Blog and newsBlog
Redomiciliation of an offshore company, everything you need to know
Individuals seek to register their businesses offshore for many reasons. Privacy is one of the most important motives. Doing business in a place where investors can make a profit without having to pay vast amounts of taxes is attractive in itself, and if you add the fact that these territories help people to keep their economic activities as private as possible, it is understandable why there is a growing interest in investing in offshore jurisdictions.
Another factor that usually motivates businesspeople to register their companies in these territories is not having to report their earnings to the government of their country of origin. Usually, going offshore grants individuals privacy and anonymity regarding their economic activities preventing any state to be aware of the income that individuals make in these territories.
However, this privacy is being threatened currently by various agreements between countries and offshore territories, allowing governments to know the activities that their citizens are conducting abroad. From the registration of their businesses to the information regarding the earnings of their companies, your government might be able to know everything regarding your investments outside their own jurisdiction. This is possible thanks to TIEAs (Tax Information Exchange Agreements) that countries establish between them in order to know what their citizens are doing outside their country of origin, putting the privacy of individuals at risk. This kind of agreement represents a problem for individuals that look to make a profit without worrying about paying huge amounts of taxes, given that now their countries of origin can obtain the information regarding their earnings, and can set taxes over the income made in foreign territories.
Also, currently most countries in the world are subscribed to the CRS (common reporting standard), which means virtually every bank in the world is supposed to automatically share the financial information of their clients with the authorities of their home countries.
Nonetheless, with some territories being forced to accept the TIEA, individuals might be interested in relocating their businesses to other small countries that have not adopted these agreements yet. Some small countries do not actively enforce these treaties or have provision to guarantee tax optimization and privacy. This can be an opportunity for individuals that want their businesses to stay private in a country that grants the discretion that they are looking for, while maintaining the low tax-rate that distinguishes an offshore territory. However, it is important to consider that, if the company has a bank account, the bank will have to report under the CRS.
Redomiciliation of company from one country to another is not as difficult as it might appear. This process is pretty straightforward; you just have to, generally, follow these steps:
-The board of directors of the company must present a document or resolution that authorizes the change of domiciliation from one country to another.
-Then, the company’s administration has to present documents that include a board of resolution and an article of continuation that officially authorizes the change of jurisdiction.
-To formally register your business in the new country that you chose, you must present the proper documentation that allows the redomiciliation process from one jurisdiction to another. These documents include:
- Signed board of director’s resolutions that permits the redomiciliation of company
- Articles of continuation
- Original notarized documents from the previous country of domiciliation such as the Certificate of incorporation, memorandum, and articles of association and the original certificate of good standing.
The period of time of this process may vary depending on the countries involved, and it can last between 1 and 3 weeks. It all depends on the jurisdictions that have to do with the redomiciliation.
If you want to enjoy the benefits of investing internationally, going through the redomiciliation process can help you move your business to a country that guarantees your privacy while keeping a low tax rate for your earnings at the same time.
However, this article is merely informative and does not replace a formal and legal consultation. We recommend asking for a consultation with an expert in international corporate and taxation. Contact us, and our experts in some of the best locations in the world will give you the best corporate advice.
- What is KYC Nobody doubts the fact that it is necessary to know one´s clients. In some areas, like financial adv...
- British dual citizenship: Which CBI program is for you? Albeit some European countries have strict laws, British dual citizenship is allowed. British dual n...
- The best citizenship by investment programs for 2020 Due to the increasing financial uncertainty and to the rise in regulations that took place during th...
- The 5 cheapest countries to open offshore bank accounts and establish a company With the economic crisis caused by the coronavirus and due to the ever-increasing regulations and re...
- How to get residency and guaranteed income in Panama In October of this year, Panama issued Decree 722, opening the door to obtaining permanent residency...
- Can a US Citizen Have an Offshore Bank Account? One of the downsides of the Internet is the dissemination of misinformation. That has led some to be...
- Unique opportunity for permanent residency with an investment For certain, COVID19 is the iceberg's tip; there is a new norm forming, and we need to prepare ourse...
- What are the cheapest second passport programs? A second passport can cost you a few hundred or thousand dollars in legal fees. That is, of course, ...
Open a Bank account
Open a Company
Obtain a Financial license
Create a Trust
Establish your family office
Send us Your task
Nevis-US LLC + bank account $3400
Foundation + account $5800
IBC + account from $2000
LLC + account from $1800
IBC + account $2140
LLC + account from $2270
Company + account from $2700
Foundation + account from $3800
Storage + company + account $9500
Company + account from €2000
Foreign company + account $10,000
Company + account from $6920
Company + account from $3050
Company + account from $4600
LP + account from $2350
Company + account from $2740
LTD + account from 2350 USD
Branch office + account $9500
LP+ account from 2800 USD