Company formation for tax free offshore corporations remains attractive for professional activities of international businesses. However, repair legislation over the years drastically changed the landscape to mitigate global risk and limit financial abuse. Company formation is executed by corporate service providers in collaboration with registered agents on location. As such, corporate service providers may offer company formation services in a wide range of jurisdictions. Before setting up an international business corporation in a tax friendly location, one should match local standards with the personal corporate needs and realize that not all onshore jurisdictions are receptive for transactions with companies registered in what is considered an offshore financial center.
In a free and open market economy, traditional market forces bring supply and demand together. There are solutions for different portfolios and in different price ranges. Those business people knowing what they need often just go for price fighters to purchase their offshore company. However, the recent changes in regulation and legislation made professional advice a necessity. Therefore, you are urged to choose wisely for the appropriate registered agent and corporate service provider.
Corporate service providers all around the world offer company formation services. Alongside incorporation procedures, they provide professional nominee services to further establish local presence and substance. These are in most countries important requirements to substantiate the choice of location and prevent tax authorities to invoke the doctrine of fraus legis, where a corporate structure is set up for tax purposes only. Local tax authorities seek to create an equal level playing field for everyone doing business in their territory. Therefore, they will be keen to scrutinize the legal structure of opaque business models. Since it is always better to avoid confusion than to violate regulation, a local tax adviser could bring the needed peace of mind. Even though the big four consultancy firms and tax auditors are not always available for small business owners, there are plenty of people who started their own firm after being educated by such multinationals.
Professionals all around the world may wish to look into the possibilities to incorporate offshore. Running and maintaining an offshore company comes with responsibilities. These responsibilities should not be downplayed or ignored. Misconception and nescience are no valid defenses for legal challenges and public scrutiny. As such, beneficial owners of offshore companies must know what they do, while they play by the rules.