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 can an IBC be used for asset protection?

If you transfer the ownership of assets from ‘an individual’ (e.g., you) to ‘a legal entity’ (e.g., your offshore IBC) and you are no longer the owner of the assets, they are protected from anyone pursuing you personally and it becomes hugely difficult for anyone to be successful in suing you for your assets - however, as you ‘own’ the IBC and are still in control of the company so you are still in control of your assets!

Further levels of asset protection are available when you incorporate the use of an offshore trust into your planning.  A good offshore services company will be able to advise and assist you completely when it comes to asset protection and carefully moving any assets offshore or into trust.

Is it illegal to transfer assets to an offshore jurisdiction?

No - this is a common misconception.  It is not illegal to transfer your assets or funds offshore.

There is no law prohibiting it and it is in fact your right to legally minimise your taxation liability.

However you might risk breaking the law if you fail to disclose certain information to your tax authorities - seek professional financial and taxation advice if in doubt.

Also, consider reading this resource which relates to keeping a low profile when moving assets offshore: -

Keeping a Low Profile - The Importance of Transferring Assets Offshore Confidentially

What are ‘nominees’ in the context of an offshore company?

A nominee is someone nominated to fill the position of owner or director of the IBC but who is not the real owner or director of the offshore IBC.

This simply protects the identity of the real owners, shareholders or directors of the business.

By using power of attorney the nominee director transfers all powers to run the business to a person whom the real owner trusts.

Finally, is an offshore IBC the best method for tax reduction?

The answer to this question will depend entirely on your personal circumstances.

I can tell you that an individual may benefit from ‘offshore’ in the following ways: -

- Reduction of income tax, capital gains tax and inheritance tax.
- Deferral of taxes.
- Asset protection from possible litigation.

I can tell you that a company can benefit from ‘offshore’ in the following ways: -

- Deferral of profits almost indefinitely through management contracts, insurance, loans, re-invoicing etc.
- Debt factoring.
- Asset protection from possible litigation.

Conclusion

Hopefully this guide answers the offshore company formation questions you may have had on your mind, and maybe it has shown you how an offshore IBC can personally benefit you.

Whether you now decide to go ahead and establish an offshore company will of course depend on your personal circumstances and requirements, ii may be the case that you still have questions about whether you can profit and benefit and as a result you need specific personalised advice.

If we can help you to that end please feel free to get in touch with us.  We may have the information you require, you may prompt us to add more to this guide, or we may be able to put you in touch with an industry professional to answer your questions.

You can either or complete the Offshore Advice Form. 
We look forward to hearing from you.

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