In their basic structure, offshore corporations do not differ greatly from their “onshore” counterparts. They must be registered with the proper authorities; there must be officers, directors, articles of incorporation; fees must be paid and reporting and auditing must be completed.
An offshore corporation cannot do business within the country in which they are incorporated; this allows the company to take full advantage of the low- to no-tax benefits that jurisdiction may offer. In addition, there may or may not be residency requirements, employment of nationals necessary, or other considerations asked of the corporation by the offshore jurisdiction.
An offshore corporation can appoint a registered Agent who can act on the behalf of the corporation. The corporation is legally liable for all the transactions done by the registered agent. These agents play a role of a co-coordinator between the clients and the corporation
These reforms generally involve creating equal taxation between resident and non-resident companies within each jurisdiction. However, the countries named as uncooperative tax havens became tax havens mostly because their original taxes were so low – which means that even when the tax structure is evened, it still presents attractive opportunities for foreign investors while not changing or sometimes even helping resident businesses.
Advantages of Offshore Corporation
There really is no type of business that would be considered “offshore,” although the majority involve international investment, real estate or financial management of some kind.
For more information on offshore companies, click here. If you’re interested in establishing an offshore corporation of your own, contact us today for how MIDAS can assist you.