How to Set Up an Offshore Company

Summary: This guide has been written to explain all the features and benefits of offshore company formation. It has been designed to help you decide whether incorporating in this way is right or you. It includes the 'how to' information that you'll need if you decide that you'd like to go ahead and establish a business offshore.

How much does it cost to maintaining an Offshore IBC?

Again, there is no set answer to this question - a lot will depend on the company you choose to help you incorporate you company, any extra services you require and the jurisdiction you choose for incorporation...prices can range from £200 to £2000 for basic fees alone.  It entirely depends on the choices you make and the requirements you have.

Do shop around though...many companies are aware that they have a fairly captive market as they offer such a value added service - but there are enough companies out there offering offshore company formation to keep prices competitive.

Do your due diligence!

Should you establish an offshore bank account for your IBC?

Many individuals choose to establish an offshore bank account in the name of their IBC.  Again, there are companies out there offering services such as establishing such an account for you - and again, the services you choose and the jurisdictions and banks you choose will depend a lot on your personal requirements and preferences.

Because of anti-laundering legislation and the crack down on all things ‘offshore’ following the terror atrocities in recent years it is quite a complex undertaking usually, and involves plenty of paper work! 

Expect to have to complete an application form supplying your offshore company details and send this off with a certified photo identifying you...and then expect to wait a bit! 

Banks are notoriously slow at processing requests in my experience!

Some companies offer temporary bank account services for you to access while you wait for your account to be opened - these are only available for deposits and any sums of money deposited will be transferred to the company’s offshore bank account when it is finally processed and opened.

Do the financial records of an offshore IBC have to be kept at its registered office?

No - this is not a legal requirement.  Financial records can be kept anywhere.

What about preparing and filing fully audited accounts?

This depends on the jurisdiction in which your International Business Company is located.

When it comes to Dominica, The British Virgin Islands, Belize, Panama or The Seychelles you’ll be happy to learn that there is no legal requirement to file the accounts of IBCs nor is there a requirement to have an annual audit.

All Gibraltar non-resident companies however have to file annual accounts - if yours is a small company, the filing of a non-audited balance sheet should suffice.

However, if your net turnover exceeds £4.8 million with a balance sheet total of over £2.4 million and employees in excess of 50 then you’ll have to file audited accounts.

But don’t panic...the accounts don’t actually have any bearing on your tax liability - all Gibraltar non-resident companies are tax exempt!

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