Offshore Company: Purchasing a ready made company vs. registering a new legal entity
Today it is not a secret that the registration of an offshore company is a very effective tool for optimizing the taxable base. At the same time, the possibility of purchasing a ready made offshore company has been growing in popularity in recent years.
The modern practice shows, that today there is a possibility of purchasing a ready made company that is already registered in an offshore jurisdiction. Moreover, the applicable procedure allows purchasing such a company in the shortest time possible in compliance with the minimum requirements. In any case, the choice depends on many factors, and the opportunity of purchasing a ready made offshore company in Seychelles deserves special attention. Let us dwell on this possibility in more details.
Acquisition of the offshore company, or the benefits of alternatives
Even considering the fact that the procedure of registering an international offshore company in the jurisdiction of Seychelles is simplified to the maximum and does not require considerable financial and time costs, there are can be such situations in business when only the alternative option is efficient. So, you can always opt for purchasing the already registered offshore company for implementation of international commercial and economic activities.
It is important to note that such a way of bringing business up to the international market has been growing in popularity in recent years among the local entrepreneurs in a wide range of market segments. The following activities can be singled out among the main areas of using the international offshore companies:
- Professional services and service maintenance — marketing and legal services, financial audit, consulting services;
- International trade and purchasing operations — international transactions and settlement operations;
- Offshore company as a personal bank account holder — offshore entities can be used for accumulating the financial assets.
The Republic of Seychelles — advantages of the ready made companies
The advantages of purchasing a ready made legal entity, which is registered in an offshore jurisdiction, include the following opportunities:
- Minimal number of the official and formal procedures;
- Popular and well-proven option of entering the international market;
- Maximum saving of time resources;
- Prompt registration of a legal entity in the name of a new owner and provision of all the necessary documentation.
The procedure of acquiring the already registered offshore company in Seychelles consists of several sequential stages, in particular:
- Appeal to a specialized company and signing the agreement for the purchase of a shelf company in an offshore zone of Seychelles;
- Payment for the offshore entity;
- Provision of information, which is necessary for registration, and determining the amount of the shares of the shareholders (copies of passports of founders and shareholders are submitted together with the required information);
- Receiving a full set of documents for an offshore company and an official seal.
Jurisdiction of Seychelles – official information:
Legal organizational form of an offshore company –- International Business Company
Authorized or share capital — is of a declared nature and is not required to be paid
Structure of an offshore company — the minimum number of directors and shareholders is one.
A possibility of using nominee services
Corporate tax rate — offshore companies are not taxed in the jurisdiction of Seychelles
Financial reporting and audit — no requirements to the provision of annual statements and conducting financial audit
Confidentiality – all the information, which is kept in the registers of the directors and shareholders of the offshore entities, is closed and protected by the applicable law.
Confidentiality as the main incentive for offshore entities
Speaking about the confidentiality of the information about the ultimate beneficiaries of the offshore companies in Seychelles it should be noted that the confidentiality of information is enshrined at national government level and is the main incentive that attracts foreign entrepreneurs and investors.
In fact, the non-disclosure and confidentiality of information are the main reasons for registering or purchasing an offshore company. And in Seychelles all the registers of directors and shareholders possess a confidential information status and are not accessible to the third parties. This practice allows the ultimate beneficiaries and owners of the offshore companies to remain unknown to the general public. The confidential information can be disclosed only by the appropriate decision of a judicial authority.
In addition, the corporate law of Seychelles provides for the possibility of using nominee services in order to ensure the maximum confidentiality of information about the ultimate owners and beneficiaries of the offshore companies.
The nominee service is necessary for those owners of the offshore companies who want to ensure the safety and secrecy of their personal information and information about beneficiaries. The two categories of nominal employees are usually distinguished in the international practice of the offshore jurisdictions:
- Nominee shareholders of the offshore entities –- natural and legal persons whose services are paid in accordance with the agreement;
- Nominee directors of the offshore entities – directors and commercial managers that do not have power to manage the assets of the company.
The use of nominee services in the international offshore company requires the obligatory preparation of some documents, in particular:
- Official undated resignation letter of the nominal employees;
- General power of attorney in the name of the owner of the offshore company.
Thus, it is obvious that the purchase of the already registered offshore company allows entrepreneurs to save considerable time and to choose the most advantageous legal organizational form for bringing business up to the international level. At the same time, the purchased company can count on the full set of advantages and tax incentives that are offered in the jurisdiction of Seychelles. Visit other sections of the website and get all the necessary information.