BVI Offshore Company Start-up Guide

Your Guide to Offshore Company Formation

We cannot live by an age old business approach of ‘one size fits all’ to an offshore company formation. To establish a seamless business the choice is more often dependent on the individual objectives. The aim could be to save on taxes, asset protection or perhaps wealth management from a broader scale. Here are different types of offshore company formations, how each can be used to its optimum.

Offshore Business - These are also called as offshore corporations or limited companies. The most popular form of offshore companies, these are perfect for tax-free trading, royalties, patents, copyright holdings and investments (include commodities, equities, forex trading etc.) and overseas property holding. In this type of business formation, the owners are at the beneficial end as the company becomes the account holder, thus shielding the owners of offshore bank accounts. A ‘bearer share corporation’ is perhaps the most private form of offshore company formation. In this form, physical possession of shares indicates ownerships, rather than nomenclature on a public document. Majority of offshore businesses can be formed within a few working days time.

BVI Offshore company - A modern BVI offshore company is a private corporate organization, which is exempted from tax. Offshore company guidelines are suitable for virtually any international business activity. The company has a reasonably pliant organizational structure. It is not bogged down with excessive reporting and book or record keeping. Most importantly, BVI offshore company maintains a strict confidentiality provisions.

Offshore Limited Partnership - these are also called as limited liability partnerships. The objective of an offshore limited liability partnership is to separate the functions of ownership and control. Limited liability business is a great option if you wish to protect your personal assets. Limited partnerships are handled by a general partner, who has unlimited liability, and limited number of partners. The partners in such associations are only liable for what they have invested in the partnership. An offshore company often takes the responsibility of the general manager in order to protect the assets of the investors.

Offshore Limited Liability Companies - This type of business is fairly a recent one, which combines the simplicity of a limited partnerships and features of limited liability of the corporation. Similar to any offshore limited partnerships, the interests of each shareholder is protected. Moreover, they are assured safety against seizure from third party creditors. Such limited liability companies are managed by professionals, who aren't members, thereby further protecting the rights of each partner.

Offshore protected Cell Companies - These offer superior asset protection useful for insurance and investment. In an offshore protected cell company, assets are segregated into various cells, therefore, the assets and liabilities of every protected cell company are separate from other cells, and from the company itself. In addition, the ownership and management of each cell may also be different from each other, and even from the company as a whole.

There is a host of different ways to set up a tax free company. One must do proper research to gather important facts, which will help you deliberate an alternative best suited for your preference and need.