| The term offshore company means a business | | | | and audited accounts. |
| incorporated in a territory outside the jurisdiction of the | | | | Offshore Company: Aid of Registration Agents |
| owner's home country. Offshore companies are | | | | Registration agents can facilitate the incorporation of |
| generally formed to avail the attractive tax structures | | | | these companies in the following ways: |
| and business prospects of the foreign country. The | | | | * Helps select a registered office for the company to |
| essential characteristics of these companies are: | | | | which all future official documents and legal notices are |
| * The organization is formed by person/s situated | | | | sent. |
| outside the jurisdiction of the country in which the | | | | * Provides nominees to work on behalf of |
| business is registered. | | | | shareholders, who are the legal owners of the |
| * The company does not operate a sizeable business | | | | company. |
| within the jurisdiction of the country of incorporation. | | | | * They can provide directors and managers to run the |
| * The company meets nominal tax expenses charged | | | | company's daily affairs, if they are satisfied with the |
| by the administrative laws of the country where it is | | | | company's activities. |
| registered. | | | | * They also help in appointing company secretary (ies) |
| Offshore Company: Registration and Other | | | | who ensure that the organization meets the statutory |
| Necessities | | | | obligations. |
| To register offshore companies, the following factors | | | | Offshore Company: Benefits |
| must be taken care of: | | | | There are several benefits of forming a company on |
| * Memorandum and Articles of Association, which | | | | foreign soil: |
| details the business type, capital, membership rights, | | | | * Convenience of operation - Such companies are |
| company objectives and internal processing, has to be | | | | governed by less stringent laws about auditing, |
| submitted. | | | | accounting and operational activities. |
| * Certificate of Incorporation has to be obtained from | | | | * Tax benefits - It is an international rule that |
| the Registrar of Companies to prove the company's | | | | businesspersons who start a company in a foreign |
| existence. Certificate of Incumbency proves that the | | | | country are eligible to tax benefits. |
| company is in good standing. | | | | * High asset protection - Since the company is based |
| * A company is obliged to maintain statutory records | | | | in a foreign land, personal assets are out of reach of |
| of company formation. Many administrative laws | | | | potential litigious action. |
| require the records to be kept within the jurisdiction of | | | | * Easy reporting system - These companies enjoy |
| the country where the company has been formed. | | | | easier reporting requirements than do the onshore |
| * Directors have to maintain all the necessary records | | | | companies. |