Jurisdictions

Offshore companies are described as companies that conduct small or zero volume of business within their jurisdiction of incorporation. They cooperate with different businesses from all around the world with the exception of the country where the company has been incorporated. Offshore companies are associate with low taxes in jurisdiction of incorporation and low maintenance costs.

Offshore companies have three characteristics: 

1. they should be registered as an entity within the jurisdiction of incorporation

2. the “incorporators” (individuals or group of people) should live outside of the jurisdiction of incorporation

3. the company should transact exclusively outside of the jurisdiction of incorporation

It is a very common question: “where should I register my company?”.

Every client, every situation is unique, therefore, there is no simple and straight answer to that question.

Factors that have to be taken into consideration:

1. Your company activity
2. Your place of residence
3. Your nationality
4. Where your clients and providers are located
5. Your affinity with certain regions of the globe
6. Your willingness to provide audited accounts or no
7. The kind of banking facilities that you need

All these factors have an influence on which jurisdiction you should opt for. The Pearlem team will be more than happy to review the options available to you and assist you in deciding which jurisdiction would fit you best.

At Pearlem we offer multiple payment options to suit your individual needs. Bank transfer, Credit/ Debit card, Cheque, Cash or Bankers Draft are all accepted. We do not hide andy fees from our customers. If there are any additional costs we will disclose them to our clients. 

There are jurisdictions that do not require financial reporting or auditing. However, in certain jurisdictions, such as Hong Kong Cyprus and the UK for example, it is mandatory for companies to produce yearly accounts and to have them audited, and in some cases, to pay taxes (please refer to our jurisdiction comparison table).

While a company may not be subject to tax reporting to its local authorities, we advise you to consult your own tax, legal or accounting advisor to determine whether you or your company have any reporting obligations in other jurisdictions, including the jurisdiction in which you are a tax resident.

Under FATCA (Foreign Account Tax Compliance Act) or CRS (Common Reporting Standard) regimes, most of the offshore jurisdictions may report information about their offshore companies (and the company’s bank accounts) to the relevant home country tax authorities.

No. Generally, it is not required to have a physical office to open an offshore company. However, some jurisdictions may require secretarial maintenance. We advise to seek counsel with your tax/legal advisor. 

 If it is not a requirement to have a physical office everything can be finalised by a way of correspondence.

Every jurisdiction is different and has its own incorporation timeframe. Please refer to our jurisdiction comparison table. Once the company has been incorporated, it will generally take about two to six days for the corporate documents to become available.

In order for us to register your company we require some documents like your passport copy as well as your proof of address such as a utility bill. A certified true copy may be performed by a notary, a practicing attorney-at-law, a public administration or a banker.

The documents must be recent, and the proof of address must be less than 3 months old. It is essential that the certification must confirm that the copy is a true copy of the original document.

Additionally, it is a requirement that the person certifying documents must indicate his/her name, capacity, date of the certification along with the signature next to their official seal. Some jurisdictions have specific requirements and we recommend seeking additional information and instructions from Pearlem and to submit scan copies for prior review.

An offshore company may be of interest to a great number of people and it may be used for various activities:

• Businessmen:
  Creating an offshore company allows businessmen to begin an activity without having to deal with the set-up of a complicated infrastructure. An offshore company allows you to quickly create a stable structure with a simple administration and enjoy all the benefits of the offshore jurisdiction.
• Commerce over the Internet (E-Commerce) :
  Internet traders can use an offshore company to maintain a domain name and to manage Internet sites. An offshore company might be ideal for people whose business is on the Internet. You might choose to incorporate the registered office of your company in an offshore jurisdiction to take advantage of the various benefits offered by these jurisdictions.
• Consultants / Counsellors:
  You can also carry on your consultancy or counselling business through an offshore company. You will find it easier to manage your company, while being registered in a stable jurisdiction and benefiting from all the strengths of this jurisdiction.
• International business:
  International commerce can be carried out through an offshore company. It will handle purchases and sales operations. Pearlem can also arrange for obtaining a VAT number for companies that we register in Cyprus or in the United Kingdom.
• Holding intellectual property rights:
  Any kind of intellectual property right (a patent or trade mark) may be registered in the name of an offshore company. The company may also buy or sell this type of right. It may also grant rights of use to third parties against payments.
• For the custody of movable and immovable property:
  Offshore companies are used to hold both movable property (such as yachts) and immovable property (such as houses and buildings). In addition to confidentiality, the benefits and advantages they offer include exemption from certain types of taxes (e.g. inheritance tax). It should be noted, however, that some countries do not allow the acquisition of movable/immovable property through offshore structures and therefore those wishing to form an offshore structure are advised to check with a competent authority before proceeding.
• For inheritance purposes:
  An offshore firm that always stays afloat (provided all costs associated with running it are paid) may, in some countries, be used in relation to inheritance tax laws. With a view to optimising inheritance tax liability, the offshore structure may also be combined with a trust or a foundation.
• Stockbroker/forex:
  Very often offshore companies are used for stockbroker/forex share or foreign exchange transactions. The transactions may for instance be performed with an account opened under a company name.

Pearlem Corporate Services and its affiliates do not provide tax, legal, or accounting advice. Materials provided by Pearlem Corporate Services and www.pearlem.com have been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, or accounting advisor with regard to your own tax, legal, or accounting scenario.

In the event where Pearlem is not able to register your company then your order will be subject to a refund as per our terms and conditions. Please find our refund policy here.

Pearlem acts as your corporate service provider and we provide assistance with the company registration as well as bank account opening.

During the process of registration of the company, there factors we depend on like the authority approval and also the client cooperation to obtain the required documents. When such documents are provided on time, we will be able to efficiently handle the procedures. Pearlem has successfully registered companies internationally in many jurisdictions.

Pearlem deals with several banks internationally and once you become our client, we shall start to create your banking profile, that means to introduce you to the right bank which suits your banking needs and to increase your chances to open your company bank account, but the choice of a bank is ultimately yours. In the event that the bank will reject your application, our team will be glad to re-assess your case and may assist you with a new application after carefully reviewing the reasons of rejection. In such event, we will initiate opening with another bank. 

An offshore company is nothing else than a company. It is legal to set up an offshore company as long as it is not created for the purposes of tax avoidance, tax evasion, money laundering, fraud or trading without proper license. 

Above mentioned illegal activities brought bad publicity to the offshore world. At Pearlem compliance with law is obligatory that is why we conduct strict due diligence and Know Your Client processes and are sometimes forced to refuse or report clients that we know.