For years, investors have been wondering about the secret used by other top brands to grow rapidly into multinationals. However, the secret is now out – offshore company formation. With an offshore company, the doors of opportunities for a bigger market fling open, allowing your enterprise to increase sales and optimize profits.
Consider a situation where you incorporate an offshore company in a jurisdiction such as Hong Kong. Here, you get to enjoy the local market and also reach the Chinese market because Hong Kong has signed a free trade agreement with Mainland China. In addition, you will easily access the rest of the Far East market because of the strategic location. In this post, we will provide answers to the common questions that people ask about offshore company formation.
Is Offshore Company Formation Legal?
Yes, it is legal. When you hear some people indicating that offshore investment is not legal, the aim is to scare you from expanding business and growing it. The truth about investment is that you are free to invest anywhere you want. Just like you are free to pick the holiday destination of choice, it is also upon you to decide where to open an offshore company. Just make sure to follow the company laws in the foreign country.
The only thing you need to confirm is whether the targeted offshore jurisdiction allows investors from your country. For example, most offshore jurisdictions disallow investors from countries thought to have networks that support terrorists, drug trafficking, human trafficking, and money laundering.
If you are a US investor, the only legal requirement might be to report the amount of money that you have in offshore bank accounts. However, this reporting aims to promote transparency and reduce tax avoidance, meaning that no one can go for your investment offshore.
How Should I Identify the Best Jurisdiction for Investment?
To get more from your offshore company, it is important to ensure you only select the best jurisdiction. To do this, you should think about your business and pick the foreign country that can help to boost its growth. For example, if your company specializes in the import-export industry, consider a country with a good transport network and facilities such as ports, inland container depots (ICDs), and airports. Other components to check include:
- Supportive administration.
- Political and economic stability.
- Educated workforce.
- Many bilateral trade agreements with various countries across the globe.
What is The Best Method of Registering an Offshore Company?
Once you have pinpointed the preferred offshore jurisdiction for investment, the best method of registering a company is using an agency of experts. The experts have been in the industry for a long time and are specialists in preparing professional documents. In addition, they can come in handy in helping you with legal compliance, bookkeeping, and filing returns, among other tasks. They can also help you to craft strategies that work and avoid those that do not.
No matter your industry, offshore company formation can help you to rapidly grow business into the multinational of your dreams. Make sure to understand all the requirements for company registration and work with an expert to increase the chances of success.
