What should an Offshore Company Structure look like?

How an offshore company structure should be set up is entirely dependent on the purpose with the structure. An offshore company structure with the purpose to minimize taxes may be completely different from an offshore structure with the purpose to protect assets. There are no standard structure and how it is setup does also depend on the consultant hired to assist and guide the setup.

Even though there is no standard structure they often have their similarities. Often the choice of jurisdiction in which to incorporate often differs depending on the nationality and domicile of the ultimate beneficiary at the one end of the structure.

It is always interesting to see how different consultants and lawyer setup their structures, not only in order to learn but also in order to get inspired and hopefully be able to create even more innovative and useful offshore company structures in the future.

In the following videos you can watch a lawyer or consultant setting up an offshore structure in Panama with offshore companies, trusts, bearer shares, bank accounts etc. The video is a great introduction to how an offshore structure can be set up and the different tools that can be used. But as said above there is no one and best structure and accordingly this structure should not be used without first defining the purpose with the structure, applicable laws etc. And finally setting up an offshore structure shall always be made by skilled and reputable professionals in the area.

Well, here are the two videos. Enjoy.

OECD Report on “Promoting Transparency and Exchange of Information for Tax Purposes”

OECD (The Organization for Economic Co-operation and Development) with its offices in Paris has only recently published a very interesting report with the title “Promoting Transparency and Exchange of Information for Tax Purposes”. The report was published on the 29th of January this year and contains a thorough account for the work and objectives of OECD regarding exchange of information for tax purposes.

The report also contains an account for the progress made the last years and in this part the achievements are quite extraordinary. The following is taken directly from the report (page 13).

“Up to the G20 Washington Summit on 15 November 2008 a total of 44 tax information exchange agreements (TIEAs) had been signed. Very few of the jurisdictions identified as not having substantially implemented the internationally agreed tax standard in the Progress Report issued in conjunction with the G20 Summit in London on 2 April had signed any double taxation conventions (DTCs) that met the standard. The 23 TIEAs agreed in 2008 were double the total number of agreements that had been signed since the Global Forum began in 2000. Following the G20 summit in Washington and in the run-up to the London Summit in April 2009 TIEA signings skyrocketed, as well as the negotiation of new DTCs or protocols to existing DTCs that incorporated the standard on exchange. A further 21 TIEAs/DTCs were agreed in just four months, and between the London Summit and the G20 meeting in Pittsburgh in September 164 more agreements were in place. The pace continued and by the end of the year a total of jurisdictions working to substantially implement the standard had signed 198 TIEAs and upgraded 115 DTCs.”

It is evident that life will be more difficult for those who are using offshore centers with an illegal purpose. For those who are using offshore structures in accordance with applicable laws there will probably be no difference and business will continue as usual.

The report from OECD can be downloaded in its entirety by clicking on the link down below.

OECD Report – Promoting Transparency and Exchange of Information for Tax Purposes.

Monaco’s Position as a Tax and Secrecy Haven

Monaco has since long established itself as a home for the riches. One of the means to achieve this status has been a tax system with almost no taxes in combination with strict secrecy laws. Actually only French nationals pay income tax in Monaco and these taxes are paid directly to the French Government. Other nationals pay no income tax at all in Monaco.

However, like many other low-tax jurisdictions, Monaco has been put under international pressure and last year adopted international standards for banking openness and information-sharing. This adoption includes a commitment from Monaco to abide by the standards outlined under Article 26 of the organization’s Model Tax Convention, which requires the tax authorities to exchange information on request if there is probable cause to suspect tax evasion.

The following video shows not only the extraordinary life that you can enjoy in Monaco but does also highlight some of the issues that Monaco faces following the changes that are taking place on an international level regarding the openness and information-sharing with offshore and low-tax jurisdictions.

About Offshore Financial Centers from the Economist

The interview was made some years ago but is still interesting and what is being said is still valid. Joanne Ramos, banking correspondent of the Economist, is giving her view on the development of offshore financial centers and their role in international business. You can listen to the interview down below or listen to it at the web site of the Economist.

Offshore Company – Where to Incorporate?

When considering incorporating an offshore company there are several alternatives with regard to in which jurisdiction the offshore company should be incorporated. Some of the jurisdictions that often are used as the venue for incorporating an offshore company are for example Bermuda, Belize, British Virgin Islands (BVI), Cayman Islands, Mauritius, Cyprus, Malta, Panama etc.

Often one will hear or read recommendations about a certain jurisdiction being the “best” one for incorporating an offshore company. The problem is that there is no one ‘best’ jurisdiction that fits all. The choice of jurisdiction depends completely on the purpose with the creation of the offshore company. Is the purpose to minimize the taxes? Or is it to protect certain assets? Or maybe the purpose is to run a trading company offshore?  Without knowing the purpose of creating the offshore company it is simply not possible to say that a certain jurisdiction is the best choice.

However, knowing the purpose with the incorporation is not sufficient. Another determining factor is where the owner of the company is domiciled and if there are any other jurisdiction where the owner might be held responsible for certain liabilities. Most often the ‘best’ jurisdiction for incorporating an offshore company is not the same for an US citizen as for a Russian or someone living in the Middle East.

Accordingly with what has been said above there are no such thing as one best offshore jurisdiction for incorporating an offshore company. Which jurisdiction that should be chosen depends completely on the circumstances in each and every individual case. Thus, you must first off all analyze the purpose with the incorporation and thereafter do a risk analysis of your personal situation with regard to the jurisdiction where you are domiciled or any other jurisdiction where you can be held liable. When this is done you can start analyzing all the different offshore jurisdictions that are available for incorporating an offshore company.

Register a Offshore Company in Belize,BVI,Cyprus or the Seychelles, the ultimate place, read now!

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This is a press release from CCLOGIC Ltd
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(Free-Press-Release.com) January 28, 2010 — CCLOGIC Ltd is offering professional services towards businesses, private investors and individuals considering moving their activities offshore, whatever activity one may be into, investments, online business, selling of gods and services or takeover of competing or synergy companies, we provide the service one will need to achieve the goals.

CCLOGIC Ltd is offering their services as following:

Belize Company Formation , we register a company in Belize, compared to many on the competitors we deliver the real thing, means original corporate documents with apostille, original company certificates and a memorandum of articles.

BVI Company Formation , since we know many are looking in the direction of the British Virgin Islands we have partnered with one of the most reliable law firms on the BVI to register BVI Companies, again, we will provide you with a comprehensive package including the original corporate documents, company certificates and a standard memorandum.

Cyprus Company Formation , since we are located our self in Nicosia, Cyprus, then we are directly on the source to the different authorities who official register the companies in the companies register in Cyprus, when ordering a Cyprus Company through us, you will get an impressive package of original corporate documents with apostille, company certificate and a “REAL” office address with real people, not just “a plate on the wall” – we have a unbeaten service level when it comes to a Cyprus Company Formation.

Seychelles Company Formation , due to a very tight partnership with one of the leading law firms in the Seychelles we are able to provide a quality package with original corporate documents with apostille, a company certificate and a office address in the Seychelles, again, compared to the many competing organizations or rather pure websites, we deliver what we promise, no crap, but only a quality package with a set of corporate documents.

Offshore Bank Accounts and Cyprus Bank Accounts
When it comes to offshore banking and Cyprus banking we are a leader in providing such services, regardless which bank you want to open your bank account with in Cyprus (northern side) we can help you to do so, if you need a Bank account in the Bahamas or Seychelles we can do so and all ONLY WITH RELIABLE banks, no hunk or bogus bank accounts like the pure other service providers provide! We have seen a lot and it is not good, on a daily basis we receive many enquiries from clients which are that dissatisfied because they got trapped and now want to start from the beginning, that we feel we have to defend our business and industry.

Above are all very professional services offered by one of the most reliable service agency, CCLOGIC LTD, don’t let you be fooled into the many fake organizations and websites out there which promise you the same for the half of the price, look at it in this way, if you want a Mercedes or BMW you don’t buy a Toyota just because it looks like the Mercedes or BMW, no, you take the real thing and will drive safe and secure through the traffic.
CCLOGIC Ltd has specialized in the formation of real offshore companies and the opening of real offshore bank accounts with reputable partners and financial institutions/banks that have a I high grade of Trust and credibility to the many thousands of clients served during many years. CCLOGIC Ltd is only entering into a business relationship with new clients if we feel comfortable and feel that our new client has got all the help they need to take decision to proceed, we never oversell or sell any of our services just to make more profit, we want our new clients to sit back after a business deal with the feeling they really got value for their money and are 100% satisfied.

Features of International Business Companies (IBC’s) in Belize

There are many features that set Belize apart from other locations for IBC creation and incorporation. Below are some of the major features:

• Competitive prices for incorporation and annual fees for a Belize IBC;
• The incorporation process for Belize Offshore companies will not take longer that 3 working days;
• A Belize offshore company is exempted from all taxes;
• The names of the shareholders and directors for offshore Belize are not a part of the public record;
• The bearer share is allowed for offshore Belize;
• Minimum of one director and shareholder required for Belize incorporation;
• To incorporate in Belize, the director(s) and the shareholder(s) can be physical person or a company;
• The director and the shareholder can be the same person;
• There is no requirement to appoint a local or any secretary for Belize companies;
• The first director of the company is appointed at the organizational meeting of the Belize corporation;
• For Belize corporations, there is no requirements to file any accounts or to provide annual audits reports;
• The register of shares has to be kept and up to date;
• A registered agent and a registered office are required;
• Annual fees are due to be paid by the 31st of July, starting from the second year of incorporation and each subsequent year thereafter;
• The Belize IBC cannot derive any income from activities in Belize;

New Legislative Provisions to Come Into Effect Shortly in the British Virgin Islands (BVI)

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This is a press release from the British Virgin Islands Financial Services Commission
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Tortola, British Virgin Islands – 15 January, 2010 – The British Virgin Islands Financial Services Commission today announced that several new legislative provisions will become effective shortly including the Insurance Act, 22008, the Financing and Money Services Act, 2009 and the Regulatory Code, 2009. The effective dates for the Insurance Act, 20008 and the Financing and Money Services Act, 2009 are as follows:

Insurance Act, 22008 EFFECTIVE: 1 February, 2010 Financing and Money Services Act, 20 09 EFFECTIVE: 31 March, 2010
The Regulatory Code, 2009 will also come into effect on 1 February, 2010.

The Insurance Act, 2008 replaces the Insurance Act, 1994 and the Insurance Regulations, 2009, which were gazetted on 22 December, 2009, replace the Insurance Regulations, 1995.

The Insurance Regulations were made by Cabinet, acting on the advice of and in consultation with the Commission, according to powers granted by section 82 of the Insurance Act, 2008. The Insurance Regulations, 2009 provide more details for classifications for insurance business, maintenance of registers and specifications for what constitutes public record.

A legislative framework for the licensing, regulating and supervision of persons who engage in the provision of money or value transfer services is provided by the Financing and Money Services Act. The Act brought the Territory into full compliance with the Financial Action Task Force’s (FATF) Recommendation 23 which among other things requires that natural and legal persons who provide money or value transfer services or money or currency changing services should be licensed or registered.

The Financing and Money Services Act establishes a transition period of six months from the date the Act comes into force for existing business to make the required application for licensing to the Commission. The Commission is urging all persons with business activities that now fall within the ambit of the Act to contact the Commission as the commencement of the regime for licensing makes it an offence to carry on those activities without a licence.

Interested persons may obtain a copy of the Financing and Money Services Act, 2009 and all other financial services legislation from the Commission’s website, www.bvifsc.vg.

For further information, please contact:
Corporate Communications BVI Financial Services Commission Pasea Estate, Tortola, British Virgin Islands Tel: (284) 494-4190 Fax: (284) 494-5016 Email: corpcomm@bvifsc.vg