Businesses are always looking for better opportunities, and they find them in offshore jurisdictions. Access to good banking and excellent legal infrastructure, keeping your capital secret, buying real estate to manage – offshores have it all, and much more. Of course, low taxes and asset protection remain the top reasons why entrepreneurs go offshore, along with modest reporting requirements.
Unfortunately, the illegal use of offshore companies tarnished their reputation considerably. But the truth is that an offshore company is a perfectly legitimate way of conducting your business that has a lot of advantages. If you use an offshore company correctly and make sure not to infringe laws, it is a really good business instrument that is not connected with any gray schemes.
Why do entrepreneurs opt for offshores?
Business owners continue to flock to remote jurisdictions to register an offshore company as they know that this is a place where their investments will pay off, assets will be protected, and company set-up will not bring much hassle.
It does not mean, however, that the population of offshore jurisdictions is growing considerably: entrepreneurs prefer opening a company online and staying at home. If something happens in their country of residence, they will have a place where they can easily relocate. So an offshore jurisdiction remains a Plan B for the far-sighted.
There are also digital nomads, people that enjoy freedom. And they get it after opening an offshore company as they can accept payments from their customers all over the world and provide very little reporting.
In short, offshores are attractive as they provide the following:
- Low tax rates or even complete tax exemption
- Little paperwork to do
- Personal data confidentiality
- Asset protection
And this is enough to ensure a stable flow of entrepreneurs – probably for years ahead.
Blacklisted offshores
Choosing a jurisdiction is not an easy thing to do. You need to make sure it is not blacklisted, it has the incentives that are the top priority for you, and it will be the best choice for the business you are going to conduct with the help of an offshore company.
And that’s where we recommend hiring a consultant. You can follow the above link to get in touch with seasoned experts who will help you by analyzing your business and proposing the best currently available options. This is the best investment as you will make a wise choice and open a company without much hassle involved.
We usually do not recommend blacklisted offshores as you may have trouble working from them. However, there is no single list: each country has its own blacklist! That’s why the choice depends on the characteristics of your business: some jurisdictions may be blacklisted by Italy but not by Spain, and so on. We usually look at the country of your residence and the countries you are going to work with and come up with the best offer.
How long does it take to set up an offshore company?
Expect at least two weeks if all your documents are in order. And if you see offers that promise to open an offshore company in two days, you’d better keep away from them as this is simply impossible. Your documents undergo a few checks that take time.
Offshore bank account
Business is usually connected with bank settlements, so you will need an offshore account for your company to have a fully operational structure.
If you are new to this topic, please read our article on how to get an offshore account.
The account has to meet your requirements, and here are the key points to look at before you open an account:
- Total cost, which includes the cost of opening and the cost of account maintenance. Moreover, some banks require a minimum balance to be kept on your account, and this is one more point to be taken care of.
- Account currency. Most settlements are made in dollars and euros, but there are exceptions. Think of your business and decide which currency will be most suitable for you – or open a multi-currency account to cater to all needs.
- Jurisdiction. Choosing a jurisdiction is not that easy as you need to know the current situation in the banking sphere in each offshore country to make the best choice. Our customers usually delegate this task to us as we keep our fingers on the pulse.
Pre-approval service
Our experience shows that most of our customers find it hard to understand the banking rules in offshore jurisdictions and don’t want to take risks and futile efforts. On the one hand, offshore banks are interested in attracting new customers. On the other hand, they mind their reputation and don’t want to onboard any dubious applicants, so the risk of being turned down exists.
With that in mind, we offer a pre-approval service: we help you submit a request to the selected bank, and you get feedback, which can be positive or negative. If it is positive, you can start collecting your documents, and you may be 99% assured that your account will be opened.
Can I open an offshore account online?
Yes, you can, but not in all jurisdictions. You’d better contact our consultant for an updated list of opportunities. However, Curacao, Liechtenstein, Switzerland, Nevis, Belize, and some other jurisdictions are open to online applicants.
You will need to prepare the documents really carefully as any mistake will mean that you will be rejected. Documents have to be properly legalized (notarized or apostilled).
How to minimize the hassle?
Well, the minimum hassle looks as follows: you book a meeting with our consultant to share the details of your business and choose an appropriate jurisdiction and bank to set up your business structure (by the way, this service is free). Then you collect the required documents (following the consultant’s recommendations) and send them to us. We will do the rest (and this is a paid service), and you will get a fully operational company with a bank account within two weeks!
