An offshore company formation is an entity formed outside the country where its main operations are carried out. The term ‘offshore’ means that the company acts as a non-resident where it is formed or incorporated.

Where is the best place to set up an offshore company?

Hong Kong is top-listed as an ideal country for offshore company formation. Countless things can be mentioned when it comes to the strong international reputation of Hong Kong: Allow 100% of foreigner’s ownership.

What is offshore Incorporation?

An Offshore Company is a legal business entity that is set up with the intention of operating outside its registered jurisdiction and/or the location of its ultimate ownership.

How do you use an offshore company?

A simple step is to incorporate an offshore company to form part of your trading group. This would principally be used to purchase or resell goods between the group companies. So international trading companies could use this set up to establish a re-invoicing strategy and accumulate profits in a low-tax jurisdiction.

Do offshore companies pay tax?

Offshore companies are only subject to UK tax on their profits arising in the UK. Even UK source dividends paid to an overseas company should be free of tax.

How can I avoid paying tax offshore?

A tax avoidance scheme is the practice of depositing money into a separate account for the purpose of avoiding tax which is due on your income. Often, this structure is made in a foreign bank account as an offshore scheme. These schemes are legal in the EU, but there are fears that this may lead to tax evasion.

What are the characteristics of an offshore company?

More specifically, offshore companies have three characteristics: Firstly, they should be registered as an entity within the jurisdiction of incorporation. Secondly, the “incorporators” should be domiciled outside of the jurisdiction of incorporation. Finally, the company should transact exclusively outside of the jurisdiction of incorporation.

Which is the best place to start an offshore company?

Whether you’re looking for the best place to register your company or a physical office to open an offshore company anywhere in the world, or simply want to know the meaning of an offshore company, this is a great place to start. Browse commonly asked questions on offshore company formation below.

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