How to choose the right offshore company

Where is the best place to set up my offshore company?

To choose the right Offshore Company, you must first clearly define the objectives of its use.

If the main goal is to hide the owner of the assets, then any offshore jurisdiction will do, where to get information About the owner is very difficult, or impossible in principle. An example would be Belize, Seychelles, and especially Saint Vincent and the Grenadines. In all these jurisdictions there is no official register of shareholders, and, therefore, information about shareholders is not stored in a single source.

In jurisdictions where annual submission of reports is required, such as Cyprus, Hong Kong, United Kingdom, the register of shareholders is open. Therefore, their confidentiality is achieved through the use of nominal service.

If the company has set tax objectives, the main thing in choosing a jurisdiction will be the existence of agreements on avoidance of double taxation. Because it is the Agreement on the avoidance of double taxation is the main mechanism of tax planning. This is especially true of issues such as payment of dividends, royalties, and interest on loans. As a rule, classical offshore jurisdictions do not sign such agreements, so in this case, you will have to choose from low – or even high-tax jurisdictions.

The third question is the cost of registration and maintenance of a foreign company. Classic offshore to acquire and maintain much cheaper – firstly, their initial cost is very low, and secondly – they do not require the maintenance and delivery of financial statements. In addition, there is no need to pay taxes on profits, value added, capital gains and others. It is required only to pay state duty on time. It differs in different jurisdictions, but not by much.

In more “prestigious” jurisdictions (Cyprus, UK, Hong Kong) – not only the cost of registration and the number of annual fees are higher, but also the cost of preparing and submitting reports is usually quite substantial.

The next important point is the stability of the chosen jurisdiction. First of all, it is political stability. If its level is low, then under pressure from outside the government can make decisions that are not entirely beneficial for investors. For example, in Nauru, all offshore banks were virtually liquidated under US pressure. And in Montenegro, the companies that paid the tax at a preferential rate of 2.5% were liquidated, provided that they did not operate in Montenegro. Now the same pressure is being put on Liechtenstein and Gibraltar.

These are the main factors that must be considered when choosing an offshore. But the main factors, of course, are the purpose of creating a company and the characteristics of a particular business.

Set up an offshore company in Switzerland: SA or SARL

Set up an offshore company

When establishing an offshore company in Switzerland, we find two different legal forms to which this article must be devoted. In this way, we can know which is the best option to invest our assets in Switzerland. On the one hand, corporations (SA in French: Societe Anonyme) and secondly the Limited Liability Companies (SARL in French: Société à Responsabilité Limitée).

Requirements to incorporate an offshore company in Switzerland: SA or SARL

  • Number of shareholders: in both the minimum number of shareholders can be from a natural or legal person.
  • Name of the company: the name of the company must bear the initials of the legal form that corresponds to SARL or SA.
  • Social capital: the minimum social capital of the SA amounts to more than 90,000 euros (about 100,000 Swiss francs) with a minimum of 50% contributed (45,000) at the time of the constitution. On the contrary, the SARL must fully contribute all the capital stock amounting to just over 18,000 euros.
  • The nominal value of the shares: the nominal value of the shares or participation of the partners does not have a minimum amount in the case of the SA. However, the SARL need a minimum value of 90 euros (100 Swiss francs).
  • Residents in Switzerland and conabilidad: in both cases, one of the directors of the company will have to be resident in Switzerland. Accounting is mandatory for all but no type of audit is required. To do this, you must request a “voluntary exclusion”.
  • Confidentiality and privacy: the SAs offer more privacy and confidentiality than the SARL. In the case of the latter, the names of the partners and shareholders may appear in local public registers. The names of the shareholders associated with the SA remain anonymous.
  • Transfer of shares: the transfer of shares or shares in the company is made by simple transfer in the case of the SA or through the signing of a contract of sale of shares signed before a Notary.