Archive for the ‘Offshore Companies’ Category
Three alternatives to Hong Kong for your offshore trading company in China
Wednesday, April 7th, 2010Due to its financial and business center status, as well as its proximity to mainland China, Hong Kong is usually at the top of the list for our clients looking to set up an offshore company with the main purpose to trade with China. While Hong Kong clearly has its advantages, there are however three other alternatives worth considering: the British Virgin Islands, Marshall Islands and Seychelles.
The advantages shared by these three, as compared to Hong Kong are the following:
-Low incorporation and yearly maintenance fee.
-No profit return filling requirements.
-No filling or annual audit of financial statements.
-Better privacy as to the scrutiny from the Chinese government.
-Better protection of company shareholders/directors which cannot be checked from the public record.
-Clear distinction between the onshore/local companies and the offshore ones (International Business Corporations or IBCs).
-Possibility to issue bearer shares, or shares with or without par value (Please note however that most banks currently do not accept to open bank accounts for companies with bearer shares).
The British Virgin Islands are one of the oldest and better established offshore jurisdictions. While concerns exist as to subsequent tax treaties BVI has entered in recent years, it is still a very suitable jurisdiction for setting up an offshore trading company.
Seychelles is a younger offshore jurisdiction, the International Business Act dating only from 1994. It is an increasingly popular jurisdiction worldwide, and is gaining acceptance in China as well.
The Marshall Islands are much less known than the BVI or even Seychelles. This jurisdiction has the lowest fees for both registration and annual maintenance. Most of the functions of the Marshall Islands IBC are similar to the BVI or Seychelles ones.
Offshore companies registered in the BVI, Marshall Islands or Seychelles can also easily open a bank account in Hong Kong. Sinoinvest Consulting provides a remote account opening service for a one-time USD400 fee; you can also contact any Hong Kong bank and travel to Hong Kong to set up your account provided you have all the paperwork in place.
The BVI, Seychelles are Marshall Islands are true offshore jurisdictions, while Hong Kong companies do not have a separate regime for companies operated from within or from outside Hong Kong, but only specifies that non-Hong Kong sourced income is not liable for tax with the Hong Kong government. However, even when that is the case, one needs to apply for exemption from the tax authorities, and in case you operate your bank account in Hong Kong, you might be required to justify that the operations of the company are not related to Hong Kong. To avoid all this hassle, if your company will be mainly used to buy or sell to/from China, selecting one of these three jurisdictions will make a better business sense in the long term.
Tips for Successful Offshore Company Registration
Tuesday, December 8th, 2009With the advanced technology and economic globalization, forming offshore companies has become a popular trend .Here I listed several tips for a successful offshore company registration.
Find your own reasons to go for an offshore company:
- Tax saving
- Asset protection
- Flexible business law
- Privacy
- Lawsuit protection
Main steps involved during a successful offshore company registration:
- Selecting a jurisdiction which suits your business is the first important step.
- Finding a professional corporate consulting company is critical, through which you could learn the details regarding the issues of legal, financial and tax aspects of the company and business.
- Identifying an ideal corporate bank account to facilitate your international trade.
- Understanding the types of taxes and exemptions allowed in the chosen jurisdiction.
- Checking the rate of renewal fee because nearly all jurisdictions demand an annual fee.
Upon the registration of your offshore company, you will receive a certification of incorporation which is the legal proof of existence of this company.
Advantages of Delaware Incorporation
Monday, November 30th, 2009More than 308,000 companies have been registered in Delaware including 60% of Fortune 500 companies and 50% of the corporations which were listed on the NYSE. Read below you will understand the reasons why Delaware is recognized as the best choice for a US company formation.
The incorporation and maintenance costs are lower than other jurisdictions in the world. Compared to other jurisdictions, Delaware company formation needs an easy procedure, the incorporation process often takes a very short time and anyone no matter what country he or she comes from could form a company in Delaware and no need to come to visit there in person.
What’s more, as long as it doesn’t conduct any business, a Delaware company is not subject to income tax and also the State of Delaware will not impose sales taxes.
A Delaware company formation helps to protect assets and the Delaware LLC could enjoy a high level of privacy, the company officer’s private information will not be disclosed on the public record. Both Delaware LLC and Delaware Corporation are required to file an Annual Report (corporation) or pay an annual franchise tax (LLC) to remain in good standing but the electronic filing systems are available to reduce the administrative burden.
With flexible business entity statutes, well-developed case law, Delaware offers an unparalleled environment in which to organize business entities.
Seychelles shelf companies available
Thursday, May 21st, 2009We have a list of Seychelles shelf / ready made companies available. Price is USD900; these companies can be transferred within 5 days. Contact us for details and names.
