Offshore & Oversea Guide

Guide For Offshore And Overseas Corporate Services

ACHI BIZ is generally called as Corporate Services Provider duly registered with The Registrar, Accounting and Corporate Regulatory Authority (ACRA) with name of ACHI BIZ SERVICES PTE. LTD. (UEN: 201415822C).

ACHI BIZ is emerging as an Employment Cum Recruitment Agency viz. ACHI BIZ SERVICES PTE. LTD. duly registered (18C9185) with Ministry Of Manpower (MOM) and has committed to provide the global recruitment services to both Employees and Employers with true honesty and high level of trustworthy.

ACHI BIZ is providing the Offshore and overseas Corporate services in most of the countries through the Associate & Agent Firms. The corporate services are rendered from Incorporation of Companies till the de-registration along with compliance and any other legal services as required towards business journey. Those who are aspiring to set-up businesses in booming Offshore and other overseas jurisdictions, please contact us immediately to fulfill your ambition of becoming a global entrepreneur or businessman.

 

Definition of an Offshore Country or Jurisdiction

An Offshore Financial Centre (OFC) is generally defined when any country or jurisdiction that provides financial services to non-residents on a scale that is incommensurate with the size and the financing of its domestic economy.

It does not have straightforward reality. As many Onshore Financial Centres such as UK, Cyprus, etc offer similar non-residential corporate tax benefits and flexible company formation structures that are typically associated with a traditional Offshore tax centres such as Nevis, Panama, Seychelles, etc. Consequently, an offshore country has nothing to do with the location but is more to do with the corporate and tax laws that govern non-resident companies.

What are the differences between overseas companies and offshore companies?

Type of Companies	Examples
The registered overseas company refers to a company which registers in a place overseas and regards this place as one of its main markets at the same time.	The registered Singapore Company The registered Malaysia Company The registered Indian Company
The registered offshore company refers to a company which registers in a offshore jurisdiction but does not operate in this jurisdiction. It is due to the law of the offshore jurisdiction the offshore company operating in the offshore jurisdiction is not allowed.	The registered BVI company The registered Delaware Company The registered Mauritius Company

 

Not only Caribbean Islands are Offshore jurisdictions

An offshore jurisdiction can no longer be defined merely as a group of renegade islands in the Caribbean. Contrary to popular belief, there are certain states in the USA where it is easier to get an anonymous shell company than in other well-known tax havens such as the Cayman Islands and the Bahamas.
And since even the USA rejected the signing of the CRS (Common Reporting Standard) it has one of the most secret offshore financial industries in the world; taking the third spot just behind Switzerland and Hong Kong.

Modern Jurisdictions

There are many modern jurisdictions that can be seen as offshore financial centres, though might commonly be perceived as a modern financial hub. For instance, places like Scotland, Netherlands, and Ireland are recognized as being a tax haven for many multinational corporations. Each country offers a low-tax company formation structure for non-resident individuals and companies that offer tax exemptions on all foreign-sourced income.
Offshore corporate structures can be found not only in traditional tax heavens / havens but also in traditional higher-tax countries. The exclusive features are such as:

• low or no tax
• minimal reporting standards
• use of nominee directors

All of which bear the hallmark of an offshore financial centre which can be found in places like Ireland, Cyprus, Malta, and the United Kingdom.
There is not an easy way to make different of one type of Offshore Financial Centre from another, whether it is a traditional tax haven or modern corporate financial centre as many share the same favourable laws supporting finance, banking, capital and the possibility of non-resident companies benefiting from keeping income offshore.

What Is called a Tax Heaven / Haven?

A tax heaven is simply any country or jurisdiction that offers individuals or businesses little or no tax liability.  The Caribbean offers some of the most popular tax heavens or havens in the world, providing benefits such as very low tax liability and financial privacy.
Many of the Caribbean tax heavens are what is sometimes known as pure tax heavens, in that they impose no taxes at all. Many of Caribbean nations were motivated to become tax heavens so that they could reduce dependence on foreign countries and maintain their own economies.

What is called Bearer Share?

A bearer share is a normal share in such a company. It is signed by the Chairman of the Board or Sole Director of the company and comes with all the same benefits as any other share. The difference is that the name of the owner is not recorded on the physical stock certificate nor in the public register.
The initial and annually recurring Government fees are much higher for companies having bearer shares. Finally, most banks in the world would refuse opening account for an offshore company with bearer-shares.

What is the difference between registered and bearer shares?

The main difference between these two types of shares is that registered shares are issued in the name of the shareholder, while bearer shares are issued “anonymously” to their current holder.
Altogether, bearer shares in practice do not differ much from Registered Shares, yet are substantially more expensive and imply legal and practical encumbrances.

Needs of offshore company documents certified by Apostille

So that you can use them in your country, or wherever you happen to do business. Documents issued and notarized in one country are generally acceptable only inside that one country. To make an official document legally acceptable abroad, the second-tier certification viz. the Apostille -must be obtained. Without Apostille there will be little use of the documents for most of the offshore jurisdictions such as a BVI Business Company, etc as soon as they are outside the British Virgin Islands (BVI).
If you wish to open a bank account or a securities account for your offshore company, to purchase a real estate or any other asset that requires public registration, to establish a branch or a joint venture with your offshore company, or to enter into any similar deal where you would have to present the company documents to an official third party outside offshore jurisdictions such as the BVI, etc, then they will all require that your documents are certified by Apostille.

What is a Certificate of Good Standing?

A Certificate of Good Standing is an official document, issued by the Registrar of Companies, confirming that a particular company legally exists, has complied with all administrative requirements pertaining to its continued registration and has paid all government dues, and, therefore, is “in good standing” in the Companies Register as of the given date. In its form, the Certificate of Good Standing largely resembles the initial Certificate of Incorporation of the company.
The Certificate of Good Standing (CGS) is used to formally confirm the continued legal existence of an offshore company after some time has already passed since the registration. The Certificate of Good Standing confirms that the status of an independent legal entity (a juridical person) has not been revoked or became void for the particular offshore company, that this company has not been merged, filed for dissolution, or been struck-off.

Why Certificate of Good Standing is commonly required?

Most commonly banks tend to regularly ask their clients to present a fresh Certificate of Good Standing for their offshore companies, as soon as the companies are one year and older. You may also be asked for a CGS by any other party with whom you happen to do business.

Where to get the Certificate of Good Standing?

A Certificate of Good Standing can be requested and obtained from the Registrar of Companies, as and when required. This is a common service, provided by the Registered Agent. As the Certificate of Good Standing is basically a “snapshot” of the legal health of the company at a given moment in time, ordering of a CGS in advance, without a special need, is rather pointless.

Certificate of Good Standing for non-renewal offshore companies

If, over time, the offshore company has not been properly maintained or has not paid its renewal fees, it loses its status of good standing and, ultimately, risks being struck-off by the Registrar. For such companies, it would be impossible to obtain the Certificate of Good Standing until all fees are paid and their status restored – these may be a costly including late renewal penalties and time-consuming process.

Certificate of Good Standing is a kind of verification of Service Provider

Some prudent owners of offshore companies would use to request Certificates of Good Standing for their own companies, as it is a good method of verification if their Agent or Corporate Service Provider has done the job and is properly maintaining the company. It would reveal with any lapse of the existence of the offshore companies.

What’s an incumbency certificate?

An incumbency certificate (or certificate of incumbency) is an official document issued by a corporation or limited liability company (LLC) that lists the names of its current directors, officers, and, occasionally, key shareholders.

Who signs an incumbency certificate?

An incumbency certificate is typically signed by a corporation’s officers, directors, or shareholders. The incumbency certificate also guarantees that the people who signed the document have the right to enter the corporation into a legally binding agreement.

Suitability for individuals to use Offshore Jurisdictions

Offshore jurisdictions are not just for wealthy businessmen or multinational corporations but for anyone who are looking for alternative choices.

• Persons who would like to diversify their assets
• Investors looking for better investment opportunities
• Companies looking to form a subsidiary in an overseas country
• Entrepreneurs looking to globalize their business through multi-jurisdictional management
• Online businesses that have no physical presence
• Corporations looking to take advantage of regional trade advantages
• Start-ups who want to maximize profits and minimize tax burden
• Service-based companies wanting to offshore their business structure
• Families looking for trust formation, estate planning and wealth management
• Anyone who has an international lifestyle, digital nomad or dual citizenship and are looking to minimize their tax footprints.

As a self-serving entity, individuals and companies naturally seek out the most advantageous environment to incorporate. Corporations have been pursuing offshore strategies for decades. Some of the massive multi-national companies are:

• Apple incorporated its European headquarters in Ireland,
• Facebook has a company in Delaware, and
• Google has a subsidiary in Bermuda and the Netherlands.

 

Attractive Liberalized Global Economy

The explosion of information and rapid increase of liberalized global economy are making the easier paths for nearly anyone to form an overseas company entirely online and is much cheaper than it ever was before.

What are the important Factors to find the Best Offshore Jurisdictions?

It is an important part of establishing an internationalized structure – as every jurisdiction is different, and every situation unique, after selecting the right offshore jurisdictions. You can refer to the below list to have a more focused discussion with your legal profession and offshore company service provider which would eventually help you in making a well-informed decision.
The following are the most preferred characteristics before choosing the jurisdiction as minimum factors which would be sufficiently enough to give you a better understanding on choosing the right jurisdiction for your business:

#	Factors	Briefs
1	Stable Government	Offshore jurisdiction must be politically and economically stable to ensure continuity and environmental security
2	Growing Economy	The economy should be open to global markets allowing financial transactions and the free movement of both physical and non-physical goods
3	Reputation	The reputation of the country should be in good standing, is not blacklisted by the OECD, and has as a secure and stable offshore jurisdiction.
4	FATF Status	It is always advisable to check the status of FATF before choosing any jurisdiction for corporate.
5	Law And Order	Check whether the jurisdiction is with stricter law and order in place as it would lead to stable political system and economy.
6	Secure Banking System	Banks should be liquid with adequate capital reserves and little debt and ideally backed by a government that has sound economic policy
7	Stable Currency	The country should have a currency that is not volatile, allows for the use of several different currencies with no capital controls
8	Privacy Laws	There should be privacy laws that protect you from public and governmental scrutiny keeping safe your personal information and accounts and shield you from foreign arbitrage.
9	Suitable Corporate Laws	Corporate laws should allow for one Director from any country, have efficient incorporation processes, and protect the rights of the entity.
10	Legal Requirements	You should seek to incorporate in a jurisdiction that enables you to establish a company with the following features: Low to minimum capital requirements Minimal to no filing obligations The availability of Nominees Little to no beneficial ownership disclosure No audit requirements Tax exemption on foreign activities Whether Company Secretary is required
11	Low or No Tax Jurisdiction	With little or no taxation including capital gains tax, income tax, inheritance tax, gift tax, stamp duty, etc.
12	Double Taxation Treaties	Double taxation treaties aim to eliminate paying double income taxes – one by your business operational jurisdiction and another one by your Incorporation jurisdiction.
13	Infrastructure	The infrastructure of the jurisdictions plays a vital role for better connectivity with neighbouring jurisdictions which will in turn benefit to expand your business further.
14	Uninterrupted Communications System	Communications systems should allow for stable and secure source of communications across all channels.
15	Geographical Compatibility	The time zone should be such that you can contact your offshore service provider or financial institutions during business hours
16	Initial And Renewal Costs	Incorporating and maintaining the offshore companies do not come cheap. There are fees such as Offshore Government fees for incorporation, annual renewal, retainer fee for Company Secretary, registered office address, nominees, registered agent fees, etc.

 

Offshore Jurisdictions List

While there are even more tax havens in the world than can fit on the list, here is a sample of countries where we find some of the best environments for offshore formation, where it is for offshore companies, foundations, trust, opening an offshore bank account or investment account.
Also included are many ‘onshore’ jurisdictions that offer many of the same competitive corporate tax benefits as traditional offshore tax havens.

Geographical Location	Offshore Jurisdiction
Africa	The Gambia
Asia-Pacific	Brunei Marshall Islands Nevis New Zealand Samoa Singapore Hong Kong Vanuatu
Caribbean	Anguilla Bahamas British Virgin Islands (BVI) Cook Islands Cayman Islands Dominica St. Lucia St. Vincent
Central America	Panama Belize
Europe	Cyprus Estonia Gibraltar Ireland Isle of Man Malta Scotland Switzerland U.K.
Indian Ocean	Mauritius Seychelles
Middle East	U.A.E.

 

What is called Shelf Company or Ready-made Company?

Ready-made, or “shelf” companies are International Business Companies (IBC), already incorporated and available for immediate purchase. Shelf companies have not done any business, have not entered into any dealings or obligations whatsoever. As the name suggests, the incorporation documents of these IBCs have been kept “on the shelf” in the office, without any practical usage whatsoever.
By choosing a shelf company over a new incorporation some benefits can be achieved:

• Especially quick delivery times can be achieved, because the incorporation process has already been completed;
• An IBC with an older registration date may be acquired, which may be useful by adding a certain “age” and, therefore, respectability to the IBC;
• there is no need to go through the frustrating task of thinking-up an original company name, as one can choose from an existing list and perhaps find a suitable name without much thinking.

Please check with us for the availability of Shelf Companies in the respective Offshore jurisdictions to avail the exclusive features.

Currently ACHI BIZ caters the corporate services to the following Offshore  and Overseas jurisdictions in addition to our Singapore onshore corporate services.

Please choose the Offshore and Overseas jurisdictions which you are interested to learn more and for our services.

Type of Jurisdiction	Jurisdictions
Offshore Jurisdictions	Anguilla
	Bahamas
	Belize
	British Virgin Islands (BVI)
	Cook Islands
	Delaware
	Hong Kong
	The Marshall Islands
	Samoa
	Seychelles

 

Conclusion: There are no longer one-size-fits-all offshore solutions. A comparison chart with key features is available for these offshore jurisdictions. New tax laws are radically shifting the global offshore market. Without a one-on-one offshore plan, you may unnecessarily risk your future. A Personalised Offshore Legal Strategy will ensure you not to be left in the dark.

Comparison of Offshore Jurisdictions

A comparison chart with key features is available for the most famous Offshore jurisdictions which we are providing our corporate services currently.

Click here for a comparison chart for most famous Offshore jurisdictions.

 

Source of Information, Guidelines, Compliance, Laws, Rules & Regulations is from the relevant authorities of Singapore for Onshore services.
Details of Source	Name of Authorities
Corporate matters such as Companies, Businesses, etc	The Accounting and Corporate Regulatory Authority (ACRA)
CPF matters	CPF Board
Fair Employment Practices (FEP)	Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP)
Immigration matters & Student Passes	Immigration Checkpoints Authority (ICA)
Taxation and GST	The Inland Revenue Authority of Singapore (IRAS)
Skills Development Levy (SDL)	SkillsFuture Singapore Agency
Work Passes	The Ministry Of Manpower (MOM)

 

TERMS AND CONDITIONS For Overseas & Offshore Corporate Services: Source of Information, Guidelines, Compliance, Laws, Rules & Regulations is from the relevant authorities of respective jurisdictions. The Acts in respective jurisdictions are subject to change by the regulatory authorities. We have published the guidelines with most updates from online and other sources. The Customers would be notified with the updated Acts with oncoming changes if applicable when the Offshore services are rendered by us.

 

Please refer to our SERVICES for more information or CONTACT us if you wish to avail these or many other services.