Offshore legal address: features in 2021, which is important to know
Availability of an offshore legal address is a necessary condition for full-fledged business activities. If it is necessary to open a company and change the legal address and register it, please contact our specialists at IT-OFFSHORE. We will help you to solve the problem and find the best solution.
Concept and types of company addresses
Before you buy an offshore legal address, you should familiarize yourself with the types of addresses. Each company must have three locations. A postal address is required - it may not correspond with other addresses and documentation are received there. For electronic documentation, an electronic address is registered.
Business address - the actual location of the company. This address is important for the tax service and banks. Financial organizations require that the actual address be specified when opening an account with a legal entity.
The legal address is the location of the company registered in the Register of the country and tax structures. Official letters from the authorities are sent to this address.
A foreign company does not need to have a physical office at its legal address to operate. When obtaining tax resident status, it is necessary to register the real office in the country where the company was established.
The concept of a virtual office
You can use the service of virtual office. It implies the provision of a landline phone number and postal address. The administrator processes calls on behalf of the company, and forwards all messages to the owner's address.
The virtual office is connected with the rent of a legal address. If an entrepreneur does not have his or her own premises or rented real estate within an offshore area, he or she may need to rent a virtual office and a legal address.
Nuances of registering several companies at one address and its changing
Depending on the country of incorporation, local authorities may allow several foreign companies to be registered at the same address. This practice does not lead to negative consequences for clients from abroad.
It is possible to change the legal address in the country. A classic offshore organization works with registered agents throughout its existence. Without changing the country, many change the registration agents to whom the address is bound, the latter also changes.
In this case, you need to find a new secretarial company and agent beforehand, and sign a service agreement to avoid the offshore being left without administration.
It is possible to change the legal address of an offshore company together with the country of registration. There are cases when an entrepreneur needs to change a provider and change the country. This move is called redomiciliation. Often, the move is due to the need to optimize the tax burden.