Requirements for Incorporating an Offshore Company

While an offshore company is much more easier to incorporate, it still requires strategic decisions on part of investors and does have many documentation requirements. The requirements for incorporation will vary from country to country and your offshore consultants and agents will be the best resource to provide you with comprehensive documentation requirements for the country of your choice. In this article we will discuss the general requirements for an offshore company. 

To incorporate an offshore company, the relevant departments of the country will normally require the following: 

1. Identity documents: A copy of passport or in some cases National identity card, duly notarized by the relevant authority in you country. Even though the identity of the owners stays secret in most cases and is not revealed for public record the identity and details of the owners are kept with the agents and required for incorporation.

  

2. Memorandum and Articles of Association; The purpose for the company is explicitly stated in the memorandum and articles of association and must clearly outline the business the company will undertake. The main purpose of the memorandum and articles of association in the case of an offshore company is to ensure that the company will not undertake commercial activities within the country of incorporation.

  

3. Reference letter from the Attorney, Accountant or Bank; A letter of good standing and business history is required by your local attorney, accountant or Bank. This letter is of fundamental value for the authorities to be comfortable that the offshore company is not being formed to promote drug trading, arms dealing, terrorism, child pornography or other illegal businesses.

  

4. Request for opening a company bank account; Even though the company may not operate its main account in the jurisdiction where it has formed a company for additional privacy, an account is required in the country of incorporation which should show proof that the capital as stated in the letter of incorporation is deposited in the bank account for the company. This restriction s relaxed and waived off in a few jurisdictions.

  

5. Transfer of capital in the bank account; Most countries require that the capital stated is kept in the bank account at time of incorporation. The capital requirements are different for different types of offshore companies and vary from jurisdiction to jurisdiction.

  

6. A declaration completed and signed by all beneficiary owners and directors of the Offshore Company; This is recorded in the register or the company by the agent. Even though it is not presented to the public for the sake of privacy, the register is kept in order to ensure that no disputes over ownership arse in future.

  

7. A declaration appointing nominated directors; Mostly the offshore companies are run through nominated directors which ensures complete privacy of the owners. A deceleration in this regard is required at time of incorporation. The nominated director can be changed subsequently through similar declaration.

  

8. Government fees for incorporation of the Offshore company; these fees vary from country to country and are revised yearly.

  

9. Registered office of the offshore Company; A registered office or an address is required for the offshore company. An agent can provide this address on behalf of the company.

  

10. Appointment of an agent for the Offshore Company; In most countries, appointment of an agent is required in order to incorporate the company. An agent can provide the necessary documentation for incorporation and also manage the regular work of the company regarding annual fee payments and other regulatory requirements.

It is also important to note that many requirements differ depending on the type of the company that is incorporated. The requirement for opening an offshore bank for example are much more that a regular company. Similarly companies offering bearer shares (only available in a few countries) require less documentation. 

The first part of incorporation of the company is having the right consultant/agent. Most of the documentation can be completed by the agents leaving little work for the beneficial owners themselves. 

This article is brought to you by the DeltaQuest Group. For more information on Offshore Company Formation or Business Consulting, please visit My Offshore Companies.