How can an offshore company be set up? Methods and specific aspects

Although the legislation of the Russian Federation is constantly changing in attempts to somehow set the limits to the tax optimization through offshore companies, it is still profitable to have a company in the free economic zone. It allows not only to pay less to the budget but also to ensure high degree of confidentiality of assets. Let`s talk about methods of setting up an offshore company and what is here required.

If you have ever previously concerned yourself with the subject of offshores, then you should be quite aware that offshore companies are usually set up by agents – special registering companies. The efficiency of further operation of a foreign legal entity will depend on how careful you will be while choosing an agent. In this case competency and qualification of agent`s consultants will determine whether establishment of an offshore company will facilitate business conducting or, vice versa, will make it more complicated. You will not be able to set up a legal entity in the economically efficient zone without assistance since you need to acquire a relevant license for this kind of activities. Moreover, requirements for registrars in almost all such countries are quite stringent. However, using a reliable agent you may acquire a legal entity in two ways:

• to set up an offshore company from scratch
• to purchase a foreign legal entity

Each of these ways is characterized by its advantages and drawbacks.

In most cases, offshore companies are set up as per the same scenario. A registrar shall provide their passport and specify the official name of the company. If the name is vacant, then the enterprise will be listed in the register. Depending on the zone and agent, this operation may take from 1 to 3 weeks. A highly qualified registrar is able to solve the issue related to the legal address and to employ staff and will be excellent at further servicing the company. Then you will need to open an offshore account provided that the bank has been selected in advance and the services envelope has been determined. The following can be specified as advantages of this method:

• free choice of the name;
• free choice of the legal status and registered address;
• guarantee of a clear company, i.e. no other transactions have ever been made through this firm;
• the possibility to select best configuration of the organization for your business (types of business activities, staff, amount of the charter capital and so on).

The only disadvantage of this method is the time you have to wait (as a rule, it takes not so long).

Registrars quite often offer opportunities to purchase a shelf legal entity in one of the most attractive countries with regards to taxation. This legal entity has already been registered and even has some operation history (with no activities) that is of great benefit for business conducting. Setting up an offshore company through purchase can be extremely fast: it takes a few hours. And you will get an enterprise with a specific name. But it can be easily changed, if required.
After you purchase a company you will need to open an offshore account upon the same terms and conditions that are applicable for registering a newly registered legal entity. It is better to avoid purchasing companies with ready-made accounts, since most frequently these companies are also characterized by a financial history. Impossibility to choose the configuration, the name and the form of the entity as well as necessity to perform careful verification for its clear legal status can be outlined as drawbacks of purchasing an offshore legal entity. Moreover, not all jurisdictions allow purchasing and selling firms.

Our company registers and sells companies in most popular and beneficial jurisdictions. If you entrust us, you will get:

• registration of a foreign firm within 1 day;
• transparency of all procedures;
• assistance in selecting the appropriate jurisdiction and best bank to open an account in the international bank free of charge;
• proper maintenance of legal entities;
• assignment of the registered address.

Our company is located in Novosibirsk and is ready to provide high quality services on setting up offshore companies for business entities of our region and neighbouring regions. You are requested for a minimum number of documents to register and you do not need to leave the country. If you have any questions about setting up an offshore company, please request for a call-back or call us by phone.