Offshore Limited Liability Companies (LLCs)

What is included in the standard formation package:

 

  • Name check and approval
  • Filling the incorporation documents with the Registrar of Companies
  • Payment of the Government Fee for one year
  • Provision of registered agent and registered address for one year
  • Provision of company secretary for one year
  • Company seal
  • A standard set of original corporate documents
  • Certificate of Incorporation
  • Memorandum & Articles of Association
  • Appointment of First Directors
  • Consent Actions of the Board of Directors
  • Share Certificates
  • Register of Directors and Members
  • Courier delivery

 

Please note that the above services and documents may vary, depending on legal structure and jurisdiction chosen.

Achieving tax savings is a universal financial goal. When tax burdens decrease your available financial resources, you need advice and guidance from financial professionals who know how to address tax challenges and seize tax-saving opportunities.

At Offshoreinc365.eu, we view tax planning as a key component of a unified strategic planning process. Our corporate, partnership, individual, fiduciary, state and local, and international tax professionals work as a team with our financial planning and benefits advisers on an ongoing basis to integrate the most effective tax strategy into your financial and business planning. We are business advisers experienced at serving the needs of a diverse client base, with an understanding of the issues faced by organizations ranging in size from start-ups to large multinational corporations. Our individual, fiduciary, and private foundation clients also cover a broad range of situations.

Our firm is uniquely positioned to provide international tax planning services to closely held multi-national businesses. In fact, the tax structure that may be best suited for these types of operations is generally very different from the structure utilized by larger operations.

What Judges are saying?

No man in the country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or property as to enable the Inland Revenue to put the largest possible shovel in his stores. The Inland Revenue is not slow – and quite rightly – to take every advantage which is open to it under the Taxing Statutes for the purposes of depleting the taxpayer’s pocket. And the taxpayer is in like manner entitled to be astute to prevent, so far as he honestly can, the depletion of his means by the Inland Revenue.” 

– Law Lord Clyde, (Ayrshire Pullman Motor Services v Inland Revenue Commissioner [1929] 14 Tax Case 754, at 763,764).

There is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; all do right. Nobody owes any public duty to pay more than the law demands; taxes are enforced exactions not voluntary contributions!”
– US Judge Learned Hand –

Typical uses to which an offshore company might be put, and a few actual examples however, this is not intended as an exhaustive demonstration of offshore possibilities and we would always remind clients that the tax and other benefits which can be obtained by use of offshore entities usually depend upon the country of residence of the beneficial owner and its anti-avoidance legislation and regard has to be had, too, for the requirements of any other country with which the offshore entity might carry on its business.

 

Trading Companies

An importing or exporting company might establish itself in an off-shore area. The offshore company would take orders directly from the customer, but have the goods delivered directly to that customer from the manufacturer or place of purchase. The profits arising out of the difference between purchase price and sales price would then be accumulated in either a tax free or low tax area. With such trading companies, it is important to choose an off shore area, or at least an operational base, which has good communications as shipping and other documentation may be critical to the scheme.

For European Union transactions, the Isle of Man and Cyprus have become very popular locations for conducting cross border trading activities. Both the Isle of Man and Cyprus are able to obtain VAT registration, which is imperative for transactions within the European Union. As an example, if a Cypriot company wished to source products from France for sale to Germany, the Cypriot company would inform the French company of its VAT number so that it could zero rate its sales invoice. The French company would not have to charge VAT to the Cypriot company. The Cypriot company would then obtain the German company’s VAT number so that it could zero rate its sales invoice.

This type of transaction would not normally be possible through other jurisdictions without the requirement of either establishing a branch office or appointing a tax agent within the European Union which can be a complicated exercise and may give rise to taxation implications.

 

Professional Services

Many individuals engaged in the provision of professional services in the professions and in the construction, engineering, aviation, finance, computer, film and entertainment industries can achieve considerable tax saving benefits through the establishment of a personal service company, based offshore.

The offshore employment company may not have to pay tax on its profits which can be reinvested in a tax free climate to generate further income from the offshore company.

The offshore company can contract to supply the services of the individual outside the country in which he/she is normally resident and the fees earned can accumulate offshore, free from taxation in the offshore center. Payments to the individual can then be structured in such a way to minimize income tax.
One example in this regard in respect of an overseas employment is to increase subsistence expenses as against fees as such which would be paid to the individual.

 

Shipping Companies

The use of offshore shipping companies can eliminate direct or indirect taxation on shipping. Shipping companies may own or charter ships, the profits from which activities can be accumulated tax free.

Tax and legal requirements generally dictate that the offshore company owning a shipping vessel should be incorporated in the jurisdiction whose flag the ship flies.

The historic havens for these purposes have been Panama, Liberia, Marshall Islands and Cyprus. Latterly, the registries of other nations have expanded and consideration might be given to registrations in the BVI, Delaware USA,  Isle of Man and Gibraltar.

 

Patent, Copyright and Royalty Companies

An offshore company can purchase or be assigned the right to use a copyright, patent, trademark or know-how by its original holders with a power to sub-license.

Upon acquisition of the intellectual property right the offshore company can then enter into agreement with licensees around the world who would be able to exploit the intellectual property right in various countries.

It is thought preferable to acquire, for example, a patent at the patent pending stage before it becomes very valuable so that the capital payment for the acquisition of the patent can be set at a lower amount.

Often royalties paid out of a high tax area attract withholding taxes at source.

In many cases an interposing holding company may allow a reduction in the rate of tax withheld at source.

Dave came to us a couple of years ago as a (then) struggling inventor, although his full time business was running a small engineering company. Dave had several good ideas in mind which he wished to pursue and, being foresighted, had thought through the tax implications if any of his ideas did make him a great deal of money.

We set up an offshore company on ‘Dave’s behalf, to which he subsequently sold the rights to any and all ideas he may develop, in return for a guaranteed payment regardless of success. OK, so ‘Dave’ pays income tax on money, which as far as we know just recirculates round and round to make it seem like a constant supply (only speculation of course), but a couple of his projects have been taken up by large manufacturing and marketing companies, each for six figure sums.

These royalties are of course paid to the holder of the rights, the offshore company, so they are totally tax-free and in theory John only receives his flat-rate guarantee sum, but there is a nice little six figure cash sum, growing substantially with accruing royalties, that the ‘true’ owner of the company will one day retrieve. We wouldn’t be at all surprised if it turned out to be ‘John’ himself!

 

Investment and Financial Services Companies

Funds accumulated through investment companies set up in offshore areas can be invested or deposited throughout the world and whilst generally returns or interest payable in respect of these funds will be subject to local taxation, there are a number of offshore areas in which funds may be placed either in tax free bonds or as bank deposits where interest is paid gross. Similarly, in many offshore areas no capital gains taxes are applicable. Use of an offshore company incorporated in a suitable country allows the possibility of investing tax efficiently in a high tax country where there is a concessionary tax treaty in respect of investments made by companies incorporated in the offshore country.

A Trader was making very substantial personal profits on trades on the international equity markets and despite ‘bed-and-breakfasting’ to try to gain tax relief decided to move part of his investments offshore.

 

Holding Companies
Use may be made of an offshore holding company which would fund the operation of subsidiaries in various countries so that the subsidiaries obtain the benefit of tax deductions on interest paid. If the holding company is situated in an offshore area where there are no income or corporation taxes and no requirement that dividends must be paid, then the profits which are accumulated in the tax free climate can be used to fund the requirement of subsidiaries or reinvested as business convenience suggests.

 

Probate and Privacy

A high net worth individual with properties or other assets in a number of countries may wish to hold these through the medium of a personal holding company or trust so that upon his demise probate would be applied for in the country in which his company or trust were incorporated rather than in each of the countries in which he might hold assets. This saves legal fees and avoids publicity. Again, not everybody wishes to advertise wealth and an individual may wish to hold property through an offshore entity simply because of the privacy which the offshore arrangement gives.

The owner of a substantial country estate and several allied ‘country’ businesses was concerned over the amount of estate and inheritance taxes his son and family would have to pay on his death, which, although unknown at the time was fairly imminent.

A family decision was taken that the entire estate was placed under the ownership of a discretionary trust, and a wholly owned management company was formed to run the estate using the son and his family as local Agents. On the father’s death, the family were thus able to stay on living in the style they had long been accustomed to without paying any tax.

 

Property Owning Companies

There are often great advantages in using an offshore property holding company for the purpose of holding an overseas property. Such advantages of offshore property ownership include avoidance of inheritance tax, avoidance of capital gains tax, ease of sale which is achieved by transferring the shares in the company rather than transferring the property owned by the company and reduction of property purchase costs to the onward purchasers.

We were recently approached by a certain small builder who had spied an excellent investment opportunity which stood to make him some €700,000 a year for several years. Not wishing to pay tax, an offshore development company was formed, with nominee directors and shareholders of course, which then registered for sales tax in the EU country where our Builder lives. Due to his geographical location it seemed to any casual observer that the development company was ‘just another  country company operating over here’. But few, if any, realized that the development profits and on-going income from rentals were not just going to another EU destination to be taxed there, but were in fact tax free due to a unique company structure allowable in the country of incorporation, one which even a company register search wouldn’t reveal.

Taking the example of investment in property in London by an offshore company, use of an appropriate offshore vehicle can offer relief from income tax, capital gains tax and inheritance tax.

It should be remembered, in particular, that when a non-resident company disposes of a property investment, no capital gains tax is charged and holding through an offshore company removes the application of inheritance tax which would apply if a non-domiciled investor held a UK property in his personal name.

 

Captive Insurance

Captive insurance companies have been created by many multinational companies to insure and re-insure the risks of subsidiaries and affiliated companies.

Captive insurance companies are particularly suitable for the shipping and petroleum industries and for the insurance of risks which might be insurable only at prohibitive premiums.

Bermuda and Guernsey have long been favored as domiciles for the incorporation of captive insurance companies.

Protecting your assets offshore can, in many cases, provide for much stronger asset protection than domestic business structures and trusts. Domestic asset protection vehicles are more readily accessible to seizure through US or local court rulings and judgements. Many offshore asset protection jurisdictions do not recognize foreign judgements. Therefore, a judgement creditor would face a substantial hurdle to attempt to pursue your assets in the jurisdiction where your assets are held. Strong offshore asset protection jurisdictions create a formidable challenge to those pursuing your hard-earned wealth.

One of the pillars of protecting assets from judgements is the offshore asset protection trust. Even if a monetary judgment is rendered against you, your assets can be safe and sound using the powerful international asset protection trust laws in the Cook Islands or Belize for example. A judge can rule against you, giving your enemy-at-law a license to pursue your assets. However a foreign trustee is not subject to your countries court rulings and therefore is not required to release your assets to the judgment creditor.

You control the day-to-day activities of your financial accounts within your offshore company and trust. Then, when legal duress arises, such as a lawsuit or judgement, asset protection trust provisions allow the licensed, bonded trustee to step in and provide a legal wall between your creditors and your assets. The highly-respected foreign trustee steps in and follows your recommendations on asset management while, at the same time, keeping your wealth safely shielded from legal attack. The trustee only needs to step in when the courts would take your money. So would you rather have a 100% chance of your money being seized by the courts? Or would you rather have a regulated, licensed and insured trustee step in and do what you have paid him to do: protect your money?

While the offshore trust, especially the Cook Island Trust, has a longer history, the modern Panama Foundation costs less to set up and maintain. The Panama Foundation is the most efficient advanced asset protection structure available. With a Panama Foundation, you can appoint anyone you like to handle your estate should you become incapacitated. Also, unlike a Belize trust, you can be the manager of the Foundation, controlling its investments for the benefits of your heirs.

Management Services  by Professional Accountants

Customers who wish to increase the physical presence of operating in foreign countries, may use our management services provided by professional accountants. A professional accountant adds value to a company as he/she can look after the activities of a company. This service is most suitable for customer who wish to have additional bargain against tax authorities in their home country.

 

Nominee Director

The Nominee Director acts on behalf of the company owners and serves three main purposes. Firstly, he enhances the privacy of the actual beneficial owner of the company’s official documents and public records. Secondly, he justifies the tax residency of a legal entity. This is especially necessary when the country’s tax system is taxed profits based on effective management and control. Finally, he completes the mandatory reporting compliance requirements of the legal entity on behalf of the beneficial owner.

 

Nominee Shareholder

Nominee shareholder is one of the most common ways to safeguard the identity of the beneficial owners from the public records. The privacy of information about the beneficial owner’s identity is safeguarded and is only known by the service provider. A nominee shareholder is acting on behalf of the beneficial owner as a trustee to the affairs of the company.

 

Nominee Secretary

In multiple jurisdictions, the corporate framework requires the appointment of a secretary. A company secretary has a number of responsibilities such as holding the register of Directors and Shareholders. The Secretary also holds the minutes of Directors and shareholder resolutions.

 

Corporate Tax Administration

Many countries require the submission of an annual tax declaration to local authorities. Each jurisdiction has its own specific format and requirements. In addition, where a corporation tax liability is created within a jurisdiction, it must be settled to avoid any unnecessary penalties.

 

VAT Administration

A company registered with the VAT office in any country within the EU, has to submit reports to authorities. OffshoreInc365.eu can assist clients to complete this report by requesting certain information from clients.

 

Annual Audit

Some jurisdictions require to submit annual audited accounts to the authorities. Such services can be provided to our clients’ incorporated companies through OffshoreInc365.eu at an additional fee based. Our clients do not need to worry about compliance requirement since we will take care this matter as well.

 

Accounting records

Every business around the world is required by business practices and law to have accounting records available to its stakeholder. Clients may outsource the preparation of accounting records to us for various reasons such as cost effectiveness and to exploit the true single portal to manage their legal vehicles.

 

Telephone services 

Have your own telephone number in a foreign country and receive or make calls through that number. Each call may be answered by dedicated personnel and the contact details can be forwarded to you by email or even incoming calls can be forwarded to a specific number.

 

Mail Forwarding

Your email will be processed efficiently and quickly and can be stored at the company’s folder or be re-send to you to a specific address.

KYC Documents of All UBO’s (Ultimate Beneficial Owner)

  • Valid Copy of Passport
  • Utility Bill or Bank Statement or Driving License
  • Bank Reference letter in certain cases
  • Physical Meeting or Video Call

**Please note that KYC documents may need to be Notarized or Certified or Apostille**

 

In cases where shareholders and/or directors are corporate bodies, the following documents will be required:

  • Certificate of Incorporation,
  • List of Directors, Shareholders,
  • Secretary, Share Certificate,
  • Copy of ‘Declaration of Trust’ between nominee shareholder(s) and ultimate beneficial owner(s) (if applicable),
  • Certificate of Good Standing (if the company has been operating for 12 months or more);
  • Notarized copy of a valid passport and utility bill  for each individual Director, Shareholder