When we decide to form a company offshore we have the following three options from which to choose:
Brand New Offshore Company
This option is preferable when we need a company with a specific name. For example, a brand new company usually takes 2-3 weeks to complete the processing and to start the actual work.
Offshore Shelf Company
A fully-equipped organization is called a shelf company. When meeting deadlines are the most important part of the business, this is the best option.
Old Offshore Company
This type of company may be essential when a business needs to furnish a formal history going back for marketing purposes or due to some legal requirements.
These are some of the features of an offshore shelf company:
An offshore shelf company is an offshore company (IBC) that has already been in existence for weeks, months, or years.
Most shelf companies are literally sitting on a shelf waiting to be purchased. Thus, they are aptly named “Shelf Company.”
A shelf company affords the same privacy and asset protection advantages that a newly formed company provides.
A small percentage of individuals and corporations that go offshore want to demonstrate that their offshore company has been in existence for several months or years. A shelf company is the perfect solution for this situation. After the shelf company is purchased, the bank and brokerage accounts are set up in the name of the shelf company, further allowing the new owner to do banking, investing, and business transacting in the name of the shelf company.
Shelf companies are more expensive than newly formed IBC’s. In some cases, a shelf company’s price may be several times the price of a newly formed IBC. This is due in part to the fact that each year that an IBC is in existence, a corporation must pay an annual or renewal fee.
The price of a shelf company increases each year by at least the price of the renewal fee. For example, if a shelf company is three years old, the purchase price not only includes the price of a newly formed IBC, but also includes three years of annual fees.
These are some of the features of a shelf company.
Harbor Financial Services (HFS)
Harbor Financial Services is a professional company that provides offshore financial advice and investment services to its clients. HFS recommends offshore products and services to suit any personal and/or business need. The company has helped clients find solutions to meet their long-term financial needs. HFS has the experience and the expertise to create the best offshore package for you. Visit http://www.hfsoffshore.com for more information about the company’s products and services.
Disclaimer: Many countries have laws regarding offshore entities and accounts. For example, citizens that form offshore entities, (for example an offshore corporation, offshore trust, offshore partnership, offshore limited liability company, etc.) own stock in offshore entities or hold positions within offshore entities may need to file a tax return. Citizens that form an offshore trust, move assets into an offshore trust or are the beneficiary of an offshore trust may need to file a tax return. Citizens that sign on offshore bank accounts or offshore investment accounts may need to disclose this fact to their government and pay taxes on any interest or capital gains. We strongly recommend consulting with a local, licensed professional to obtain tax and legal advice in order to understand the law and to fully comply with all applicable laws and reporting requirements regarding offshore companies, offshore trusts, offshore bank accounts and offshore investments.