Do you feel that you are paying a bit too much in taxes? Setting up an offshore company would help you reduce the tax bill considerably. If you would like to know how much it costs to form a new offshore company or buy an existing one, please read on.
Offshore Pro Group is a team of offshore business experts. We will be happy to assist you in forming an offshore corporation providing the necessary legal support. We will also gladly consult you on choosing the most suitable jurisdiction for your offshore company and the most suitable bank where you can open a corporate account. Please send us a message to the email address that you see above and we will get back to you promptly.
How much does it cost to form an offshore company?
The precise cost of forming an offshore company cannot be quoted. Much will depend on your business goals and many other factors. Please stay on the alert when you see an offer on the Internet that states the precise cost of offshore company formation.
Some companies will try to attract clients by indicating a low price of incorporating offshore. The matter is that the price that they quote covers only part of the total cost. These companies may ‘forget’ to add the costs of the nominee services, the costs of opening a corporate bank account, the costs of having the application documents apostilled, and so on.
The total cost of offshore company formation is made up of the following expenditures:
- Company registration state duties and administrative fees.
- Document apostilles.
- Nominee services.
- Mandatory payments to the budget of the host country.
- Courier services.
Besides, opening a bank account for your offshore company is going to cost you extra money.
Thus, an offshore company cannot possibly be registered for a few hundred dollars. The realistic price of setting up a company in one of the most popular offshore jurisdictions is between US$ 2,000 and US$ 5,000. If you would like to form a company in a reputable low-tax jurisdiction (Austria, Switzerland, Lichtenstein, or Luxemburg), you have to be prepared to invest a few dozen thousand dollars.
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oinformation from an expert on taxes and possible tax benefits of the jurisdiction appropriate to the company's structure.
Should you register a new offshore company or buy and existing one?
The readers of the InternationalWealth portal often ask what is preferable: setting up a new offshore company or buying one that has already been registered with the host country’s authorities? Theoretically, you can go either way but we highly recommend that you establish a new company.
The reason for this recommendation is that an existing company that has a history might have something in its past that will reflect on the future owner. For example, it may have debts or some claims may have been made against it by a third party. A fraudster trying to sell you an existing offshore company for a small amount of money is definitely going to suppress this sort of information.
In addition, cheaters sometimes manage to sell one and the same company to two or more people! This is one more factor to keep in mind when you are buying an existing offshore company.
Besides, many offshore companies have nominee directors and stakeholders. If you are told that the nominee service is already included in the price of the company that you are planning to buy, please be aware that nominees can appear inexistent. Yes, signatures can be forged, which will make the corporate documents invalid. When this becomes known to the bank that services your offshore company, it will close the corporate account immediately.
On the other hand, there are the so-called shelf companies that are registered with the only purpose of selling them. These companies do not have histories and often they do not have corporate bank accounts either. You can consider buying a shelf company registered in an offshore jurisdiction but prior to doing so, you will have to make sure that the purchase is not going to entail any hidden costs. Besides, you have to enquire deeply into the company ownership structure. You do not want a minority partner that you had no idea about to lay claims against you at some time in the future, do you?
The new business instrument that you are acquiring when registering or buying an offshore company is supposed to reduce your operational costs, not increase them. When you buy an offshore company that has already been registered, you run certain risks and you should realize that. However, when you are setting up you own offshore company, the ownership structure and the registration process are totally under your control. This is why we recommend establishing a new offshore company rather than buying an existing one.
The prices for offshore companies in different jurisdictions
Offshore jurisdictions can be divided into the following three classes:
- Low-tax jurisdictions that we refer to as midshores.
- Small island states, offshore jurisdictions proper.
- Low-tax regions of high-tax countries.
The following countries are considered low-tax jurisdictions: the European states mentioned above and also Malta, Great Britain, Panama, and Singapore. Taxes are payable in these countries but they offer some tax incentives that can be attractive for certain types of businesses.
Both midshore and onshore countries make filing of tax returns, keeping accounts, and undergoing audit mandatory. The company registers in these countries are open to the public.
Low-tax jurisdictions are popular with international business people registering companies there not only because of lower taxes but also because these countries remain perfectly reputable in the business world. It costs around US$ 2,500 to form an offshore company in a low-tax jurisdiction.
The countries that are sometimes referred to as ‘classic’ offshore jurisdictions include Belize, Saint Kitts and Nevis, British Virgin Islands, Seychelles, and others. The economies of these countries rely on fishery, tourism, and banking and offshore services. Non-resident companies registered in these countries enjoy a 100% tax exemption and the company maintenance costs are also quite affordable there. Instead of the taxes, the company owners have to pay annual state duties. There are nor requirements as to filing tax returns nor undergoing audits. The company registers are closed for the public in offshore jurisdictions.
These countries cannot claim that they have good international reputation but they are still popular with business people from different parts of the world due to the low company registration and maintenance costs. The price of registering a company in an offshore country starts at US$ 1,900.
Low-tax regions of high-tax countries include Hong Kong and some of the United States of America. Local legislations in these territories offer certain tax incentives to foreign nationals registering business companies there. The price of registering a company in one of these territories starts at US$ 2,500.
How you can securely register an offshore company
Save time, money, and nervous cells by applying for services of a reliable registration agent!
InternationalWealth experts will help you choose the most suitable jurisdiction and the most convenient company ownership type depending on your business goals and personal preferences. With our assistance, you will be able to compare the available options and make the best choice. We will also gladly help you open a corporate bank account for your new offshore company.
We offer the following services specifically:
- Offshore company registration and acquisition of all corporate documents.
- Entry of the company information into the State Company Register in the host country.
- Acquisition of licenses if necessary.
- Nominee services that help protect the confidentiality of the ultimate company beneficiary.
- Provision of the economic substance (tangible assets) in the country of the company registration: office rent, hiring personnel, and so on.
- Accounting and financial support if required.
Please contact us at the email address that you can find above and place a service request. We have registered a large number of offshore companies and we will be happy to see you among our clients!
How much does it cost to set up an offshore company in 2022?
Costs vary. It usually costs US$ 2,000 or more to register an offshore company. Please ignore the ads claiming that this can be done for US$ 300 or so. These are fraudulent ads.
How fast can an offshore company be registered?
It takes minimum one week to register an offshore company so that it becomes fully functional. Again, we suggest that you should ignore the ads claiming that company registration takes 24 hours.
Should I register a new offshore company or buy an existing one?
Buying an offshore company that has already been registered may carry some risks associated with the previous company owner. However, the cost of setting up a new company is most often the same as the cost of buying a ready-made company. For this reason, we recommend that you should establish a new offshore company rather than buy an existing one.
