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Is offshore use and registration legal?

Since the legislation of both the Russian Federation and Ukraine gives equal rights to foreign legal entities in business activities the reverse use of the same principle of business activity freedom functions on their territory too; thus offshore use is absolutely legal. Moreover the number and volume of offshore transactions is constantly and steadily growing.

What is more offshore activity is regulated by international law which means that international treaty regulations are applied in case of contradiction between international legal act and domestic legislation of the Russian Federation or Ukraine. Therefore offshore registration is subject to international agreements.

A registered offshore allows to protect company’s assets and to minimize taxation and also provides successful international expansion. If international financial activity is of your interest you should think about offshore registration now.

How can I register an offshore company in Belize?

1.Order and preliminary consultations.
1.1 Company incorporation in Belize begins with completing the order form which specifies the beneficiaries details , basic and (if necessary) related service and the cost of company registration and maintenance. Should you have any questions our managers are always ready to answer each of them. After completing the form you sign and scan it and send us an e-mail at sale@it-offshore.com. Our managers will contact you within a few hours to specify all the details. Besides you can complete the order form at our Head Office in Frankfurt (Germany) after coordinating the meeting with our manager.

1.2. Choosing the company name the Registrar checks against some simple rules:
- singularity (the name must not repeat the name of an existing company or be alike);
- authenticity (the name should not contain forbidden words or mention any activity requiring a separate license);
- neutrality (the name must not claim the offshore company and Belize connection).
We ask you to state at least two variants of your future company name in case one of it fails to meet the requirements.

2. The application form should be supplied with only two simple documents:
2.1. A notarized copy of your foreign passport data page(with photo).
The legislation of Russia and Ukraine forbids to certify a true passport copy but it's worth noting that rare notaries keep to these prohibitions. If somehow you come across with the one then you may contact a translation agency where the data page of your foreign passport can be easily translated. The translation can be notary registered there as well.

2.2. Documents evidencing your address
It may be a utility bill, an account or your credit card statement, certificate issued by the local municipal authorities, extract from the register of residents, notary or bank letter etc. To confirm your address the internal passport registration can be supplied.

3. Order Payment
3.1. After specifying all the details our managers will make out and send you an invoice. You can pay it by one of the three suggested ways: by bank transfer, via the internet using your credit card or by Western Union money transmission. Your company registration will start as soon as the sum is received on our account.

4. Registration Documents Delivery
4.1. Within a few hours after placing an application on Registrar your company begins its legal existence (including the receipt of a registration number and Registered Address). The registration documents delivery takes 5-7 days. The prepared registration documents will be delivered by the courier service to your address. We can also provide registration documents safekeeping in a separate client cell in our Head Office in Frankfurt am Main.

5. Final procedures
5.1. After the company's registration is complete our managers will contact you and ask you to sign some documents (declaration of the company’s documents keeping ddress, director appointment confirmation etc.). Formalities observed? Congratulations! Now you are a Belize company owner which is one of the most effective instruments of the offshore market. The whole procedure of a new company registration in Belize takes one working day (except weekends and holidays).

Who and when would better register companies in foreign jurisdictions?

Company incorporation in a foreign jurisdiction for IT specialists, freelancers, mobile applications designers.
So when is it better think about buying an offshore?

1. You are a freelancer and your customers mostly come from abroad.
2. Your income exceeds 30.000 usd per year or close to this figure.
3. You design mobile applications for the App Store, Google Play (I do not know what the situation is with Windows Store) and the bank asks you to bring the original contract signed by Tim Cook, the Apple ink stamp and notarized translation of 200 pages contract.
4. You no longer want to cooperate with Tax Agency, pensionary and currency control, financial monitoring, etc.
5. You organize a startup and want to do everything just right. After all in most cases you have to make incorporation when receiving investments.

Nominee shareholders and directors service

A nominee is a person who is not the real owner or director of the company, but who is engaged by the owner to act on his behalf. Nominees are widely used by offshore companies owners to preserve confidentiality. Using the power of attorney the nominee delegates his authority to run the company to the person who the owner trusts. Thus it is possible to open an offshore without introducing the owner’s name in public documents. We render nominee shareholders and directors service for your supreme security. Nominees will formally appear in all main registration documents of the company.

General letter of attorney concerning the company management will be made to your representative (or you personally) as well as exemption letters of the nominee director retirement with an open date which you can put in any time thereby changing the director. Besides the declaration of trust between the nominee shareholder and your representative (or you personally) will be established which confirms that the nominee shareholder holds the company shares on your behalf and is not entitled to perform any actions without your consent.

Documents to be submitted by IBC registry

1. Certificate of incorporation
2. Articles of Association
3. Memorandum of Association
4. Resolution of Subscriber to appoint first director
5. Apostilled set of documents listed above
6. Acceptance letter
7. Resolution to adopt address of documents keeping
8. Resolution to adopt Registered Agent and Registered Address
9. Resolution to issue shares
10. Register of Directors and Officers
11. Register of Members
12. Share certificate
13. Certificate of Non-Trading (for ready-made companies only)

When using nominee director service:
1. Nominee service agreement
2. Resolution to issue Power of Attorney
3. General Power of Attorney under apostille

When using nominee shareholder service:
1. Declaration of Trust
2. Nominee Service agreement
3. Stock transfer Form (Blank)

Advantages of opening a personal account in a European bank

The recent negative changes in political and economic life of the country especially the situation in the banking sector made many people seriously think about their assets safety. One of the most obvious ways is to transfer funds to more reliable and solid bank. The solution comes itself. In order not to stand in a line at Deposit Insurance Fund in case of bankruptcy of your bank you should better think about opening a bank account in the countries of EU. It is an ingrained belief that only very rich and influential people can afford having an account in a foreign bank. In fact everyone can keep one’s money safe by investing funds in foreign financial institutions.
At present the banks of Latvia are becoming more and more popular.

The main advantage of Western banks compared to the Ukrainian and Russian is of course their reliability, complete privacy, perfect service, simplicity and convenience at work and affordable rates.

To open a personal bank account in Europe the following documents are required:
Documents of identification:
1.Passport copy or identity card in Russian or English.
2.Standard bank forms (originals).
2.1.Application for opening and service of a current account for an individual.
2.2.Confirmation of Remote Account Management receipt.
3.The beneficial owner’s (the true beneficiary) documents.
Any bank must follow the principle of "get to know your customer". That means that bank experts should understand the client's activity. If a client wants to make an unusual monetary operation or it’s aim is not clear bank employee is obliged to ask the customer questions concerning the purpose of the monetary operation or the funds origin. In special cases the bank may ask to supply confirming contracts, invoices or other documents. 
An opening account term depends on the country and internal regulations of the bank. In general it takes 5-14 days.

The list of documents required to open a corporate account in a European bank

To open a current account the Bank asks its clients to submit the following original documents:

1.Judicial documents required to open a current account:
1.1.Registration certificate or a similar document (certificate of registration or a similar document) (apostilled);
1.2.A document confirming the Registered Address or a similar document (Certificate of the registered office or a similar document). For companies established no more than 12 months before opening a current account it is sufficient to specify the address in corporation documents or constituent documents;
1.3.Decision of directors and secretary appointment or a similar document (Certificate of directors and secretary or a similar document). For companies established no more than 12 months before opening a current account it is sufficient to have decision of directors/secretary appointment;
1.4.Documents evidencing the current list of shareholders or holders of capital shares or a similar document (Certificate of shareholders recorded in the register in case it is a private company or similar documents). For companies established no more than 12 months before opening a current account it is sufficient to mention the shareholders in incorporation documents. But in case of alternation of the original shareholders/owners the documents confirming the changes are required. If the client’s representatives (directors / secretaries / proxies), the members (shareholders) are legal entities some additional documents of the mentioned persons are necessary (a copy of Certificate of state registration; a copy of the Official List of directors and secretary; A copy of the official list of shareholders; a passport copy for each Director);
1.5.Charter and the Declaration of the company establishment or a similar document (Memorandum and Articles of Association, regulations and charters or a similar document);
1.6.A copy of the Declaration of Trust, the agreement between the nominee owner and the real beneficiary of the account (A copy of the Fiduciary management agreement/the contract between nominal and actual beneficiary account) - a copy of documents evidencing connection of the company and the beneficial owner (beneficiary) in cases when the stated beneficiary and the shareholder are not the same;
1.7.The document specifying the actual address if it differs from the Registered Address - if there is some public information or if the existing customer’s documents contain information confirming the address the document is not necessary;
1.8.The documents of the owners of capital shares, the directors, the executives if they are legal entities (Proxy documents for the clients, directors, shareholders if they are legal entities) - some additional documents must be supplied if the client’s representatives and the shareholders are legal entities (a copy of Certificate of state registration; a copy of the official list of directors and secretary: A copy of the official list of individual shareholders; a passport copy for each Director);
1.9.Documents evidencing the identity of the Customer's attorney (identity documents, customer’s letters of attorney) if necessary.
1.10.Document evidencing company's good standing (if the company was established more than 12 months before business relations) (Certificate of good standing if the company was established within 12 months or more) (apostilled); 
1.11.The power of attorney in case the current account is opened and managed by a trustee (apostille is not required).

2.Documents identifying the company’s representatives personalities:
2.1.Passport copy or identity card in Russian or English 

3.Standard bank forms (originals) (forms and samples are sent separately).
3.1.Application for opening and servicing the current account of a legal entity;
3.2.Confirmation of the receipt of the remote account management instruments;
3.3.Bearer shares report (in case the company has the right to issue bearer shares).

4.Documents evidencing the wealth status of the beneficial owner (the true beneficiary) and evidencing the client and the beneficial owner (the true beneficiary) connection:
4.1.Documents evidencing the financial status of the beneficial owner: a copy of documents of real property or stock of shares holding, bank statement, statement of employment in real (public) company stating salary etc.
4.2.Documents evidencing the client and the beneficial owner connection are copies of documents characterising the beneficiary’s professional skills or education: CV, visiting card, statement of employment in real (public) company, diploma, different certificates of specialized professional knowledge.

Reasons to reject nonresident account opening in a foreign bank

The situation when non-residents meet with a refusal to open a foreign bank account is not rear. A refusal is often got from the banks considered to be very loyal to their customers, e.g. banks located in Latvia or Cyprus. Banks usually do not give their reasons but we have listed the most common arguments which may be on your way to open a foreign account for personal or corporate purposes.

1. Incomplete set of document provided or documents with serious errors (for example, offshore bought at a low price with missing or incorrect documents). 
2. Unprofessional agent working by company registration and opening of the account. 
3. The company beneficiary’s lack of business experience in general or in the chosen section.
4. Attorney fails to provide the additional documents requested by the bank.
5. The bank compliance has the evidence of the company’s fraud or concealing the real scope of activities.
6. Attorney shows his inability or discrepancy in the requirements on his personal bank visit. 
7. Too low or too high turnover of the bank account declared that looks suspicious. 

On the one hand almost every company can meet with a refusal to open an account by at least one of the above reasons. However practically things are different: it is not profitable to refuse perspective customers who can bring income - do not forget that each customer is a source of material income. Anyhow always follow the simple rule: let professionals handle with the registration of the company and never purchase too cheap firms which may lead to difficulties in opening an account in a foreign bank .

England: register an offshore

The benefits of company registration in the UK are the country absence in the offshore zones blacklist and high-prestige jurisdiction. The English companies Register is public so to keep privacy of personal data it is recommended to use nominee service.

The registration forms of an English offshore company are Private Limited Company, Limited Liability Partnership.

Limited Liability Company (Ltd.) For Ltd. registration you need minimum one director and shareholder, there is no minimum paid-up capital requirement. Director must be a private individual. The annual financial report is submitted, audit is necessary, small companies may be an exception.

Limited Liability Partnership (LLP). For Ltd. registration you need minimum 2 partners, one of them must be a legal entity. There is no r no minimum paid-up capital requirement. In LLP at least 2 partners are appointed who function as directors. In England LLP is audited and delivers the annual financial report. Limited Liability Partnership is corporate tax free if its partners are non-residents of the country and the company's income comes from outside.

Company’s name in GB ​must endin«Limited», «Ltd.» and others.

Such business activities ​as IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration in Great Britain.

Belize: register an offshore

Belize is one of the most popular offshore zones and is a part of the British Commonwealth.The main offshore advantage is a high level of reliability and confidentiality as the Belize companies Register is not public. The directors and shareholders data is not available. Belize offshore company is tax free, that means there is no need to submit reports. Another benefit of the jurisdiction is fast registration in comparison with other offshores, low cost of annual renewal.

The registration form of a Belize offshore company is International Business Company (IBC). Limited liability Company (LLC) is also possible. If Belize LLC runs business outside the country it is tax and currency control free. Unlike IBC LLC has no shareholders as it does not issue shares. International Business Company has both shareholders and directors and Limited liability Company belongs to the Board. 

In case a Belize company owner wants to keep the personal data secret nominee service should be used.

The basic requirements for companies are registered office and registered agent and no business activity on the territory of Belize.

Company’s name in Belize must end in «Limited», «Corporation», «Incorporated», «Sociedad Auonima», «Societe Anonyme» or the following abbreviations «Inc», «Ltd.», «Corp», «S.A.», «AG».

Such business activities as IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration in Belize.

British Virgin Islands (BVI): register an offshore

BVI is a classic offshore and is one of the most popular jurisdictions. Opening a bank account has become much easier due to the fact that the British authorities got the offshore excluded from the OECD and the FATF black lists.

The advantages of company registration on the BVI territory is the absence of taxes and fees. Your company is free from financial and audit reports. The British Virgin Islands companies Registrar is not public, the beneficial owners, directors and shareholders data is not available. But in case you want to keep the personal data secret nominee service should be used.

The form of Registration of an offshore company on the BVI territory is BVI Business Company.

BVI Business Company does not pay profit, dividends, interest, royalties taxes as well as compensation, capital gain and rent taxes. BVI BC needs at least one owner, director and shareholder. Moreover all these posts can be held by one person.

Company’s name registered on the BVI territory must end in «Limited», «Corporation», «Incorporated» or such abbreviations as «Inc», «Ltd.», «Corp», «S.A.».

Such business activities as IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration on the BVI territory.

Germany: register a company

Non-resident individuals and legal entities can be founders and company members in Germany, since the law of the Federal Republic of Germany does not restrict firm registration by foreigners.

The advantages of company registration in Germany is the country’s absence in black lists and its stability. Germany signed the Agreement for the avoidance of double taxation with 67 countries. The shareholders and directors Registrar is public. In case you want to keep the personal data secret nominee service is recommended.

The registration forms of an offshore
company in Germany are the following: private limited liability company (GmbH), joint-stock company (AG), Societas Europaea(S.E.), entrepreneurial society (UG haftungsbeschränkt), civil law company(GbR), open commercial partnership (OHG), commandite partnership (KG), limited liability commandite partnership (GmbH & Co. KG), commandite partnership by shares(KGaA), a registered association (eV), individual entrepreneur (Einzelunternehmer), private foundation (Stiftung).

A joint-stock company (AG) - at least one shareholder is required for registration, Secretary is not necessary. 25% of the registered capital must be paid up by company registration. Company in Germany are obliged to make accounting reports and submit annual financial reports.

Private limited liability company (GmbH) - the registered capital must be paid up by company registration. Company Management is performed by one director (private individual) or by the Board of Directors. One of the directors must be a EU resident , the Secretary is not required. For GmbH it is necessary deliver annual financial report and be under audit.

Each company in Germany is business taxpayer.

Company’s name registered in Germany must end in «GmbH», «AG» and others.

Such business activities as IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration in Germany.

Gibraltar: register an offshore

Gibraltar is a dependent territory of the UK, which independently decides on tax policy. The city-state is a member of the European Communities.

The advantages of company registration in Gibraltar is a high level of confidentiality.
The Gibraltar Companies Registry is public but the beneficial owner data is not available.To keep the personal data secret nominee service should be used.

Registration forms of an offshore company in Gibraltar are the following: Gibraltar Non Resident Company, Private Company Limited By Shares, Qualifying Company.

Private Company Limited By Shares is a closed joint stock limited liability company. Private Company Limited By Share is tax free, there is no need to pay up registered capital. At least one director and shareholder are required for the company registration.

Gibraltar Non Resident Company is a non-resident company. If the company is non-resident of Gibraltar it is completely tax free, a slice of profits transferred to Gibraltar is taxable. Company is considered to be non-resident in case the beneficial owner is a non-resident of Gibraltar, in case company management is performed by directors who reside and hold meetings outside the jurisdiction. Non-resident companies do not pay fixed government tax. Reports delivery is necessary.

Each Gibraltar company must have Registered Address where all the company registers and protocols are kept.

Company’s name registered in Gibraltar must end in «Limited», «Ltd.».

Such business activities as IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration in Gibraltar.

Hong Kong: register a company

The advantages of company registration in Hong Kong is a high level of privacy and prestige value of jurisdiction. Your company is free of tax on external income. Hong Kong Companies Registry is public, the company directors and shareholders data is available. Therefore to keep the personal data secret nominee service should be used.

Registration forms of an offshore company in Hong Kong is Private Limited Company.

Private Company Limited By Shares is a closed joint stock limited liability company. Minimum one director and shareholder are required for the company registration, office registered on the territory of Hong Kong and Resident Secretary are required. Private Limited Company by Shares are free from taxes on profits gained outside Hong Kong. One cannot be engaged in banking, trust, insurance and reinsurance activities without the corresponding license.

Company’s name registered in Hong Kong must end in «Limited», «Ltd.».

Such business activities as IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration in Hong Kong.

Cyprus: register a company

Cyprus has been an EU member since May,1,2004.

The advantage of company registration in Cyprus is the lowest corporate tax rate in Europe - 12.5%. There is the Agreement for the avoidance of double taxation with 34 countries. The beneficial owner data is not available. The companies register is public, the company directors and shareholders data is available. To keep the personal data secret nominee service is recommended.

Registration form of an offshore company in Cyprus is LTD (Company limited by shares).

At least one director and shareholder are required for the company registration. Secretary is necessary.

One cannot be engaged in banking, trust insurance and reinsurance activities without the corresponding license. Accounting reports are required, audit and tax return are necessary. The annual report is submitted.

Registered office and Secretary of the company are the essential requirements .

Company’s name registered in Cyprus must end in «Limited», «Ltd.».

Such business activities as IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration in Cyprus.

Lithuania: register a company

Lithuania is an EU member. The advantages of company registration in Lithuania is the country’s absence in the black lists and the tax concessions. There is the Agreement for the avoidance of double taxation with 30 countries. There are 2 free-trade zones in Lithuania. There is no royalty and dividend tax for non-residents of the country. The beneficiary data is not disclosed to the state bodies. To keep the personal data secret nominee service is recommended.

Registration forms of an offshore company in Lithuania are UAB (Uždarojiakcinė bendrovė) e.i. a closed joint-stock company, AB (Akcinė bendrovė) - an open joint-stock company.

A closed joint-stock company (UAB) – at least 25% of the capital must be paid up by the company registration. At least one shareholder and director of any residence are necessary for the company registration. The closed joint stock company management may be carried out by director himself. If a company is registered in Lithuania its director can claim for residence permit. The director and accountant existence is the essential requirement. The annual report is submitted.

An open joint-stock company (AB) - Minimum one director and Shareholder. The company’s shares may be traded publicly, the minimum registered capital is LTL 150 000.

Company’s name registered in Lithuania must contain the following words: «uždaroji akcinė bendrovė», «private Company», «UAB», «Akcinė bendrovė», «public Company», «AB».

Such business activities as IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration in Lithuania.

Malta: register a company

Since 2004 Malta has been an EU member. The advantages of company registration in Malta is the country’s absence in the black lists and there is no withholding tax. The jurisdiction signed the Agreement for the avoidance of double taxation with 43 countries. The shareholders and directors Register is public but the beneficial owner data is not available to third parties. To keep the personal data secret nominee service is recommended.

Registration form of an offshore company in Malta is Private Limited Liability Company. At least one shareholder and director are necessary for the company registration. Private Limited Liability Company submits annual reports, audit is also required. The minimal registered capital should be paid up before the company registration.

Registered office and Secretary of the company are the essential requirements.

Company’s name registered in Malta must end in «Limited, «Ltd».

Such business activities a s IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration in Malta.

Panama: register an offshore

Panama is a classic offshore and is a UN member. There are all necessary conditions for non-residents to run their business. The shareholders and directors data is available. To keep the personal data secret nominee service is recommended.

The advantage of company registration in Panama is no corporate tax, no reporting requirements and no government control.

Registration form of an offshore company in Panama is Stock corporation: Aktiengesellschaft (AG.), Societe Anonyme (S.A.), Incorporated, Corporation.

Stock corporation (AG., S.A.) – at least one shareholder, 3 directors and Secretary are required for company registration. There is no need to pay the registered capital.

Registered office and registered agent on the territory of Panama are the essential requirements. One cannot can not provide addresses for other companies, be engaged in banking, trust, insurance and reinsurance activities without the corresponding license.

Company’s name registered in Panama must end in «Corporation», «Incorporated», «Societe Anonyme» или аббревиатуры Corp., Inc., S.A.

Such business activities as IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration in Panama.

Seychelles: register an offshore

Seychelles have the right set of features and deserve to be called an international financial center of global importance. In 1961 the country signed the Hague Convention. The advantage of company registration in Seychelles is a high level of confidentiality.To keep the personal data secret nominee service is recommended. The benefits of company registration in Seychelles are low cost and low maintenance charge. Your offshore company is absolutely free of taxes and accounting of any sort.

Registration form of an offshore company in Seychelles is Seychelles International Business Company. IBC is not permitted to operate on the island and to possess real estate. One cannot render registered agent services and provide addresses to other companies as well as carry out banking, trust, insurance and reinsurance activities without the corresponding license.

Registered office, registered agent and no business activity on the offshore territory are the essential requirements.

Company’s name registered in Seychelles must end in «Limited», «Corporation», «Incorporated», «Company», «Sociedad Auonima», «Societe Anonyme», «Public Limited Company», «Societe», «Berhad», «Proprietary», «a Responsabilite Limitee», «Namloze Venootschap», «Besloten Venootschap», «Aktiengesellschaft» or the abbreviations «Inc», «Ltd.», «Corp», « LLC», «S.A.», «AG», «GmbH», «PLC», «S.A.R.L», «Bhd», «Pty», «NV», «BV».

Such business activities as IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration in Seychelles.

Singapore: register a company

Singapore Offshore is a respectable jurisdiction with financial stability. The city has become the financial, industrial and commercial center of the world and the most famous Asian offshore zone.

The advantages of Singapore company registration is the financial stability, the prestige value of jurisdiction.Your company is free from external profits taxation. Another benefit is a high level of anonymity and privacy. A Singapore company must have a resident director, resident secretary and office registered on the state territory. The Singapore companies registry is public, the company directors and shareholders data is available. To keep the personal data secret nominee service is recommended but the beneficiary data is not in the registry.

Registration form of an offshore company in Singapore is Private Limited Company.

Private Limited Company is a closed private limited liability company. At least one shareholder and resident director, office registered on the Singapore territory and resident Secretary are required for company registration. One cannot be engaged in banking, trust, insurance and reinsurance activities without the corresponding license .

Company’s name registered in Singapore must end in «Limited», «Berhad», «Private», «Sendirian» or such abbreviations as «Ltd.», «Bhd.», «Pte.», «Sdn.».

Such business activities as IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration in Singapore.

The United States (Oregon): register a company

Stable jurisdiction with excellent reputation. Oregon is famous for its modern corporate legislation and is a good choice if you intend to make your company public.

The advantages of company registration in Oregon is a high level of privacy and confidentiality.

Registration form of an offshore company in the United States (Oregon) is Limited Liability Companу (LLC).

Limited Liability Company - LLC registered by US non-residents is tax free in the country of registration if there is no income earned in the United States. Minimum one person is required for the company registration.

Corporation - Minimum one shareholder and director can establish such company. The Corporation which operates outside the United States and does not deal with US residents is tax free. In case you intend to run business in the United States and work with US residents the legislation requires company registration in the US tax authorities with the following report delivery and taxpaying.

Company’s name: Limited Liability Company and Corporation registered in the USA (Oregon) must end in «Limited», «Ltd.», «Corporation», «Corp.», «Incorporated», «Inc.».

Such business activities as IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration in the USA (Oregon).

Switzerland: register a company

Benefits of company registration in Switzerland: if the company does not operate within the country, has no resident office, does not hire employees it pays a reduced cantonal and municipal corporate taxes. It should be noted that it has full pay of federal profit tax of 8,5% as well as net wealth tax. The directors register is public so to keep the personal data secret nominee service is recommended.

Registration forms of swiss offshore companies are AG or SA, LTD, GmbH, SARL, LLC.

Joint-stock company (AG or SA) - 20% of minimal registered capital must be paid up by money transmission on bank deposit before company incorporation. Minimum one shareholder and resident director are required. The director should be private individual. Minimal number of shareholders is 1, nominal bearer shares can be issued. Permanent auditor is required. Annual report is submitted.

Limited liability company (GmbH илиSARL) - 20% of minimal registered capital must be paid up by money transfer on bank deposit before company incorporation. Minimum one shareholder and director of any residence are required. Minimal number of shareholders - 1, nominal shares are issued. Permanent auditor is required. GmbH is obliged to have accounting records but annual reports are not mandatory.

Company’s name registered in Switzerland must end in «GmbH», «SARL», «AG», «SA», «LLC», «Limited», «Ltd.».

Such business activities as IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration in Switzerland.

Scotland: register an offshore

Scotland is an autonomous state in Northern Europe. Scotland is an onshore.

Scottish LP is an alternative to the classic offshore companies concerning taxation in the prestigious European jurisdictions.

The advantages of company registration in Scotland is that there is no need to deliver financial reports and audit is not required. The beneficial owner data is not available. To keep the personal data of shareholders and directors secret nominee service is recommended.

Registration form of Scottish offshore company is Limited Partnership (LP).

Limited Partnership (LP) – At least 2 partners are necessary for the company registration. Partners can be individuals or legal entities of any residence, there are no requirements for Secretary post. LP is tax free if the company does not gain income on the territory of GB and is non-resident of the country.

Registered office in Scotland is the essential requirement.

Company’s name registered in Scotland must end in «Limited Partnership», «LP».

Such business activities as IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration in Scotland.

Estonia: register a company

Estonia is EU and EMU member (Economic and Monetary Union) with favorable taxation system. It is a convenient transit zone due to its geographical position. In Estonia there are all conditions for business. In that jurisdiction the company owner may obtain residence permit or free work visa of «D»category. The country has a convenient system of taxation. Estonia is not in the black list of the OECD (Organization for Economic Cooperation and Development).

The advantages of company registration in Estonia are the following: no minimum paid up capital requirement, no currency control, no tax of any kind, agreement for the avoidance of double taxation with 57 countries. The companies register is public, the company beneficial owner data is not available. The company shareholders and directors data is public. To keep the personal data secret nominee service is recommended.

Registration forms of an offshore company in Estonia are AS (joint-stock company) and OÜ (limited liability partnership).

OÜ (limited liability partnership) - minimum one director and shareholder are necessary for the company registration, there are no residence requirements. The share capital is divided into shares. Minimal registered capital should be paid before company registration. Limited Liability Partnership is obliged to keep accounting records.

AS (joint-stock company) can be incorporated by the only shareholder of any residence. Minimal registered capital should be paid up before company registration. There should be minimum 2 directors of the board of the company. It is necessary to form the supervisory board of the company consisting of at least 3 shareholders. It is necessary to have accounting records and deliver annual account report.

Registered office and Secretary of the company are the essential requirements.

Company’s nam e in Estonia should be written with the Latin alphabet.

Such business activities as IT-business (advertising, hosting, partner system, outsourcing, etc.) and start-ups are profitable for company registration in Estonia.

Trust as a financial tool for business

What is a ‘Trust’?

A trust is a fiduciary relationship in which one party (settlor) gives another party (trustee) the right to hold title to property for the benefit of a third party (the beneficiary). Trust is not a legal entity.

Trust parties

For trust establishment and functioning there must be three (sometimes two) parties. The Settlor begins a trust, places his property into the trust and loses control over it since the trust is considered active. In case the Settlor reserves the right to control management and dispose of assets the trust may be considered fictitious.
The trustee holds and administers property in favor of the beneficiary.
The beneficiary is determined by the Settlor and is the one who receives the benefits of that trust.
There can also be a trusteeship appointed by the Settlor to control the trustee’s activity by the beneficiary.
The terms of reference and the character of mutual relations is subject to a trust agreement.

Sometimes two parties are enough. This happens when the beneficiary and the Settlor functions are performed by one person. The trust parties can be both individuals and legal entities (or a group of individuals).

Advantages and Purpose of Trust Creation

The main purposes of trust creation are the following:
-asset protection (the trust property cannot be claimed by creditors as none of the participants owns the assets)
-to optimize taxation (the beneficiary does not hold assets and has no right to administer them that's why there are no asset tax liabilities);
- trust is used as a will alternative (as several beneficiaries may be trust participants)

The trusts benefits include confidentiality concerning the title to assets: unwilling to appear as the assets owner they can be established as trust property. Also the trust property is not subject to division in case of divorce or inheritance distribution.
Trusts are convenient for postponing a part of the capital in favor of third parties to guarantee their intended use.

Beneficiaries

Beneficiary is the person who receives the benefit of the trust. They are appointed by the settlor and can be private individuals, legal entities, funds. The list of beneficiaries is determined by the settlor and they are not necessarily immediate heir or relatives.

Popular jurisdictions

The choice of jurisdiction for trust incorporation depends on how the legal framework restricts its activity. The most popular are Bermudas, Bahamas, Cayman Islands, Madeira, Malta, Hong Kong, Gibraltar, Panama, Cyprus, New Zealand, the British Virgin Islands, Liechtenstein.

Classification of trusts

The main types of trust include the following:
- Revocable or irrevocable trusts
- Fixed or discretionary
- Beneficiary and Special Needs Trusts
- Asset Protection Trusts
- International trust
- Charitable Trusts

Thus trust incorporation is rational for those who:

wants to protect their asset especially when it comes to politically and economically unstable countries;
provide the proper level of privacy and maintaining asset control at the same time;
minimize asset and inheritance taxes choosing low-taxed jurisdictions and tax havens.