into a lawyers office and bought a shelf corporation with a bank account that had $200 in it. You got two books of checks signed in blank by the lawyer who was the signatory on the account. These were the days before 9/11 and online banking was not so popular and checks were used. The bank had no idea who you were. Lawyers were not having their feet held to the fire for signing on the bank accounts and were need being imprisoned for crimes the client committed. Go Zurich, Go.
-Published 06/10/2009 by Aurelia Masterson, www.panamalaw.org
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