Offshore company formation is a complicated process. We know because, well, we are dealing with it for years. As an offshore company formation consultant, we have the know-how – which makes things easier for us and our clients. But what about those who want to setup an offshore company on their own?
It's possible to DIY your offshore company setup. However, there are legitimate reasons why formation of an offshore company should be handled by a regulated agent, rather than doing-it-yourself:
1. Offshore company formation is 'shady' to many
If you read the articles and news pieces on the web, you'll soon learn that offshore companies are under the spotlight due to the tax evasion allegations. Those allegations are not baseless, though – many use offshore company formation to hide their assets that are gained illegally.
However, you need to be aware that offshore company formation is perfectly legal. Depending on the company registrars and consultants, you can be as legal – or illegal – as you want with your offshore company.
We are anti-money-laundering and any other illegal activities, and we have helped clients to set up a company offshore legally. We help clients sleep better at night because they know that their business practices are not illegal or shady – this is something that setting up an offshore company on your own can't offer (unless you are an expert or specialist.)
2. Company registrars offshore only want to deal with trusted agents
Whether you like it or not, almost all offshore jurisdictions will need you to go through a regulated agent with your request. The agent will do the legwork on their behalf in ensuring that the company will do their activities legally. Ranging from collecting and checking documents to conducting a preliminary interview, companies like us make sure that the clients are 'in good standing'.
If you insist on doing-it-yourself, there is a possibility that you can do that in some jurisdictions – a very few of them, in fact. DIY your company formation offshore means that you need to be physically present and go through all the documentation and requirements. Not an ideal way to setup a company, in our opinion.
3. Complicated legal matters to deal with
We've heard some business owners, who do their offshore company formation process without proper help from a consultant, are breaking the law because they don't realize that what they are doing is illegal. Indeed, the legalities of offshore company formation are complicated. It can be the bane of your business' existence.
An offshore company formation service can guide you through the murky path to setting up your company in a jurisdiction that supports your business growth and plan for the future – legally.
4. Which offshore jurisdictions? What are the local laws and regulations like?
Probably the biggest roadblock of all is this: How to know which offshore jurisdiction are the best for your business? To determine that, you need to align your business plans with the local laws and regulations. The problem is, how to know the details concerning the local laws and regulations, when setting up a company in a jurisdiction that you are not familiar with? The solutions: Consult with an agent or consultant who has the know-how of that particular offshore jurisdiction.
5. It could take you months
To put the cherry on top – so to speak – is that even if you can DIY the whole process, it still take you some time to get things going. Company registrars – for some obvious reasons – are very careful in giving you the license to operate your business in their jurisdictions. With that said, it could take you months of going back and forth with your documents, requirements and the other 'necessary evils'.
Hiring the right consultant means that you can get your company setup up in 2 to 5 working days. A consultant like us knows the exact requirements (and the ever-changing nature of them), and we will have your application processed when every item in the list is met. It's less hassle for you and the offshore company registrar. A win-win arrangement, indeed.
Takeaway
With the numerous downsides compared to the few upsides, we consider DIY as not an ideal way to approach offshore company formation. We say it not because we are an agent; we are not a snake oil salesperson. We say it because we've heard how individuals are facing difficulties in getting their company formed offshore and they finally give up due to the complexity. Not only that, we've also heard the legal issues faced by some offshore company owners because they don't setup their company properly.
If you want to learn more about offshore company formation, please contact us and ask away about anything related to offshore companies, banking, and the regulations. Free consulting. No gimmick.
SEP
2015
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