Draft Implementation Rules of the BVI Economic Substance Law

The British Virgin Islands (BVI) recently...


VIE structure and functions

VIE, namely variable interest entity, also known as agreement control,...


Shanghai-Hong Kong Stock Connect

Shanghai-Hong Kong Stock Connect...



TEL:+86 21-6090-4391

TEL:+86 755-83176807

You may have seen information about offshore companies in certain news. But after all, this information is fragmented.

The procedure for registering an offshore company is not complicated. Next, we will summarize and provide a concise and easy-to-understand explanation of the definition of offshore companies and how they operate.

In fact, regardless of the size of the company, expanding the market and creating growth must understand the market context, customer behavior, purchasing habits and changes in expectations...

With various aspects of the overall market, we have rich experience and knowledge that advances with the times. The professional intelligence team, well-organized internal and external communication, communicate and educate at any time, understand the changes in the market environment and determine the good time to master the conversion path, prepare for the action, and inspire the best and most suitable winning strategy.

I.What is an offshore company?

earth element
  • Offshore companies are similar to domestic companies in that they can open bank accounts, own property, conduct business, sign written agreements, trading, and engage in other forms of business activities.
  • They are also known as international business companies (IBC or Offshore IBC).
  • Generally, an offshore company is a company established in a country/region different from the country of residence of the company holder, which also means that it does not engage in any economic activities in that particular country/region. For example, suppose your business operates in Europe, uses a Hong Kong company to operate European business trade, and conducts business activities in countries/regions other than Hong Kong so that your company can enjoy the benefits provided by Hong Kong (for example, Hong Kong’s Income exemption).”Will this violate the law?”
  • Normally you might think that offshore companies are the ideal choice of criminal and corrupt people to avoid paying taxes. Although this is true in some cases, in most other cases, companies use offshore companies for legitimate purposes. Similar to any other type of company, foreign companies are governed by the laws of their jurisdictions, allowing you to conduct business legally.

II.What are the pros of registering an offshore company?

  • Why do you need to set up an offshore company? Companies will benefit from offshore, including intellectual property holders, consultants, traders, e-commerce providers, cryptocurrencies and international investors. Because overseas registered companies have multiple purposes and operating methods, and offshore companies registered in different places of establishment also have different operating conditions and advantages. Specifically, what are the benefits of setting up an offshore company?

Obtain tax incentives:

You can enjoy tax incentives for offshore companies with low or even no tax, which is the key to further development and expansion of the company. Each country is part of the global tax market, and each country provides unique resources that are only available in its specific tax system. You can use the tax policies and plans of different countries or regions to "shop around". Although the foreign company itself cannot exempt its owner from all personal tax liabilities in his home country. However, clever use of offshore companies can reduce, postpone, or completely eliminate some taxes that should have been paid by their companies.

Investment holding:

Establish offshore companies to invest in entities in various countries to reduce investment risks. Private funds pooled through offshore holding companies can be invested in investment projects around the world, accumulating returns and capital gains in a tax-free or low-tax environment, and the profits obtained can be stored, distributed or reinvested, making funds highly flexible Sex and flexibility. At the same time, the use of overseas holding companies will provide investors with additional confidentiality and serve as a firewall for overseas investment, reducing investment risks that are difficult to predict.

International trade:

Conduct triangular trade/cross trade corners trade in the international market. Offshore companies can act as trade intermediaries-sales, distribution, or import and export. Buy directly from manufacturers or wholesalers through offshore companies and arrange for the goods to be delivered directly from the place of production or purchase to foreign end customers. Domestic importers can use offshore companies to purchase goods from abroad, or domestic producers can use offshore companies to distribute goods. Profits arising from the difference between purchase and sale prices can be accumulated in a tax-free environment. Such profits can be reinvested in the further development of the business, accelerate the operation and scheduling of funds, and can also control and reduce the risk of daily fluctuations in international exchange rates.

Intellectual property (IP) protection:

Offshore companies hold intellectual property rights so that others cannot infringe your company's patents, trademarks, copyrights and other IP assets, and protect your assets from impending litigation and political turmoil. If your company is overseas, there is an extra layer of protection, and those who want to track down your company’s assets must file a lawsuit in the jurisdiction where your company was established.

Asset planning:

Effective and flexible planning for personal and family assets. High-net-worth individuals who own property/immovable property or other assets in overseas countries/regions may wish to hold these assets through a personal holding company, so as to avoid the need to obtain various certifications in each country/region on inheritance matters in the future. It saves lawyers' fees and protects assets from inheritance taxes or higher tax rates.

VIE structure-function

Variable interest entity, also known as agreement control, is a legal business structure in which investors still have controlling rights even though investors do not have the majority voting rights. VIE actually controls a company not by holding shares but by signing agreements.

III.How to set up an offshore company? Steps of incorporation of your offshore company:

  • Offshore company registration is fast, and both individuals and companies can apply. The establishment of an agent company is entrusted, and there is no need to register in person.
  • The steps for offshore company registration are as follows:
O.C. establishment process
  • Step 1: Consult a professional agency service company
    In an uncertain economic environment through careful risk & return analysis has become increasingly important, smart investing strategies usually stem from knowing what financial mistakes to avoid, how to sniff out a good investment opportunity, taking calculated risks, and of course, saving as much as possible. Hence it is important to regularly rebalance your investment portfolio to ensure it is in line with your targets and purposes.
  • Step 2: Choose the location of the offshore company and make the right plan
    How to choose the most suitable offshore company? What are the characteristics and principles of different offshore companies? How to understand the conditions and norms of each country/region? It is recommended to find a trusted company service provider. Professional agency companies can clearly understand the applications and operations of each offshore company, including how to formulate the correct strategic structure based on customer needs (for example, does the company structure involve multi-country and cross-regional planning? Which offshore company should I choose to register? Where should I open my bank account?) Each customer’s needs will not be the same, so only by clearly understanding the individual operational needs and understand what the best plan is.

Offshore company selection comparison table

境外公司英文-80 (1)
境外公司英文2-80 (1)

The above information is for reference only, and the actual need to be subject to local implementation regulations.

  • Step 3: Prepare the required documents
    After confirming the necessary plans, select the company name and confirm the investment documents about directors and shareholders, and submit the passport/address proof.
  • Step 4: Registration is completed,and the offshore company registration documents will hand over to the client.
  • Step 5: Bank account opening
    A complete offshore company service process is not only complete the company registration but should include the assistance of the bank account to be considered complete. After all, setting up an offshore company without a bank account is equivalent to registering an unusable company, so we further provide customers with the latest practical bank account opening assistance to ensure that the offshore company can operate as expected.

IV.Strengthen the highly flexible and diversified global layout

  • The evolution of offshore companies has shifted from covert to transparent, from tax exemption to preferential treatment, from trade to investment, coupled with modern algorithms and big data processing. Compared to the past, the evolution of these years has allowed companies to engage in international In the investment process, encountering a dilemma in decision-making, just like the task of changing tires in F1 racing, is quite arduous.
  • However, what we want to express is that following the past offshore company operation mode is outdated and no longer as simple as it seems on the surface. Individual companies or investors should choose the correct combination and order, which can effectively operate and implement. The best strategy occurs at the intersection of full preparation and opportunity, and sprints to the future!
  • Inter Area Market Intelligence Team, We are familiar with the establishment of offshore companies, and let customers understand the functions of offshore companies. We provide customers with the most complete, fast, and reliable services from planning, registration, practical cases, and related notes and the latest information. The focus is on the background and purpose of the customer’s practical investment. Different products and services produce new experiences in the experience that determine future value.

V.Q&A of offshore company registration

Q1.How long does it take to apply for an offshore company (working days)?
A: The entire process may take 3 days to 3 weeks, depending on which country or region the company is established in.

Q2. Are there any restrictions on the registered English name of an offshore company?
A:Yes, the company name usually ends with “Limited”, “Corporation”, “Incorporation”. The use of certain words in the company name is restricted or prohibited. 

Like related to specially licensed activities-such as Bank, Assurance, Society, Trust. In fact, you can use these words, but only if you go through a prior permission process designed to carry out a particular activity. For example, to allow the use of “bank” in your company name, you must apply for a bank license from the local Financial Services Commission. 

Another type of restricted words is those that incorrectly imply some kind of official connection or sponsorship. Words like “Government, Imperia, Chamber of Commerce, Municipal, etc., of course, cannot use “Royal”.

Q3. Does the offshore company’s capital need to be in place?
A:No, the registration system is adopted for the establishment of offshore companies, and the registered capital does not need to be in place. 

Certain offshore companies do not even need to specify any authorization or registered capital amount in their establishment documents. Of course, if the business environment requires it, it can choose to do so.

The company only needs to state how many shares it owns (this can determine the percentage of the company held by any particular shareholder), but there is no requirement to attach a fixed monetary value to each share.

Q4.How many people can establish an offshore company?
A:It needs to be established in accordance with the laws and regulations of various countries, but generally only one person can be established in areas such as the British Virgin Islands, Seychelles, Samoa, and a small number of registrations such as Singapore companies will additionally require a local director.

Q5.Do I need to go abroad to set up an offshore company in person?
A:The person in charge of the company does not need to go to the local area to set up an offshore company. The person in charge only needs to provide relevant information and sign the company establishment documents, and then entrust a professional secretary company to handle it.

Q6. How to maintain the effectiveness of offshore companies?
A:The government of the country where the offshore company is registered will collect annual fees on time every year to maintain its effective existence. Some areas still need to comply with local laws and regulations for additional declarations. 

Generally, before the expiration, the secretarial agency will notify the client in advance to let the client confirm whether it will continue to exist. 

If you want to continue, you need to pay an annual fee in order to maintain your offshore company while the company continues to operate. Maintain a good legal status under the regulations of the country of registration.

Q7.Where should offshore companies choose to register?
A:This is one of the most frequently encountered problems. 

What is your purpose of setting up an offshore company? Depending on the features you want, the country/region will be different. In addition, it largely depends on the type of business you have. Then there are the issues of nationality and country of residence, in addition to some considerations. 

This is why it is necessary to consult a professional agency company to guide the client through all the steps and ensure that nothing is overlooked. Some of the most common countries for offshore companies are BVI, Seychelles, Samoa, Singapore, Hong Kong, the United Kingdom… etc. 

Where to register, these countries/regions need to be evaluated according to your purpose. You may want to avoid certain jurisdictions altogether, while other jurisdictions only apply to certain types of businesses. After all, an offshore company that is helpful to Customer A may not be helpful to Customer B.

Q8. If the offshore company is no longer used, do I need to cancel it?
A: If an offshore company confirms that it is no longer in use, traditional offshore establishments such as Samoa, Virgin Islands, etc., generally small businesses or individuals can choose not to renew the annual fee, but some offshore establishments such as Hong Kong and Singapore You need to apply for cancellation separately.

However, it is still necessary to pay attention to the non-renewal of the annual fee, and the company that does not renew and cancel shall still be responsible for any due and unpaid fees. 

The company is also liable for all its obligations and debts. Companies that have not renewed fees shall not legally continue to trade or conduct any new transactions, and their directors, shareholders, managers, and owners shall not conduct any transactions with company assets. 

Because in essence, the company can still apply for reinstatement with the Registrar within the time limit without renewing the payment but not canceling it. However, depending on the length of time overdue, additional government fees and fines will be charged.

Related topics

Offshore Company

Singapore Company Registration

At present, foreign companies register companies in Singapore, and most of the registered forms are...Read More Singapore Company Registration Information>>

Offshore Company

Offshore Company

UK Company Registration

If you do not consider trading in the UK or with ...Read More UK Company Registration Information>>