OFFSHORE COMPANIES

Jurisdictions Offshore Banking How to proceed

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Offshore Companies

Introduction

There is no magic or mystery surrounding offshore companies. This may sound simplistic, but an offshore company is essentially the same as any other company. Thus an offshore company can carry out the same types of business as companies incorporated in onshore areas and like other companies the liability of its shareholders is generally limited to the amount of capital they have put in to the company.

The major difference between an onshore company and an offshore company is that the rate of tax applied by the government in the jurisdiction in which an offshore company is incorporated is either very low or zero. Additionally some offshore companies are easier to administer and more confidential than onshore companies.

Of course the rules and regulations surrounding the establishment and management of offshore companies are slightly different in every offshore jurisdiction.

Why do our clients use offshore companies?

Save tax
Protect assets and reduce risk
Reduce Costs
Maintain privacy
To avoid unwarranted bureaucracy

Uses of Offshore Companies

Investment Holding
Trading
Property Investment
Financing
Patent, Royalty and Copyright Holding
Entertainment, Consultancy and Professional Services
Ship Management and Yacht Owning
International e-commerce Operations

Administration and Management

In general the formation of an offshore company is simple - we do this for you! What really requires thought is management and administration, thus we strongly encourage our clients to consider the administration and management of an offshore company from the inception of their plans.

A common misconception is that a company must be administered in its place of incorporation. This is not the case and it is often beneficial to have, for example, a company incorporated in the Seychelles administered in Mauritius.

Confidentiality and Privacy

Pursuant to international regulations concerning the prevention of drug trafficking and money laundering OCRA Arabia strictly implements Anti Money Laundering Procedures which comply with the laws, rules and guidelines issued by the UAE Government.

Whilst we respect and honour your privacy and respect any need you may have for confidentiality, we are committed to undertaking a full and thorough due diligence of both our clients' identities and the nature of their businesses. To this end, we need to be fully appraised of both the rationale behind the establishment of any corporate or trust structure and its modus operandi. This formal approach to due diligence benefits both OCRA Arabia and our clients.

OCRA Arabia will not divulge to any third party any information concerning its clients, without their prior written consent. OCRA Arabia reserves the right to treat this obligation of confidentiality as not applicable when it is obliged by law to divulge such information or when OCRA Arabia has been unable to obtain instructions from clients and it appears to OCRA Arabia to be in the best interests of our clients to provide information.

To assist clients to keep their affairs private and to prevent unwarranted intrusion we provide the following core services:

Professional Directors
Nominee Shareholders
Bank account signatories
Administrative assistance
Communication services, such as telephone and facsimile handling

Basic Information

Directors

We are able to provide professional directors to act on the instructions of clients. It is important to understand that our directors' liabilities are exactly the same as those of any other director. Therefore when we are asked to provide directors we need to know exactly what sort of business the company is undertaking and to monitor and control its activities on a day to day basis. In many countries directors have to be real people - individuals like you. However, in many offshore centres corporate directors are permitted. These are companies that act as directors of other companies. We have formed special companies to act as directors in many different jurisdictions. In some jurisdictions a majority of directors must be resident in the country of incorporation.

Powers of Attorney

This power to bind a company can be delegated to other persons through a legal document known as a "Power of Attorney". However we only issue limited POA’s, on a case to case basis.

Nominee Shareholders
For these clients seeking privacy in their affairs we provide a "nominee shareholders service". We have formed nominee companies in many jurisdictions around the world and their sole purpose is to hold shares on behalf of clients. To protect our clients interest the nominee companies enter in to a contract known as a "declaration of trust" with the owners of the company that prevents the nominee company from acting without instructions from the owners.

Beneficial Ownership

The beneficial owner of a company is the person who ultimately owns a company. All banks will require the identity of the beneficial owner of an offshore company to be disclosed before opening any accounts.

Company Secretary

In most common law jurisdictions a company secretary is required. This person is responsible for maintaining the statutory books of a company and filing annual returns. In some jurisdictions corporate company secretaries may be corporate bodies whilst in other company secretaries must possess qualifications and be resident in the country of incorporation.

Capital

The capital of the company is the funding provided by the shareholders. In some jurisdictions the capital of the company must be held in a particular currency. The authorised capital is the maximum amount of capital that may be injected in to a company and the issued capital is the amount that has been paid up by the shareholders. Shareholders liability is generally limited to the amount of paid up capital.

In most offshore jurisdictions the minimum issued capital is low. Increase in authorised capital beyond a certain level is often subject to capital taxes. We generally form offshore companies with the maximum amount of authorised capital allowed for the minimum capital taxes.

Registered Office and Registered Agent

The registered office is the place where the company's books must be maintained and often these books must be available for public inspection at the registered office. The registered office is the place where official and legal documents should be delivered.

In some jurisdictions, a qualified resident agent must be appointed. In these cases the resident agent maintains certain information about the company We provide registered office and resident agent for all of our clients.

How to proceed

If you would like to discuss your requirements with one of our consultants, please click here to contact us.