In this globalized world in which we live today, there are plenty of opportunities to improve your economic possibilities, and one of the most popular is the establishment of an international offshore company. In this article, we will show you where, how, and why you should open one as soon as possible.

First, an offshore company is an entity formed outside the country where its main operations are carried out. The term 'offshore' means that the company acts as a non-resident where it is formed or incorporated.

Also, a common feature of such a structure is that its members and directors usually live outside the country where the company is incorporated. But you need to know that its development largely depends upon the purview of the entity's activities and the jurisdiction in which the business entity was incorporated.

If you want to know how to incorporate an offshore company, you are welcome to contact our experts and ask for a consultation about your case.

The best jurisdictions for offshore companies

There are plenty of good jurisdictions to establish your offshore structure, but the choice might depend on your funds and available information. We can highlight some of the most popular destinations so far.

One of the best jurisdictions for offshore companies is Panama. Panama has evolved to include progressive business regulations for creating an offshore financial center. However, many nations aim to attract foreign businesses and investors by making corporate and tax laws friendly to non-residents individuals and international corporations.

Also, the state of Delaware in the United States is one of the most historically significant corporate safe havens. Its simple legal structure and favorable corporate tax laws were shaped in the early 20th century to make it attractive and a perfect place to form and manage a corporation. As a result, nowadays, around 60% of the companies on the Fortune 500 list are incorporated in Delaware, making America one of the largest tax optimization destinations in the world.

Choice of country

There is no single standard offered by all offshore jurisdictions, but friendly corporate, privacy, and tax laws are only a few characteristics that you need to look for when choosing a country for your company. Here at Mundo, our experts can give you some pieces of advice on this matter, and even make it easier for you.

Other attributes to consider are ease of company incorporation procedures, management flexibility, financial accounting discretion, and nominee services, to name a few. In this sense, you must consider if the country of your choice has a territorial taxation regime, like Panama, Belize, or Nevis.

Establishing an offshore company

Incorporating is not as complicated as you might think. Registering an offshore company is easier and quicker than in your own country. For example, incorporating an IBC in Belize can take as little as 24 hours.

We can assist you with all aspects of offshore registration, including virtual offices at prestigious locations and offshore bank accounts with the world's leading financial institutions.

But, in general in this process to form a company, you might need to submit a Memorandum of Association and Articles of Association. The first one represents the company's external affairs and complements the second one, which represents the internal dynamics and structure of the company including the by-laws, purpose of the company, organization of its members, and so on.

These are not all the documents you might need, but some of the ones often required in several jurisdictions. Any additional requirements of a newly formed company post-incorporation are dependent upon your needs and wishes.

International companies

International companies constitute a type of offshore structure, which engages in international business activities in trade or investment and remains exempt from local corporate taxation, provided that its revenues do not come from local sources.

These are best suited for international companies as well as businesses with global or non-localized structures such as internet-based service industries as well as services providers and consultants, brokers, and currency traders.

Registering an international company

Registering an international company can require a lot of paperwork and processes such as opening bank accounts, due diligence, and KYC (Know Your Client) procedures. Whether you need to form an easy single-member company plus a bank account, or a complicated business structure, to obtain all the vehicles of successful business, we suggest that you hire skilled help as the one we offer at Mundo.

Why an offshore company?

Setting an offshore business can have a lot of perks. Forming an international company, in either an offshore or onshore jurisdiction, can ease problems that your domestic company may have when entering certain markets, or when doing certain businesses.

Some additional benefits of an offshore structure are asset protection, flexible management arrangements, and minimal financial reporting requirements in most cases. Besides this, you'll benefit your business with public registries that are not open to the public, and even tax reduction. Specifically, some offshore jurisdictions offer tax-exempt status to foreign companies.

What can we do for you?

As you have seen, setting an offshore corporate structure can be the key to expand your business and enjoy several benefits. However, the options are broad, and the process can seem overwhelming at first. But don't worry, we've got you covered at Mundo. We can help you set up an international company, an offshore bank account and in case you were wondering how to set up an offshore fund, we can help you with that too.

Our experienced lawyers and experts will develop plans and professional pieces of advice that are tailored to your specific needs. For more information about establishing an offshore company contact us right now!

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