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Acquisition of  an international company with a bank account

Acquisition of  an international company with a bank account

An offshore company with its own corporate account is the most effective tool, which enables creation of a highly profitable and reliable structure for the development and protection of the existing business. Specialized companies that offer acquisition of a ready-made offshore companies with a registered bank account can be found in the modern offshore industry. However, the choice of an offshore jurisdiction is conditioned not only by the aim to relocate the existing assets into the tax-free haven. It is important to take into account goals and an intended purpose of the creating business structure.

When planning acquisition of a ready-made offshore company, an entrepreneur should understand that such a deal gives opportunities as well as imposes certain obligations. Such obligations may depend not only on the current offshore legislation, but also on the standards of the law, which regulate entrepreneur activities in the country of his residence and tax residency

What to draw attention to when acquiring a ready-made offshore company

First of all, an entrepreneur must have a clear understanding of the existing macroeconomic situation. There is a widespread belief that the relocation of assets into an offshore jurisdiction involves not only a diversification of the existing business risks, but also certain responsibilities. Owning an offshore may cause some difficulties that can arise due to the ignorance of one own legal status of the transaction and the governing regulations of an offshore structure.

Any offshore company, as well as an onshore company, requires the owner to allocate some time and to pay due attention. This is particularly relevant in the area of financial reporting and accounting records maintenance. The traditional solution, when offshore formations serve only as places for reserving the assets, has become somewhat outdated. Today, an offshore company is a tool for effective protection of the asset, which requires the owner to pay constant attention and to take effective management solutions.

The desire of the major world powers to ensure the maximum transparency of the offshore jurisdictions has led to the fact that owners of the offshore entities have to maintain accounting records and to submit financial reports. It does not mean that you will have to submit the financial reports to the regulatory authorities on a quarterly basis. However, the relevant fiscal authorities reserve the right, when the necessity arises, to request information about the activities of your offshore company, etc. Moreover, in situations when an offshore company is not able to provide the required information, it can face various sanctions from the state.

Anti-offshore legislation for foreign business

International entrepreneurs should take into account the norms of the anti-offshore legislation, which standards provide certain requirements to the activities of the foreign and international companies. In particular, one can single out the following restrictions for private business, which structure includes foreign legal entities:

  • Necessity to inform fiscal authorities about the availability of such entities;
  • Payment of taxes on undistributed profits, depending on the functions of control, performed by tax residents of other countries.

In addition, the standards of the law determine some requirements in the area of management and financial reporting. For example, legislation in many countries obliges business persons to inform all the appropriate fiscal authorities about all the operations and transactions performed via foreign banking or deposit accounts. Persons, who possess a status of a tax resident in any single country, must submit annually information about the movement of their assets on the accounts in foreign jurisdictions to the authorities of this country. However, in spite of the stringent measures against offshore jurisdictions, they remain the most effective tool worldwide for ensuring the confidentiality and security of your financial assets.

How to register an offshore company with a bank account

The procedure of registering an offshore company with a bank account is quite simple and does not require large expenditures provided the availability of all the required documents. It is important to choose not only the appropriate offshore jurisdiction, but also a banking institution that will serve your company. The success of an offshore solution depends both on the opportunities of an offshore zone, and on the diversity of the financial instruments.

Once the choice is made, one should prepare a set of documents, including information about the shareholders, directors and authorized signatories of the bank account. Registration / incorporation of your company in an offshore jurisdiction will be carried out based on this documentation.

A standard set of documents required for registration of an offshore formation (company) includes:

  • A valid foreign passport of the applicant;
  • Documents confirming the actual place of residence of the applicant (utility bill);
  • A letter of recommendation and statement of personal account from another banking institution;
  • A brief business plan with the description of the intended entrepreneurial activity;
  • Summary of the founders and managers, with information about the professional experience and education.

Terms of registration of an offshore company

A whole period of registration of an offshore company can take on average from 3-5 working days to a couple of weeks. It greatly depends upon the characteristics of a chosen jurisdiction and the type of a registered company. You can either register a new offshore company, or to acquire a ready-made company with a bank account in an offshore bank. Besides, registration of a ready-made company can take a couple of days.

It is important to understand that you are unlikely to be able to purchase a ready-made offshore company with a bank account, as the banks do not register accounts on the nominees. A banking account can be opened, on average, within 2-3 weeks.

If you have since long ago planned to arrange for your business and assets the appropriate, effective, and what is the most important – reliable protection, it is the high time to think about registering an international company. Use the contact us form and get a free expert advice on the issues of choosing and registering an international jurisdiction and the appropriate banking institution.

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